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Remuneration structure in Dominican Republic

Cheryl

Hello everyone,

Understanding the remuneration structure when living and working in Dominican Republic will help you better navigate professional life. In order to help other expats and soon-to-be expats grasp everything from gross pay to net pay, we invite you to share your experience.

How is your remuneration structured in Dominican Republic: basic salary, commissions, 13th month, etc.?

What are the common or mandatory allowances included such as transports, health insurance, pension contributions…?

What are the taxes and social contributions to be considered, especially if deduction is made at source?

What is the regular salary payment frequency in Dominican Republic: monthly, bi-montlhy, weekly…?

Is it acceptable or common to negotiate salary or benefits?

Are there any specific differences in remuneration structure between expats and locals?

Share your insights and experience.

Thank you for your contribution.

Cheryl
Expat.com Team

See also

Job offers in Dominican RepublicSetting up a business in the Dominican RepublicWorking in the Dominican RepublicWorking in Puerto PlataWorking in Santiago de los CaballerosWorking in San Pedro de MacorisWorking in San Francisco de Macoris
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This will be interesting!   So first of all we area  developing nation.  Good pay is not normal.  Decent pay is barely normal.  There are some good paying jobs but not many.


The median income is around  RD 26,000 or about US 425 a MONTH!


Payroll MUST be made at least  once a  month. Common is  15th and 30th.  Competitive industries  will offer  transportation etc.  This is common in the call center industry where getting and keeping good agents is not easy.  This is an area that  expats with legal right to work can easily find a job. HOWEVER can you live on  US  600 or 700 a month?


Most live at or near the poverty line and 76% live  paycheck to paycheck. There is no savings and no emergency fund at all.


If you are successful  in finding a job:


Payroll  taxes,  you pay close to 5% in payroll deductions and your employer pays close to 15%. this covers  "pension", some insurance etc.


Income taxes follow. The first  34,000 RD is tax free and then there is a sliding formula above that starting at 16%.


As a legal employee you have the right to liquidation after 90 days of employment and you get a proportional  13th paycheck, the regalia, at or around Christmas.   Locals use that money for  paying loans,  buying items and getting through Christmas celebrations.


Negotiating is not that common.  Depends on your skills and what the ability is for an employer to find those skills here!


Lastly it is ILLEGAL to pay an expat differently than a local.   Pay must be similar or must be justified!