By José Jeréz, Associate.
On the occasion of Resolution No. 02-2021, dated 12 November 2021 issued by the National Wages Committee, the minimum wage in the Dominican Republic was increased for workers rendering services in hotels, casinos, restaurants, bars, cafés, nightclubs, pizzerias, pica pollos, fast food businesses, chimichurris, ice cream parlours and other unspecified gastronomic establishments, repealing the rates indicated in Resolution No. 40-2019, dated 17 December 2019, issued by the National Wages Committee, and repealing the rates indicated in Resolution No. 40-2019, dated 17 December 2019, issued by the National Wages Committee. 40-2019 dated 17 December 2019, issued by the National Wages Committee. The new wage scale would be as follows:
- Large companies: From RD$11,598.44 increase to RD$14,000.00;
- Medium-sized companies: From RD$8,321.76 increase to RD$10,650.00;
- Small businesses: From RD$7,488.43 increase to RD$9,500.00;
These tariffs would be applied retroactively from 1 August 2021.
In addition, the criterion for classifying the size of enterprises was changed, previously taking into account facilities and stocks, or both together, whereas now the following scale will be applied:
- Large companies: (≥ 151 employees, or annual gross sales + RD$202,000,000.00);
- Medium-sized companies: (51-150 employees, or annual gross sales RD$54,000,001.00 – RD$202,000,000.00);
- Small enterprises: (≤ 50 employees, or annual gross sales ≤ RD$54,000,000.00);
In the event that a company meets the scale criteria in different classification lines, i.e. number of workers in one classification and gross sales in another, the higher scale will be applied to determine its classification, and consequently the minimum wage applicable in the Dominican Republic.
