Hire and pay employees in
Dominican Republic, hassle-free

The individual income tax ranges from 0% to 25%. Income tax is calculated according to progressive rates.

The employer cost is generally estimated at 16.39% of the employee salary.

• Pension Fund - 7.10%
• Health Insurance Contribution - 7.09%
• INFOTEP - 1%
• Occupational Risk Insurance - 1.20%
• One-off Mandatory Wet Ink Employment Agreement Handling Fee - 80 USD

Additionally, the employer will have to pay a 13th salary and an annual bonus payment.

- Pension Fund is calculated on the employee's salary up to a maximum salary for the contribution of DOP 387,050.
- Family Health Insurance is calculated on the employee's salary up to a maximum salary for the contribution of DOP 193,525
- Occupational Risk Insurance is calculated on the employee's salary up to a maximum salary for the contribution of DOP 77,410. 

The minimum monthly salary used for these costs is DOP 19,352.

Most employer costs have limits, therefore the percentage will vary. Pension Fund limit DOP 325,250 Health Insurance Contribution limit DOP 162,625 Occupational Risk Insurance DOP 65,050

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Employees are entitled to paid sick leave for up to 90 days. This leave is paid at different rates depending on the type of sickness:

• 60% of the base salary for outpatient treatment
• 40% of the base salary for hospitalizations

During this period, the employer will pay the employee. However, it will be reimbursed by the Social Security Institution.

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in the Dominican Republic can be complex. Contracts can be terminated without liability or with responsibility.

Terminations without responsibility:

• Mutual agreement
• By the expiration of the contract
• Impossibility for execution

Termination with responsibility:

• Unilaterally by the employer based on:
  
  • Disciplinary dismissal
  • Performance due to unsuitability for the job
• Voluntarily by the employee

The minimum notice period is 7 days and will be increased according to the length of the employment.

• 7 days if the length of service is between 3 to 6 months
• 14 days if the length of service is between 6 to 12 months
• 28 days if the length of service is more than a year

If the employee is dismissed without notice, they will be entitled to payment according to the length of service mentioned above.

During the probation period, there is no notice period

In the Dominican Republic, employees may be entitled to severance pay. Severance pay will be composed of the length of service, bonuses, and time off.

Basic payment

• Between 3 to 6 months of employment - 6 days severance pay
• Between 6 to 12 months of employment - 13 days severance pay
• Between 1 to 5 years of employment - 21 days severance pay
• Over 5 years of employment - 13 days severance pay

Christmas salary payment: the monthly accrual that would be paid until the end of the year.

Time off payment:

• 5 months of employment - 6 days severance pay
• 6 months of employment - 7 days severance pay
• 7 months of employment - 8 days severance pay
• 8 months of employment - 9 days severance pay
• 9 months of employment - 10 days severance pay
• 10 months of employment - 11 days severance pay
• 11 months of employment - 12 days severance pay

Both full-time and part-time employees are entitled to a minimum of 14 working days of paid time off (PTO) a year. Employees are eligible for annual leave after 12 months of work. Employees must take at least 7 days of PTO in one row.

The length of PTO will vary with the years of service:

• Between 1 to 5 years in the company - 14 working days per year
• More than 5 years in the company - 14 working days per year with payment for 18 working days

The Dominican Republic celebrates 12 national holidays.

National public holidays include:

• New Year’s Day
• Epiphany (Three Kings Day)
• Our Lady of Altagracia Day 
• Duarte’s Day
• National Independence Day
• Good Friday
• Labor Day
• Corpus Christi
• Restoration Day
• Our Lady of Mercy Day
• Constitution Day
• Christmas Day

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties in wet ink.

A contract must include:

• Employee’s information: name, age, ID number, and address.
• Contract term: start date and length of the employment
• Working agreements: job title, description of duties, and salary
• Termination conditions

The job title (Puesto de trabajo) and the job description (Descripción del trabajo) must be added in the local language.