On June 12 th, 2024, the Minimum Wage Evaluation Commission of the Department of Labor and Human Resources (“DLHR”) (hereinafter, “the Commission”) announced that, effective July 1st , 2024, the minimum wage will increase to $10.50 per hour, as previously established by the “Puerto Rico Minimum Wage Act” (hereinafter, “Act No. 47”).

The Commission’s determination was based on the analysis of the Minimum Wage Analysis Puerto Rico: Final Report issued by the consulting firm Abexus Analytics. The basis of the analysis included data collected from quarterly returns from the DLHR, the Quarterly Census of Employment and Wages (ES-202), aggregated data from corporate income tax returns from the Puerto Rico Treasury Department, the inflation rate, and other factors established under Act No. 47. The collection of this data allowed the creation of multiple microsimulations that measure the increase in the labor force, business closures and the inflationary effect using different hypothetical increases.

As we mentioned in a previous Newsletter, Act No. 47 established an annual minimum wage increase system for non-exempt employees of the private sector in Puerto Rico. Pursuant to Section 2.02 of Act No. 47, as part of the established staggered increase, the minimum wage increased to $8.50 per hour on January 1, 2022, to $9.50 per hour on July 1, 2023, and to $10.50 per hour on July 1, 2024. Act No. 47 also created and granted authority to the Commission to periodically review the Commonwealth’s minimum wage to adjust it to the increase in the cost of living of Puerto Rican workers.

If you have any questions or comments regarding these recent developments that impact the employment landscape or if you’d like assistance to revise or modify your practices and policies to ensure compliance with local legislation, please contact any of the following attorneys from our Labor & Employment Practice Group at your convenience: