Unemployment insurance is mandatory at state and federal level. Employers are entitled to contribute a maximum of 5.4% of annual wages to the state (SUTA) and 0.6% to the federal unemployment tax (FUTA)
The Puerto Rico Compensation System for Work-Related Accidents Act provides certain economic benefits and job reinstatement rights to employees who become temporarily disabled due to work-related illness or injury.
Employers are required to pay mandatory premiums of 1% of the employee’s salary to a public corporation known as the State Insurance Fund Corporation (SIFC), based on the total amount of salaries paid and the types of risks involved.
In addition to economic benefits, the SIFC also provides the medical and rehabilitation services that ill and or injured employees may need. This government system may not be substituted with private coverage. In exchange for payment of the mandatory premiums, employers are generally granted immunity from any civil action and damages resulting from employee work-related accidents.
Non-occupational disability insurance
SINOT (Act No. 139 of 26 June, 1968) provides up to 12 months (equivalent to 360 days) of protected leave and certain economic benefits to employees who become temporarily disabled due to non-occupational illness or injury.
SINOT coverage is compulsory for all employees, exempt and non-exempt.
For purposes of computing the disability period, paid vacation and/or sick leave cannot be deducted from the maximum period of benefits.