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Employer of Record Dominican Republic
Hire staff and expand your business in the Dominican Republic with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in the Dominican Republic designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in the Dominican Republic. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in the Dominican Republic takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in the Dominican Republic
A Brief Guide to the Dominican Republic
The Dominican Republic, famous for its scenic beaches, vibrant music and dance culture, and flavorful cuisine, sits at the crossroads of the Americas. The nation’s rich Spanish heritage is complemented by influences from African and indigenous Taino cultures. As a democratic republic, the country enjoys recognition from global institutions such as the United Nations and the Organization of American States.
Category | Information |
Location | Caribbean |
Capital | Santo Domingo |
Official Language | Spanish |
Area | 48,670 square kilometers |
Population | Approximately 11 million |
Currency | Dominican Peso (DOP) |
Major Areas | Santo Domingo, Santiago, La Romana, Punta Cana |
GDP (2023) | $95 billion USD |
Major Industries | Tourism, agriculture, mining, textiles, telecommunications |
Business Culture
Business Culture in the Dominican Republic
Dominicans take their business seriously, while still valuing personal relationships and social courtesies. Punctuality might not be as rigid as in some western countries, but professionalism is still the norm. Expect to shake hands upon meeting, maintain good eye contact, and engage in a bit of small talk before getting down to business. Dominicans often like to know the people with whom they are doing business on a personal level. It’s not uncommon to continue business discussions over lunch or dinner.
Payroll and Taxes
Payroll and Taxes in the Dominican Republic
Dominican Republic businesses often grant Christmas bonuses or “Regalia Pascual”.
Employee Taxation
In the Dominican Republic, income tax rates are progressive, with higher income levels subject to higher tax rates.
Gross Annual Income (DOP) | Tax Rate (percent) |
Up to 416,220 | 0 |
416,221 – 624,329 | 15% |
624,330 – 867,123 | 20% |
867,123 + | 25% |
Employer Taxation
Employers in the Dominican Republic are also responsible for various employer costs, which may include:
Fund Type | Percentage |
Pension Fund | 7.1% |
Healthcare fund | 7.09% |
Governmental Training Institution (INFOTEP) | 1% |
Occupational risk insurance | 1.2% |
Pension and Healthcare
Dominican Republic Pensions
In the Dominican Republic, the social security system, managed by the Dominican Social Security Institute (IDSS), provides for old-age pensions. Funding comes primarily from contributions by employees, employers, and the state. The contributions are made to individual capitalization accounts managed by Pension Fund Administrators (AFP). It’s crucial for businesses to familiarize themselves with these provisions when considering employing local staff.
Healthcare in the Dominican Republic
The healthcare system in the Dominican Republic operates on two main fronts – public and private. The public health system is accessible to all residents and is funded through social security contributions and general taxation. Services range from primary care to specialized treatments, and though it’s intended to be comprehensive, it often grapples with challenges of inadequate resources, resulting in longer waiting times and limited availability of advanced treatments.
The private healthcare sector, on the other hand, caters to those who prefer more immediate access to a broader range of services and higher standards of care. Private healthcare usually requires out-of-pocket payment or private health insurance. It’s widespread in urban areas, with numerous high-quality private hospitals and clinics, especially in Santo Domingo and Santiago.
Employment Law
Employment Law in the Dominican Republic
Relevant Legislation: The main source of employment law in the Dominican Republic is the Labor Code (Codigo de Trabajo), enacted in 1992.
Employment Contracts: These are typically written and should include terms like duration, salary, and job duties. They can be for a fixed term or indefinite period.
Working Hours: The standard workweek is 44 hours, typically spread over six days. Anything beyond this is considered overtime.
Leave: Employees are entitled to a minimum of 14 days of paid vacation leave annually, as well as public holidays. Maternity leave is also provided, typically lasting for 12 weeks.
Overtime: Overtime is generally paid at a rate of 135% of the normal hourly wage. Overtime work is subject to agreement between the employer and the employee.
Termination: Employers can terminate an employee for reasons like poor performance, misconduct, or economic necessity. Both parties can also agree to terminate the contract.
Notice: In cases of termination without cause, the employer is usually required to provide notice or pay in lieu of notice, with the period depending on the length of service.
Severance Pay: If an employee is terminated without cause, they may be entitled to severance pay, with the amount based on their length of service.
IMMIGRATION
Work Permits in the Dominican Republic
The General Directorate of Migration (DGM) oversees immigration procedures in the Dominican Republic. The process of obtaining the necessary permits can be complex and may require professional legal assistance to navigate.
There are several types of visas and permits that are commonly utilized by foreigners looking to work or do business in the country. Some of the main types of work permits in the Dominican Republic include:
- Business Visa (Visa de Negocios): This type of visa is issued to foreigners who intend to enter the Dominican Republic for business purposes but not to take up employment. It’s valid for one year but does not permit stays longer than 60 days at a time.
- Work Visa (Visa de Trabajo): Foreigners who wish to work in the Dominican Republic must obtain a work visa. This requires a job offer and sponsorship from a company based in the Dominican Republic. The company must prove that the position cannot be adequately filled by a local employee.
- Temporary Residence Visa (Visa de Residencia Temporal): This visa is issued to foreigners who intend to reside in the Dominican Republic for more than 60 days but less than one year.
- Permanent Residence Visa (Visa de Residencia Permanente): This is for foreigners who intend to make the Dominican Republic their permanent home. It requires proof of financial means to support oneself and usually follows a period of temporary residence.
Businesses planning to employ foreign staff must ensure they comply with immigration and labor laws, which may include the need to prove that a local citizen could not fill the job position and the obligation to cover repatriation costs if an employee is asked to leave the country.
Public Holidays
Dominican Republic Public Holidays
Holiday Name | Date |
New Year’s Day (Año Nuevo) | January 1 |
Epiphany (Día de Reyes) | January 6 |
Juan Pablo Duarte Day (Día de Duarte) | January 26 |
Independence Day (Día de la Independencia) | February 27 |
Good Friday (Viernes Santo) | March or April |
Labour Day (Día del Trabajo) | May 1st |
Restoration Day (Día de la Restauración) | August 16 |
Our Lady of Mercedes Day (Nuestra Señora de las Mercedes) | September 24 |
Constitution Day (Día de la Constitución) | November 6 |
Christmas Day (Día de Navidad) | December 25 |
Wondering if expanding
in the Dominican Republic is right for you?
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The Benefits
Dominican Republic Employer of Record Benefits
When you choose Agility EOR to expand in the Dominican Republic, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in the Dominican Republic so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Dominican authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Dominican Republic payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.