Guide to employment, payroll and benefits in

Dominican Republic

Rivermate offers complete payroll, benefits and compliance services for

Dominican Republic

01. Overview

Last updated: 

August 19, 2021

Currency
Dominican Peso
Capital
Santo Domingo
Ease of doing business
60
Language
Spanish
Population
10847910
GDP growth
4.55%

02. Grow your team in

Dominican Republic

with Rivermate

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

Dominican Republic

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

Dominican Republic

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

The Dominican Republic is a Caribbean nation that is situated on the island of Hispaniola in the Greater Antilles archipelago. It shares the eastern five-eighths of the island with Haiti, making Hispaniola one of only two Caribbean islands owned by two sovereign states, along with Saint Martin. The Dominican Republic is the second-largest nation in the Antilles by area (48,671 square kilometers) and third-largest by population (approximately 10.8 million people), with 3.3 million living in the Santo Domingo metropolitan area, the capital city. The country's official language is Spanish. Before the arrival of Europeans, the native Tano people populated Hispaniola and divided it into five chiefdoms. The Tano had established a sophisticated farming and hunting society and were on their way to becoming a civilized society. On his first voyage in 1492, Christopher Columbus explored and claimed the island for Spain. Santo Domingo became the first permanent European settlement in the Americas, as well as the first seat of Spanish colonial rule in the New World. Meanwhile, France conquered the western third of Hispaniola, calling their colony Saint-Domingue, which after the Haitian Revolution became the independent state of Haiti in 1804. Dominicans were often at war throughout the nineteenth century, battling the French, Haitians, Spanish, or each other, resulting in a culture dominated by military strongmen who controlled the country as if it were their own empire. In November 1821, the Dominican people proclaimed independence after more than 300 years of Spanish rule. José Nez de Cáceres, the leader of the independence movement, hoped to unite the Dominican Republic with Gran Colombia, but the newly independent Dominicans were annexed by Haiti in February 1822. After winning the Dominican War of Independence in 1844, the country gained independence 22 years later. The Dominican Republic faced mostly internal disputes during the next 72 years, as well as many unsuccessful invasions by its neighbor, Haiti, and a brief return to Spanish colonial status, before permanently ousting the Spanish during the Dominican War of Restoration (1863–1865). Between 1916 and 1924, the nation was controlled by the United States, followed by a peaceful and prosperous six-year stretch under Horacio Vásquez. Rafael Leónidas Trujillo's monarchy governed from 1930 to 1961. The country's last civil war, which ended in 1965 with U.S. military occupation, was followed by Joaqun Balaguer's authoritarian rule. The Dominican Republic has been moving toward representative democracy since 1978, and Leonel Fernández has led the country for the majority of the time since 1996. In 2012, Danilo Medina succeeded Fernández, gaining 51% of the vote over his rival, former president Hipólito Meja.

04. Public holidays

05. Types of leave

Paid time off

14 days, beginning after one year of employment. Within five years, the number of holiday days increases to 18.

Public holidays

Sick days

There are currently no provisions in the Dominican Republic regarding sick leave.

Maternity leave

New mothers in the Dominican Republic are entitled to 14 weeks of paid leave.

Paternity leave

New fathers in the Dominican Republic are entitled to a paternity leave of up to 2 days.

Parental leave

Other leave

Employees in the Dominican Republic receive paid leave for both marriage and bereavement. A marriage leave is worth 5 days of paid leave while the death of a family member entitles the employee to 3 days of paid leave.

06. Employment termination

Termination process

Termination "for cause" needs proof of misconduct and 48 hours' notice. If the employer fails to give the requisite proof or notification, he will be subject to severance.


Termination "at will" needs a lengthier notice period and severance payout.

Notice period

The length of notice required for at-will termination is determined by the employee's seniority. The employee is given seven days' notice after three months. The employee is given 14 days' notice after six months. It will be 28 days' notice after a year.

Severance pay

Severance pay is determined by seniority. Six days' salary is earned for every three to six months of service. For Every six to twelve months of service, an employee earns 13 days' compensation. Service between one and five years entitles an employee to 21 days' pay. 23 days' compensation is paid to an employee who has worked for the company for more than five years.

Probation period

The probation period must not be longer than 3 months.

07. Working hours

General

A typical workweek is 44 hours, or eight hours per day. Part-time employment is limited to 29 hours per week. Following an assessment by the State Labor office, employees in managerial positions may work up to ten hours per day. After midnight, work is considered to be a night shift.

Overtime

Overtime is compensated at 135% of the standard rate of pay and is limited to 68 hours. Any work hour over 68 is compensated at twice the standard rate. Weekend and public holiday overtime is compensated at 200 percent of the basic rate, while evening work is compensated at 115 percent.

08. Minimum wage

General

The Dominican Republic's compensation laws include a monthly minimum wage of 8,310 Dominican pesos in free trade zones and between 7,843 and 12,873 Dominican pesos outside of free trade zones. The monthly minimum wage for public sector employees is 5,884 pesos. The minimum wage for farm workers is 234 pesos per day for a 10-hour workday. The minimum wage for sugar cane workers is 146 pesos per day for an eight-hour workday.

Farm workers are paid 234 pesos per day (based on a 10-hour day)

Sugar cane workers earn 146 pesos per day (based on an eight-hour workday)

09. Employee benefits

General

The Dominican Republic celebrates 12 national holidays, and employers should give employees those days off. Employees should also receive 14 working days of paid vacation annually, starting on their first anniversary. After five years with your company, they should get 18 days off.

Other paid leaves of absence include marriage (five days off), death of a close family member (three days off), paternity leave (two days off), and maternity leave (three months off).

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

Establishing an entity in

Dominican Republic

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

Dominican Republic

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

Dominican Republic

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

Dominican Republic

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

Dominican Republic

via our Employer of Record / PEO solution.

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