title_atlas__doing-business__2-entreprise_travail.html

The Active Population in Figures

Working Conditions

Legal Weekly Duration

40h week, 8 hours per day, with an hour break for lunch. Overtime is usually paid at a rate of 150% for federal jobs, and special rules apply on Sundays and some holidays, including double remuneration. Flexible schedules are sometimes possible. Compulsory holidays do not apply to manufacturing companies.

Retirement Age

The age of retirement has recently been lowered. For Employers under the Law 447: 65 years, Act 1: 67 year; Reform 2000: 67 years; police and firefighters: 58 years of age or 30 years of service.

Working Contracts

A work contract is not obligatory in Puerto Rico, but it is recommended. Manuals describing employee rights and privileges as well as general obligations and responsibilities are often used instead of a contract of employment between the employer and the employee. There are no fixed-term contracts, which means that any employment relationship is presumed to be for an indefinite period.

Cost of Labour

Minimum Wage

The U.S. federal law  (Federal Fair Labor Standards Act - FLSA) applies in Puerto Rico. Covered non-exempt employees are entitled to a minimum wage of USD 7.25 per hour. Puerto Rico also has minimum wage rates that vary across industry sectors. These range from USD 4.25 to USD 7.25 per hour

Average Wage

The average weekly wage was $506 in 2012. 

Social Contributions

Social Security Contributions Paid By Employers: Federal: FICA: 7.65% compensation of employees; FUTA 0.8% of the first tranche of $7,000 of employee compensation. In Puerto Rico: Unemployment Insurance: maximum 5.4% of the first tranche of $7,000 of employee compensation; disability insurance: 0.3% of the first tranche of $9,000 of employee compensation; work accident insurance: rates vary according to the degree of risk associated with the employee's occupation.
Social Security Contributions Paid By Employees: Federal: FICA: 7.65%; Puerto Rico: unemployment, disability and accident insurance contributions.

Social Partners

Social Dialogue and Involvement of Social Partners

The government respects labor union rights and unions are generally free to organize and strike.

Labour Unions

Unión General de Trabajadores (UGT)
Federación de Trabajadores de Puerto Rico (FTPR)
Sindicato Puertorriqueño de Trabajadores (SPT)

Unionisation Rate

10.6% (2006)

Labour Regulation Bodies

Departamento del Trabajo y Recursos Humanos