Employees in the Dominican Republic are just like employees everywhere — they want competitive compensation and benefits. Your company needs to meet the Dominican Republic’s compensation laws to stay compliant, but you should exceed these statutory minimums to attract employees to your positions. Unfortunately, many companies don’t have the time or knowledge to create a benefits plan.
Instead, you can add your employees to G-P’ existing payroll and benefits plan. When you partner with us for Dominican Republic benefits and compensation outsourcing, we’ll take care of paying your employees and giving them the benefits they deserve. Since we act as the Employer of Record, we’ll handle all compliance.
Dominican Republic Compensation Laws
The Dominican Republic’s compensation laws include monthly minimum wages based on the size and sector of the employee’s company, including:
- 24,150 pesos per month for employees of large companies
- 22,1380 pesos per month for employees of medium companies
- 14,835 pesos per month for employees of small companies
- 17,250 pesos per month for employees in the private security sector
- 11,500 pesos per month for NGO employees
Company size is based on net annual sales and employee count. Minimum wage rates can change frequently and tend to be updated on a per sector basis.
Employees in the free zone sector of the Dominican Republic have a distinct minimum wage, currently set at 13,915 pesos per month (January 2022).
Employees working overtime should get 35-100% of their salary per hour, depending on how many hours they work or if they work a night shift or holidays. Legally, you do not need to provide overtime to higher-level positions, but many agree to certain times in an employment contract.
Guaranteed Benefits in the Dominican Republic
Start your benefits plan by adding guaranteed benefits so that you can stay compliant and avoid fines or delays. The Dominican Republic celebrates 12 national holidays, and you 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
- Maternity leave: Three months off— 1.5 months before giving birth and 1.5 months after giving birth.
Dominican Republic Benefits Management
When you disperse statutory benefits, you should also give out supplemental, market norm benefits to prove your commitment to your employees and encourage them to stay with your company long-term. Although employees are entitled to receive a Christmas bonus of the sum of all wages in a year divided by 12, you can provide performance-based bonuses as an extra benefit.
Restrictions for Benefits and Compensation
The biggest restriction for compensation and benefits is having a subsidiary. You need a registered entity in the Dominican Republic before you can give out compensation and benefits unless you work with G-P. Dominican Republic compensation and benefits outsourcing with our team will ensure that your employees get everything they need while you focus on running your business.
Choose G-P Today
G-P wants to help you celebrate a successful expansion. Contact us today to learn more about Dominican Republic benefits and compensation outsourcing.