Payroll and Benefits Guide Dominican Republic
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
7.10%
|
Pension and Disability (Maximum contribution 269,640.00 DOP)
|
|
7.09%
|
Health Insurance (Maximum contribution 134,820.00 DOP) DOP)
|
|
1.20%
|
Labor Risk (Maximum contribution 53,928.00 DOP)
|
|
1.00%
|
Instituto Nacional de Formación Técnico Profesional (INFOTEP)
|
| 16.39% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
2.87%
|
Pension and Disability
|
|
3.04%
|
Health Insurance
|
|
0.50%
|
Technical Education (INFOTEP)
|
| 6.41 |
Total Employee Cost |
| Employee Income Tax | |
|
0.00%
|
Up to 416,220.00 DOP
|
|
15.00%
|
416,220.00 DOP – 624,329.00 DOP
|
|
20.00%
|
624,329.00 DOP – 867,123.00 DOP
|
| 25.00% | 867,123.00 DOP and over |
Profit Sharing – In addition to the above contributions, employers must share 10% of net profits with the employees. The individual participation of each worker cannot exceed 45 days of salary for those who have provided service for less than three years, and 60 days of ordinary salary for those who have provided continuous service for three or more years.
Employer taxes
Employee taxes
Minimum Wage
General
The monthly minimum wage is based on the size of the company:
25,116 DOP in large companies (more than 151 workers)
23,023 DOP in medium-sized companies (51-151 workers)
15,428 DOP in small companies (11-50 workers)
14,232 DOP in micro-enterprises (up to ten employees)
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payroll cycle is monthly or bi-weekly or semi-monthly.
13th Salary
Workers are eligible for one additional monthly salary as a Christmas bonus, it must be paid before December 20th. It is exempt from income tax.
Working Hours
General
The standard workweek in the Dominican Republic consists of 44 hours per week or 8 hours per day.
Part-time employees can’t work over 29 hours in a single week.
Overtime
- Maximum Ordinary Hours (Article 147): The standard work limit is 8 hours per day and 44 hours per week. Any work beyond these limits is considered overtime (horas extraordinarias).
- Absolute Daily Cap: Total working time, including overtime, cannot exceed 11 hours per day.
- Annual Overtime Cap: Overtime is strictly limited to a maximum of 240 hours per year.
- Consent: Overtime is generally considered voluntary for the employee and must be due to the urgent necessity of the company. It requires the employer to maintain a register of all overtime hours worked.
- Exemptions: Senior managerial and executive positions are typically exempt from the statutory working hours and overtime provisions.
Mandatory Overtime Pay Rates (Article 203)
Overtime compensation is mandatory and is calculated as a tiered minimum premium percentage of the employee’s regular hourly wage. The premium increases significantly for weekly rest days and night work.
| Overtime Hours Worked | Minimum Premium Rate (Statutory) | Total Pay Rate | Notes |
| First 68 Hours of Overtime Per Year | +35% of the regular hourly wage. | 135% | This applies to the initial hours of overtime worked throughout the year. |
| Hours Exceeding 68 Hours Per Year | +50% of the regular hourly wage. | 150% | The premium increases once the annual limit of 68 hours is surpassed. |
| Weekly Rest Day (Sunday) | +100% of the regular hourly wage. | 200% | This double-time rate is mandatory for all work performed on the designated weekly rest day. |
| Night Work Overtime (9:00 PM to 7:00 AM) | +100% of the regular hourly wage. | 200% | If overtime is performed during the legal night shift hours, the compensation is at least double time. |
Compensation Method: The overtime must be paid in money at the statutory premium rates. Compensation through time off in lieu is not permitted by the Labour Code.
Leave
Annual Leave (vacation)
Full-time employees who have been employed for at least one year are entitled to 14 working days paid annual leave. After five years of employment, this increases to 18 days.
Annual leave should be taken in periods of no less than 7 days.
The vacation accrual period is based on each worker’s start date, not on the specific calendar year.
Salary for the vacation period must be paid in advance, no later than the day prior to the beginning of the vacation.
PTO carryover
The law does not clearly allow automatic carryover of unused statutory vacation. Leave is meant to be taken when due, but accrued vacation cannot be forfeited — unused days must be paid out on termination.
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 |
| 6 January 2026 | Tuesday | Epiphany / Three Kings’ Day | Standard holiday |
| 21 January 2026 | Wednesday | Our Lady of Altagracia Day | Standard holiday |
| 26 January 2026 | Monday | Duarte’s Day | Standard holiday |
| 27 February 2026 | Friday | Independence Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 16 August 2026 | Sunday | Restoration Day | Standard holiday |
| 24 September 2026 | Thursday | Our Lady of Mercedes Day | Standard holiday |
| 6 November 2026 | Friday | Constitution Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
Employees can receive up to 26 weeks (182 days) of sick leave per year if they are unable to work due to illness or injury.
During this period, compensation is given from the Social Security system, which typically covers 60% of their regular wage. To be eligible for these benefits, employees must have contributed to the Social Security system for at least 12 months.
Maternity Leave
Female employees are entitled to receive 14 weeks of paid maternity leave, generally split as seven weeks before the due date and seven weeks after. Maternity leave pay is shared equally between the Employer and Social Security.
Employers cannot terminate employees on the grounds of pregnancy, including for up to three months after they have given birth.
Mothers also have the right to a rest period of 20 minutes for each workday so they may breast feed.
Paternity Leave
Fathers are entitled to 2 days of paid paternity leave.
Parental Leave
Father can share the last 6 weeks of the mothers 18 weeks of maternity leave, provided there is mutual agreement between the parents.
Other Leave
Employees receive paid leave for:
- Bereavement Leave – For the death of family member (including grandparents), 3 days leave is given.
- Marriage Leave – workers are entitled to 5 days leave in the event of their marriage.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Termination can fall into the category of ‘termination with just cause’ or ‘termination without just cause’. Just cause includes incidents of serious misconduct or poor performance. When dismissal is just and can be proven by the employer, no severance payment is required. When a termination is made without just cause, severance is required to be paid.
Notice must be given in writing.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Wages must be paid at least monthly; the interval between salary payments cannot exceed one month. | When employment ends without just cause the employer must pay severance (“cesantía”) based on length of service: – 3-6 months → 6 days’ salary – 6-12 months → 13 days’ salary – >1 year to 5 years → 21 days’ salary per year – 5 years → 23 days’ salary per year. |
Payment may be made by cash, cheque or direct deposit; the law allows bank transfer into the employee’s account but does not clearly mandate that all wages must be paid into a bank account in all cases. |
Notice Period
The length of notice depends on the employee’s seniority:
- Less than 3 months of employment: No notice required
- 3 to 6 months of employment: 7 days’ notice
- 6 months-1 year of employment: 14 days’ notice
- Over 1 year of employment: 28 days’ notice
Severance Pay
Severance is required upon termination without just cause. Severance payments are calculated in accordance with the length of service as follows:
- 3 to 6 months of employment: 6 days’ salary at the regular rate of pay
- 6 months to 1 year of employment: 13 days’ salary at the regular rate of pay
- 1 year to 5 years of employment: 21 days’ salary at the regular rate of pay
- Over 5 years of employment: 23 days’ salary at the regular rate of pay
All payments of severance pay must be made within ten days of notification of termination.
Severance does not need to be given if a worker resigns.
Probation Period
There is no formal trial period set out in law, however, during the first 3 months of employment the contract can be terminated without having to pay additional compensation.
Immigration
Foreign nationals require a business visa to conduct business activities in the Dominican Republic. Business visas are either issued for 60 days for a single entry or multiple entries, valid for 1 year. The authorized period of stay is granted at the discretion of the admitting officer and corresponds to the duration of the activity, but typically does not exceed 30 consecutive days. Business visa holders may apply for an extension of stay, usually granted for a maximum of 30 additional days.
Foreign nationals who intend to work in the Dominican Republic require either a business visa for employment purposes for assignments of one year or less (issued by consular post with authorization from the Ministry of Foreign Affairs), or a Temporary Residence Permit for assignments exceeding one year.
Foreign nationals in the Dominican Republic generally are subject to fines for each month they remain in the country beyond the authorized period of stay of their residence permit.
VAT
General
18% standard rate.
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Payroll and Benefits Guide
in Dominican Republic
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany / Three Kings’ Day | Standard holiday |
| 21 January 2026 | Wednesday | Our Lady of Altagracia Day | Standard holiday |
| 26 January 2026 | Monday | Duarte’s Day | Standard holiday |
| 27 February 2026 | Friday | Independence Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 16 August 2026 | Sunday | Restoration Day | Standard holiday |
| 24 September 2026 | Thursday | Our Lady of Mercedes Day | Standard holiday |
| 6 November 2026 | Friday | Constitution Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Hi, My temporary work permit will be expiring soon. How long can I renew it for?
Hi, A work permit can be renewed for an extra year, but you are required to provide proof of extension or renewal of your employment contract.