Fiscal board approves new compensation rules for gov’t

Facundo Miguel Di Mauro Vázquez, director of the Office of Human Resources Administration and Transformation

By THE STAR STAFF

The Office of Human Resources Administration and Transformation (OATRH by its initials in Spanish) announced Tuesday that the Financial Oversight and Management Board for Puerto Rico has officially approved the new Regulation for Compensation Administration in the Central Government.

The measure marks a major step forward in strengthening the Single Employer system and modernizing human capital management in the public sector, according to the OATRH. The determination was communicated in a June 21, 2026 letter from the oversight board, which designated the regulation as “Approved” and acknowledged the sustained collaboration between the two entities throughout the evaluation process.

The new regulation establishes uniform rules and procedures for administering compensation for central government employees, ensuring that pay decisions are based on objective criteria, labor‑market data and principles of fiscal responsibility. It also reaffirms the OATRH’s centralized authority to preserve the integrity of the Uniform Classification and Compensation Plan created under Act 8‑2017.

OATRH Director Facundo Miguel Di Mauro Vázquez emphasized that the approval represents one of the most significant advances in the transformation of public service in Puerto Rico.

“The approval of this Regulation is a historic achievement for Governor Jenniffer González Colón’s administration and for OATRH,” he said. “This outcome is the result of months of technical work, planning, and constant, effective collaboration with the [...] Oversight Board. We share the commitment to building a modern, uniform, transparent, and sustainable compensation system that strengthens the Merit Principle and allows the Government to attract and retain the best talent to serve the people of Puerto Rico.”

Di Mauro Vázquez added that the regulation is part of a broader vision for modernizing the government’s human capital.

“Transforming public service requires solid structures and clear rules,” he said. “This new compensation framework promotes internal equity, competitiveness with the labor market, and continuous professional development for our public employees. We will continue advancing innovative reforms that position Puerto Rico at the forefront of public administration.”

In its official communication, the oversight board noted that the Regulation for Compensation Administration serves as the compensation pillar of Puerto Rico’s Public Service Reform and highlighted that the model developed by OATRH represents a significant innovation within the U.S. public sector. The board also expressly thanked OATRH for its “constant effort and collaboration throughout the review process” to strengthen the regulation.

Key provisions of the new regulation include:

* Implementation of a uniform process for salary increases and incentives based on objective criteria

* Protection of the structure of the Uniform Classification and Compensation Plan

* Periodic review of salary scales using labor‑market data

* Creation of a mechanism to identify and address high‑demand positions (“Hot Jobs”)

* Integration of the Skills Evaluation System for Professional Development (SED‑PRO), linking competency development to employees’ professional growth.