Gradual Implementation of the State Minimum Wage


On January 1, 2022, the gradual increase of the state minimum wage began to be in effect.  Law 47 of September 21, 2021 (Law 47-2021) establishes the following dates for its implementation:


  • January 1, 2022: $8.50 per hour
  • July 1, 2023: $9.50 per hour
  • July 1, 2024: $10.50 per hour, unless the Commission issues a mandatory decree that modifies what is established under this Law.


The gradual increase of the minimum wage will apply to all workers covered by the Fair Labor Standards Act (FLSA).  However, it does not apply to the following categories:

  • Agricultural industry workers
  • Employees of the government agencies, municipalities, the Judicial and Legislative Branches of the government of Puerto Rico and of the USA government.
  • Exempt employees, such as Managers, Executives, and Professionals, whose terms and conditions are defined in Ruling 13 of the Minimum Wage Board. 
  • Employees who receive tips will have the right to earn the federal minimum wage of $2.13 per hour that, added to the tips they receive must reach at least the minimum wage established under Law 47-2021 or on the mandatory decree that is approved. 
  • Employees covered by a collective agreement signed between the worker’s organization and the employer, as long as the wages are equal to or higher than what is established by Law 47-2021


Any employee whose work compensation, either by collective agreement or by an individual contract, is lower than the one established by Law may take civil action to recoup the difference owed to him.  Through this civil action, the employee will be able to receive the total amount due for his compensation, either by wage or by any other benefit.  In addition, he may also receive an equal amount to the one he did not receive for any additional compensation, plus costs, expenses, interests, and legal fees he incurred during the process. 


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