Hire and pay employees in
Dominican Republic, hassle-free
With Deel, your business can easily hire employees in Dominican Republic. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.
The average onboarding time frame in Dominican Republic is 3 days with Deel.
Currency
Dominican Peso - DOP
Capital
Santo Domingo
Official Language
Spanish
Payroll Cycle
Monthly
Onboard, pay and manage employees in Dominican Republic with Deel.
Usually, to hire in Dominican Republic, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Deel lets you hire employees in Dominican Republic quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
All the necessary benefits for Dominican Republic
built right in
Deel allows you to provide localized benefits for employees in Dominican Republic within minutes. All in one manageable online dashboard.
- Social Security
- Training Fund
- Workers Compensation Insurance
- Private Healthcare - Allianz (optional)
- Optional global health insurance - Allianz
Our quickstart guide to hiring in Dominican Republic
Navigate the tabs below to learn everything you need to know about hiring an employee in Dominican Republic
Minimum Wage Requirements
For Deel, the minimum wage applicable will be DOP 21,000.
Individual Income Tax
The individual income tax ranges from 0% to 25%. Income tax is calculated according to progressive rates.
Gross Annual Income | Tax Rate (%) |
---|---|
Up to DOP 416,220 | 0% |
Up to DOP 624,329 | 15% |
Up to DOP 867,123 | 20% |
Over DOP 867,123 | 25% |
Payroll Cost
The employer cost is generally estimated at 16.39% of the employee salary.
- Pension Fund - 7.10%
- Health Insurance Contribution - 7.09%
- INFOTEP - 1%
- Occupational Risk Insurance - 1.20%
- One-off Mandatory Wet Ink Employment Agreement Handling Fee - 80 USD
Additionally, the employer will have to pay a 13th salary and an annual bonus payment.
- Pension Fund is calculated on the employee's salary up to a maximum salary for the contribution of DOP 387,050.
- Family Health Insurance is calculated on the employee's salary up to a maximum salary for the contribution of DOP 193,525
- Occupational Risk Insurance is calculated on the employee's salary up to a maximum salary for the contribution of DOP 77,410.
The minimum monthly salary used for these costs is DOP 19,352.
Most employer costs have limits, therefore the percentage will vary. Pension Fund limit DOP 325,250 Health Insurance Contribution limit DOP 162,625 Occupational Risk Insurance DOP 65,050
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Maternity Leave
The employee will receive 100% of the salary during this period, both Social Security and the employer will be responsible for this pay.
Social Security will be responsible for 50% of the pay, and the employer will pay the remaining 50%. However, Social Security will return through credit 50% of the amount the employer contributed.
The employee can extend leave using paid time off.
Paternity Leave
The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.
The employee can’t extend leave.
Parental Leave
In the Dominican Republic, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.
Sick Leave
Employees are entitled to paid sick leave for up to 90 days. This leave is paid at different rates depending on the type of sickness:
- 60% of the base salary for outpatient treatment
- 40% of the base salary for hospitalizations
During this period, the employer will pay the employee. However, it will be reimbursed by the Social Security Institution.
Termination Requirements
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in the Dominican Republic can be complex. Contracts can be terminated without liability or with responsibility.
Terminations without responsibility:
- Mutual agreement
- By the expiration of the contract
- Impossibility for execution
Termination with responsibility:
- Unilaterally by the employer based on:
- Disciplinary dismissal
- Performance due to unsuitability for the job
- Voluntarily by the employee
Notice Period
The minimum notice period is 7 days and will be increased according to the length of the employment.
- 7 days if the length of service is between 3 to 6 months
- 14 days if the length of service is between 6 to 12 months
- 28 days if the length of service is more than a year
If the employee is dismissed without notice, they will be entitled to payment according to the length of service mentioned above.
During the probation period, there is no notice period
Severance for Employees
In the Dominican Republic, employees may be entitled to severance pay. Severance pay will be composed of the length of service, bonuses, and time off.
Basic payment
- Between 3 to 6 months of employment - 6 days severance pay
- Between 6 to 12 months of employment - 13 days severance pay
- Between 1 to 5 years of employment - 21 days severance pay
- Over 5 years of employment - 13 days severance pay
Christmas salary payment: the monthly accrual that would be paid until the end of the year.
Time off payment:
- 5 months of employment - 6 days severance pay
- 6 months of employment - 7 days severance pay
- 7 months of employment - 8 days severance pay
- 8 months of employment - 9 days severance pay
- 9 months of employment - 10 days severance pay
- 10 months of employment - 11 days severance pay
- 11 months of employment - 12 days severance pay
Paid Time Off
Both full-time and part-time employees are entitled to a minimum of 14 working days of paid time off (PTO) a year. Employees are eligible for annual leave after 12 months of work. Employees must take at least 7 days of PTO in one row.
The length of PTO will vary with the years of service:
- Between 1 to 5 years in the company - 14 working days per year
- More than 5 years in the company - 14 working days per year with payment for 18 working days
Public Holidays
The Dominican Republic celebrates 12 national holidays.
National public holidays include:
- New Year’s Day
- Holy Kings Day
- Altagracia Day
- Duarte’s Day
- Independence Day
- Holy Friday
- Labor Day
- Body of Christ
- Restoration Day
- Mercedes Day
- Constitution Day
- Christmas Day
Onboarding
Employment Contract Details
Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties in wet ink.
A contract must include:
- Employee’s information: name, age, ID number, and address.
- Contract term: start date and length of the employment
- Working agreements: job title, description of duties, and salary
- Termination conditions
The job title (Puesto de trabajo) and the job description (Descripción del trabajo) must be added in the local language.
Probation Period
Hiring in Dominican Republic, hassle-free
With Deel, your business can easily hire employees in Dominican Republic with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Dominican Republic and 150+ countries.
Starting at 599 USD
Management fee
16.39%
Estimate Employer Cost
*of employee salary
Want to learn the cost of hiring an employee in Dominican Republic?
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