Dominican Republic

Employer of Record in Dominican Republic

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Dominican Republic . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Dominican Republic.

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Dominican Peso
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$75.93 billion
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1. Grow your team in Dominican Republic with Rivermate as your Employer of Record (EOR) / PEO

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 Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

The Dominican Republic is a nation in the Caribbean area situated on the island of Hispaniola in the Greater Antilles archipelago. It occupies the eastern five-eighths of the island, which it shares with Haiti, making Hispaniola, along with Saint Martin, one of only two Caribbean islands shared by two sovereign governments. The Dominican Republic is the second-largest country in the Antilles by land (after Cuba), and the third-largest by population, with around 10.8 million inhabitants (2020 estimate), 3.3 million of whom reside in the metropolitan area of Santo Domingo, the capital city. The country's official language is Spanish.

Before Europeans arrived, the original Tano people occupied Hispaniola, dividing it into five chiefdoms. They had built a sophisticated agricultural and hunting community and were on their way to establishing an organized civilization. The Tanos was also found in Cuba, Jamaica, Puerto Rico, and the Bahamas. Christopher Columbus, a Genoese mariner, explored and claimed the island for Castile on his first expedition in 1492. Santo Domingo became the first permanent European settlement in the Americas, as well as the first seat of Spanish colonial administration in the New World. Spain accepted French control over the western portion of the island in 1697, and Haiti became an independent state in 1804.

In November 1821, the Dominicans proclaimed independence from Spain after more than 300 years of domination. The leader of the independence movement, José Nez de Cáceres, hoped to merge the Dominican nation with Gran Colombia, but the newly independent Dominicans were annexed by Haiti in February 1822. Independence occurred 22 years later, in 1844 when the Dominican War of Independence was won. The Dominican Republic underwent largely internal conflicts (funded by loans from European merchants), multiple unsuccessful invasions by its neighbor, Haiti, and a temporary restoration to Spanish colonial status until ultimately removing the Spanish during the Dominican War of Restoration of 1863–1865. Three presidents were murdered during this time period: José Antonio Salcedo in 1864, Ulises Heureaux in 1899, and Ramón Cáceres in 1911.

The United States invaded the Dominican Republic (1916–1924) in response to concerns of international debt default; a subsequent tranquil and successful six-year era under Horacio Vásquez followed. Rafael Leónidas Trujillo's dictatorship governed from 1930 until his murder in 1961. Juan Bosch was elected president in 1962 but overthrown in a military coup in 1963. The country's last civil war, in 1965, was halted by US military involvement and was followed by the authoritarian leadership of Joaquin Balaguer (1966–1978 and 1986–1996). Since 1978, the Dominican Republic has progressed toward representative democracy, with Leonel Fernández serving as President for the majority of the period since 1996. Danilo Medina replaced Fernández in 2012, defeating ex-President Hipólito Meja with 51 percent of the vote. In the 2020 presidential election, he was replaced by Luis Abinader.

According to the US State Department and the World Bank, the Dominican Republic has the biggest economy in the Caribbean and Central America area, and is the seventh-largest in Latin America. The Dominican Republic has had the fastest-growing economy in the Western Hemisphere for the previous 25 years, with an average real GDP growth rate of 5.3 percent between 1992 and 2018. GDP growth rates in 2014 and 2015 were the highest in the Western Hemisphere, at 7.3 and 7.0 percent, respectively. The Dominican economy increased 7.4 percent in the first half of 2016, maintaining its history of high economic expansion. Construction, manufacturing, tourism, and mining have all contributed to recent prosperity. The nation is home to the world's third-biggest gold mine, the Pueblo Viejo mine. Because of low inflation (under 1% on average in 2015), job creation, and a high level of remittances, private spending has been solid. Illegal Haitian immigration is a major issue in the Dominican Republic, straining the Dominican economy and heightening tensions between Dominicans and Haitians. The Dominican Republic also has 114,050 illegal Venezuelan immigrants.

The Dominican Republic is the Caribbean's most popular tourist destination. The golf courses are quite popular all year. The Dominican Republic, a physically diversified country, is home to both the Caribbean's highest mountain peak, Pico Duarte, and the Caribbean's biggest lake and lowest point, Lake Enriquillo. The island has a high climatic and ecological variety, with an average temperature of 26 °C (78.8 °F). The nation is also home to the first cathedral, castle, monastery, and fortification erected in the Americas, which can be found in Santo Domingo's Colonial Zone, a UNESCO World Heritage Site. Baseball is the undisputed national sport.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Dominican Republic is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

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.

5. Employment termination

There is no information about employment information for this country.

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.

Probation period

The probation period must not be longer than 3 months.

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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 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.

7. Minimum wage

There is no information about the minimum wage for this country.

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)

8. Employee benefits

There is no information about the employee benefits for this country.

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).

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Companies in the Dominican Republic are subject to a corporate tax rate of 27 percent.

Individual income tax

Individuals in the Dominican Republic are imposed an income tax rate that ranges from 0 percent to 25 percent. The actual percentage varies depending on the income tax bracket the individual belongs to.

VAT, GST and sales tax

The standard rate for the value-added tax (VAT) or goods and sales tax (GST) in the Dominican Republic is set at 18 percent.

10. VISA and work permits

There is no information about VISA and work permits for this country.

To do business in the Dominican Republic, foreign nationals must obtain a business visa. Business visas are awarded for either a single entrance of 60 days or multiple entries of one year. The permissible term of stay is provided at the discretion of the admitting officer and corresponds to the duration of the activity, although it is normally limited to 30 consecutive days. Business visa holders may petition for a stay extension, which is normally granted for a maximum of 30 days.

Foreign citizens intending to work in the Dominican Republic must obtain either a business visa for employment purposes for assignments of one year or less (granted by consular post with Ministry of Foreign Affairs authorisation) or a Temporary Residence Permit for assignments of more than one year.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

Employment contracts must be in writing and include the working location, remuneration, personal information for both parties, duties, a notice period, a trial period, the kind of contract, work hours, yearly leave, bonuses, and a start and finish date, if applicable.

With Rivermate being your Employer of Record (EoR) in Dominican Republic, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

Fixed-term contracts may also be used by employers. These must mention a start and end date, and the contract expires when the job is finished. When an employee is out for an extended period of time, such as maternity leave, these contracts might be used in its place.

Indefinite employment contracts may also be used by employers. These must provide a start date. Apprentices might be hired on a contract basis.

Payment currency

Dominican Peso (DOP)

United States Dollar (USD)

13.Opening a subsidiary in Dominican Republic

There is no information about the working hours for this country.

How to set up a subsidiary

Because of the Dominican Republic's social, political, and economic stability, many corporations prefer to establish a subsidiary there. Its strategic position in the Caribbean, as well as its robust transportation and telecommunications infrastructure, will enable you to link with other Latin American and Caribbean nations. You'll also have access to a competitive and qualified staff that can assist you in growing your business.

When it comes to establishing a Dominican Republic subsidiary, you must first choose which sort of organization is ideal for your purposes. The majority of businesses opt to form a limited liability corporation (LLC) or Sociedad de Responsabilidad Limitada (SRL) (S.R.L.). This form offers the greatest advantages and convenience of incorporation, but you may also create a simplified limited company, public limited company, branch, or representative office.

The Dominican Republic subsidiary establishment procedure consists of the following steps:

(1) Creating and submitting a registration request to the Dominican Trademark Office in order to secure a trade name for your business.

(2) Creating by-laws and other incorporation paperwork

(3) Paying a 1% incorporation tax on the registered capital of the firm

(4) Creating a business registration application and submitting it together with your company's formation paperwork

(5) Creating and submitting a request for a Tax Identification Number

(6) Enrolling workers in the social security system and registering them with the Ministry of Labor

Subsidiary laws

To create an LLC in the Dominican Republic, a minimum share capital of $2,300 is required. The formation procedure requires the appointment of at least one director, who must be a person, as well as two shareholders of any nationality. Shareholders may be persons or corporations, and they are not required to reside in the Dominican Republic.

You must submit yearly financial statements to the local tax authorities as an LLC. While you are not required to employ a statutory auditor, you must have your accounts audited yearly.

13. Why choose Rivermate as your Employer of Record / PEO in Dominican Republic

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 (EOR) 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 (EOR) / PEO solution.

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