Central America
Dominican Republic

Dominican Republic

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Employer of Record (EOR) in Dominican Republic

What you'll learn

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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. The Dominican Republic has the largest economy in the Caribbean and has been the fastest-growing economy in the Western Hemisphere over the past 25 years.

Palm tree-studded beaches, rainforests, Spanish architecture, and more make the Dominican Republic a wonderful location for remote workers.

Employment Terms

The minimum wage in the Dominican Republic varies according to the size of the company, ranging from approximately DOP 18,400 to DOP 30,000 per month. The standard workweek consists of 40 to 44 hours, with a maximum of 8 hours per day. Any hours worked beyond this limit are considered overtime and must be compensated at 135% of the regular rate, or at 200% when performed on public holidays.

Types of Leave

Parental Leave

In the Dominican Republic, pregnant employees are entitled to 14 weeks of paid maternity leave, which must commence at least six weeks prior to the expected date of delivery. Eligibility is granted from the first day of employment, with no minimum tenure requirement. Fathers are entitled to 3 consecutive days of paid paternity leave, which must be taken immediately following the birth of the child, typically within the first week after delivery.

Sick Leave

After 3 days of sick leave, social security will start to pay a percentage of the employees’ wages during the leave.

Paid Leave

The Dominican Republic observes 12 public holidays annually. Employees who have completed one year of service with their employer are entitled to 14 working days of paid annual leave, with an additional 4 days granted upon completion of five years of service. Employees may also be granted leave for events such as marriage or bereavement.

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. No employee compensation is required if the termination is for just cause.

Additional Information

Employers are required to provide a Christmas bonus each year, equal to one month’s salary, typically paid around December 20.

Overview

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

Employer Taxes

16.19%

(estimated)

★  7.1% - Pension Fund

★  7.09% - Health Insurance

★  1% - Labor Risk Insurance

★  1% - Education Fund (INFOTEP)

Where you pay less, and get so much more.

Get global HR, compliance and payroll in 3 simple steps:
1

Find your remote talent

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.
2

We’ll find the best price

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

Leave the onboarding & 
admin to us

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.
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), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. 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, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.