State Law > Puerto Rico > Puerto Rico Wage Payment Law

Puerto Rico Wage Payment Law

 

Laws dealing with payment of wages are codified at Puerto Rico Laws Annotated Title 29, Part I, Chapter 9, Sections 171 to 179.

In general, the employer needs to pay wages in U.S. dollars. The employer can do so using any of the following methods: cash, check, direct deposit or through electronic transfer of funds, directly to the checking or savings account of the employees. If the employee receives a cash advance payment before the regular payday, the employer may lawfully deduct the advance. Other than this deduction, the employer may only deduct or withhold from the salary specific items enumerated under the law and specifically determined by employer and employee.

If the employer chooses to establish a payment system through direct deposit or electronic transfer, it shall take effect on a voluntary basis and only with the prior authorization of the employee. Payment of wages must take place at intervals that can not exceed fifteen (15) days. When an employee is dismissed or has to leave work during any day of the week, the employer must pay him the amount due for the number of days worked, no later than the next official payday.

There is also a provision for the payment of an annual bonus. Title 29, Part I, Chapter 21, sections 501 to 507.

On January 26, 2017, the Governor of Puerto Rico approved the Labor Transformation and Flexibility Act. The Act makes substantial changes to virtually all existing Puerto Rican employment laws. The law contains numerous changes on employment contracts, exclusions, independent contractors, employee rights, contract termination, statute of limitations, overtime, vacation and sick leave, gross income, and unemployment insurance.

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