What you'll learn
- Country Introduction
- Tax Breakdown for Employers
- Statutory Leave Laws
- Minimum Wage and Working Hours
- Termination Process
- Additional Information
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.
★ 7.1% - Pension Fund
★ 7.09% - Health Insurance
★ 1.2% - Labor Risk Insurance
★ 1% - INFOTEP
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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.
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.
