Payroll

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Dominican Republic

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Payroll in Dominican Republic

Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.

Payroll at a glance

2026

Currency

DOP RD$ (Dominican Peso)

Employer contributions

~17.5% employer TSS (SFS 7.09% + AFP 7.10% + SRL 1.2% + INFOTEP 1% + others)

Minimum wage

DOP 16,993.20/month (2026) ≈ $286/month

Payment frequency

Monthly / Bi-weekly

Calendar year (Jan 1 - Dec 31)

Capital

Santo Domingo

Timezone

AST (GMT-4)

Dominican Republic minimum wage and salaries in 2026

Short answer: The minimum wage in the Dominican Republic in 2026 is DOP 16,993.20 a month (about $286). A typical full-time salary is around DOP 40,000 a month ($672). Professionals paid as contractors through Ontop earn a median of $2,100 a month (109 active contracts, September 2026).

2026 figureLocal currencyUSD
Minimum wage, monthlyDOP 16,993$286
Minimum wage, hourlyDOP 89.12$1.50
Average salary, monthly (approx.)DOP 40,000$672
Median contractor pay through Ontop, monthlyn/a$2,100

Minimum wage details: Private non-sectorized, Resolucion CNS-01-2025, effective 2026-02-01, by company size: large RD$29,988.00; medium 27,489.60; small 18,421.20; micro 16,993.20 (lowest general figure used). Free trade zones RD$20,875 (CNS-03-2025, from 2026-06-01); hotels/casinos/restaurants separate (CNS-04-2025, from 2026-06-01). Figures from secondary press (Cachicha, El Caribe, Alegra); official resolution on mt.gob.do.. USD figures use exchange rates from 1 October 2026. Updated October 2026.

Next step: compare contractor rates in the Dominican Republic with other countries or estimate the full cost of an employee.

Hiring in Dominican Republic: employee or contractor?

In the Dominican Republic, employer contributions to the TSS fund health, pension, work-risk insurance and INFOTEP training, and together they add about a fifth to every salary you pay. For a company abroad, that bill also comes with a local registration it may not want.

That is why most foreign teams hiring Dominican talent start with contractors. When someone delivers defined work on their own schedule, a services agreement fits the reality of the relationship and costs less to run. When the role is a full-time seat inside your team, the answer changes.

What an employee costs you in Dominican Republic

A gross salary of DOP 60,000 a month brings about DOP 12,900 in employer TSS contributions, for a total close to DOP 72,900. The employee nets roughly DOP 41,900. Add to that:

  • Regalias Pascuales: one month of salary, mandatory and payable before December 20.
  • Cesantia: a severance scale of 6 to 23 days of salary per year, depending on length of service.
  • Penalties that start high: late TSS payments carry 10% plus 2% a month.
  • Vacaciones: 14 working days a year after the first year.

The contractor route with Ontop

Independent professionals in the Dominican Republic are engaged through a Contrato de Servicios Profesionales. Companies paying contractors in the Dominican Republic through Ontop pay a median of $2,100 a month (the middle half earn between $1,380 and $3,350), across 109 active contracts in September 2026. These figures come from Ontop's own book of contractor payments, not a market survey.

Ontop works as contractor of record: you use a compliant contract (yours or an Ontop template), get support classifying the role correctly and pay everyone in one run. Contractors receive their pay in the Ontop Global Account in USD, which spares them a conversion into pesos unless they choose one. You do not need a local entity or a TSS registration, and pricing starts at $49 per contractor per month. For a side-by-side view of both costs, open the contractor cost by country calculator.

When an employee is still the right call

Some roles are employment no matter how you paper them: fixed working hours, exclusivity, and a manager directing the work every day. If that describes the position, hire an employee and register with the TSS. Ontop does not offer employer of record and never becomes the legal employer, so those hires need your own entity or a local employer. For the rest of your Dominican team, see how an EOR alternative for contractors keeps things simple.

Employee or contractor

Which one fits your hire?

If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.

Employee

~DOP 72,900 total

/month

For a gross salary of

DOP 60,000 gross/month

Setup

Local entity or employer of record, plus tax and social security registration

Employer contributions

~17.5% employer TSS (SFS 7.09% + AFP 7.10% + SRL 1.2% + INFOTEP 1% + others)

Mandatory extras

Regalias Pascuales (Christmas Bonus)

Monthly admin

Monthly payroll - TSS by month-end - ISR withholding - annual March return

Contractor with Ontop

No local entity

$49

/contractor/month

The agreed rate, plus Ontop from $49 per contractor per month.

Sign a contract, yours or an Ontop template. No local registration on your side.

No employer contributions: the contractor handles their own taxes and social security.

One payment per invoice, in one payroll run.

Paid into their Ontop Global Account in USD.

Hire contractors with Ontop

See the full side-by-side comparison

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What it takes
Employee
Contractor with Ontop
Setup
Local entity or employer of record, plus registration with
Direccion General de Impuestos Internos (DGII)
TSS (Tesoreria de la Seguridad Social)
Sign a contract, yours or an Ontop template. No local registration on your side.
Employer contributions
~17.5% employer TSS (SFS 7.09% + AFP 7.10% + SRL 1.2% + INFOTEP 1% + others)
None. The contractor handles their own taxes and social security.
Mandatory extras
Regalias Pascuales (Christmas Bonus)
Paid leave
14 working days/year (after 1 year)
Maternity leave
14 weeks (98 days) maternity + 2 days paternity
Whatever you agree in the contract.
Monthly admin
Monthly payroll - TSS by month-end - ISR withholding - annual March return
One payment per invoice.
Ending the relationship
Scale: 6-23 days/year depending on service length
Per the contract terms.
Example monthly cost
~DOP 72,900 total
for a gross salary of
DOP 60,000 gross/month
The agreed rate, plus Ontop from $49 per contractor per month.

A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.

Hiring here: the full breakdown

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Payroll guide

Everything you need, one topic at a time

What it costs to employ someone

Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.

Total monthly cost

~DOP 72,900 total

Example gross salary

DOP 60,000 gross/month

~DOP 41,900 net

Net pay to the employee

Tax and employee contributions

Withheld from gross pay

~DOP 12,900 TSS

Employer contributions on that salary

Employer contributions

~17.5% employer TSS (SFS 7.09% + AFP 7.10% + SRL 1.2% + INFOTEP 1% + others)

Employee contributions

~8.57% employee TSS + income tax (ISR)

Total cost above gross

~21.5% above gross (TSS)

Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.

Minimum wage and salaries

What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.

National average

~DOP 40,000

Per month

Santo Domingo

DOP 50,000 - 180,000

~40%

Santiago

DOP 40,000 - 140,000

~20%

Monthly gross. National average salary per year:

~DOP 480,000

Minimum wage

DOP 16,993.20/month (2026) ≈ $286/month

Paid:

Monthly

Extra pay

Regalias Pascuales (Christmas Bonus)

1 month salary mandatory before December 20

December

Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.

Taxes, filings and deadlines

Who collects what, how often, and what happens when a payment is late.

Income tax brackets

0% up to DOP 416,220 / 15% / 20% / 25%

Tax year:

Calendar year (Jan 1 - Dec 31)

Filing calendar

Monthly by last day

Social security payments

March 31 (annual ISR)

Income tax

By January 31

Employee tax certificate

Certificacion de Retenciones

March 31

Annual return

Declaracion Jurada del ISR

Late payment penalties

Late TSS: 10% + 2% monthly; late ISR: 10% + 2% monthly

Who collects what

DGII

Income tax (ISR)

TSS / DGSS

Social security (health + pension + work risk)

Ministerio de Trabajo

Labour law

Mandatory benefits and leave

The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.

Annual leave

Vacaciones

14 working days/year (after 1 year)

Public holidays

~12 public holidays

Sick leave

Licencia por Enfermedad

TSS pays from day 4 (SFS)

Maternity leave

14 weeks (98 days) maternity + 2 days paternity

Full pay from SFS

Employment contract types

The contracts you can use, and what ending an employment relationship costs.

Permanent

Contrato de Trabajo por Tiempo Indefinido

Fixed term

Contrato por Cierto Trabajo o Servicio

Independent contractor

Contrato de Servicios Profesionales

Collective agreements

Convenio Colectivo de Condiciones de Trabajo

Ending employment

Cesantia / Auxilio de Cesantia

How it is calculated

Scale: 6-23 days/year depending on service length

Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.

Common payroll mistakes and how to avoid them

The errors that most often trigger back payments and penalties here, and what to do instead.

Regalias Pascuales Calculation Base

Risk Level: HIGH

The Dominican Christmas bonus is calculated on ordinary salary only - not commissions, overtime, or variable pay. However, regular shift differentials are included. Employers who use gross total compensation or exclude regular differentials generate Ministry of Labour violations.

TSS Platform Submission Failures

Risk Level: HIGH

The Dominican Republic's TSS requires electronic submission via the SUIR platform by the last day of each month. Technical failures or late submissions generate automatic 10% penalties before any human review.

Ontop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.

150+

countries

$49

per contractor per month

1 run

to pay your whole team

USD

Global Account for every contractor

FAQ

Frequently asked questions

Can Ontop run payroll for employees in this country?

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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.

How much does it cost to employ someone here?

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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.

Is there a mandatory bonus or extra month?

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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.

What taxes are withheld from an employee's pay?

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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.

Can I see the total cost before hiring?

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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.

When should I hire a contractor instead of an employee?

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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.

What are the main compliance risks?

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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.

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