Payroll and Benefits Guide Dominican Republic

Employer

Employer Payroll Contributions

Employee

Employee Payroll Contributions

Employee

Employee Income Tax

General

Minimum wage in the Dominican Republic vary based on the size of the company:

• 21,000.00 DOP in large companies
• 19,250.00 DOP in medium-sized companies
• 12,900.00 DOP in small companies
• 11,900.00 DOP in micro-enterprises

Payroll Cycle

The payroll cycle is monthly or bi-weekly.

13th Salary

There are no provisions in the law regarding 13th salaries. However, employers will often offer a Christmas bonus equal to one month’s salary and paid around December 20th.

General

The standard workweek in the Dominican Republic consists of 44 hours per week or 8 hours per day.

Part-time employees must not work over 29 hours in a single week.

Overtime

Work in excess of the standard weekly working hours is considered overtime and is regulated by the employment contract or collective bargaining agreements.

All overtime hours in excess of 44-68 hours per week are paid at the rate of 135% of the regular pay. Any overtime above 68 hours per week is paid at the rate of 170% of the regular pay.

Overtime hours performed on a weekend or public holiday are paid at 200% of the employee’s regular pay rate, and overtime hours working during the night are paid at the rate of 115%.

Working Week

Monday-Friday

Paid Time Off

Full-time employees who have been employed for at least one year are entitled to 14 days paid annual leave. After 5 years of employment, this increases to 18 days.

Sick Days

There are no statutory laws on sick leave or pay.

Maternity Leave

Female employees are entitled to receive 14 weeks of paid maternity leave, generally seven weeks before the due date and seven weeks after.

Maternity leave paid is split equally between the employer and social security.

Paternity Leave

New fathers are entitled to 2 days of paternity leave.

Parental Leave

No legal requirement.

Other Leave

Employees receive paid leave for:  

• Death of family member or grandparent: 3 days 
• Marriage: 5 days  

Termination Process

Employers can terminate a fixed-term contract for the following:

• Business
• Personal
• Misconduct.

It requires written notice and an explanation for the termination.

Notice Period

The length of notice depends on the employee’s seniority: 

• Up to 6 months of employment: 7 days’ notice
• 6 months-1 year of employment: 14 days’ notice
• Over 1 year of employment: 28 days’ notice

Severance Pay

Severance pay is also determined by seniority: 

• 3 – 6 months: 6 days’ salary 
• 6 – 12 months: 13 days’ salary  
• 1 – 5 years: 21 days’ salary 
• Over 5 years: 23 days’ salary 

All payments of severance pay must be made within ten days of notification of termination.

Probation Period

The probation period depends on the type of role and is stipulated within the employment agreement. In general, probation periods are up to three months.

VISA

Foreign nationals require a business visa to conduct business activities in the Dominican Republic. Business Visas are either issued for 60 days for a single entry or multiple entries which is valid for 1 year. The authorized period of stay is granted at the discretion of the admitting officer and corresponds to the duration of the activity but typically does not exceed 30 consecutive days.

Business visa holders may apply for an extension of stay, usually granted for a maximum of 30 additional days.​

Foreign nationals who intend to work in the Dominican Republic require either a business visa for employment purposes for assignments of one year or less (issued by consular post with authorization from the Ministry of Foreign Affairs), or a Temporary Residence Permit for assignments exceeding one year.​

General

18% standard rate.