Hire employees in

Puerto Rico, hassle-free

Hire employees in Puerto Rico, hassle-free

With Deel, your business can easily hire employees in Puerto Rico. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Puerto Rico is 1 day with Deel.

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Currency

United States Dollar - USD

Capital

San Juan

Official Language

Spanish & English

Payroll Cycle

Monthly

Hire employees in Puerto Rico. No entity needed.

Usually, to hire in Puerto Rico, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Puerto Rico also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Puerto Rico quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Puerto Rico
built right in

Deel allows you to provide localized benefits for employees in Puerto Rico within minutes. All in one manageable online dashboard.

Our quickstart guide to hiring in Puerto Rico

Navigate the tabs below to learn everything you need to know about hiring an employee in Puerto Rico

Minimum Wage Requirements

Minimum wage in Puerto Rico is USD 7.25 per hour.

Employer Cost

Employer cost - Approx. 14.05%

Overtime Pay & Maximum Hours

The standard working time is 8 hours per day, 40 hours per week. Workweek will be determined by the employer. Employees are entitled to 1 hour of unpaid meal break. If the employee works more than 10 hours in a given day, the employee will be entitled to overtime pay at a rate of 1.5 times.

Maternity Leave

Employees are entitled to 8 weeks of paid leave, 4 weeks should be taken prior to birth, and 4 weeks after birth of the child. Maternity leave is paid by the employer.

Paternity Leave

Employees are entitled to 5 working days of unpaid leave. However, is best practice to grant 30 days.

Parental Leave

Employees are entitled to 5 working days of unpaid leave. However, is best practice to grant 30 days.

Sick Leave

Full time employees with indefinite contract (non-exempt employees) are entitled to accrue one day per month, up to 12 days per year. For employees with fixed-term contracts sick leave will depend on the job position, will be entitled for sick leave.

Termination Requirements

The employment contract can be terminated by both parties if due notice or payment in lieu of notice is given. Severance must be paid in case the employee has an indefinite term contract. Fixed term contracts don't have severance.

Steps:

  1. Employer notifies employee of termination
  2. Employer pays employee final pay with last payroll.
  3. Employer sends email notifying employee of Unemployment Rights and benefit termination

Fixed term contract: no severance, but if terminated early may be liable for the remainder of the contract term if the contract is terminated without cause.

Indefinite term contract: An open-ended contract will trigger the provisions of the Unjustified Dismissal Act (“Act 80”) which requires “just cause” to terminate employment. If there is no “just cause” then severance will be owed to the employee, based on his/her highest salary in the last 3 years of employment, and his/her years of service. The applicable formula at this time is 3 months’ salary plus 2 weeks’ salary for every completed year of service, up to a cap of 9 months of severance. Notice is not required under Puerto Rico law, but may be required under the contract

Notice Period

In Puerto Rico, notice period does not apply.

Paid Time Off

In Puerto Rico, non-exempt employees (indefinite contract) are entitled to:

  • 6 days the first year of employment
  • 9 days after the first year of employment
  • 12 days after the fifth year of employment
  • 15 days after fifteen years of employment

Employees with a fixed term contract, are not entitled to paid time off, however is best practice to grant 6 days as indefinite contracts.

Public Holidays

Puerto Rico celebrates over 18 public holidays.

Onboarding

Employees documentation will be required by Coffee HR directly to employees

Process to onboard an employee in the country:

In Puerto Rico, Deel's affiliate will do the onboarding (documentation capture) for the employee. Coffee HR haan online onboarding process that will begin once the contract is signed on the Deel platform. This includes I-9 processing, tax form submissions, direct deposit, and signing handbook.

  1. Is it necessary for the employee to be registered with Social Security before the start date? How much time it takes? No, but they must be in the process of registering
  2. Is it required for the employee to go through a medical check before the employment starts?

Documentation required

  1. New hire form
  2. I-9 Form
  3. Tax Id copy

Probation Period

Probation period is not mandatory. For indefinite contracts can raise up to 12 months, and for fixed term contracts probation period can last up to 9 months.

Hiring in Puerto Rico, hassle-free

With Deel, your business can easily hire employees in Puerto Rico. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

14.05%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Puerto Rico?

View our Employee Cost Calculator

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