Hire employees and contractors in Dominican Republic

Remote’s guide to employing in Dominican Republic.

  • Capital city

    Santo Domingo

  • Currency

    Dominican peso
    (RD$, DOP)

  • Population size

    10,878,246
    (est. 2018)

  • Languages spoken

    Spanish

  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

Covered with palm-studded beaches, tropical rainforests, antique Spanish architecture, and plantations that produce half the bananas eaten across the world, the land of endless summer is more than just another vacation hotspot. The Dominican Republic has witnessed strides in economic growth that are unparalleled in the Americas, driven by gains in agriculture, mining, forestry, and a burgeoning tourism industry that hosts 6 million tourists annually.

  • Capital city

    Santo Domingo

  • Currency

    Dominican peso
    (RD$, DOP)

  • Languages spoken

    Spanish

  • Population size

    10,878,246 (est. 2018)

  • Ease of doing business

    Medium

  • Cost of living index

    41.54 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    18%

  • GDP - real growth rate

    5.1% (2019)

Grow your team in Dominican Republic with Remote

To employ in the Dominican Republic, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in the Dominican Republic can get complicated, especially without established local relationships.

Remote’s global employment solution makes it easy for your company to employ workers in the Dominican Republic quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Like many other countries, the Dominican Republic treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Dominican Republic

Provisions for employee protections and workers’ rights are spelled out in the Labor Code of 1992 that applies to the nation’s entire workforce of 4.8 million. Employees in the Dominican Republic enjoy protections against discrimination based on age, religion, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in the Dominican Republic.

Public holidays

Date
Holiday Name
Extra information
Saturday, January 1, 2022New Year’s DayNational holiday
Monday, January 10, 2022Three Kings DayNational holiday
Friday, January 21, 2022Our Lady of AltagraciaNational holiday
Monday, January 24, 2022Juan Pablo DuarteNational holiday
Sunday, February 27, 2022National Independence DayNational holiday
Friday, April 15, 2022Good FridayNational holiday
Monday, May 2, 2022Labor Day National holiday
Thursday, June 16, 2022Corpus Christi National holiday
Tuesday, August 16, 2022Restoration Day National holiday
Saturday, September 24, 2022Our Lady of Mercedes Day National holiday
Sunday, November 6, 2022Constitution Day National holiday
Sunday, December 25, 2022Christmas Day National holiday

Competitive benefits package in Dominican Republic

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Dominican Republic are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Pension or 401(K)
  • Life and Disability Insurance

Taxes in Dominican Republic

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Dominican Republic.

  • Employer

    • 7.10%: Pension Funds 

    • 7.09%: Health Insurance/Family Healthcare

    • 1.2%: Labor Risk Insurance

    • 1%: Technical Education

  • Employee

    • 2.87%: Pension Funds 

    • 3.04%: Health Insurance/Family Healthcare

    • 0.5%: Technical Education 

  • Income tax rates

    • 0%: Up to 416,220 DOP ($7,373)

    • 15.00%: 416,220 - 624,329 DOP ($7,373 - 11,059)

    • 20.00%: 624,329 - 867,123 DOP ($11,059 - 15,360)

    • 25.00%: Over 867,123 DOP ($15,360+)

Types of leave

Paid time off

Employees are entitled to 14 days off annually after completing a year of employment, with four additional days after the fifth year is completed.

Public holidays

There are 12 public holidays that employees can take off work.

Sick leave

According to Dominican law, there is no difference between short-term sick leave and long-term sick leave. In any case, the Social Security Treasury must pay the employee a percentage of the worker’s contribution, but only if the sick leave is for more than four (4) days.

Maternity leave

Female employees are entitled to 14 weeks of paid maternity leave, starting at least seven weeks before delivery.

Paternity/parental leave

Fathers are entitled to two days of paid paternity leave.

Other leave

  • Bereavement leave: Employees are entitled to three days of paid leave in the event of the death of an immediate family member.
  • Marriage leave: Couples who’re tying the knot get five days of marriage leave.

Employment termination

Termination process

Employee contracts can either be terminated for just cause or at the employer’s discretion.

Notice period

Employees can only be terminated at an employer’s discretion with adequate notice given, ranging from just seven days to 28 days notice.

Severance pay

Employees who’re dismissed at an employer’s discretion are entitled to severance payment proportional to their tenure working with an employer. If just cause for termination is provided, an employee won’t be owed any compensation.

Probation periods

As per Dominican Republic law, there are no probationary periods. 

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