Minimum wage in Puerto Rico 2026: $10.50 an hour

How the island sets its rate

Act 47-2021 set a stepped schedule and created the Comisión Evaluadora del Salario Mínimo: seven members appointed by the Governor with Senate consent, at least four of them economists, chaired by the Secretary of Labor. The June 2024 DTRH release confirms the step to $10.50, but we could not read its text, so we give no effective date.

Weekly, monthly and yearly pay

The law sets only an hourly rate. At 40 hours a week, $10.50 is $420 a week, about $1,820 a month (173.33 hours) and $21,840 a year, about 45% above the federal rate. These are our full-time conversions.

Federal and local costs on top

Social Security (6.2% up to the 2026 wage base of $184,500) and Medicare (1.45%) apply as in the states, per the Social Security Administration: $1,670.76 on a $21,840 year, for $23,510.76 in all. Puerto Rico's own unemployment, disability and workers' compensation programs come on top at rates we have not confirmed, so 7.65% is a floor. Our Puerto Rico hiring guide shows the same partial cost on $40,000.

Running payroll here

Puerto Rico income tax replaces federal withholding for most residents, so check that your tool supports it; see our payroll software rankings. Otherwise an employer of record can employ the worker, at $99 a month (Native Teams; its help center says EUR 99) to $699 (Oyster), checked October 2026. Deel's $599 is about a third of a minimum-wage month. Compare on our EOR price table.

Mainland rates: the federal minimum wage and every state's 2026 rate.