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North America

Dominican Republic

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Employer of Record (EOR) in Dominican Republic

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Dominican Republic Introduction

The Dominican Republic is the most-visited island country in the Caribbean Sea. It occupies about 5/8 of the island of Hispaniola which it shares with Haiti. It has the largest economy in the Caribbean, and the fastest-growing economy in the Western Hemisphere in the last 25 years. Palm tree-studded beaches, rainforests, Spanish architecture, and more make the Dominican Republic a wonderful location for remote workers.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees in the Dominican Republic are entitled to 14 weeks of paid maternity leave, starting at least 7 weeks before the due date. Fathers are entitled to 2 days of paid paternity leave.

Sick Leave

After 4 days of sick leave, social security will start to pay a percentage of the employees’ wages during the leave.

Paid Leave

There are 12 public holidays in the Dominican Republic, and employees who have worked at their companies for 1 year are entitled to 14 days of paid time off each year (with an additional 4 days granted after 5 years at the company). Employees can also receive leave for marriage or bereavement.

Wage Requirements and Working Hours

Minimum wage varies based on the size of the company and ranges from DOP 11,900 to DOP 21,000. A workweek lasts 44 hours per week at 8 hours per day. Work done past this time is considered overtime and is paid at 135% up to 68 hours, 170% for 68+ hours, and 200% for holidays.

Termination Process

Process

Employee contracts in the Dominican Republic can be terminated for just cause or simply at the employer’s discretion.

Notice Period

The notice period for employees terminated at the employer’s discretion is between 7-28 days.

Severance Pay

Employees dismissed at the employer’s discretion are entitled to severance pay that is calculated based on the length of employment at the company. If the termination is for just cause an employee isn’t owed compensation.

Additional Information

While there is no legal requirement for a 13th month salary, most employers will offer a Christmas bonus equal to one month’s salary paid around December 20th each year.

OVERVIEW
Language(s):
Spanish
Currency:
Dominican Peso (DOP)
Capital City:
Santo Domingo
Population:
11 Million
Cost of Living Rank:
67th
VAT (Valued Added Tax):
18%
Employer TaxES
16.39%
(estimated)

★  7.1% - Pension Fund

★  7.09% - Health Insurance

★  1.2% - Labor Risk Insurance

★  1% - INFOTEP

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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Available in 150+ countries
How Remofirst employs in Dominican Republic

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Dominican Republic get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Dominican Republic are paid on time in Dominican Peso (DOP). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Dominican Republic, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.