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Dominican Republic Payroll & Compliance

Complete payroll regulations, statutory deductions, pension obligations, insurance requirements, tax compliance and labour law for Dominican Republic.

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Dominican Republic flag

Dominican Republic

Dominican Peso · RD$

The Dominican Republic requires employers to deduct ISR (income tax), contribute to the mandatory AFP pension pillar and SFS/ARS health insurance under the TSS social security system, and comply with labour regulations. Employers must register with tax authorities, maintain payroll records, and provide statutory benefits.

Bi-weekly PayrollISRAFP PensionARS Health

Country Quick Facts

Payroll Frequency
Bi-weekly / Monthly
Income Tax
ISR
Currency
Dominican Peso (RD$)
Compliance Score
84/100
Updated Regulations
Mandatory Pension
Health Insurance

Financial Calculators

Calculate statutory deductions, contributions, and obligations for Dominican Republic.

Pension Contribution Calculator

Calculate mandatory pension contributions

Monthly Salary

RD$5,000.00

RD$1,000.00RD$50,000.00

Mandatory individual-capitalization pension (AFP) under Law 87-01, capped at RD$464,460/month per the TSS insurable-earnings ceiling. Not a voluntary supplement, the AFP is the compulsory pension vehicle itself.

Employer Contribution

RD$355.00

7.1% of salary

Employee Contribution

RD$143.50

2.87% of salary

Total Contribution

RD$498.50

9.97% combined

Employer: 7.1%Employee: 2.87%

*Note: This pension calculation is an estimate. For exact payroll and pension compliance calculations, please visit the official government website.

Country Overview

Key employment regulations and payroll requirements at a glance.

Minimum Wage

RD$16,993-29,988 / month (tiered by company size, effective Feb 2026)

Payroll Cycle

Bi-weekly or Monthly

Income Tax

ISR - exempt up to RD$416,220/year, then 15%/20%/25%

Social Security

1.2% employer-paid labour-risk insurance (Seguro de Riesgos Laborales)

Mandatory Pension

9.97% total (7.1% employer + 2.87% employee) via mandatory AFP

Health Insurance

Mandatory SFS via ARS: 7.09% employer + 3.04% employee

Employment Contract

Written contract required

Payslip

Required

Government Filing

Monthly TSS and ISR filings

Leave & Labour Compliance

Employment terms and leave entitlements for Dominican Republic.

Annual Leave

Dominican Republic statutory entitlement

10

days

Compliance Highlights

  • Employees are entitled to 10 working days of annual leave after completing one year.
  • Paid sick leave is available with medical certificate.
  • Female employees receive 14 weeks of maternity leave.
  • Male employees are entitled to 2 days of paternity leave.
  • Employees observe 12 official public holidays.
  • Probation periods typically last 3 months.
  • Notice periods vary based on employment duration.
  • Standard working hours are 44 hours per week.
  • Overtime is compensated at 1.35 times the regular rate.
  • Written employment contracts are required by law.
  • Employers also remit a 1% payroll levy to INFOTEP for workforce training, plus a 0.5% employer-withheld deduction from employees' annual bonus (regalía pascual).

Government Registrations

Required registrations and regulatory authorities for Dominican Republic.

Employer Registration

Ministry of Labour

Tax Authority

DGII (Dirección General de Impuestos Internos)

Pension Authority

SIPEN (Superintendencia de Pensiones)

Insurance Authority

SNS (Superintendencia de Salud)

Labour Department

Ministry of Labour

Submission Frequency

Monthly

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