All About Offering Employee Benefits in Puerto Rico
Hire the best talent in Puerto Rico with the information you need to offer a competitive benefits package and stay compliant.
Required Benefits in Puerto Rico
Employees in Puerto Rico are entitled to several mandatory benefits. Since Puerto Rico is a U.S. territory, it follows federal laws in many areas, but local regulations also apply. These include paid vacation, paid sick leave, and a mandatory Christmas bonus for eligible employees. In addition, employees are entitled to maternity leave, workers' compensation for job-related injuries, and unemployment benefits. Puerto Rico doesn’t have a separate social security system, so employees are covered under the U.S. Social Security program.
Ready to attract and retain the best talent in Puerto Rico with Justworks? Let’s explore the mandatory benefits you need to provide — and the additional perks that can give your business a competitive edge.
Social Security
Puerto Rico’s Social Security system is integrated with the U.S. federal Social Security program. This means employees in Puerto Rico are eligible for the same benefits as those in the mainland U.S., including retirement, disability, and survivor benefits. Employees and employers contribute to Social Security through payroll taxes, which provide income support for workers who are retired or disabled. Puerto Rican workers also qualify for Medicare benefits once they meet eligibility requirements.
Time Off
In Puerto Rico, vacation leave is a mandatory benefit for most employees. Full-time employees accrue 1.25 days of vacation per month, totaling 15 days per year. Employees hired after January 26, 2017, accrue vacation based on their years of service, starting at six days per year for the first year and increasing to 15 days per year after 15 years of service. Vacation days can be used after they’ve been accrued, and employers are required to compensate employees for unused vacation leave if their employment ends.
Christmas Bonus
Employers are required by law to provide a Christmas bonus (known as "aguinaldo") to employees. The bonus is typically paid before Christmas and is calculated and the amount depends on the number of months worked, with employees receiving a proportionate share for each month they were employed.
Competitive Benefits
 A robust employee benefits package proves a powerful recruitment tool in Puerto Rico. Consider incorporating the following benefits.
Flexible Work Arrangements
Offering remote work options or flexible hours can be a big draw, especially for employees looking for better work-life balance.
Health and Wellness Programs
Providing additional health benefits, such as dental, vision, or mental health support, can help enhance employees' overall well-being and show that you care about their health beyond the basics.
Professional Development
Offering stipends for education, training, or certifications can be a great way to invest in your employees’ growth and build a culture of continuous learning within your company.
Ready to Offer Benefits in Puerto Rico?
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