Employment Law

Employment Contracts in the Dominican Republic

We recommend that you write a formal employment contract for every employee you hire in the Dominican Republic. These contracts should include all details of the employment, such as wages, working hours, benefits, and other relevant aspects. They should also be written in Spanish and the currency mentioned should be in the local currency, the Dominican Peso.

Fixed Term

Indefinite

Dominican Republic Working Hours

Full-time employees in the Dominican Republic typically work 44 hours per week. Overtime pay is paid at 135% of regular wages.

Holiday Policy

Dominican Republic Vacation

Employees in the Dominican Republic are entitled to 14 days of paid vacation per year. After five years of employment with the employer, this allowance increases to 18 days per year.

Dominican Republic Sick Leave

Employees in the Dominican Republic can take unlimited sick leave if necessary and can prove their illness.

Parental Leave in the Dominican Republic

Female employees in the Dominican Republic are entitled to up to seven weeks of paid maternity leave before and after giving birth. Male employees can enjoy two days of paternity leave

Termination and Severance in the Dominican Republic

In the Dominican Republic, rights regarding termination notice and severance pay are usually negotiated by the union or by individual employees on a case-by-case basis. Notice periods and severance pay generally increase with an employee's years of service.

Taxes in the Dominican Republic

Both employers and employees in the Dominican Republic are required to pay health insurance premiums. Employers must pay 3% of wages and employees must pay 7%. In addition, employees must pay approximately 7% of their wages toward disability/pension benefits and employers must pay 1.25% for workplace insurance.

Income tax in the Dominican Republic is progressive, with workers at higher income levels paying a higher proportion of the tax. Rates range from 0% to 25%.

The corporate tax in the Dominican Republic is 27%.

Health Insurance in the Dominican Republic

The Dominican Republic does have public health care available to all, but the standard is often considered unmatched by developed countries. Therefore, many employers choose to offer private health insurance to their employees as part of their benefits package.

Salary and Benefits

Compensation Law in the Dominican Republic

The minimum wage in the Dominican Republic depends on the type and size of the employer for which the employee works. For example, on-site workers must be paid at least 320.4 Dominican pesos per day, but the minimum monthly wage for most other workers varies based on the value of the company they are employed by. Because of this complex system, it is vital that you understand the specific laws that apply when doing business and recruiting in the Dominican Republic.

Benefits Administration in the Dominican Republic

Setting up a benefits system for the Dominican workforce can be difficult and complicated if you are unfamiliar with the country, its customs and employment laws. Standalone setup can take weeks and may cause unexpected delays.

Remoly can simplify your Dominican Republic benefits administration. Our Dominican Republic experts can handle it all for you, helping you focus on a successful expansion.