Puerto Rico's minimum wage of $10.50 in 2026 is about average in the United States, and it is significantly higher than than the base federal minimum wage of $7.25 still used in 20 states.
Assuming a standard 40-hour work week, the weekly minimum wage in Puerto Rico is $420. For full-time employees working 52 weeks per year, the annual minimum wage in Puerto Rico is $21.8K.
Based on $10.50/hr minimum
Based on $10.50/hr minimum
The minimum wage rate of Puerto Rico and its neighboring states ranges from $7.25 to $15, with an average of $9.08. Puerto Rico, at $10.50, has an above average hourly minimum wage within this group of states. Florida ($15) has higher hourly rates than Puerto Rico. Alabama ($7.25), Louisiana ($7.25), Mississippi ($7.25), and Texas ($7.25) have lower hourly rates than Puerto Rico.
While the general minimum wage is $10.50 per hour in Puerto Rico, there are several exceptions where workers may legally receive less than this amount:
Employees paid in cash have a minimum wage of $2.13.
These employees have a minimum wage of $8.37.
Employees whose primary duty is managing the enterprise or a department, who regularly direct the work of at least two full-time employees, and who have authority to hire, fire, or significantly influence employment decisions are exempt from state minimum wage legislation.
Employees performing office or non-manual work related to management or general business operations, exercising discretion and independent judgment on significant matters are exempt from state minimum wage legislation.
Employees performing work requiring advanced knowledge in a field of science or learning, customarily acquired through prolonged specialized instruction are exempt from state minimum wage legislation.
Workers defined as highly skilled workers in computer systems analysis, programming, or related fields earning at least $684 weekly or $27.63 are exempt from state minimum wage legislation.
Covers employees whose primary duty is making sales or obtaining orders away from the employer’s place of business (no salary threshold requirement).
Puerto Rico's cost of living index for 2025 is 102.3, which places it as the 18th most expensive state to live in the United States.
100
102.3
Assuming a standard 40-hour work week, the real wage in Puerto Rico, adjusted for the state’s cost of living index of 102.3, is approximately $10.26 per hour. This means that while the nominal minimum wage is $10.50 per hour, the purchasing power of those earnings is lower due to Puerto Rico's higher cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $410.56, translating to an annual purchasing power of $21,348.97 when working 52 weeks per year.
Adjusted
Adjusted
Adjusted
According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
Puerto Rico is subject to the federal minimum wage under the Fair Labor Standards Act (FLSA) for covered employees, while the Puerto Rico Department of Labor and Human Resources establishes additional wage orders that set minimum wage rates for specific industries and occupations within the territory.