Bill to increase minimum wage Puerto Rico

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.