Possible changes to Minimum Wage Puerto Rico
A recent bill introduced in the Puerto Rico Senate – PS 1195- seeks to increase the state minimum wage above the federal minimum to $ 8.80 for 2016; a 70% increase from the present level. Currently the minimum wage in Puerto Rico is seventy percent (70%) of the federal minimum wage; or $5.08 / hour.
The increases would continue -staggered every two years- up to $ 15.00 in 2024. Companies with a gross income of a million dollars would feel the effects one year later than other companies. The rates would be subject to further revisions depending on the cost of living, as determined by the Department of Labor and Human Resources, with the assistance of the Institute of Statistics of Puerto Rico and the local Planning Board.
In summary, presently in Puerto Rico there are two minimum wages – federal and state. The federal is what dictates the Congress, currently $7.25 and the state is topped at 70% of that amount; or $5.08. The bill would increase the current minimum and apply to employees covered by the federal minimum wage if the state minimum is greater; and obviously it would because that is the intent of the bill.