Working in Dominican Republic

The Dominican Republic is known to have the second biggest and fastest-growing economy in the Caribbean region and Central America. As an upper middle-income nation, the Dominican Republic has a gross domestic product (GDP) per capita of $9,700 as of 2013. This Spanish country is largely dependent on services, trade, agriculture and tourism to drive its economic activity.

Job Market

The Dominican Republic has an estimated work force of 4.912 million, and majority of the population are employed in the Services sector, accounting for 63.1%, followed by the Industry sector at 22.3% and Agriculture sector at 14.6%. Since the unemployment rate of the Dominican Republic is quite high, approximated at 15%, foreign nationals aspiring to work in the country are recommended to do an extensive research of the job market and explore all employment possibilities before actually moving into the country. Having sufficient knowledge of the Spanish language will be a big advantage for foreigners looking for a job in the Dominican Republic, as the country is a Spanish-speaking one. The most common jobs for expats in the country are said to be English-teaching and call center agents. Foreign nationals who plan on residing in the more popular tourist areas can try looking for employment in huge hotel establishments, such as Hard Rock Hotel and Barcelo.

Minimum Wage/Salary

The minimum wage rate in Dominican Republic is determined by the National Salary Committee, and it varies depending on the type of business and their holdings and/or installations. Currently, below is the minimum wages for each sector:

Working Conditions

The general work week in the Dominican Republic is eight hours a day or forty-four hours per week. However, this can sometimes vary according to the company where one works in. Weekly work shifts in the Dominican Republic normally end on Saturdays at noon. All workers are entitled to 36 hours of uninterrupted weekly rest, 12 public holidays, and a minimum of 14 working days of paid vacation leave every year. All workers who have been employed for a period of five years are already entitled to 18 working days of paid vacation leave. 

Income Tax

The income tax rate in the Dominican Republic is governed by the “Direccion General de ImpuestosInternos” and is on a progressive scale. The first $9,500 earned a year is tax-free, the second $5,000 is taxed at 15%, the following $5,000 at 20%, and above that at 25%. However, it is said that only 8% of the Dominican Republic workers pay tax, because everyone else has an income that is below the minimum level. Freelance workers in Dominican Republic are subject to 10% taxation by the client, even if they earn below the minimum level.