Employer of Record in Dominican Republic
General Information
- Currency: Dominican Peso (DOP)
- Employer Taxes: Unknown
- Payroll Frequency: Bi-Monthly / Monthly
- Employee Costs: 6.41%
- Capital: Santo Domingo
- Fiscal Year: 1 January – 31 December
Main Aspects of the Labour Code
Minimum Wage
General: The monthly minimum wage in the Dominican Republic varies based on the size of the company:
11,900 DOP for micro-enterprises (up to 10 employees)
21,000 DOP for large companies (more than 151 employees)
19,250 DOP for medium-sized companies (51-151 employees)
12,900 DOP for small companies (11-50 employees)
Payroll
Payroll Cycle: The payroll cycle is monthly or bi-weekly or semi-monthly.
13th Salary
Workers are eligible for one additional monthly salary as a Christmas bonus, it must be paid before December 20th. It is exempt from income tax.
Working Hours
General: The standard workweek in the Dominican Republic is 44 hours, which translates to 8 hours per day. Part-time employees are limited to a maximum of 29 hours per week.
Overtime: Work beyond the standard weekly hours is classified as overtime and is governed by the employment contract or collective bargaining agreements.
- Overtime for hours worked between 44 and 68 hours per week is compensated at 135% of the regular pay rate.
- Hours exceeding 68 hours per week are paid at 170% of the regular pay rate.
- Overtime during night shifts (9 PM to 7 AM) is compensated at 115% of the regular pay rate.
- Overtime worked on weekends or public holidays is paid at 200% of the regular pay rate.
Managers are exempt from overtime pay for up to 50 hours of overtime per week.
Leave
Annual Leave (Vacation):
Full-time employees who have completed at least one year of service are entitled to 14 working days of paid annual leave. After five years of employment, this entitlement increases to 18 days.
Annual leave must be taken in increments of at least 7 days.
The accrual of vacation days is based on each employee’s start date rather than the calendar year.
Salary for the vacation period must be paid in advance, no later than the day before the vacation begins.
Public Holidays
Public holidays falling on the weekend are usually lost.
Public Holidays
| Date | Day | Holiday |
| 1 Jan 2024 | Monday | New Year’s Day |
| 6 Jan 2024 | Saturday | Kings Day |
| 21 Jan 2024 | Sunday | Our Altagracia Lady |
| 29 Jan 2024 | Monday | Juan Pablo Duarte’s Birth |
| 27 Feb 2024 | Tuesday | Independence Day |
| 29 Mar 2024 | Friday | Holy Friday |
| 1 May 2024 | Wednesday | Labor Day |
| 30 May 2024 | Thursday | Corpus Christi |
| 16 Aug 2024 | Wednesday | Restauration of the Republic |
| 24 Sep 2024 | Tuesday | Lady of Mercedes |
| 4 Nov 2024 | Monday | Constitution’s Day |
| 25 Dec 2024 | Wednesday | Christmas |
Sick Days
There are no statutory laws on sick leave or pay.
Maternity Leave
Female employees are entitled to 14 weeks of paid maternity leave, typically divided into seven weeks before the due date and seven weeks after. The maternity leave pay is shared equally between the employer and Social Security.
Employers cannot terminate employees due to pregnancy, including for up to three months after childbirth.
Additionally, mothers have the right to a 20-minute rest period each workday to breastfeed.
Paternity Leave
Fathers are entitled to 2 days of paid paternity leave.
Parental Leave
No legal requirement.
Other Leave
Employees are entitled to paid leave for the following reasons:
- Bereavement Leave: In the event of a family member’s death (including grandparents), employees receive 3 days of leave.
- Marriage Leave: Employees are granted 5 days of leave for their own marriage.
Taxation
Employer Payroll Contributions
|
7.10%
|
Pension and Disability (Maximum contribution 269,640.00 DOP)
|
|
7.09%
|
Health Insurance (Maximum contribution 134,820.00 DOP) DOP)
|
|
1.20%
|
Labor Risk (Maximum contribution 53,928.00 DOP)
|
|
1.00%
|
Instituto Nacional de Formación Técnico Profesional (INFOTEP)
|
| 16.39% |
Total Employment Cost |
Employer Payroll Contributions
|
2.87%
|
Pension and Disability
|
|
3.04%
|
Health Insurance
|
|
0.50%
|
Technical Education (INFOTEP)
|
| 6.41 |
Total Employee Cost |
Employee Income Tax
|
0.00%
|
Up to 416,220.00 DOP
|
|
15.00%
|
416,220.00 DOP – 624,329.00 DOP
|
|
20.00%
|
624,329.00 DOP – 867,123.00 DOP
|
| 25.00% | 867,123.00 DOP and over |
Employer of Record in Dominican Republic with Brain Source International
Benefits of Partnering with Brain Source International
- Cost Efficiency: Avoid the costs associated with establishing a local entity while still accessing the local workforce.
- Local Expertise: Benefit from Brain Source’s understanding of the Dominican Republic’s employment landscape and best practices.
- Focus on Core Business: Free up resources to concentrate on strategic initiatives rather than the complexities of employment management.
- Scalability: Easily adjust your workforce based on business needs without the burden of local compliance.
Utilizing Brain Source International as an Employer of Record in the Dominican Republic allows businesses to expand their operations smoothly while ensuring compliance with local labor laws. This partnership provides a strategic advantage by simplifying the employment process and enabling companies to focus on growth and innovation. If you’re considering expanding into the Dominican Republic and want to know more about the services offered by Brain Source International, feel free to reach out for more information.