Payroll and Benefits Guide Dominica
Last updated: Mar 03, 2026
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$):
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0% on 0 – 30,000
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15% on 30,001 – 50,000
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25% on 50,001 – 80,000
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35% on 80,001+.
(Resident status generally based on ≥183 days; IRD administers PIT.)
Employer taxes
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
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Time-and-a-half (150%) for work beyond normal daily hours on a normal working day.
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Double time (200%) for work performed on public holidays.
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(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:
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Under 5 years’ service: 2 weeks
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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
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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).
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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
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):
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Paid monthly (or more than monthly):
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<10 years’ service: 1 month
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>10 years’ service: 2 months
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Paid less than monthly:
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<2 years’ service: 1 week
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>2 and ≤5 years: 2 weeks
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>5 years: 4 weeks
(Employer may pay in lieu of notice.)
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Employee resignation:
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Paid monthly (or more than monthly): 1 month’s notice
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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:
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3+ years’ continuous service required.
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Formula (caps apply):
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Up to 5 years: 1 week per year + 2 weeks per year after the 3rd year
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>5 to ≤10 years: 9 weeks + 2 weeks per year over 5
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>10 years: 19 weeks + 3 weeks per year over 10
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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.
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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.
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Process includes application via the Labour Division (eServices), Ministerial approval, and supporting documentation (contract, police record, medical, etc.).
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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)
VAT
Standard VAT rate: 15%.
Reduced rate: 10% for hotel accommodation and diving activities.
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Public Holidays Calendar
| 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 |
Questions & Answers