Employer of Record in Dominican Republic

How an Employer of Record (EOR) works in the Dominican Republic

An EOR is a third-party company that acts as an employer on behalf of another business.

They are mostly used by overseas businesses looking to hire in a specific country where they don’t have a legal entity.

An EOR provider, like Rivermate, will save an overseas business from the hassle and expense of setting up their own legal entity in the Dominican Republic.

On top of that, it will take care of the administrative processes that come with hiring, paying and dismissing employees in that country.

Rivermate’s EOR services are built on three pillars:

• Local HR experts who understand the market and employment laws.
• A network of partners that allows us to provide competitive benefits.
• The Rivermate platform that simplifies every aspect of the employment relationship.

Using an EOR provider will allow you to hire in the Dominican Republic with little fuss, while ensuring your employees are treated fairly.

Dominican Republic labor market: At a glance

The hiring market
Greatest hiring activity:	Santo Domingo.
Hiring timelines:	Typically around nine business days.
In-demand sectors:	Tourism, tech, construction.
Sectors with skills shortages:	Tech.

The salary market
Employer tax contributions:	Employer tax contributions are split into the following four mandatory categories. Pension: 7.10% Health Insurance: 7.09% Labor Risk Insurance: 1.1% - 1.3% Technical Education: 1.00% The first three categories of contributions are subject to salary cap ceilings, so employers may not pay this percentage on salaries of high earners.
Monthly minimum wage:	Micro-enterprises: DOP 16,993.20 Small companies: DOP 18,421.20 Medium companies: DOP 27,489.60 Large companies: DOP 29,988
Average gross monthly wages:	DOP 38,734.
Income tax rates:	Individuals pay tax on income in excess of DOP 416,220. From there, income is taxed progressively at rates between 15% - 25%.

What will it cost to hire in the Dominican Republic?

Salaries in the Dominican Republic are significantly lower than in North America and most of Europe.

The DR’s average gross monthly wage is DOP 38,734, according to government figures released in December 2025. That converts to around US $644.

Still, Dominican Republic employment law mandates some bonuses and tax contributions that might surprise overseas employers.

Salary requirements

The minimum wage in the Dominican Republic depends on an employer’s size. It could be categorised as a micro-enterprise, small business, medium-sized business or large business, depending on the number of employees and its gross annual sales.

Company size	Number of employees	Annual gross sales	Monthly minimum wage
Micro	Up to 10	Up to DOP 8 million	DOP 16,993.20
Small	11 - 50	DOP 8m - DOP 54m	DOP 18,421.20
Medium	51 - 150	DOP 54m - DOP 202m	DOP 27,489.60
Large	151+	DOP 202m+	DOP 29,998

If a company ranks in different categories for number of employees and annual sales, it is considered to be in the larger category for tax purposes.

The table above is based on non-categorized private sector workers. Public sector workers are subject to different rates, as are some categories of private sector workers, including those who work in hotels, casinos or restaurants.

If you’re using an EOR to hire in the Dominican Republic, the minimum wage rates depend on the size of that EOR, not your business. Rivermate’s legal entity in the Dominican Republic currently ranks as a micro-enterprise.

Employer contributions

Employers in the Dominican Republic are obligated to make social security contributions, split into the following four categories.

• Pension: 7.10% (on a maximum monthly wage of DOP 464,460)
• Health Insurance: 7.09% (on a maximum monthly wage of DOP 232,230)
• Labor Risk Insurance: 1.20% (on a maximum monthly wage of DOP 92,892)
• Technical Education Tax: 1.00%

Employees are expected to contribute at lower rates, but it’s the job of the employer to withhold these contributions from their monthly wages.

Statutory benefits

Employees in the Dominican Republic are well compensated when it comes to statutory bonuses.

Each year in December (before December 20), they are entitled to a 13th-month salary payment (Salario de Navidad). This is essentially a Christmas bonus, equaling one-twelfth of their base salary earned throughout the calendar year. However, the maximum bonus is capped at five times the employer’s minimum wage.

On top of that, DR employees are also entitled to a share of their employer's net annual profits. Each year, a 10% share of these profits is split among all employees. The amount that each employee can receive is also capped, depending on their tenure at the company.

Length of service	Maximum profit-sharing bonus
Less than three years	45 days of regular wages
Three years or more	60 days of regular wages

Both the 13th-month salary and the profit-sharing bonus are pro-rated for those who weren’t employed for the full year.

Employees are entitled to up to 26 weeks of paid sick leave, although it’s only covered by the employer for the first three days. After that, it’s covered by social security payments.

Other statutory bonuses include:

• Paid annual leave. Up to 14 days per year.
• National holidays. An additional 12 paid days off per year.
• Maternity leave. 14 weeks of paid leave for women giving birth.

Employment Cost Calculator

Use our Employment Cost Calculator to estimate the cost of hiring employees in the Dominican Republic.

What hiring in the Dominican Republic really looks like

Market condition	What an employer needs to know
Talent availability	While some sectors have an abundance of talent, others have notable shortages, particularly in senior positions.
Top-paying sectors	Tech, healthcare.
Skills shortages	Tech.
Key employer challenge	The Dominican Republic has a shortage of skilled workers in various sectors. Some 40% of employers have reported difficulties hiring for this reason.

The Dominican Republic economy has grown faster than many other Latin American nations over the past two decades, and that’s partly due to its hard-working and resilient population.

It typically only takes 2-3 days to process the paperwork for a new hire, once their job offer and contract have been approved.

While there is plenty of suitable talent in certain industries, there are others with reported skills shortages.

Yet, the government is taking steps to address this as part of its goal of becoming a high-income nation by 2036.

The Dominican Republic has strict limits on employing expats

While many countries address skills shortages through increased immigration, there are strict regulations preventing the Dominican Republic from relying on this strategy.

In the DR, only 20% of an entity’s total headcount can be expats; at least 80% of the workforce must be locals.

Any foreign employee who is recruited must have their work permit and residency documents in order before they start work.

Compliance risks that employers in the Dominican Republic must know about

Dominican Republic employees earn extra for working at night

The standard workweek in the Dominican Republic is 44 hours. Employees must also be granted a weekly rest period of at least 36 hours, typically on the weekend.

If an employee works more than 44 hours in a week, these extra hours must be paid at the following overtime rates.

• Standard Overtime: For hours worked between 44 and 68 hours a week, the employee must be paid 135% of their regular wage.
• Extended Overtime: For any hours worked beyond 68 hours a week, the employee must be paid 200% of their regular wage.

Employees must also be paid 200% of their regular wage when working on public holidays or during their weekly rest day.

The rarest quirk of the DR’s overtime regulations regards night shifts. Hours worked between 21:00 and 07:00 must be paid at 115% of an employee’s regular wage.

Dismissing employees can be difficult in the Dominican Republic

There is no “at will” employment in the Dominican Republic.

If you want to dismiss an employee outside of a probation period, you’ll have to give them written notice.

The minimum amount of notice depends on their tenure at the company.

Length of service	Notice period
3-6 months	7 days
6-12 months	14 days
More than one year	28 days

The employee must give the same amount of notice if they want to resign outside of their probation period.

Severance pay will typically be due to dismissed employees, unless there has been a serious breach of contract.

Businesses using an EOR in the Dominican Republic should not deliver the news of a contract termination themselves. Notices of dismissal should be delivered by EOR staff, as they are the legal employer.

Using a second business entity to bypass Dominican Republic employment rules

There have been reports of businesses in the Dominican Republic trying to employ the same individual at two separate entities, as a loophole to bypass the rules on expat workers.

However, the DR has regulations to prevent such loopholes. For example, one individual can hold multiple employment contracts, but only if they work for different employers at different non-overlapping hours.

It’s no use trying to bypass the obligation to pay profit-sharing bonuses by using an EOR either. This would technically let an overseas business owner off the hook, since the EOR would be the legal employer. However, in practice, any normal contract agreed with an EOR will state that profit-sharing obligations are passed back to the client.

Benefits of hiring employees through an EOR in the Dominican Republic

It’ll take a lot of time and money to set up your own legal business entity in the Dominican Republic.

If you were considering starting small, perhaps by only hiring a handful of employees at first, you’d likely be put off by the expense and the waiting period.

Put simply, an EOR helps the numbers to work in your favor when hiring in the DR.

At Rivermate, we help employers by:

• providing a local business entity in the Dominican Republic.
• handling all administrative aspects of running your business, including payroll, taxes, mandatory benefits and dismissing employees.
• ensuring all of these aspects remain compliant with the Dominican Republic’s employment and labour laws.

This allows you to hire in the Dominican Republic at impressive speed, without having to worry about the intricacies of local employment laws.

Ready to hire in the Dominican Republic?

Hiring in the Dominican Republic requires more than finding the best person for the role. From managing payroll, taxes and benefits to ensuring full compliance with local employment law, Rivermate handles all the administration so you can hire with confidence.

Talk to a Dominican Republic Hiring Expert

Sources:

1. https://www.dominicanembassy.in/our-economy
2. https://blogs.worldbank.org/en/latinamerica/ola-progreso-tecnologico-futuro-trabajo-centroamerica-republica-dominicana
3. https://blogs.worldbank.org/en/latinamerica/riding-the-wave-of-technological-progress
4. https://www.intec.edu.do/en/oferta-academica/grado/articulos-de-grado/intec-las-10-profesiones-mejor-pagadas-en-republica-dominicana
5. https://presidencia.gob.do/noticias/salario-promedio-de-cotizantes-en-la-seguridad-social-supera-los-rd-38000
6. https://www.diariolibre.com/opinion/en-directo/2025/03/18/el-comite-nacional-de-salarios-y-las-mipymes/3038914
7. https://www.worldbank.org/ext/en/country/dominicanrepublic
8. https://www.officeholidays.com/countries/dominican-republic/2026