Payroll Country Guide Puerto Rico - Immedis Global Payroll Glossary

Key Facts

Payroll Cycle: Bi-Weekly
13th Salary: The mandatory Christmas Bonus is reduced to 2% of the total salary, with a $600 cap for employees who work 1,350 hours that year, and up to $300 if the employer has twenty (20) employees or less.

Employee Income Tax (1): Less than 9,000 USD - 0%
Employee Income Tax (2): 9,000 - 25,000 USD - 7% of the excess over 9,000 USD
Employee Income Tax (3): 25,000 - 41,500 USD - 1,120 USD plus 14% of the excess over 25,000 USD
Employee Income Tax (4): 41,500 - 61,500 USD - 3,430 USD plus 25% of the excess over 41,500 USD
Employee Income Tax (5): Over 61,500 USD - 8,430 USD plus 33% of the excess over 61,500 USD

Paid Time Off: 6 days for 1st year

9 days between 1-5 year

12 days after the 5th year

15 days after the 15th year
Public Holidays: 19 public holidays.
Sick Days: Six days after successful completion of the first year of employment. After the first year, employees are entitled to 12 days which is accrued at the rate of one day per month following the commencement of at least 130 hours in that month.
Maternity Leave: Eight weeks.
Paternity Leave: Up to six months unpaid leave.
Parental Leave: No paid leave, can request up to 12 weeks unpaid leave.
Other Leave: Up to six months for an employee if they suffer with one of the Serious Diseases of Catastrophic Character.

Termination Process: Must have a reason to terminate an employee based on the employee’s job performance or behaviour.
Notice Period: No notice period.
Severance Pay: If there is no just cause for dismissal, the employee receives severance pay. The employee receives two months’ pay if the termination occurs within the first five years of employment and three months if after five years of employment.
Probation Period: Nine months.