Puerto Rico Employment Guide

Puerto Rico Employment Guide

Puerto Rico is a Caribbean island and an unincorporated territory of the United States, with a population of approximately 3.2 million. Its economy is diverse, with key sectors including manufacturing, pharmaceuticals, tourism, and services. San Juan serves as the political and economic capital. Employment in Puerto Rico is governed by both local labor laws and U.S. federal regulations, covering contracts, wages, working hours, leave entitlements, social security, and termination procedures. Employers must comply with labor standards, anti-discrimination policies, and benefits regulations to ensure proper employment practices.

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Currency

United States Dollar (USD)

Capital

San Juan

Official language

Spanish, English

Salary Cycle

Monthly

Our Employment Guide in Puerto Rico

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Paid Time Off (PTO) Policy in Puerto Rico

In Puerto Rico, both full-time and part-time employees are entitled to paid time off (PTO) annually. The accrual rates and maximum PTO days vary based on an employee's length of service. During the first year of employment, employees can accrue up to 6 working days of PTO.

  • Year 1: 0.5 days per month, maximum 6 days annually
  • Years 2-5: 0.75 days per month, maximum 9 days annually
  • Years 6-15: 1 day per month, maximum 12 days annually
  • 15+ years: 1.25 days per month, maximum 15 days annually

Public Holidays in Puerto Rico

Puerto Rico recognizes 18 official public holidays each year. These holidays reflect the island's rich cultural heritage and historical significance.

  • New Year's Day
  • Three Kings' Day (Epiphany)
  • Martin Luther King Jr. Day
  • Presidents' Day
  • Emancipation Day
  • Good Friday
  • Easter Sunday
  • Mother's Day
  • Memorial Day
  • Father's Day
  • Independence Day
  • Constitution Day
  • Labor Day
  • Race Day (Día de la Raza)
  • Veterans Day
  • Discovery Day
  • Thanksgiving Day
  • Christmas Day

Practical Implications for Employers

Companies operating in Puerto Rico, such as SailGlobal, must carefully track employee service years to ensure accurate PTO accrual. For instance, an employee with 8 years of service would earn 12 PTO days annually, plus the 18 public holidays. This totals 30 paid days off per year, which is significantly higher than in many U.S. states.

Compliance Considerations

HR professionals should note that Puerto Rico's PTO regulations are more generous than federal U.S. standards. Proper implementation requires robust tracking systems and clear communication with employees about their accrual balances and usage rights.

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