This guide has important information for businesses looking to hire employees or contractors in the Dominican Republic. With a nominal GDP of approximately USD $130 billion (2025) and a projected growth rate of 4.5-4.8% for 2026, the Dominican Republic is the largest economy in the Caribbean and Central America according to the World Bank. It’s the seventh-largest economy in Latin America and a growing nearshore destination for BPO operations and call centers serving the US market. Almost 30% of the country’s population lives in the capital city of Santo Domingo.

Category	Details
Minimum Wage	DOP 16,993/month (micro) to DOP 29,988/month (large enterprises)
Overtime Wage	135% standard rate; 200% beyond 68 hrs/week
Meal Breaks	60 Minutes
Rest Breaks	No federal mandate
Working hours	8 hours/day, 44 hours/week
Salary Payment Cycle	Monthly
Payroll Taxes	AFP 7.10%, SFS 7.09%, SRL 1.25-1.85%, INFOTEP 1.00% (employer rates)
Paid Vacation	14 days, 18 days after 5 years of service
Overtime Hours	Beyond 44 hours in a week
Night Shift Hours	115% of regular pay 9 PM to 7 AM
Holidays	12 holidays/year
No Work Days	Saturday, Sunday, Voting days

Hiring in The Dominican Republic

Pro Tip

Hiring in the Dominican Republic without a local entity? See our Employer of Record guide for the Dominican Republic for a complete breakdown of EOR costs, providers, and compliance.

A business needs a local entity in The Dominican Republic to hire locally. Setting up an entity in the Dominican Republic involves registering with multiple agencies and can take 45-60 days. All documents have to be filled up in Spanish. You also need to register with the Department of Labour before you can hire any employee.

As per the new regulations, the person authorized to operate the account must be present to set up the bank account. Opening a bank account for a business can take 20-30 days due to the time needed to verify various documents. You will also need to comply with benefits, payroll, tax, and HR laws. Dominican Republic differentiates between employees and contractors. There are different rules for both, and incorrect classification can lead to fines.

Minimum Wage in Dominican Republic

There are different minimum wage laws for public and private sector in the Dominican Republic. Private sector minimum wage in depends on the number of employees and annual sales of the business. In addition to the minimum wages, many employers also pay one month’s salary as a Christmas bonus, making the total annual salary to 13-times the monthly salary.

Size of Business	Minimum Wage (DOP/month)
Micro enterprises (1-10 workers)	DOP 16,993.20
Small enterprises (11-50 workers)	DOP 18,421.20
Medium enterprises (51-150 workers)	DOP 27,489.60
Large enterprises (151+ workers)	DOP 29,988.00
Free trade zones	~DOP 18,871 (rising to ~DOP 20,875 on June 1, 2026)
Domestic workers	DOP 13,000

Enterprise classification also considers annual sales volume (e.g., large = sales exceeding DOP 202 million). The minimum wage was increased in two phases: +12% on April 1, 2025, then +8% on February 1, 2026.

Working Hours in Dominican Republic

Work hours are tightly regulated in the Dominican Republic. Standard working hours in The Dominican Republic are 8 hours per day or 44 hours per week. Managers can work up to 10 hours per day after an assessment by the Labour Office.

If you employ a part-time worker, you must limit the working hours to 29 or less in a week.

Overtime pay rules under the Dominican Labor Code (Law 16-92):

Hours 44-68/week: Paid at 135% of the normal hourly wage
Hours beyond 68/week: Paid at 200% of the normal hourly wage
Sundays and holidays: Paid at 200% plus a compensatory rest day
Night work (9 PM - 7 AM): Additional 15% premium (115% of regular rate)
Exemption: Managers are exempt from overtime pay

Payroll and Taxes in Dominican Republic

Employers typically follow a monthly payment schedule, with salaries paid on the first of every month. Salary is prorated for employees joining in the middle of a month.

In The Dominican Republic, monthly wages are calculated as 4.33 times the weekly wage or 4.33 times the standard hours per week if an hourly wage is given. Salary must be paid in cash, by check, or by direct deposit to the employee’s account at a bank or other financial institution.

Individual Income Tax

In The Dominican Republic, domestic income is subject to income tax but income from outside is generally not taxed.

The Dominican Republic income tax system follows a progressive structure where individuals with higher income pay higher taxes. Bracket thresholds are indexed annually for inflation by the DGII. The corporate income tax rate is 27%. Employers need to stay on top of these changes to be compliant with tax laws.

The following table shows income tax rates for Dominican Republic:

Annual Salary (DOP)	Applicable Tax Rate
Up to DOP 416,220	0% (exempt)
DOP 416,220 - DOP 624,329	15%
DOP 624,329 - DOP 867,123	20%
Over DOP 867,123	25%

Employer Costs in Dominican Republic

Employers bear the following costs in Dominican Republic. Contributions are made to the TSS (Treasury of Social Security) system:

Component	Employer Rate	Employee Rate	Total
AFP (Pension Fund)	7.10%	2.87%	9.97%
SFS (Health Insurance)	7.09%	3.04%	10.13%
SRL (Occupational Risk)	1.25% - 1.85%	0%	1.25-1.85%
INFOTEP (Training)	1.00%	0%	1.00%

Total employer cost: Approximately 16.44% of salary (before SRL risk adjustments).

Salary caps for contributions:

AFP: Capped at 20x the average monthly minimum wage
SFS: Capped at 10x the average monthly minimum wage
SRL risk rate varies by job classification (base 1.25% + up to 0.6% for high-risk roles)

Statutory Leave Policies in Dominican Republic

There are 12 public holidays in The Dominican Republic in 2026:

Date	Holiday
January 1	New Year's Day
January 5 (Mon)	Epiphany / Day of the Holy Kings (moved from Jan 6)
January 21	Day of Our Lady of Altagracia
January 26	Juan Pablo Duarte's Birthday
February 27	Independence Day
April 3 (Fri)	Good Friday
May 4 (Mon)	Labor Day (moved from May 1)
June 19	Corpus Christi
August 16	Restoration Day
September 24	Day of Our Lady of Las Mercedes
November 9 (Mon)	Constitution Day (moved from Nov 6)
December 25	Christmas Day

Some holidays are fixed dates while others are moved to the nearest Monday under Dominican law.

Employees are entitled to a minimum of 14 paid vacation days each year. This increases to 18 days per year after five years of continuous employment. Employees can take the vacation after completing one year on the job.

Vacation time cannot be compensated by any form of payment. Vacations cannot be taken for less than a week. Employers must pay the salary for the vacation time one day before the vacation time starts. Expectant and new mothers get 14 weeks of maternity leave. They must have worked for 12 months and contributed to social security for 8 months to be eligible for this. The employee gets 100% of regular pay during this period. Social security pays 50% of the salary while the employer pays the other 50%. Social security also credits the employers for the salary paid during this time. This helps mitigate the burden on the employer. New mothers also get three 20-minute breaks during the workday for breastfeeding the child. Paternity leave Men get 2 days of paid paternity leave for every childbirth. It must be taken on the day the child is born. Employer must pay 100% salary for these two days. A proposed labor code reform would increase this to 4 days.

Sick Leave There is no regulation for paid sick leave in the Dominican Republic. However, the social security will pay the employee through the employer if the worker is sick for more than four days:

For outpatient treatment, employees get 60% of the base salary- In case of hospitalization, employee will get 40% of the base salary

Employee Benefits

Dominican Republic has a comprehensive social security system that offers several mandatory benefits to employees:

Retirement benefit- Death benefit- Disability benefits- Short-term sickness benefits- Maternity benefits- Workmen’s compensation benefits In addition, many employers also provide supplemental health insurance to their employees. In fact, a good health insurance plan can be a very attractive recruiting tool in Dominican Republic.

Employee Termination

Terminating an employee in The Dominican Republic is complex, unless it’s by mutual agreement. Contracts can be terminated with mutual agreement or if the contract period is over. An employee can terminate the employment at will.

If an employer wants to terminate employment unilaterally, then it has two options:

Termination due to performance or disciplinary reasons – employer will need to provide proof of misconduct and give 48 hours’ notice to the employee.- Termination without cause (“at will”) requires a longer notice period and may also involve severance pay. Employees on probation are not eligible for notice period. For others, the minimum notice period is 7 days and varies according to the following table:

Length of Employment	Notice Period
3 to 6 months	7 days
6 to 12 months	14 days
More than a year	28 days
The severance pay to be paid to a terminated employee varies according to the following table:
Length of Employment	Severance Pay
---	---
3 to 6 months	6 days of pay
6 to 12 months	13 days
1 to 5 years	21 days
Over 5 years	23 days
In addition, the employee may be eligible for time off payments according to the following table:
Length of Employment	Time Off Payment
---	---
5 months	6 days
6 months	7 days
7 months	8 days
8 months	9 days
9 months	10 days
10 months	11 days
11 months	12 days

Stay Compliant with Labor Laws

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