Dominica Employment Guide

Minimum Wage Requirements in the Dominican Republic

In the Dominican Republic, minimum wage levels are not uniform across all sectors. Instead, they are determined by a combination of factors including company size, annual revenue, and whether the organization operates in the private or public sphere. Monthly minimum wages typically range from DOP 11,900 to DOP 21,000. For companies like SailGlobal, which generally fall into the higher revenue categories, the applicable minimum wage is DOP 21,000 per month.

Personal Income Tax Structure

The Dominican Republic employs a progressive tax system for personal income. This means the tax rate increases as an individual's taxable income rises. The current brackets are structured to provide relief for lower-income earners.

Understanding Employer Payroll Costs

Beyond the employee's gross salary, employers should budget for additional mandatory contributions, which typically amount to approximately 16.39% of the base salary. These contributions fund various social security and training programs.

• Pension Fund: 7.10%
• Health Insurance (SFS): 7.09%
• INFOTEP (Vocational Training): 1%
• Occupational Risk Insurance: 1.20%

It is important to note that most of these contributions are subject to salary caps. For instance, pension contributions are calculated on a maximum salary base of DOP 387,050. Similarly, caps apply to health insurance (DOP 193,525) and occupational risk insurance (DOP 77,410).

Furthermore, employers are obligated to provide a 13th-month salary (Aguinaldo) and an annual bonus. A one-time fee for processing the mandatory wet-ink employment contract, approximately $80 USD, is also required.

Overtime Regulations and Standard Working Hours

The standard workweek is defined as 40 hours, typically spread over five eight-hour days from Monday to Friday. The labor code permits extending the standard week by adding up to four hours on Saturday. Any work performed beyond these standard hours is considered overtime and must be compensated at a premium rate as stipulated by law.

For a precise calculation of all costs associated with employment in the Dominican Republic, including tailored advice for your specific situation, it is recommended to consult with SailGlobal's HR and compliance specialists.