Overview

Capital
Santo Domingo
Currency
Peso
Date Format
dd/mm/yyyy

Taxes

Employer
3.00% - Health Insurance
1.25% - Labor Risk Insurance
Employee
7.00% - Health Insurance
7.12% - Incapacity/ Retirement Fund
0.00% - Up to 416,220
15.00% - 416,220 -624,329
20.00% - 624,329 - 867,123
25.00% - Over 867,123

Minimum Wage

General

Minimum wage in Dominican Republic is broken up by location as the following: - In the TFZ (free trade zone): 8,310 Pesos monthly ($168.480) - Outside of the FTZ: 7,843 - 12,873 Pesos monthly (dependent on the size of the company). ($159.01-261) - The Public Sector: 5,884 Pesos monthly.

Payroll

Payroll Cycle

Salaries are paid on at minimum monthly.

Working Hours

General

Fulltime employment is considered 44 hours weekly, and 8 hours daily. * Executive and management positions excluded.

Overtime

All hours over 44 are paid at 135%, hours over 68 in one week are paid at 200% * Excluding managers

Payroll Contributions

Social Security

Of the total insured person and employer contributions (9.97%), 8.0% is directed to the individual account, 1% pays for disability and survivor insurance, 0.5% pays for pension fund management companies' administrative fees, and 0.07% contributes to the Superintendent of Pensions' operating costs.

Pension Fund

Employers contribute 7.10% of employees salary. Employee contributes 2.87% of their wages.

Additional Benefits

An additional salary if 1/12 the annual wage is paid on December 20th.

Leave

Maternity Leave

New mothers are entitled to leave of 6 weeks before birth, 6 weeks after birth.

Paternity Leave

New fathers are entitled to paternity leave of 2 days.

Parental Leave

No legal requirement.

Termination

Termination Process

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

Notice Period

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

Severance Pay

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

VAT

General

18% standard rate.