Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

East Caribbean Dollar
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Dominica is a Caribbean island nation whose official name is the Commonwealth of Dominica. Roseau, the island's capital, is situated on the island's western side. It is located in the Caribbean Sea, as part of the Windward Islands chain in the Lesser Antilles archipelago. The island is bordered on the northwest by Guadeloupe and the south-southeast by Martinique. It has a total area of 750 km2 and the highest point is Morne Diablotins, which is 1,447 meters above sea level. The Arawak people arrived from South America in the 5th century and settled the island, which had a population of 71,293 at the time of the 2011 census. By the 15th century, the Kalinago had replaced the Arawak. On November 3, 1493, Columbus is said to have passed by the island. From the 1690s to 1763, it was colonized by Europeans, mostly the French. Enslaved people from West Africa were brought to Dominica to work on coffee plantations by the French. Following the Seven Years' War, Great Britain took possession in 1763 and eventually developed English as the official language. In 1978, the island declared independence as a republic. Dominica's natural climate has earned it the nickname "Nature Isle of the Caribbean." It is the newest island in the Lesser Antilles, and geothermal-volcanic activity is still forming it, as shown by the world's second-largest hot spring, Boiling Lake. The island is home to many unusual plants, birds, and bird species, as well as lush mountainous rainforests. Some of the western coastal regions are xeric, but inland there is a lot of rain. The sisserou parrot, also known as the imperial amazon and found only on Dominica, is the island's national bird and is depicted on the national flag, which is one of only two flags with purple in it. The Commonwealth of Nations, the United Nations, the Organization of American States, and the Non-Aligned Movement are all members of the country.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Before signing an employment contract, you must include anticipated notice periods and other termination processes in the draft. If you do not adhere to the agreed-upon notice period, you must compensate the terminated party for the wages they would have received during that time.

You may terminate a contract due to employee misbehavior, substandard performance, contract violation, redundancy, or protracted layoffs.

Employees who are let go without their will are entitled to the income earned during their yearly vacation time.

Notice period

If you are paid on a monthly basis and have worked for your employer for less than 10 years, you must give one month's notice. You are entitled to a two-month notice period if you have worked for the company for ten years or more. If you are paid weekly or biweekly, however, the notice period must be one week if you have been employed for less than two years, four weeks if you have been employed for more than five years, and two weeks if you have been employed for two to five years.

Severance pay

There are no regulations in Dominica labor laws regarding severance payment.

Probation period

The new employee may be required to serve a probationary period of not more than six months following the period of training.

07. Working hours


Employees should not work more than 40 hours per week and no more than eight hours per day. Schedules must incorporate at least one full day of rest within these constraints. That day, if possible, should be Sunday. Employers and employees in certain industries may be restricted to fewer hours or days of work due to their occupation.


If an employer requests overtime work from an employee, the employee must agree to the additional hours. Overtime pay must be at least 150 percent of the employee's regular wage.

08. Minimum wage


The minimum wage varies by industry and occupation. There are a few circumstances in which someone may be awarded less compensation, but those grounds are only applicable on a case-by-case basis.

Employers must not pay women less than men if the difference in pay is due to their gender.

Dominica currently has a minimum wage ranging from $4.50 per hour to $7.50 per hour for daily paid workers and tourism workers. The minimum wage for juveniles/trainees ranges from $3.60 to $5.67 per hour. Cashiers and receptionists earn between $5.50 and $7.25 per hour as a minimum wage. Salespeople are paid a minimum wage ranging from $5.50 to $7.25 per hour.

09. Employee benefits


Employers must register workers with Dominica social security for both short and long-term benefits. Employers should additionally take 4% from each employee's salary and use the proceeds to pay the Social Security Administration. These donations are due by the 14th of each month, or the first working day following that date, whichever is later. Late payments and refusal to contribute may result in penalties, including a 10% penalty. Other payments are determined by whether or not an employee is laid off.

The social security office offers benefits to covered workers such as job-related injuries and payment for medical costs. To be eligible for these rewards, employees must fulfill certain criteria. In the case of illness, maternity, workplace accident, disablement, medical costs, or death, they may be eligible for short-term benefits.

Long-term benefits include pensions and grants for the elderly, invalidity benefits and grants, survivor benefits and grants, and funeral grants. With the exception of funeral awards, social security may provide long-term benefits in the form of installments or a lump amount.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

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