Back

Payroll and Benefits Guide Dominican Republic

Last updated: May 03, 2023

Currency
Dominican Peso (DOP)
Employer Taxes
Unknown
Payroll Frequency
Bi-Monthly / Monthly
Employee Costs
6.41%
Capital
Santo Domingo
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
video poster

Contributions

Employer

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

Employee

Employee Payroll Contributions

2.87%

Pension and Disability

3.04%

Health Insurance

0.50%

Technical Education (INFOTEP)

6.41

Total Employee Cost

Employee

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 taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

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

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

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.

Working Hours

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

Leave

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.

Vacation Days
Public Holidays
Highest
Lowest

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.

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

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: days  

Termination

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

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.​

VAT

General

18% standard rate.

Stay up to date on payroll & employment law changes

Questions & Answers

Subscribe
Notify of
guest
2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Eddie
Eddie
1 year ago

Hi, My temporary work permit will be expiring soon. How long can I renew it for?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Eddie

Hi, A work permit can be renewed for an extra year, but you are required to provide proof of extension or renewal of your employment contract.

Download this guide to read later

Payroll and Benefits Guide in Dominican Republic

Download Free Guide

See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws

The information provided in the Papaya Global Web site is provided for informational purposes only. The materials are general in nature; they are not offered as advice on a particular matter and should not be relied on as such. Use of this Web site does not constitute a legal contract or consulting relationship between Papaya Global and any person or entity. Although every reasonable effort is made to present current and accurate information, Papaya Global makes no guarantees of any kind. Papaya Global reserves the right to change the content of this site at any time without prior notice. Papaya Global is not responsible for any third party material that can be accessed through this Web site. The materials contained on this Web site are the copyrighted property of Papaya Global unless a separate copyright notice is placed on the material. Papaya Global grants each user a non-exclusive, non-transferable license to access and download, display and print one copy of the content of this Web site on a single computer solely for internal, business use, provided that the user does not modify the site content in any way and that all copyright and other notices displayed on the site content are retained. Other reproduction, distribution, republication and re-transmission of materials contained within this Web site require Papaya Global’s prior permission.
Download this guide to read later

Payroll and Benefits Guide
in Dominican Republic

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

Download free guide
All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Dominican Republic 2023
Download:
CSV
PDF
ICS
Day Date Holiday Notes
Sunday Jan-1 New year
Friday Jan-6 Epiphany
Saturday Jan-21 Day of the Lady of Altagracia
Thursday Jan-26 Juan Pablo Duarte Day
Monday Feb-27 Independence day
Friday Apr-7 Good Friday
Sunday Apr-9 Easter
Monday May-1 Labor day
Thursday Jun-8 Corpus Christi
Wednesday Aug-16 Dominican Restoration Day
Tuesday Oct-24 Lady of Mercedes
Monday Nov-6 Constitution day
Monday Dec-25 Christmas day