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Payroll and Benefits Guide Dominica

Last updated: Mar 03, 2026

Currency
East Caribbean dollar (XCD)
Employer Taxes
7.75%
Payroll Frequency
Monthly
Employee Costs
6.75%
Capital
Roseau
Date Format
dd/mm/yyyy
Fiscal Year
July 1st to June 30th
video poster

Contribution

Employer Payroll Contributions
7.75% Dominica Social Security (DSS) – employer share with Redundancy Fund
7.50% Dominica Social Security (DSS) – employer share without Redundancy Fund
7.75%
Total Employment Cost

 

Employee Payroll Contributions
6.75% Dominica Social Security (DSS)
6.75%
Total Employee Cost

 

Income Tax

Resident PIT – progressive annual scale (EC$):

  • 0% on 0 – 30,000

  • 15% on 30,001 – 50,000

  • 25% on 50,001 – 80,000

  • 35% on 80,001+.
    (Resident status generally based on ≥183 days; IRD administers PIT.)

Employer taxes

Highest
Lowest

Working Hours

General

Standard legal working week is 40 hours per week; normal cap 8 hours/day with a lunch break of at least 30 minutes.

Overtime

  • Time-and-a-half (150%) for work beyond normal daily hours on a normal working day.

  • Double time (200%) for work performed on public holidays.

  • (Standard planning practices keep average weekly hours around 40.)

Payroll

Payroll Cycle

The payroll frequency is monthly.

13th Salary

In Dominica, a 13th-month salary is not mandatory.

Leave

Annual Leave (vacation)

Minimum statutory vacation leave after each completed calendar year:

  • Under 5 years’ service: 2 weeks

  • 5 years and over: 3 weeks.

PTO carryover

Dominica’s Labour Standards Act grants employees statutory annual vacation leave after a year of service (typically 2–3 weeks). The law does not include an explicit statutory rule on carrying unused annual leave into the next year, nor does it say that unused leave automatically expires at year-end. Employers must ensure annual leave is granted within ten months after the year it was earned and must pay out any unused leave upon termination. Because the statute is silent on carryover, a blanket “use-it-or-lose-it” policy is not advisable without clear agreement, and unused leave should generally be scheduled or paid out, not forfeited.

Public Holidays

Public holidays falling on the weekend are usually lost.

Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
16 February 2026 Monday Carnival Monday Standard holiday
17 February 2026 Tuesday Carnival Tuesday Standard holiday
3 April 2026 Friday Good Friday Standard holiday
6 April 2026 Monday Easter Monday Standard holiday
4 May 2026 Monday Labour Day Standard holiday
25 May 2026 Monday Whit Monday Standard holiday
3 August 2026 Monday Emancipation Day (August Monday) Standard holiday
3 November 2026 Tuesday Independence Day Standard holiday
4 November 2026 Wednesday Community Service Day Standard holiday
25 December 2026 Friday Christmas Day Standard holiday
26 December 2026 Saturday Boxing Day Standard holiday

Sick Days

Cash benefit via DSS: up to 60% of average earnings (short-term sickness benefit), normally up to 26 weeks while medically certified incapable of work. Employers often top-up per policy/contract.

Maternity Leave

  • Leave entitlement (Labour Standards Act): 12 weeks total — typically ≥3 weeks pre-natal and up to 9 weeks post-natal. At least 4 weeks of the leave period is paid at no less than 50% of wages (statutory floor).

  • DSS maternity benefit: 60% of average weekly earnings, generally for up to 12 weeks (timing rules apply).

Paternity Leave

No specific statutory paternity leave provision in current law/guides.

Employer taxes

Highest
Lowest

Termination

Termination Process

Termination is regulated primarily by the Protection of Employment Act (Chap. 89:02). Contracts may end by resignation, dismissal for misconduct or incapacity, redundancy (economic reasons), mutual agreement, or expiry of a fixed-term. Notice must be in writing and must state the reason(s); for redundancy and collective situations, there are procedural steps (consultation/notification) and re-employment preference rules. Failure to follow statutory procedure can expose the employer to remedies before the Tribunal.

Notice Period

Employer-initiated termination (minimum statutory notice):

  • Paid monthly (or more than monthly):

    • <10 years’ service: 1 month

    • >10 years’ service: 2 months

  • Paid less than monthly:

    • <2 years’ service: 1 week

    • >2 and ≤5 years: 2 weeks

    • >5 years: 4 weeks
      (Employer may pay in lieu of notice.)

Employee resignation:

  • Paid monthly (or more than monthly): 1 month’s notice

  • Paid less than monthly: 1 week’s notice.

Severance Pay

There is no generic statutory “severance” for ordinary dismissals, but redundancy pay is mandatory if eligible:

  • 3+ years’ continuous service required.

  • Formula (caps apply):

    • Up to 5 years: 1 week per year + 2 weeks per year after the 3rd year

    • >5 to ≤10 years: 9 weeks + 2 weeks per year over 5

    • >10 years: 19 weeks + 3 weeks per year over 10

  • Maximum redundancy benefit: 52 weeks’ pay.

Probation Period

Probation is permitted and typically set by contract, commonly up to 6 months.

Immigration

Work authorization is required for non-citizens to take up employment.

  • Work permits are issued by the Labour Division; applications are employer-sponsored; valid for 1 year, renewable. A work permit confers residency if employment exceeds 6 months.

  • Process includes application via the Labour Division (eServices), Ministerial approval, and supporting documentation (contract, police record, medical, etc.).

  • Separate residence permit processes exist (Ministry of National Security/Immigration) for longer stays.

Minimum Wage

Dominica does not have a single universal monthly minimum; rates are hourly and occupation-specific under the Minimum Wages (Amendment) Order, 2021. Current general baseline widely cited is EC$7.50 per hour for most workers.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

VAT

Standard VAT rate: 15%.
Reduced rate: 10% for hotel accommodation and diving activities.

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Dominica
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
16 February 2026 Monday Carnival Monday Standard holiday
17 February 2026 Tuesday Carnival Tuesday Standard holiday
3 April 2026 Friday Good Friday Standard holiday
6 April 2026 Monday Easter Monday Standard holiday
4 May 2026 Monday Labour Day Standard holiday
25 May 2026 Monday Whit Monday Standard holiday
3 August 2026 Monday Emancipation Day (August Monday) Standard holiday
3 November 2026 Tuesday Independence Day Standard holiday
4 November 2026 Wednesday Community Service Day Standard holiday
25 December 2026 Friday Christmas Day Standard holiday
26 December 2026 Saturday Boxing Day Standard holiday