Hire and pay 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 2 days with Deel.

Currency

United States Dollar - USD

Capital

San Juan

Official Language

Spanish & English

Payroll Cycle

Monthly

Onboard, pay and manage employees in Puerto Rico with Deel.

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.

Deel lets you hire employees in Puerto Rico quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

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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.

  • Public Health Care
  • Workplace Accident Insurance
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Allianz (optional)
  • Global Life Insurance - Allianz

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

The minimum wage is USD 1,160 per month.

Individual Income Tax

The individual income tax ranges from 0% to 33%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates, such as household status and the number of children.

Payroll Cost

The employer cost is estimated at 13.75% of the employee salary.

Monthly Costs

  • Puerto Rico unemployment - 2.70%*
  • Puerto Rico Special Assessment - 1.00%*
  • Workers Compensation Insurance - 1.50%
  • Federal Unemployment Tax (FUTA) - 0.60%*
  • Federal Social Security and Medicare (FICA) - 7.65%**
  • the maximum salary for the contribution is USD160,200
  • Disability Insurance - 0.30%***
  • the maximum salary for the contribution is USD 9,000

*up to a maximum salary for the contributions of USD 7,000

*up to a maximum salary for the contributions of USD160,200

*up to a maximum salary for the contributions of USD 9,000

Annual Costs

13th Month Salary - 2% of salary, no more than $600 USD

In Puerto Rico, in accordance with local labor law, the maximum annual contribution for FICA, FUTA, PR Unemployment and Disability are USD 11,245.5 , USD 56, USD 266 and USD 27 respectively. Once met,  no further contributions are required.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day and 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is mandatory for non-exempt employees. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid 150% of the hourly rate.

  • Non-exempt employees, according to federal and Puerto Rico overtime laws, are employees that do not spend most of their time managing teams or performing executive or professional duties and earn a salary above USD 2,964 per month. 

 

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Hiring in Puerto Rico, hassle-free

With Deel, your business can easily hire employees in Puerto Rico with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Puerto Rico and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)

13.75%

Estimate Employer Cost

*of employee salary

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

View our Employee Cost Calculator