NewsMinimum wage increase announced in Dominican Republic

July 14, 2021

By Mónica Villafaña, partner and head of the Business and Corporate Division.

This Wednesday, 14 July, the National Wage Committee has announced through its Resolution 1-2021 a wage adjustment authorising a new minimum wage for non-sectorised enterprises.

The increase is effective from 16 July 2021.

A non-sectorised company is considered to be any company that does not belong to the free zone, tourism, bars, restaurants, and non-profit organisations sector.

The increase only applies to those employees currently earning the minimum wage. which is calculated on the basis of the company’s classification:

 

Type of company Previous minimum wage PDO Minimum wage new PDO Implementation of the increase 

As of 16 July 2021

Implementation of the increase 

As of 1 January 2022

Microenterprises N/A 11,900.00 11,500.00 11,900.00
Small companies 10,730.00 12,900.00 12,400.00 12,900.00
Medium-sized companies 12,107.00 19,250.00 18,500.00 19,250.00
Large companies 17,610.00 21,000.00 20,000.00 21,000.00

(*) If the employee is currently earning the new minimum wage or more, no increases are applicable according to the resolution.

Classification of companies:

 

Type of company Characteristics in terms of number of employees Characteristics in terms of annual gross sales PDO
Microenterprises A maximum of 10 employees Up to 8,000,000.00
Small companies 11 to 50 employees From 8,000,000.00 up to 54,000,000.00
Medium-sized companies 51 employees or more From 54,000,000.00 up to 202,000,000.00
Large companies 151 employees or more More than 202,000,000.00

In case a company meets different scale criteria, the higher scale shall apply.

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