Employer of Record in Dominican Republic

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Dominican Republic if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Dominican Republic below, to avoid any compliance issues.

Employment Contract Requirements

Labor relations are primarily governed by the Labor Code, Law No. 16-92, and its associated regulations, such as Decree No. 258-92. While it is possible for employers to conduct recruitment and selection without a written employment contract, it is highly advisable to have a formal contract in place. Here are key components that should be covered in the contract:

• Employees Information
• Contract Term
• Working Agreements
• Termination Conditions

Onboarding Process

We can help you get a new employee started in Dominican Republic quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Dominican Republic

In the Dominican Republic, the standard workweek consists of 44 hours, distributed as 8 hours per day. Part-time employees are restricted from working more than 29 hours in a week.

Overtime in Dominican Republic

If employees work more than the usual 44-68 hours per week, they get paid extra. Up to 68 hours, it's 135% of their regular pay, and beyond that, it's 170%. If they work on weekends or holidays, it's 200% of their regular pay, and for nighttime work, it's 115%. The exact details depend on the employment contract or any agreements in place.

Probation Period in Dominican Republic

The probationary period in the Dominican Republic is determined by the specific job role and outlined in the employment contract.

For 2025, the Dominican Republic's minimum wage is variable by business size as follows:

• ‍A large enterprise (151 or more workers OR annual sales exceeding DOP 202 million): DOP 27,988.80 p/month
• ‍A medium enterprise (51-150 workers OR annual sales between DOP 54-202 million): DOP 25,656.96 p/month
• ‍Small enterprise (11-50 workers OR annual sales between DOP 8-54 million): DOP 17,193.12 p/month
• ‍A micro enterprise (10 or less workers OR annual sales up to DOP 8 million): DOP 15,860.32 p/month

Employers must ensure they meet or exceed the statutory wage requirements for both local and expatriate employees, considering industry-specific wages and inflationary trends. Keeping up with government revisions will ensure compliance and help avoid potential legal issues.

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Growing your team in Dominican Republic is exciting, but it’s not without challenges. Local labor laws are often nuanced, and hiring without the right legal structure or processes can lead to misclassification, non-compliance penalties, or disputes. An Employer of Record removes that risk by acting as the legal employer on your behalf, taking full responsibility for compliance, contracts, payroll, and employee benefits.

This gives you the freedom to scale at your own pace, whether you're adding one employee or building out an entire function, without the burden of setting up and managing a local entity. You remain in control of day-to-day responsibilities and performance, while the EOR ensures every hire is legally protected and properly supported. It's a strategic way to expand globally without spreading your internal team too thin or exposing your business to legal liabilities in unfamiliar markets.

Fiscal Year in Dominican Republic

1 January- 31 December is the 12-month accounting period that businesses in Dominican Republic use for financial and tax reporting purposes.

Payroll Cycle in Dominican Republic

The payroll cycle in Dominican Republic is usually monthly, with employees being paid by the last day of the month. Some companies may also pay bi-weekly or semi-monthly.

Bonus Payments in Dominican Republic

The law does not include provisions for 13th salaries. However it is common practice for employers to provide a Christmas bonus equivalent to one month's salary.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 16.39% on top of the employee salary in Dominican Republic.

Employee Payroll Tax Contributions

In Dominican Republic , the typical estimation for employee payroll contributions cost is around 6.41%.

Individual Income Tax Contributions

Individual income tax in the Dominican Republic is calculated using progressive rates ranging from 0% to 25% as follows:

Pension in Dominican Republic

Everyone who works, whether for the government or a private company, has to put money into their personal pension account. Employers also contribute. On top of that, they all have to pay for insurance that covers disability and survivor benefits.

Employees expect to be paid accurately, on time, and in full compliance with local standards. When you're hiring in Dominican Republic, providing a smooth payroll experience is critical to retention and trust. An Employer of Record ensures that employees receive what they’re owed, without errors, delays, or confusion about taxes or benefits.

Key Ways an EOR Supports Payroll in Dominican Republic:

• Reliable Salary Payments: Ensures employees are paid promptly in local currency.
• Clear Payslips & Documentation: Provides employees with compliant, understandable records.
• Correct Benefits & Contributions: Delivers legally mandated contributions and any changes in compensation, like bonuses.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Boosts Employee Confidence: Builds trust with compliant, consistent payroll operations.

In the Dominican Republic, work permits and visas are vital for employers hiring foreign workers. The process involves securing the appropriate visa type, such as the Business Visa for Employment Purposes (VM-D), Temporary Worker Visa (VTT), or Business Visa, based on the nature and duration of employment. Employers are responsible for initiating applications, providing supporting documentation, and ensuring compliance with local labor laws.

Mandatory Leave Entitlement in Dominican Republic

The annual leave entitlement in Dominican Republic is 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Dominican Republic

Employees can take time off from work during the following public holidays:

Paid Time Off in Dominican Republic

Employees get 14 days off each year after their first year of employment. After completing five years, they receive an extra four days of annual leave.

Maternity Leave In Dominican Republic

In the Dominican Republic, if an employee has worked for a year and paid into Social Security for 8 months, they get 14 weeks of paid maternity leave. Employees can start the leave 6 weeks before their baby is born. During this time, they'll get their full salary, and both Social Security and your employer will cover the payment.

Paternity Leave In Dominican Republic

Employees are entitled to 2 days of paid paternity leave

Sick Leave In Dominican Republic

Employees in the Dominican Republic are entitled to paid sick leave for a maximum of 90 days. The payment rates vary based on the type of sickness:

• 60% of the base salary for outpatient treatment
• 40% of the base salary for hospitalizations

Parental Leave In Dominican Republic

There is no specific law governing parental leave. However, employees may be eligible for maternity leave and paternity leave

Bereavement Leave

Employees are entitled to 3 days of paid leave for the loss of a family member.

Marriage Leave

Employees are entitled to 5 days of leave.

In Dominican Republic, failing to provide the correct employee benefits can have serious consequences. Mistakes in benefits administration may result in fines and harm your reputation as an employer. An Employer of Record ensures statutory benefits and leave are handled correctly, every time, and provides comprehensive options for extra perks to reward your team.

Beyond just avoiding legal issues, a well-managed benefits program builds trust with your employees. An EOR ensures benefits are set up quickly during onboarding, updated when employee status changes, and fully compliant with national regulations. They also manage communication with employees, so there’s no confusion around what’s offered and how to access it. This combination of legal compliance and positive employee experience is hard to replicate without local infrastructure. With an EOR, you can offer peace of mind to your team (and to yourself) knowing that your benefits program in Dominican Republic is running as it should.

Termination Process in Dominican Republic

Employers in the Dominican Republic can terminate a fixed-term contract for reasons related to business needs, personal reasons, or employee misconduct. The termination process involves providing written notice to the employee, along with a clear explanation for the termination.

Notice Period in Dominican Republic

The minimum notice period for contract termination is 7 days and increases based on the length of employment:

• 7 days for 3 to 6 months of service
• 14 days for 6 to 12 months of service
• 28 days for more than a year of service

Severance in Dominican Republic

Employees may receive severance pay based on their length of service, bonuses, and accrued time off as follows:

• 3 to 6 months of employment: 6 days of severance pay
• 6 to 12 months of employment: 13 days of severance pay
• 1 to 5 years of employment: 21 days of severance pay
• Over 5 years of employment: 13 days of severance pay