EOR Service in Dominican Republic

Hire, Onboard and Pay Employees in Dominican Republic Quickly and Efficiently

Hiring in Dominican Republic at a glance

CURRENCY
Dominican Peso (DOP)
working hours
44 hours per week
public/bank holidays
13 Days
capital
Santo Domingo
language
Spanish
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan 1st to Dec 31st
minimum hourly salary
No minimum wage
CURRENCY
Dominican Peso (DOP)
working hours
44 hours per week
public/bank holidays
13 Days
capital
Santo Domingo
language
Spanish
date format
DD/MM/YYYY
tax year
Jan 1st to Dec 31st
payroll frequency
Monthly
GDP
$113,642 million (2022)

Employer of Record in Dominican Republic

A Dominican Republic Employer of Record (EOR)  streamlines hiring and ensures compliance with labor laws. Businesses can focus on core operations while the EOR manages HR tasks, payroll, and statutory requirements. It provides a cost-effective way to establish a local presence without setting up a legal entity, making it ideal for short-term projects or market exploration. 


Why use Dominican Republic EOR?

Businesses engage with a Dominican Republic Employer of Record (EOR) or Professional Employer Organization (PEO) to hire talent from the country without violating local compliance.


Most employment laws in the Dominican Republic do not pose a severe challenge to foreign employers. However, some laws that exist to protect employee rights around bonuses, social security and union rights can stump even experienced employers. Any non-compliance in these areas will attract hefty fines from the labor ministry. Secondly, setting up an entity in the Dominican Republic can set back employers by thousands of dollars and several months. Incorporating the company, opening a bank account can all slow your hiring process.


By teaming up with a Dominican Republic EOR/PEO, companies can adhere to all local regulations, and strategically position themselves for rapid growth. This partnership offers valuable resources and support, allowing businesses to focus on core activities and achieve their expansion objectives efficiently.

EOR Costs in Dominican Republic

The pricing of Dominican Republic Employer of Record (EOR) or Professional Employer Organization (PEO) services can vary depending on factors like the number of employees, the scope of services required, and the complexity of the project. Generally, Dominican Republic EOR/PEO services are offered at a monthly cost per employee or as a percentage of the employee's salary. Additional fees might apply for supplementary services or tailored solutions to meet specific business needs. Businesses seeking EOR/PEO services in the Dominican Republic should consider these factors when evaluating the overall cost and benefits of such partnerships.

Key Metrics For Foreign Employers 

Labor costs in the Dominican Republic can be more competitive than in many Western countries. Considering that the country has a highly skilled workforce, hiring from here can result in significant cost savings.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from the Dominican Republic.

Factors Global Ranking Interpretation
Rule of law 76 Indicates effectiveness of law enforcement
Labour-employer cooperation 42 Indicates positive labor-employee relationships
Reading Maths, and Science 78 Indicates average scores in OECD's survey of 15-year old students
University Ranking 76 Indicates average QS rankings
Labour productivity per employee 65 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 58 Indicates findability of skilled talent
Workforce with tertiary education 91 Indicates % of workforce with PG degrees
Digital Skills 28 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in the Dominican Republic.

Why work in Dominican Republic ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Dominican Republic

To expand your team in the Dominican Republic, it is crucial to navigate the intricacies of local employment regulations and efficiently handle compliance, payroll, tax, and benefits management. Establishing a legal presence and utilizing local resources are essential steps in this process.

With Gloroots' comprehensive global Employer of Record (EoR) service, you can delegate the complexities of payroll, tax, benefits, and compliance to our experienced team. This empowers you to prioritize your core business activities, focusing on your employees and driving business growth. Our EoR service in the Dominican Republic ensures strict adherence to all local laws and regulations, providing a seamless and business-friendly solution to expand your team successfully.

Risks of misclassification

In the Dominican Republic, misclassification of employees can pose significant risks for businesses. Incorrectly categorizing workers as independent contractors or exempt from employment laws may lead to legal and financial consequences, including claims for unpaid wages and benefits.

Partnering with a PEO/EOR in the Dominican Republic helps mitigate these risks. The PEO/EOR ensures proper employee classification, compliance with labor laws, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on core operations while entrusting employment-related responsibilities to experienced professionals, safeguarding them from potential legal liabilities. By doing so, companies can maintain compliance with Dominican Republic's labor regulations and protect their interests in the event of disputes related to employee classification.

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Employing in Dominican Republic

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax

Employee Income Tax

Income Range (DOP) Tax Rate
Up to 416,220.00 0.00%
416,220.00 - 624,329.00 15.00%
624,329.00 - 867,123.00 20.00%
867,123.00 and over 25.00%

Tax and social security contribution

Employer Payroll Contributions

Payroll Contribution Contribution Rate Maximum Contribution (DOP)
Pension and Disability 7.10% 269,640.00
Health Insurance 7.09% 134,820.00
Labor Risk 1.20% 53,928.00
Instituto Nacional de Formación Técnico Profesional (INFOTEP) 1.00% -
Total Employment Cost 16.39% -

Employee Payroll Contributions

Payroll Contribution Contribution Rate
Pension and Disability 2.87%
Health Insurance 3.04%
Technical Education (INFOTEP) 0.50%
Total Employee Cost 6.41%

Separation

Employment Termination and Severance

Termination Process

Employers have the authority to end a fixed-term contract under the following circumstances:

1. Business-related reasons

2. Personal reasons

3. Misconduct

The termination process necessitates providing written notice to the employee, along with a clear explanation for the decision.

Severance Pay

Severance pay is calculated based on an employee's seniority as follows:

  •  3 to 6 months of service: 6 days' salary
  •  6 to 12 months of service: 13 days' salary
  •  1 to 5 years of service: 21 days' salary
  •  Over 5 years of service: 23 days' salary

Employers are required to make all severance pay payments within ten days of notifying the employee of their termination.

Notice Periods

The duration of the notice period is determined by the employee's length of service:

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

Probation Periods

The length of the probation period varies based on the nature of the role and is specified in the employment contract. Typically, probation periods last up to three months.

Start Hiring in Dominican Republic today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

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Experience Seamless Hiring in Dominican Republic ?

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