Country Spotlight: Employer of Record in Dominican Republic

Nestled in the heart of the Caribbean, the Dominican Republic is known for its rich history, white-sand beaches, and vibrant energy that fuels both tourism and trade. Beyond its tropical charm, the country has grown into a dynamic economy, attracting global organizations eager to tap into its skilled workforce and strategic location. 

However, hiring and managing employees in the Dominican Republic can be complex. From payroll compliance and social security contributions to visa regulations and statutory benefits, navigating local laws requires precision. That’s where an Employer of Record (EOR) becomes your most valuable ally, helping you hire quickly, compliantly, and efficiently, without the need to set up a legal entity. 

Why the Dominican Republic?

With its capital, Santo Domingo, serving as a major commercial hub, the Dominican Republic is a gateway between North and Latin America. The country operates on the Dominican peso (DOP) and follows a fiscal year from January 1 to December 31. Spanish is the official language, while English is also widely spoken in the business community.

For organizations expanding globally, the Dominican Republic offers growing opportunities in manufacturing, services, and technology. Yet, as with most emerging markets, understanding payroll processes, labor laws, and HR compliance is key to ensuring smooth operations.

Neeyamo enables companies to establish a compliant presence in the Dominican Republic through its EOR and payroll solutions, managing everything from employee onboarding to benefits and statutory contributions. 

Payroll and Compliance in the Dominican Republic

Managing payroll in the Dominican Republic requires adherence to specific contribution structures and tax brackets for both employers and employees.

Payroll Contributions

• 2.87% – Pension and Disability
• 3.04% – Health Insurance
• 0.50% – Technical Education (INFOTEP)

• 0% – Up to DOP 416,220.00
• 15% – DOP 416,220.00 to DOP 624,329.00
• 20% – DOP 624,329.00 to DOP 867,123.00
• 25% – DOP 867,123.00 and above

• 7.10% – Pension and Disability
• 7.09% – Health Insurance
• 1.20% – Labor Risk
• 1.00% – INFOTEP

Payroll Cycle

Payroll is typically processed bi-weekly or monthly, depending on the organization’s preference. Employers in the Dominican Republic also follow a 13th-month cycle, where employees receive a Christmas bonus or 13th salary as part of standard practice.

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Hiring and Onboarding Employees

The Dominican Republic allows for the employment of both local and foreign workers. While immigration status cannot be used as a basis for discrimination, employers hiring foreign nationals must ensure compliance with immigration and labor regulations to avoid penalties. 

• National ID (for citizens)
• Passport (for foreign nationals)
• Bank details or bank book

Personal details such as name, date and place of birth, ID number, address, and telephone number are also required.

Probation Period

There is no formal probation period under Dominican law; however, during the first three months of employment, the employer may terminate the contract without any obligation.

Minimum Wage (Effective April 1, 2025)

• Large companies: RD$27,988.80
• Medium companies: RD$25,656.96
• Small businesses: RD$17,193.12
• Microenterprises: RD$15,860.32
• Security guards: RD$22,990.80
• Farm workers: RD$666.40 per day

Effective February 1, 2026, these rates will increase across all categories.

Working Hours and Overtime

• Standard workday: 8 hours per day, 44 hours per week
• Workdays: Monday to Friday, plus a half-day on Saturday
• Overtime beyond 44 hours/week: 135% of the regular hourly rate
• Overtime beyond 68 hours/week: 200% of the regular hourly rate
• Night shift: 15% premium
• Managers and directors are excluded from overtime eligibility

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Employee Benefits and Leave Entitlements

Public Holidays

Employees are entitled to 12 public holidays, including:
New Year’s Day, Day of the Kings, Independence Day, Labor Day, Restoration Day, Constitution Day, and Christmas, among others.

Sick Leave

If an employee’s sickness extends beyond four days, the Social Security Treasury covers part of the payment. Employees can receive up to 26 weeks of paid sick leave through Social Security.

Maternity Leave

Female employees are entitled to 12 weeks of paid maternity leave (6 weeks before and 6 weeks after childbirth), funded directly by Social Security. Mothers are also allowed three daily breaks of 20 minutes for breastfeeding.

Paternity Leave

Fathers are entitled to 2 days of paid leave following the birth of their child.

Other Leave

• Marriage Leave: 5 days
• Bereavement Leave: 3 days (for immediate family or grandparents)

Termination and Severance

Notice Period

• Up to 6 months of employment: 7 days’ notice
• 6 months to 1 year: 14 days’ notice
• Over 1 year: 28 days’ notice

Severance Pay

• 3–6 months: 6 days’ pay
• 6 months–1 year: 13 days’ pay
• 1–5 years: 21 days’ pay
• Over 5 years: 23 days’ pay

Record Retention

Employers must retain tax and payroll records for at least 10 years.

Work Permits and Visas

• Temporary Work Permit and Visa
• Temporary or Permanent Residency Card
• Definitive Residency Card

1. Employer obtaining job offer approval from the Ministry of Labor.
2. Application to the Directorate of Immigration (DGM) for work authorization.
3. Employee securing a Temporary Worker Visa (VTT) from their local Dominican consulate.
4. Medical examination and labor contract registration upon arrival. 

Applicants must also submit passport copies, visa copies, photographs, and legalized birth certificates (translated into Spanish if applicable).

Employee Background Checks

Employers cannot conduct criminal background checks themselves. The candidate must personally obtain their criminal record and present it to the employer. Medical tests to determine pregnancy or HIV status are strictly prohibited under labor laws.

Why Partner with an Employer of Record in the Dominican Republic?

The Dominican Republic offers a promising business environment—but its payroll, immigration, and compliance framework can be intricate. For companies without a local entity, an EOR provides a seamless, compliant, and cost-effective way to hire talent and manage HR operations.

• Employment contracts compliant with Dominican labor law
• Payroll and statutory deductions
• Social security and benefit management
• Visa and onboarding support for foreign hires
• Leave, termination, and record-keeping compliance

This allows your organization to focus on strategy and operations while Neeyamo ensures compliance every step of the way.

Why Choose Neeyamo for Your EOR Needs?

Neeyamo helps you hire talent in 150+ countries, including Kenya. We simplify global hiring so you can focus on growing your business.

Worried about compliance? We’ve got you covered.
Worried about costs? No need for a local entity, we handle it.
Worried about errors? We reduce risks and avoid fines.
Too many HR tasks? From day one to the last day, we manage it all.
Need support? 24/7 service in 50+ languages.
Neeyamo? Your key to effortless global expansion.