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Capital City
Santo Domingo
Currency
Dominican peso
(
RD$
)
Timezone
GMT -4
Payroll Frequency
monthly
Tax Year
1 January- 31 December
Employer Tax
16.39%
Languages
Spanish
Capital City
Santo Domingo
Currency
Dominican peso
(
RD$
)
Timezone
GMT -4
Payroll Frequency
monthly
Tax Year
1 January- 31 December
Employer Tax
16.39%
Languages
Spanish
The Dominican Republic offers a cost-effective labor market, with varying minimum wage levels based on company size.
Situated in the Caribbean, the Dominican Republic's geographical location provides strategic advantages for businesses involved in international trade, with proximity to both North and South American markets.
The country's thriving tourism sector can benefit businesses in hospitality, entertainment, and related industries. A steady stream of tourists can create opportunities for businesses catering to this market.
The Dominican Republic has a growing pool of skilled and educated professionals, particularly in industries such as information technology, tourism, and manufacturing.
Businesses can only operate smoothly in Dominican Republic if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Dominican Republic below, to avoid any compliance issues.
Labor relations are primarily governed by the Labor Code, Law No. 16-92, and its associated regulations, such as Decree No. 258-92. While it is possible for employers to conduct recruitment and selection without a written employment contract, it is highly advisable to have a formal contract in place. Here are key components that should be covered in the contract:
We can help you get a new employee started in Dominican Republic quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
In the Dominican Republic, the standard workweek consists of 44 hours, distributed as 8 hours per day. Part-time employees are restricted from working more than 29 hours in a week.
If employees work more than the usual 44-68 hours per week, they get paid extra. Up to 68 hours, it's 135% of their regular pay, and beyond that, it's 170%. If they work on weekends or holidays, it's 200% of their regular pay, and for nighttime work, it's 115%. The exact details depend on the employment contract or any agreements in place.
The probationary period in the Dominican Republic is determined by the specific job role and outlined in the employment contract.
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1 January- 31 December is the 12-month accounting period that businesses in Dominican Republic use for financial and tax reporting purposes.
The payroll cycle in Dominican Republic is usually monthly, with employees being paid by the last day of the month.
The minimum wage for employees in Dominican Republic is typically 67.61 DOP - 119.32 DOP per hour, amounting to ~ 11,900 DOP - 21,000 DOP per month for a typical 44 hour work week.
The law does not include provisions for 13th salaries. However it is common practice for employers to provide a Christmas bonus equivalent to one month's salary.
Employer payroll contributions are generally estimated at an additional 16.39% on top of the employee salary in Dominican Republic.
In Dominican Republic , the typical estimation for employee payroll contributions cost is around 6.41%.
Individual income tax in the Dominican Republic is calculated using progressive rates ranging from 0% to 25% as follows:
Everyone who works, whether for the government or a private company, has to put money into their personal pension account. Employers also contribute. On top of that, they all have to pay for insurance that covers disability and survivor benefits.
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The annual leave entitlement in Dominican Republic is 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
Employees can take time off from work during the following public holidays:
Employees get 14 days off each year after their first year of employment. After completing five years, they receive an extra four days of annual leave.
In the Dominican Republic, if an employee has worked for a year and paid into Social Security for 8 months, they get 14 weeks of paid maternity leave. Employees can start the leave 6 weeks before their baby is born. During this time, they'll get their full salary, and both Social Security and your employer will cover the payment.
Employees are entitled to 2 days of paid paternity leave
Employees in the Dominican Republic are entitled to paid sick leave for a maximum of 90 days. The payment rates vary based on the type of sickness:
There is no specific law governing parental leave. However, employees may be eligible for maternity leave and paternity leave
Employees are entitled to 3 days of paid leave for the loss of a family member.
Employees who are getting married are entitled to 5 days of leave.
Employers in the Dominican Republic can terminate a fixed-term contract for reasons related to business needs, personal reasons, or employee misconduct. The termination process involves providing written notice to the employee, along with a clear explanation for the termination.
The minimum notice period for contract termination is 7 days and increases based on the length of employment:
Employees may receive severance pay based on their length of service, bonuses, and accrued time off as follows:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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