Payroll and Benefits Guide - Dominican Republic

Dominican Republic
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Currency

Dominican Peso
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Capital

Santo Domingo
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Employer Taxes

16.39%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Carnival is an annual celebration in February in the Dominican Republic that features parades, fancy dress, and parties.

Whales migrate to Samaná Bay between January and May which makes it famous to whale watchers.

Its world-renowned amber mines has been featured in films like Jurassic Park.

With 10.8 million people, it is the most populous Caribbean country.

It has the only flag that features the Bible.

Larimar is a rare mineral only found in the Dominican Republic.

Contributions

Employee Payroll Tax

Health Insurance 3.04%
Pension and Disability 2.87%
Technical Education (INFOTEP) 0.50%

Employer Payroll Tax

Public social security Pension and Disability 7.10%
Health Insurance 7.09%
Labor Risk 1.20%
Instituto Nacional de Formación Técnico Profesional (INFOTEP) 1.00%

Payroll

Payroll Cycle

Pay is given either bi-weekly or monthly.

13th Salary

A 13th month salary is not required in Dominican Republic, but bonuses are usually given to employees by December 20th of every year..

Work Hours and Week

The country has a 44-hour, Monday to Friday work week.

Overtime

Hour 44-68 of overtime in a week are compensated at a rate of 135.00% and any over that is paid 170.00% of the employee’s regular pay rate. Overtime done in weekends or holidays are paid 200% while night overtime work is paid at 115% the regular rate.

Leave

Paid Time Off

Every employee is entitled to 14 days of paid time off per year and after five years of employment, it increases to 18 days.

Public Holidays

There are 13 public holidays.

Sick Days

No laws are in place giving employees sick leaves or pay.

Maternity Leave

Employees are given 14 weeks of maternity leave with it being split evenly before and after the expected due date.

Paternity Leave

Fathers are only given two days of paternity leave.

Parental Leave

Employers are not legally obliged to give parental leave.

Other Leave(s)

In the case of death of a family member, three days of paid leave are given.

When an employee gets married, they are granted five days of paid leave.

Termination

Termination Process

Employers have the right to terminate contracts for business, personal, or misconduct reasons. A written warning and explanation must be provided.

Notice Period

Depending on length of service rendered, the notice period may range from 7 days to 4 weeks of notice

Severance Pay

An employee is entitled severance for at least 3 months of service. It could amount from 6 to 23 days of salary and must be paid within ten days of notice of termination.

Probation Period

Probation Period

The probationary period in the Dominican Republic is outlined in the employment contract and is based on the kind of role.

Immigration

Foreigners must apply for a business visa or a Temporary Residence Permit to conduct professional business in the Dominican Republic. The business visa could last up to 60 days for a single entry or multiple entries for a year. This could possibly be extended up to another 30 days.

VAT

The commonly used standard rate of VAT in Dominican Republic is 18.00%