Dominican Republic

Employment

Employment contracts may be either written or oral.

Payroll

Salaries are paid on a monthly basis (minim).

HR & Labor

Working Hours: Full time employment is considered 44 hours per week and eight hours a day. Executive or Administrators are the exception and can work 10 hours a day. Overtime receives 135%, and every hour excess of 68 hours a week receive 200%.
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Working Age: Employer cannot hire an employee below the age of 14 for non-labor position, and 16 for labor positions. Work hours of minors cannot exceed 6 hours a day.

Immigration

Depending on the length of expected stay, ex-patriots must have either a temporary residency (good for one year and renewable) or a short stay permit (for 2-11 months).

Benefits

Christmas salary, 1/12 of annual salary paid on or before December 20th.

Minimum Wage

Minimum wage in Dominican Republic is broken up by location as the following:
- In the TFZ (free trade zone): 8,310 Pesos monthly
- Outside of the FTZ: 7,843 - 12,873 Pesos monthly (dependent on the size of the company).
- The Public Sector: 5,884 Pesos monthly.

Pension Fund

Employer contributes 7.10% of employees salary.

Employee contributes 2.87% of their wages.

Sick Days

There is no legal requirement for sick days. The only leave of absence required is 5 days for marriage, 3 days for the death of a spouse, child, parent or grandparent, 2 days for paternity leave, and 12 weeks for maternity leave.

Severance Payments

Employees are entitled to severance payments on the basis of the length of their employment with the company.
* 3-6 months of employment: 6 days of salary
* 6-12 months of employment: 13 days of salary
* 1-5 years of employment: 21 days of salary per year
* 5+ years of employment: 23 days of salary per year

Advance Notice

Notice period is dependent on how long the employee has been with the company.
* 3-6 months: Employee must provide 7 days notice
* 6-12 months: Employee must provide 14 days notice
*Over 12 months: employee must provide 28 days notice

Termination Procedure

Termination period is dependent on how long the employee has been with the company.
* 3-6 months: Employer must provide 7 days notice
* 6-12 months: Employer must provide 14 days notice
* Over 12 months: Employer must provide 28 days notice

Public Holidays

There are 11 public holidays

Vacation Days

Employees are entitled to receive a minimum of 14 vacation days yearly

VAT

VAT is 16% standard rate.

Income Tax

Withholding are made in accordance to individuals tax scheme. Exemptions are made for salaries below 34,106.75 DOP.