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HRsolution » COUNTRIES » Puerto Rico

  1. Population

    Puerto Rico has approximately 3.2 million inhabitants (as of 2023). Due to migration, particularly to the United States, the population has decreased in recent years.

  2. Capital

    The capital of Puerto Rico is San Juan, the largest city and the economic and cultural center of the island, with about 320,000 residents in the urban area.

  3. Economic Power

  • Puerto Rico is an unincorporated territory of the United States, meaning it is part of the U.S. but has its own regulations in some areas.
  • The economy is heavily dependent on U.S. investments. Key industries include pharmaceuticals, electronics manufacturing, financial services, and tourism.
  • The island has a GDP of approximately 105 billion USD but has been struggling with debt issues and high unemployment rates for years.
  • Tourism is also a significant economic factor, driven by cruise ships and beaches.

  1. Culture

  • Puerto Rico has a diverse culture deeply influenced by Spanish, African, and indigenous Taíno roots. The U.S. has also significantly influenced the island, creating a bilingual society (Spanish and English).
  • Music and dance play a major role in the culture. Puerto Rico is particularly known for Salsa, Reggaeton, and traditional forms like Bomba and Plena.
  • Festivals and celebrations, such as Día de los Reyes (Three Kings’ Day) and San Juan Bautista, are important cultural events.

  1. Currency

    Puerto Rico uses the U.S. dollar (USD), as it is a territory of the United States.

  2. Health Insurance and Social Security System

  • Puerto Rico has a public healthcare system managed by the Puerto Rican Health Insurance Administration (ASES). Medicaid and Medicare, U.S. health programs for low-income and elderly citizens, are also available.
  • Many employees also use private health insurance for more comprehensive coverage.
  • The social security system is directly linked to that of the U.S., with workers paying social security contributions similar to those in the United States.

  1. Employer Costs

  • Employers in Puerto Rico must pay Social Security (FICA) contributions, covering retirement and health insurance, which amount to about 7.65% of the salary.
  • Additional contributions include unemployment insurance and workers’ compensation, which vary by industry and company size.

  1. Salary and Bonuses

  • The minimum wage in Puerto Rico has been about 8.50 USD per hour since 2022, though higher wages are common depending on the industry and qualifications.
  • Employees are entitled to a 13th-month salary (Christmas bonus), paid in December, provided they have worked at least 700 hours in the year.

  1. Payroll

  • Payroll in Puerto Rico is structured similarly to that in the U.S., including gross salary, tax deductions, social security contributions, and any bonuses.
  • Income tax is levied at a progressive rate, and deductions for health and social security contributions are also considered.

  1. Public Holidays

    Puerto Rico observes a mix of U.S. and local holidays. Public holidays include:

  • New Year’s Day (January 1)
  • Día de los Reyes (January 6)
  • U.S. Independence Day (July 4)
  • Thanksgiving (fourth Thursday in November)
  • Christmas (December 25)
  • Discovery of Puerto Rico Day (November 19)

  1. Working Hours

  • The standard workweek in Puerto Rico is 40 hours, spread over 5 days.
  • Overtime is regulated following the U.S. model, typically starting after the 40th hour or for work on holidays and weekends.

  1. Vacation

  • Employees in Puerto Rico are entitled to at least 15 days of paid vacation per year, depending on their length of service and company policies.
  • Paid leave is also granted for public holidays.

  1. Sick Leave

  • Employees in Puerto Rico are entitled to sick leave in case of illness or injury.
  • The social security system covers wage continuation, although this is often limited to a specific period. The first days are usually paid by the employer.

  1. Termination/Severance

  • Puerto Rico has strict labor laws regarding dismissal protection. Termination without valid reason can lead to severance payments.
  • Severance depends on the length of employment and contractual agreements and can include several months’ salary.
  • Specific notice periods must also be adhered to.

Puerto Rico offers a unique blend of U.S. standards and Caribbean lifestyle, providing an interesting environment for work and living due to its close ties to the U.S. and distinct cultural and legal characteristics.

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