Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
In the Dominican Republic, an Employer of Record (EOR) offers foreign companies a practical solution for employing workers without the requirement of establishing a local entity. With the support of an EOR, foreign companies can directly employ workers under their payroll while the EOR takes on the legal responsibilities of being the employer of record. This arrangement allows employees or contractors to carry out their services under the direction and supervision of the client company, while the EOR handles the legal and administrative aspects of employment. By leveraging the services of an EOR, foreign companies can streamline their operations, ensure compliance with local labor regulations, and focus on their core business activities.
As a foreign employer considering hiring in the Dominican Republic, it's important to have a solid understanding of the local employment landscape and regulations. This resource provides valuable information and insights to help you navigate the complexities of hiring and managing employees in the country.
Here, you will find comprehensive details on various essential aspects of employment in the Dominican Republic. Topics covered include employment contracts, minimum wage requirements, hiring practices, employee benefits, social security regulations, healthcare and insurance, leave policies, public holidays, work permits and visas, probation and notice periods, termination and severance guidelines, as well as personal income tax considerations.
| Overview | |
| Continent | Americas |
| Country | Dominican Republic |
| Time zone | UTC−04:00 |
| Total Time zones | 1 |
| Working hours per week | 40 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 31st Mar |
| Financial Year | 1st January to 31st December |
| Capital | Santo Domingo |
| Date format | dd/mm/yyyy |
| Currency | Dominican Peso (DOP) |
| VAT | the standard rate is 18% |
Employee Benefits in Dominican Republic
In the Dominican Republic, it is mandatory for all workers to participate in the national retirement pension plan, which is funded by contributions from both employers and employees. These contributions are made through withholdings from the employee's salary and a percentage of the employee's salary paid by the employer.
Regarding Social Security, employees are entitled to retirement benefits and receive a government pension once they reach the retirement age of 60 years and have contributed for a minimum of 360 months.
When it comes to Family Health Insurance, both the employee and the employer make contributions to Social Security. The employee's contribution is 3.04%, while the employer's contribution is 7.09%. These contributions cover healthcare expenses and ensure access to medical services.
For Old-age Allowance, Disability, and Survival, both the employee and the employer also contribute to Social Security. The employee's contribution is 2.87%, and the employer's contribution is 7.10%. These contributions provide coverage for old-age benefits, disability benefits, and survivor benefits.
The Social Security system in the Dominican Republic offers various primary insurances, including death benefits, accident allowances, and health benefits. These insurances are provided to workers who have contributed to the system based on the number of contributions made and the amounts involved in each contribution.
All employees, regardless of their income or type of work, have the right to be covered by social security. It is mandatory for all employees to belong to the Social Security system. Occupational risk insurance is administered by a government institution, leaving no option for alternative providers.
When it comes to family health insurance, the maximum salary contribution is equivalent to ten times the minimum wage. As per Law 87-01, the financing for this insurance is gradually made through joint contributions from both the employee and the employer.
Employer Payroll Contributions in Dominican Republic
| Employers | % of Gross Salary |
| Pension | 7.1% |
| Health Insurance | 7.09% |
| Labor Risks | 1.2% |
| Technical Education Tax | 1% |
| Total Employment Cost | 16.39% |
Employee Payroll Contributions in Dominican Republic
| Employees | % of Gross Salary |
| Pension | 2.87% |
| Health Insurance | 3.04% |
| Technical Education Tax | 0.5% |
| Total Employee Cost | 6.41% |
Minimum Wages in Dominican Republic
| Minimum Wage | |
| Minimum Wage | Enterprises worth 4 million DOP – DOP 17,610/month |
| Enterprises worth more than 2 million DOP but less than 4 million – DOP 12,107/month | |
| Enterprises with less than 2 million – DOP 10,730/month |
Payroll Cycle in Dominican Republic
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | A Christmas bonus can be given to employees (equal to one month’s salary) before the 20th of December. |
Personal Income Tax in Dominican Republic
| Income Tax | |
| Up to 416,220 DOP | 0% |
| 416,220 - 624,329 DOP | 15% |
| 624,329 - 867,123 DOP | 20% |
| Over 867,123 DOP | 25% |