Dominican Republic

Dominica applies a Labour Act rooted in British tradition, supplemented by income tax (PAYE), social security (DSS), VAT, and formal employment regulations. Payroll requires proper withholding, contributions, contracts, and reporting. Non-citizens must get a work permit for legal employment.
Contractor Management
Currency
Dominican Peso (DOP)
Payroll Frequency
monthly
Employer Taxes
15.45 %

Overview

Population
66,205
Language
English
Capital
Roseau
Currency
Dominican Peso (DOP)
Country code
+1
Min wage
~XCD 7.50/hour
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
  • not mandatory, but common in contracts
Avg employer tax

15.45 %

Tax Breakdown

Income Tax (PAYE):

Progressive tax withheld monthly:

On income up to XCD 30,000/year
0%
On XCD 30,001–50,000
15%
On XCD 50,001–80,000
25%
On above XCD 80,000
35%

Employee

CNPS (pension only)
4.2%
Housing Fund
1%

Income Tax (PAYE):

0 – 2 000 000 XAF
11%
2 000 001 – 3 000 000 XAF
16.5%
3 000 001 – 5 000 000 XAF
27.5%
Above 5 000 000 XAF
38.5%

Corporate Tax:

Standard rate
30% on taxable profits

VAT

VAT

19.25%

Tax Calculation for Dominican Republic
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Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Dominican Republic typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

in French or English, covering role, pay, hours, probation, notice, leave and benefits

Registrations

  • CNPS for social‑security
  • National Employment Fund
  • Housing Fund
  • Tax authority for PAYE

Documents

collect ID/passport, proof of address, bank details, CNPS number and work permit for non‑residents

Payroll Setup

withhold contributions and taxes, pay staff monthly and file returns on time

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Dominican Republic
When drafting an employment contract for employees in Dominican Republic, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Up to 14 days/year at full pay with a medical certificate

Maternity leave
  • 14 weeks paid (6 weeks before birth, 8 after)
Paternity leave
  • 3 days paid around the birth of a child

Other Leave:

  • compassionate leave, military service and others as per Labour Code
Annual Leave
  • At least 24 working days per year for full‑time staff
9 Public holidays in Dominican Republic
1st
New Year’s Day
18th
Good Friday
21st
Easter Monday
1st
Labour Day
20th
National Day
15th
Assumption Day
1st
Unification Day
1st
All Saints’ Day
25th
Christmas Day

Termination Process

Notice Period

  • Under 5 years’ service: 1 month
  • 5+ years’ service: 2 months

Severance

1 month’s pay per year of service when employer ends contract without cause

Grounds

misconduct, redundancy, poor performance or mutual agreement

Fair Hearing

required before dismissal, except for gross misconduct

Probation Period

  • Typically up to 3 months (must appear in the contract)
  • Either side can end employment with minimal notice during probation

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

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Grow Your Team in Dominican Republic
with RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Dominican Republic.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Hiring in Dominican Republic | Payroll, Tax & Employment Guide

The Dominican Republic delivers bilingual talent in the same time zone as the US East Coast, with established BPO infrastructure and cultural alignment for customer service, contact centers, and tech roles.

RemotePass makes hiring in the Dominican Republic simple. We handle compliance, contracts, and payroll. You focus on growing your business.

Key Takeaways for Hiring in the Dominican Republic

  • Payroll operates on a monthly cycle, with mandatory accruals for Christmas bonus, vacation pay, and dismissal compensation that significantly increase employer costs.
  • Employees benefit from progressive income tax rates, mandatory social security coverage, and legally protected leave entitlements, including vacation, sick leave, maternity, and paternity leave.
  • All terminations must be reported to the Ministry of Labor, and final payments must be made immediately or no later than the next business day to avoid penalties.
  • Foreign nationals’ work and residence permits are tied to employment, making immigration notifications and compliance a critical part of offboarding.

Quick Facts for Hiring in the Dominican Republic

Continent
North America
Capital
Santo Domingo
Currency
Dominican Peso (DOP, RD$)
Language
Spanish
Payroll Cycle
Monthly
Pay Date
Last working day of the month

Dominican Republic Employment Contract Overview

Contract Type
Fixed-term / Open-ended
Local Language Required?
Yes
Bilingual?
Yes
Probation Period
Although the Labor Code doesn't directly mention a probationary period, it indicates that employees aren't entitled to advance notice or severance pay unless they've worked for a minimum of three months.
Moreover, the justification for termination based on inefficiency or incapability is only valid within the first three months of employment.
Minimum Paid Time Off
Employees who have worked continuously for one to five years are granted 14 days of paid leave annually, which increases to 18 days after five years of uninterrupted employment.
Employees become eligible for vacation after completing one year of service.
Public Holidays
12 public holidays
Notice Period
Less than three months of service: No notice is required.
Three months to than six months of service: Seven days
Six months to one year of service: 14 days
One year or more of service: 28 days

What Do You Need To Include In A Dominican Republic Employment Contract?

To stay compliant in the Dominican Republic, employment contracts must clearly set out the core terms of employment required by labor law, covering the employee’s identity, role, pay, and working conditions.

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

The contract needs a physical signature and it has to be coordinated by and in the local office.

How Does Payroll and Taxation Work in the Dominican Republic?

Payroll in the Dominican Republic follows clear statutory rules around currency, working hours, pay frequency, and mandatory benefits.

Employers must run payroll in local currency, apply legally defined minimum wages, and account for mandatory bonuses and accruals as part of compliant monthly payroll processing.

Payroll Setup

Salary currency

Dominican Peso (DOP, RD$)

Minimum Wage

DOP 15,860.32 to DOP 27,988.80, depending on the size of a business

Hours per Week

44 hours per week / Eight hours per day

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

The Dominican Labor Code requires mandatory bonuses (referred to as “13th-month” bonuses or “bono de navidad”):

  • One annual Christmas bonus, equivalent to one month’s salary, paid before December 20, and proportionally if employment started mid-year.

  • Vacation Pay is paid after one year of employment: Workers earn 14 working days’ paid vacation (which increases to 18 days after five years).

These bonuses are mandatory for all employees and are part of the formal compensation structure.

Gross Salary Structure

Gross salary doesn’t follow a standardized structure in the Dominican Republic.

What Payroll Taxes Do Employers Pay in the Dominican Republic?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

AFP - Professional risk:

7.1%

Family health insurance (SFS):

7.09%

ARL (labor risk insurance):

1.15%

INFOTEP (Instituto Nacional de Formación Técnico Profesional / National Institute for Technical-Professional Training):

1%

Vacation monthly cost accrual:

4.9%

Dismissal:

15.04%

Utilities partition:

15.74%

Christmas Bonus monthly cost accrual:

8.33%

What Payroll Taxes Do Employees Pay in the Dominican Republic?

Individual Income Tax

The Individual Income Tax (ISR – Impuesto Sobre la Renta) rates for salaries are progressive, as follows:

  • Income up to DOP 416,220 per year is exempt (approximately DOP 34,685 per month)

  • Income between DOP 416,220.01 and DOP 624,329 per year is taxed at 15% on the amount exceeding the exempt limit, plus a fixed amount

  • Income between DOP 624,329.01 and DOP 867,123 per year is taxed at 20% on the amount exceeding the lower limit, plus a fixed amount

  • Income exceeding DOP 867,123 per year is taxed at 25% on the amount exceeding the lower limit, plus a fixed amount

Tax is withheld at source by the employer on a monthly basis.

Social Contributions


Pension:

2.87% of the employee’s salary.

Health Insurance:

3.04% of the employee’s salary

Hiring cost calculator 

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DR
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Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Mandatory Employee Benefits in the Dominican Republic

Employment of expats is supported in the Dominican Republic.

Benefits Provider Funded Through Notes
Health Insurance Government

Payroll Contributions

In the Dominican Republic, health insurance is mandatory for all formal employees and is provided through the Dominican Social Security System (SeNaSa).

Both employers and employees are required to contribute to this system, which ensures that workers have access to healthcare services.

Pension/Social Security Government

Payroll Contributions

Pension and social security contributions are compulsory under Dominican law. Employers and employees both contribute to the pension system, which covers retirement, disability, and survivors’ pensions.

The system is designed to provide long-term financial security after employees leave the workforce.

Other Statutory Benefits Government/Employer

Payroll Contributions/ Additional Cost

Occupational Risk Insurance (ARL): Employers must provide ARL coverage, which protects employees against workplace accidents and occupational diseases.

Compensation Fund for Severance (FCT): Employers are required to deposit 2.85% of each employee’s monthly salary into this fund.

The FCT replaces the traditional severance payment system and guarantees employees receive compensation upon contract termination.

Mandatory Bonuses: The Dominican Labor Code requires mandatory bonuses (known as the 13th-month bonus or bono de navidad): One annual Christmas bonus equal to one month’s salary, paid before December 20, and paid proportionally if employment began mid-year.

Vacation Pay: Paid after one year of employment. Employees earn 14 working days of paid vacation, increasing to 18 days after five years of service.

These bonuses are mandatory for all employees and form part of the formal compensation structure.

Leave And Holiday Entitlement In Dominican Republic

Annual leave

Employees who have worked continuously for one to five years are entitled to 14 days of paid annual leave, which increases to 18 days after five years of uninterrupted employment. Employees become eligible for annual leave after completing one full year of service.

Vacation scheduling is arranged by mutual agreement between the employer and the employee. Any earned but unused vacation must be compensated when the employment relationship ends.

Public holidays

Employees are entitled to 12 paid public holidays each year. These include:

  • January 1: New Year’s Day

  • January 6: Three Kings’ Day

  • January 21: Virgin of Altagracia Day

  • January 26: Juan Pablo Duarte’s Birthday

  • February 27: Independence Day

  • Good Friday (date varies)

  • Corpus Christi (date varies)

  • May 1: Labor Day

  • August 16: Restoration Day

  • September 24: Virgin of Mercedes Day

  • November 6: Constitution Day

  • December 25: Christmas Day

Sick Leave

Under statutory sick leave rules in the Dominican Republic, the employer covers up to 21 days of sick leave at 100% of the employee’s salary. After this period, social security assumes responsibility for sick leave payments.

The employer remains responsible for paying sick leave during the first 21 days, after which coverage transitions fully to the social security system.

Maternity Leave

Female employees are entitled to 14 weeks of paid maternity leave, typically split into seven weeks before the expected due date and 7 weeks after childbirth.

For employees covered by social security, maternity benefits are shared equally between the employer and the social security system. If an employee chooses to take her annual vacation immediately after maternity leave, the employer must allow it.

Upon returning to work, the employee is entitled to:

  • Three 20-minute breastfeeding breaks per day, and

  • One half-day off per month during the first year to take the child to medical appointments.

Employers are prohibited from terminating employees due to pregnancy, including for up to three months after childbirth.

Paternity Leave

Fathers are entitled to 2 days of paid leave following the birth of a child by their spouse or legally recognized partner.

Other Types of Leave

Employees are entitled to paid leave in the following situations:

  • Marriage: Five days

  • Death of a spouse, child, parent, or grandparent: Three days

Termination and Offboarding in the Dominican Republic

Termination and offboarding in the Dominican Republic follow detailed Labor Code rules that set clear requirements for notice, severance, documentation, and final payments.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Dominican Republic Employee Resignation

Notice

Form

The employee must submit a resignation in writing. It should be signed and dated, and a copy must be delivered to the employer. The resignation should also be notified to the Dirección General de Trabajo or the Ministerio de Trabajo to make it official.

Notice period

If the employee has been working for more than 3 months, they must give at least 15 days' notice.

End-of-Service Benefits

Severance/Gratuity

In a voluntary resignation, the employee is not entitled to severance pay (prestaciones laborales).

Other Benefits

  • Upon resignation, the employer must pay the following:

    • Unpaid salary up to the last working day.

    • Proportional vacation pay for unused vacation days.

    • Proportional Christmas bonus (bono de navidad), if resignation occurs before December.

  • Any other accrued benefits stated in the employment contract or company policy.

Termination Documentation

Upon resignation, the employer is required to issue:

  • Final settlement letter (carta de desahucio or liquidación), detailing all payments made to the employee

  • Payroll clearance (deslinde), confirming that the employee has received all legal entitlements

  • Notice to the Ministry of Labor, reporting the termination via Form DGT-3 or equivalent

  • Though not mandatory, it is recommended that the employee signs the settlement letter to confirm receipt of all payments

Employer Termination With Cause in Dominican Republic

Acceptable grounds

Termination with just cause (despido con causa justificada) is permitted under the Labor Code if the employee commits serious misconduct. Acceptable grounds include, but are not limited to:

  • Serious disrespect or insubordination against the employer or representatives

  • Repeated and unjustified absences or lateness

  • Acts of violence, threats, or abuse at the workplace

  • Dishonesty, theft, fraud, or breach of trust

  • Intentional damage to company property

  • Disclosure of confidential information

  • Immoral behavior affecting the company or coworkers

  • Refusal to comply with essential job duties

The employer must be able to prove the misconduct and demonstrate that it justifies dismissal under Article 88 and related provisions of the Labor Code.

Notice

Form

Termination must be in written form, clearly stating the reason(s) and the effective date. The letter must be delivered to the employee and reported to the Dirección General de Trabajo (Ministry of Labor) within 48 hours using Form DGT-3.

Notice period

No advance notice is required for dismissal with cause. Termination is effective immediately upon notification.

Payment in lieu of notice or notice waiver

Not applicable.

End-of-Service Benefits

Severance

In cases of dismissal with cause, the employee is not entitled to severance pay (prestaciones laborales), including notice compensation and seniority bonus (auxilio de cesantía).

Other Benefits

The employer must still pay the following:

  • Unpaid salary up to the date of termination

  • Proportional vacation pay for unused vacation days

  • Proportional Christmas bonus (if applicable)

  • Other accrued benefits stipulated by law or the employment contract

These are due regardless of the cause of termination.

Termination Documentation

Upon dismissal with cause, the employer must:

  • Deliver a termination letter stating the cause and effective date

  • Notify the Ministry of Labor within 48 hours using Form DGT-3

  • Prepare a final settlement showing all accrued and paid benefits

  • Keep records in case of a labor claim, as the employer bears the burden of proof to justify the dismissal

Employer Termination Without Cause in Dominican Republic

Acceptable Grounds

Under Dominican labor law, both employer and employee have the right to terminate the contract without cause (“desahucio”).

Form

Written.

Notice period

  • Less than three months of service: No notice is required

  • Three months to less than six months of service: Seven days

  • Six months to one year of service: 14 days

  • One year or more of service: 28 days

Payment in lieu of notice or notice waiver

If the employer fails to give the required notice (or gives insufficient notice), they must pay the employee for the “missing” notice period (i.e., pay in lieu of notice).

End-of-Service Benefits

Severance

When an employer dismisses an employee without cause, severance pay must be provided based on the employee's length of service:

  • Six days’ wages for service between three and six months

  • 13 days’ wages for service between six months and one year

  • 21 days’ wages per year of service for employment lasting one to five years

  • 23 days’ wages per year of service for employment exceeding five years

Termination Documentation

  • Termination notice in writing

  • Severance calculation document

  • Certificate of employment (if the employee requests it) stating dates worked, job role, and salary history

  • If the employer terminates for cause under statutory grounds, they must provide written notice of the cause to the Ministry of Labor (“Departamento de Trabajo”) within 48 hours

Mutual Termination Agreements in Dominican Republic

Mutual termination (desahucio por mutuo consentimiento) occurs when both the employer and employee voluntarily agree to end the employment relationship. This form of termination is recognized and regulated under Article 77 of the Dominican Labor Code.

Notice

Form

The agreement must be made in writing and signed by both parties. To be legally valid, it must be ratified before the Ministry of Labor or notarized, in accordance with Article 82 of the Labor Code.

Notice period

No notice is owed when an employment contract ends by mutual consent.

Waiver of notice

Not applicable.

End-of-Service Benefits

Severance

When an employment contract ends by mutual consent, the employer does not owe statutory severance (prestaciones laborales), provided the agreement is entered into freely and properly ratified. In practice, employers often offer a gratuity or settlement payment (compensación por salida), which the parties negotiate and which the law does not fix at a specific amount.

Other Benefits

The employer is still required to pay the following accrued benefits:

  • Unpaid salary up to the termination date

  • Proportional vacation pay for unused vacation days

  • Proportional Christmas bonus (bono de navidad), depending on the date of termination

  • Other contractually agreed benefits, if applicable

These payments must be clearly detailed in the settlement document and confirmed by both parties.

Termination Documentation

The following documents are required to formalize mutual termination:

  • Written termination agreement, signed by both parties and ratified before the Ministry of Labor or notarized

  • Final settlement statement (liquidación) showing all payments and benefits

  • Employee release letter (descargo) confirming that no further claims will be made

  • Employer notification to the Ministry of Labor, typically through Form DGT-3, marking the contract as ended by mutual agreement

Offboarding Process for the End of Fixed-term Contracts in Dominican Republic

Fixed-term contracts (contrato a plazo fijo) are legally allowed and regulated under Articles 25–31 of the Labor Code. They must clearly specify the start and end dates, and their duration cannot exceed one year unless justified by the nature of the work or special circumstances.

If the Fixed-Term Contract Ends Normally:

Notice

  • No notice is legally required from either party when the contract ends on its agreed expiration date

  • It is standard practice for the employer to notify the employee in writing a few days before the end date as a courtesy, but this is not mandated by law

End-of-Service Benefits

Severance/Gratuity

  • The employee is not entitled to severance pay (prestaciones laborales) if the contract ends on the agreed-upon date without renewal

  • Since the contract has a defined end, termination is not considered dismissal

Other Benefits

  • The employer must pay all accrued legal entitlements, including:

    • Unpaid salary

    • Proportional vacation pay

    • Proportional Christmas bonus (if applicable)

    • Any other benefits specified in the employment contract

  • These payments are due upon contract completion.

If the Employer Terminates Early:

Notice

  • No notice period is required if the employer terminates early with just cause and can legally justify the action

  • If there is no just cause, early termination is considered unjustified and the employer is liable for compensation

  • No advance notice is needed, but written documentation of the termination and its cause is required

End-of-Service Benefits

Severance/Gratuity

  • If the employer ends the contract without just cause before its expiration, the employee is entitled to compensation equal to the wages they would have earned until the end of the contract term

  • This is considered a contractual damages payment, not severance, and is based on Article 28 of the Labor Code

Other Benefits

Regardless of the reason for early termination, the employee must receive:

  • Unpaid salary

  • Proportional vacation pay

  • Proportional Christmas bonus (if applicable)

  • Any accrued contractual benefits

All payments should be detailed in a final settlement document, and the termination must be reported to the Ministry of Labor.

Final Payment Timing & Immigration and Visa Compliance in Dominican Republic

Final Payment Deadline

According to Article 82 and related provisions of the Dominican Labor Code, the final payment must be made immediately upon termination of the employment relationship, regardless of the reason for termination (resignation, dismissal, mutual agreement, or contract expiration). "Immediate" is interpreted as no later than the next business day following the termination.

Penalty

If the employer fails to make the final payment within this timeframe, the employee has the right to file a complaint with the Ministry of Labor. Additionally, under Article 720 of the Labor Code, the employer may be liable for late payment interest, fines, and damages, as determined by the labor courts. The employer may also be required to pay attorney’s fees and court costs in case of legal action.

Visa and Immigration Compliance

Upon termination of employment, the employer must:

  • Notify the General Directorate of Migration if the employee held a work or residency permit sponsored by the company

  • Assist the foreign worker with any necessary immigration procedures, such as cancellation or transfer of sponsorship

  • Ensure that any pending labor obligations are fulfilled prior to departure or transfer

Failure to comply with immigration requirements may result in fines, sanctions, or suspension of the employer’s authorization to hire foreign workers.

Key Elements of an Employment Contract in Dominican Republic
When drafting an employment contract for employees in Dominican Republic, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Onboard and Manage Your Team in the Dominican Republic

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Dominican Republic.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Dominican Republic

Got Questions? Find Answers Here

Why is the employer cost 52.02%? That seems extremely high.

Dominican law requires employers to accrue specific benefits monthly: vacation pay (4.9%), dismissal/severance (15.04%), utilities partition (15.74%), and Christmas bonus (8.33%). These accruals, combined with social security contributions (AFP 7.1%, health insurance 7.09%, labor risk 1.15%, INFOTEP 1%), bring total employer costs to 52.02% of gross salary. The accruals are paid out when the employee takes vacation, at Christmas, or upon termination.

What is "utilities partition"?

Utilities partition (15.74%) is a mandatory benefit accrual under Dominican labor law. It represents the employer's obligation to pay a proportion of company profits to employees, calculated and accrued monthly as part of total compensation costs.

There's no probation period, but the first three months matter?

Correct. The Labor Code doesn't formally define probation, but employees aren't entitled to advance notice or severance pay unless they've worked for at least three months. Additionally, you can only terminate for inefficiency or incapability during the first three months. After three months, different termination rules and notice periods apply.

Final payment must be "immediate", what does that mean exactly?

Immediate means no later than the next business day following termination, regardless of reason. Failing to meet this deadline can result in late payment interest, fines, damages, and potential legal action under Article 720 of the Labor Code.

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Dominican Republic

Dominica applies a Labour Act rooted in British tradition, supplemented by income tax (PAYE), social security (DSS), VAT, and formal employment regulations. Payroll requires proper withholding, contributions, contracts, and reporting. Non-citizens must get a work permit for legal employment.
Contractor Management
العملة
Dominican Peso (DOP)
تردد الرواتب
monthly
ضرائب أصحاب العمل
15.45 %

نظرة عامة

التركيبة السكانية
66,205
اللغة
English
العاصمة
Roseau
العملة
Dominican Peso (DOP)
رمز الاتصال الدولي
+1
الحد الأدنى للأجور
~XCD 7.50/hour
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
  • not mandatory, but common in contracts
متوسط ​​ضريبة صاحب العمل

15.45 %

تحصيل الضرائب

Income Tax (PAYE):

Progressive tax withheld monthly:

On income up to XCD 30,000/year
0%
On XCD 30,001–50,000
15%
On XCD 50,001–80,000
25%
On above XCD 80,000
35%

Employee

CNPS (pension only)
4.2%
Housing Fund
1%

Income Tax (PAYE):

0 – 2 000 000 XAF
11%
2 000 001 – 3 000 000 XAF
16.5%
3 000 001 – 5 000 000 XAF
27.5%
Above 5 000 000 XAF
38.5%

Corporate Tax:

Standard rate
30% on taxable profits

ضريبة القيمة المضافة

ضريبة القيمة المضافة

19.25%

حساب الضريبة في Dominican Republic
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Dominican Republic عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

in French or English, covering role, pay, hours, probation, notice, leave and benefits

Registrations

  • CNPS for social‑security
  • National Employment Fund
  • Housing Fund
  • Tax authority for PAYE

Documents

collect ID/passport, proof of address, bank details, CNPS number and work permit for non‑residents

Payroll Setup

withhold contributions and taxes, pay staff monthly and file returns on time

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Dominican Republic
عند إعداد عقد عمل للموظفين في Dominican Republic يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Up to 14 days/year at full pay with a medical certificate

إجازة الأمومة
  • 14 weeks paid (6 weeks before birth, 8 after)
إجازة الأبوة
  • 3 days paid around the birth of a child

Other Leave:

  • compassionate leave, military service and others as per Labour Code
الإجازة السنوية
  • At least 24 working days per year for full‑time staff
9 عطلات رسمية في Dominican Republic
1st
New Year’s Day
18th
Good Friday
21st
Easter Monday
1st
Labour Day
20th
National Day
15th
Assumption Day
1st
Unification Day
1st
All Saints’ Day
25th
Christmas Day

عملية إنهاء العقود

Notice Period

  • Under 5 years’ service: 1 month
  • 5+ years’ service: 2 months

Severance

1 month’s pay per year of service when employer ends contract without cause

Grounds

misconduct, redundancy, poor performance or mutual agreement

Fair Hearing

required before dismissal, except for gross misconduct

Probation Period

  • Typically up to 3 months (must appear in the contract)
  • Either side can end employment with minimal notice during probation

Personal Details

Name, contact information, and role of the employee.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في Dominican Republic
مع ريموت باس

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Dominican Republic.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

Hiring in Dominican Republic | Payroll, Tax & Employment Guide

The Dominican Republic delivers bilingual talent in the same time zone as the US East Coast, with established BPO infrastructure and cultural alignment for customer service, contact centers, and tech roles.

RemotePass makes hiring in the Dominican Republic simple. We handle compliance, contracts, and payroll. You focus on growing your business.

Key Takeaways for Hiring in the Dominican Republic

  • Payroll operates on a monthly cycle, with mandatory accruals for Christmas bonus, vacation pay, and dismissal compensation that significantly increase employer costs.
  • Employees benefit from progressive income tax rates, mandatory social security coverage, and legally protected leave entitlements, including vacation, sick leave, maternity, and paternity leave.
  • All terminations must be reported to the Ministry of Labor, and final payments must be made immediately or no later than the next business day to avoid penalties.
  • Foreign nationals’ work and residence permits are tied to employment, making immigration notifications and compliance a critical part of offboarding.

Quick Facts for Hiring in the Dominican Republic

Continent
North America
Capital
Santo Domingo
Currency
Dominican Peso (DOP, RD$)
Language
Spanish
Payroll Cycle
Monthly
Pay Date
Last working day of the month

Dominican Republic Employment Contract Overview

Contract Type
Fixed-term / Open-ended
Local Language Required?
Yes
Bilingual?
Yes
Probation Period
Although the Labor Code doesn't directly mention a probationary period, it indicates that employees aren't entitled to advance notice or severance pay unless they've worked for a minimum of three months.
Moreover, the justification for termination based on inefficiency or incapability is only valid within the first three months of employment.
Minimum Paid Time Off
Employees who have worked continuously for one to five years are granted 14 days of paid leave annually, which increases to 18 days after five years of uninterrupted employment.
Employees become eligible for vacation after completing one year of service.
Public Holidays
12 public holidays
Notice Period
Less than three months of service: No notice is required.
Three months to than six months of service: Seven days
Six months to one year of service: 14 days
One year or more of service: 28 days

What Do You Need To Include In A Dominican Republic Employment Contract?

To stay compliant in the Dominican Republic, employment contracts must clearly set out the core terms of employment required by labor law, covering the employee’s identity, role, pay, and working conditions.

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

The contract needs a physical signature and it has to be coordinated by and in the local office.

How Does Payroll and Taxation Work in the Dominican Republic?

Payroll in the Dominican Republic follows clear statutory rules around currency, working hours, pay frequency, and mandatory benefits.

Employers must run payroll in local currency, apply legally defined minimum wages, and account for mandatory bonuses and accruals as part of compliant monthly payroll processing.

Payroll Setup

Salary currency

Dominican Peso (DOP, RD$)

Minimum Wage

DOP 15,860.32 to DOP 27,988.80, depending on the size of a business

Hours per Week

44 hours per week / Eight hours per day

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

The Dominican Labor Code requires mandatory bonuses (referred to as “13th-month” bonuses or “bono de navidad”):

  • One annual Christmas bonus, equivalent to one month’s salary, paid before December 20, and proportionally if employment started mid-year.

  • Vacation Pay is paid after one year of employment: Workers earn 14 working days’ paid vacation (which increases to 18 days after five years).

These bonuses are mandatory for all employees and are part of the formal compensation structure.

Gross Salary Structure

Gross salary doesn’t follow a standardized structure in the Dominican Republic.

What Payroll Taxes Do Employers Pay in the Dominican Republic?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

AFP - Professional risk:

7.1%

Family health insurance (SFS):

7.09%

ARL (labor risk insurance):

1.15%

INFOTEP (Instituto Nacional de Formación Técnico Profesional / National Institute for Technical-Professional Training):

1%

Vacation monthly cost accrual:

4.9%

Dismissal:

15.04%

Utilities partition:

15.74%

Christmas Bonus monthly cost accrual:

8.33%

What Payroll Taxes Do Employees Pay in the Dominican Republic?

Individual Income Tax

The Individual Income Tax (ISR – Impuesto Sobre la Renta) rates for salaries are progressive, as follows:

  • Income up to DOP 416,220 per year is exempt (approximately DOP 34,685 per month)

  • Income between DOP 416,220.01 and DOP 624,329 per year is taxed at 15% on the amount exceeding the exempt limit, plus a fixed amount

  • Income between DOP 624,329.01 and DOP 867,123 per year is taxed at 20% on the amount exceeding the lower limit, plus a fixed amount

  • Income exceeding DOP 867,123 per year is taxed at 25% on the amount exceeding the lower limit, plus a fixed amount

Tax is withheld at source by the employer on a monthly basis.

Social Contributions


Pension:

2.87% of the employee’s salary.

Health Insurance:

3.04% of the employee’s salary

حاسبة تكلفة التوظيف

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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي

Mandatory Employee Benefits in the Dominican Republic

Employment of expats is supported in the Dominican Republic.

Benefits Provider Funded Through Notes
Health Insurance Government

Payroll Contributions

In the Dominican Republic, health insurance is mandatory for all formal employees and is provided through the Dominican Social Security System (SeNaSa).

Both employers and employees are required to contribute to this system, which ensures that workers have access to healthcare services.

Pension/Social Security Government

Payroll Contributions

Pension and social security contributions are compulsory under Dominican law. Employers and employees both contribute to the pension system, which covers retirement, disability, and survivors’ pensions.

The system is designed to provide long-term financial security after employees leave the workforce.

Other Statutory Benefits Government/Employer

Payroll Contributions/ Additional Cost

Occupational Risk Insurance (ARL): Employers must provide ARL coverage, which protects employees against workplace accidents and occupational diseases.

Compensation Fund for Severance (FCT): Employers are required to deposit 2.85% of each employee’s monthly salary into this fund.

The FCT replaces the traditional severance payment system and guarantees employees receive compensation upon contract termination.

Mandatory Bonuses: The Dominican Labor Code requires mandatory bonuses (known as the 13th-month bonus or bono de navidad): One annual Christmas bonus equal to one month’s salary, paid before December 20, and paid proportionally if employment began mid-year.

Vacation Pay: Paid after one year of employment. Employees earn 14 working days of paid vacation, increasing to 18 days after five years of service.

These bonuses are mandatory for all employees and form part of the formal compensation structure.

Leave And Holiday Entitlement In Dominican Republic

Annual leave

Employees who have worked continuously for one to five years are entitled to 14 days of paid annual leave, which increases to 18 days after five years of uninterrupted employment. Employees become eligible for annual leave after completing one full year of service.

Vacation scheduling is arranged by mutual agreement between the employer and the employee. Any earned but unused vacation must be compensated when the employment relationship ends.

Public holidays

Employees are entitled to 12 paid public holidays each year. These include:

  • January 1: New Year’s Day

  • January 6: Three Kings’ Day

  • January 21: Virgin of Altagracia Day

  • January 26: Juan Pablo Duarte’s Birthday

  • February 27: Independence Day

  • Good Friday (date varies)

  • Corpus Christi (date varies)

  • May 1: Labor Day

  • August 16: Restoration Day

  • September 24: Virgin of Mercedes Day

  • November 6: Constitution Day

  • December 25: Christmas Day

Sick Leave

Under statutory sick leave rules in the Dominican Republic, the employer covers up to 21 days of sick leave at 100% of the employee’s salary. After this period, social security assumes responsibility for sick leave payments.

The employer remains responsible for paying sick leave during the first 21 days, after which coverage transitions fully to the social security system.

Maternity Leave

Female employees are entitled to 14 weeks of paid maternity leave, typically split into seven weeks before the expected due date and 7 weeks after childbirth.

For employees covered by social security, maternity benefits are shared equally between the employer and the social security system. If an employee chooses to take her annual vacation immediately after maternity leave, the employer must allow it.

Upon returning to work, the employee is entitled to:

  • Three 20-minute breastfeeding breaks per day, and

  • One half-day off per month during the first year to take the child to medical appointments.

Employers are prohibited from terminating employees due to pregnancy, including for up to three months after childbirth.

Paternity Leave

Fathers are entitled to 2 days of paid leave following the birth of a child by their spouse or legally recognized partner.

Other Types of Leave

Employees are entitled to paid leave in the following situations:

  • Marriage: Five days

  • Death of a spouse, child, parent, or grandparent: Three days

Termination and Offboarding in the Dominican Republic

Termination and offboarding in the Dominican Republic follow detailed Labor Code rules that set clear requirements for notice, severance, documentation, and final payments.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Dominican Republic Employee Resignation

Notice

Form

The employee must submit a resignation in writing. It should be signed and dated, and a copy must be delivered to the employer. The resignation should also be notified to the Dirección General de Trabajo or the Ministerio de Trabajo to make it official.

Notice period

If the employee has been working for more than 3 months, they must give at least 15 days' notice.

End-of-Service Benefits

Severance/Gratuity

In a voluntary resignation, the employee is not entitled to severance pay (prestaciones laborales).

Other Benefits

  • Upon resignation, the employer must pay the following:

    • Unpaid salary up to the last working day.

    • Proportional vacation pay for unused vacation days.

    • Proportional Christmas bonus (bono de navidad), if resignation occurs before December.

  • Any other accrued benefits stated in the employment contract or company policy.

Termination Documentation

Upon resignation, the employer is required to issue:

  • Final settlement letter (carta de desahucio or liquidación), detailing all payments made to the employee

  • Payroll clearance (deslinde), confirming that the employee has received all legal entitlements

  • Notice to the Ministry of Labor, reporting the termination via Form DGT-3 or equivalent

  • Though not mandatory, it is recommended that the employee signs the settlement letter to confirm receipt of all payments

Employer Termination With Cause in Dominican Republic

Acceptable grounds

Termination with just cause (despido con causa justificada) is permitted under the Labor Code if the employee commits serious misconduct. Acceptable grounds include, but are not limited to:

  • Serious disrespect or insubordination against the employer or representatives

  • Repeated and unjustified absences or lateness

  • Acts of violence, threats, or abuse at the workplace

  • Dishonesty, theft, fraud, or breach of trust

  • Intentional damage to company property

  • Disclosure of confidential information

  • Immoral behavior affecting the company or coworkers

  • Refusal to comply with essential job duties

The employer must be able to prove the misconduct and demonstrate that it justifies dismissal under Article 88 and related provisions of the Labor Code.

Notice

Form

Termination must be in written form, clearly stating the reason(s) and the effective date. The letter must be delivered to the employee and reported to the Dirección General de Trabajo (Ministry of Labor) within 48 hours using Form DGT-3.

Notice period

No advance notice is required for dismissal with cause. Termination is effective immediately upon notification.

Payment in lieu of notice or notice waiver

Not applicable.

End-of-Service Benefits

Severance

In cases of dismissal with cause, the employee is not entitled to severance pay (prestaciones laborales), including notice compensation and seniority bonus (auxilio de cesantía).

Other Benefits

The employer must still pay the following:

  • Unpaid salary up to the date of termination

  • Proportional vacation pay for unused vacation days

  • Proportional Christmas bonus (if applicable)

  • Other accrued benefits stipulated by law or the employment contract

These are due regardless of the cause of termination.

Termination Documentation

Upon dismissal with cause, the employer must:

  • Deliver a termination letter stating the cause and effective date

  • Notify the Ministry of Labor within 48 hours using Form DGT-3

  • Prepare a final settlement showing all accrued and paid benefits

  • Keep records in case of a labor claim, as the employer bears the burden of proof to justify the dismissal

Employer Termination Without Cause in Dominican Republic

Acceptable Grounds

Under Dominican labor law, both employer and employee have the right to terminate the contract without cause (“desahucio”).

Form

Written.

Notice period

  • Less than three months of service: No notice is required

  • Three months to less than six months of service: Seven days

  • Six months to one year of service: 14 days

  • One year or more of service: 28 days

Payment in lieu of notice or notice waiver

If the employer fails to give the required notice (or gives insufficient notice), they must pay the employee for the “missing” notice period (i.e., pay in lieu of notice).

End-of-Service Benefits

Severance

When an employer dismisses an employee without cause, severance pay must be provided based on the employee's length of service:

  • Six days’ wages for service between three and six months

  • 13 days’ wages for service between six months and one year

  • 21 days’ wages per year of service for employment lasting one to five years

  • 23 days’ wages per year of service for employment exceeding five years

Termination Documentation

  • Termination notice in writing

  • Severance calculation document

  • Certificate of employment (if the employee requests it) stating dates worked, job role, and salary history

  • If the employer terminates for cause under statutory grounds, they must provide written notice of the cause to the Ministry of Labor (“Departamento de Trabajo”) within 48 hours

Mutual Termination Agreements in Dominican Republic

Mutual termination (desahucio por mutuo consentimiento) occurs when both the employer and employee voluntarily agree to end the employment relationship. This form of termination is recognized and regulated under Article 77 of the Dominican Labor Code.

Notice

Form

The agreement must be made in writing and signed by both parties. To be legally valid, it must be ratified before the Ministry of Labor or notarized, in accordance with Article 82 of the Labor Code.

Notice period

No notice is owed when an employment contract ends by mutual consent.

Waiver of notice

Not applicable.

End-of-Service Benefits

Severance

When an employment contract ends by mutual consent, the employer does not owe statutory severance (prestaciones laborales), provided the agreement is entered into freely and properly ratified. In practice, employers often offer a gratuity or settlement payment (compensación por salida), which the parties negotiate and which the law does not fix at a specific amount.

Other Benefits

The employer is still required to pay the following accrued benefits:

  • Unpaid salary up to the termination date

  • Proportional vacation pay for unused vacation days

  • Proportional Christmas bonus (bono de navidad), depending on the date of termination

  • Other contractually agreed benefits, if applicable

These payments must be clearly detailed in the settlement document and confirmed by both parties.

Termination Documentation

The following documents are required to formalize mutual termination:

  • Written termination agreement, signed by both parties and ratified before the Ministry of Labor or notarized

  • Final settlement statement (liquidación) showing all payments and benefits

  • Employee release letter (descargo) confirming that no further claims will be made

  • Employer notification to the Ministry of Labor, typically through Form DGT-3, marking the contract as ended by mutual agreement

Offboarding Process for the End of Fixed-term Contracts in Dominican Republic

Fixed-term contracts (contrato a plazo fijo) are legally allowed and regulated under Articles 25–31 of the Labor Code. They must clearly specify the start and end dates, and their duration cannot exceed one year unless justified by the nature of the work or special circumstances.

If the Fixed-Term Contract Ends Normally:

Notice

  • No notice is legally required from either party when the contract ends on its agreed expiration date

  • It is standard practice for the employer to notify the employee in writing a few days before the end date as a courtesy, but this is not mandated by law

End-of-Service Benefits

Severance/Gratuity

  • The employee is not entitled to severance pay (prestaciones laborales) if the contract ends on the agreed-upon date without renewal

  • Since the contract has a defined end, termination is not considered dismissal

Other Benefits

  • The employer must pay all accrued legal entitlements, including:

    • Unpaid salary

    • Proportional vacation pay

    • Proportional Christmas bonus (if applicable)

    • Any other benefits specified in the employment contract

  • These payments are due upon contract completion.

If the Employer Terminates Early:

Notice

  • No notice period is required if the employer terminates early with just cause and can legally justify the action

  • If there is no just cause, early termination is considered unjustified and the employer is liable for compensation

  • No advance notice is needed, but written documentation of the termination and its cause is required

End-of-Service Benefits

Severance/Gratuity

  • If the employer ends the contract without just cause before its expiration, the employee is entitled to compensation equal to the wages they would have earned until the end of the contract term

  • This is considered a contractual damages payment, not severance, and is based on Article 28 of the Labor Code

Other Benefits

Regardless of the reason for early termination, the employee must receive:

  • Unpaid salary

  • Proportional vacation pay

  • Proportional Christmas bonus (if applicable)

  • Any accrued contractual benefits

All payments should be detailed in a final settlement document, and the termination must be reported to the Ministry of Labor.

Final Payment Timing & Immigration and Visa Compliance in Dominican Republic

Final Payment Deadline

According to Article 82 and related provisions of the Dominican Labor Code, the final payment must be made immediately upon termination of the employment relationship, regardless of the reason for termination (resignation, dismissal, mutual agreement, or contract expiration). "Immediate" is interpreted as no later than the next business day following the termination.

Penalty

If the employer fails to make the final payment within this timeframe, the employee has the right to file a complaint with the Ministry of Labor. Additionally, under Article 720 of the Labor Code, the employer may be liable for late payment interest, fines, and damages, as determined by the labor courts. The employer may also be required to pay attorney’s fees and court costs in case of legal action.

Visa and Immigration Compliance

Upon termination of employment, the employer must:

  • Notify the General Directorate of Migration if the employee held a work or residency permit sponsored by the company

  • Assist the foreign worker with any necessary immigration procedures, such as cancellation or transfer of sponsorship

  • Ensure that any pending labor obligations are fulfilled prior to departure or transfer

Failure to comply with immigration requirements may result in fines, sanctions, or suspension of the employer’s authorization to hire foreign workers.

Key Elements of an Employment Contract in Dominican Republic
When drafting an employment contract for employees in Dominican Republic, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

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Onboard and Manage Your Team in the Dominican Republic

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Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Dominican Republic.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Dominican Republic

Got Questions? Find Answers Here

Why is the employer cost 52.02%? That seems extremely high.

Dominican law requires employers to accrue specific benefits monthly: vacation pay (4.9%), dismissal/severance (15.04%), utilities partition (15.74%), and Christmas bonus (8.33%). These accruals, combined with social security contributions (AFP 7.1%, health insurance 7.09%, labor risk 1.15%, INFOTEP 1%), bring total employer costs to 52.02% of gross salary. The accruals are paid out when the employee takes vacation, at Christmas, or upon termination.

What is "utilities partition"?

Utilities partition (15.74%) is a mandatory benefit accrual under Dominican labor law. It represents the employer's obligation to pay a proportion of company profits to employees, calculated and accrued monthly as part of total compensation costs.

There's no probation period, but the first three months matter?

Correct. The Labor Code doesn't formally define probation, but employees aren't entitled to advance notice or severance pay unless they've worked for at least three months. Additionally, you can only terminate for inefficiency or incapability during the first three months. After three months, different termination rules and notice periods apply.

Final payment must be "immediate", what does that mean exactly?

Immediate means no later than the next business day following termination, regardless of reason. Failing to meet this deadline can result in late payment interest, fines, damages, and potential legal action under Article 720 of the Labor Code.

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