Dominican Republic PEO & Employer of Record

Build your business in the Dominican Republic faster, with New Horizons

Expand your organization into the Dominican Republic, with or without a Dominican entity

While still classed as a developing country, the Dominican Republic has had success expanding and diversifying its economy in recent years. Its export economy is a particular strength, with its substantial reserves of gold and other minerals sold across the world, and a solid agricultural sector focused on commodities such as fruit, cocoa, and more. Many foreign businesses see its close ties with the USA and potential for future economic growth as a good reason to invest.

If you are interested in expanding to this exciting Latin American country, you will first have to navigate its complex and unique business and employment laws. While this is possible to do independently, it can result in significant delays to your expansion, with language barriers, complicated administrative procedures, and various other factors all potentially stalling progress.

At New Horizons, we work to help businesses from any and all industries expand into the Dominican Republic. Our professional employer organization (PEO), employer of record, and payroll services can offer you everything you need to start your Dominican expansion rapidly, efficiently, and compliantly.

As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Dominican Republic workforce, along with any ongoing HR and compliance work. Explore our Dominican Republic expansion services below, or get in touch with our team to let us know about your expansion goals.

Why expand in the Dominican Republic with New Horizons?

New Horizons enables your business to expand operations into the Dominican Republic – without setting up a legal subsidiary.

Rapid Market Entry

New Horizons will enable you to source, hire, and onboard professionals across the Dominican Republic in as little as 48 hours.

Cost-Effective Expansion

Our PEO solution can help you benefit from cost savings of up to 82%, without the need to establish a Dominican entity.

Payroll Outsourcing

Simplified Dominican Republic salary & payroll processing, including social security payments, tax, and any other required contributions.

Employee Onboarding

Utilize the relevant provision for all types of Dominican labor contracts, whether a fixed-term or open-ended contract.

Onsite Legal & HR Team

Full support for Dominican Republic-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.

Ensure Full Compliance

We ensure that employment contracts are fully compliant and adhere to Dominican Republic labor laws and best practices.

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Hiring in the Dominican Republic: Employment law overview

Employment contracts in the Dominican Republic

We recommend writing up a formal contract of employment for every employee you hire in the Dominican Republic. These contracts should include all details of the employment such as salary, working hours, benefits, and anything else relevant. They should also be written in Spanish and references to money should be in the local currency of the Dominican peso.

Working hours in the Dominican Republic

The usual working week for full-time employees in the Dominican Republic is 44 hours. Overtime is paid at a rate of 135% of normal pay.

Public holidays in the Dominican Republic

There are several public holidays in the Dominican Republic. Many employees receive the following days as leave from work:

  • Epiphany
  • New Year’s Day
  • Christmas Day
  • Celebration of the Virgin
  • Constitution Day
  • Corpus Christi
  • Labor Day
  • Restoration of the Republic Day
  • Founding Fathers Day
  • Independence Day
  • Easter Friday

Dominican Republic vacation leave

Employees in the Dominican Republic are entitled to 14 days of paid vacation leave each year. After working for an employer for five years, this allowance increases to 18 days per year.

Dominican Republic sick leave

Employees in the Dominican Republic can take unlimited sick leave if necessary and they can prove their sickness.

Parental leave in the Dominican Republic

Female employees in the Dominican Republic can take up to seven weeks of paid maternity leave prior to giving birth and seven weeks after. Male employees can take two days of paternity leave

Terminations and severance in the Dominican Republic

In the Dominican Republic, the entitlements surrounding notice of termination and severance payments are generally negotiated on a case-by-case basis by trade unions or individual employees. Notice periods and severance payments both usually increase with an employee’s length of service.

Taxation in the Dominican Republic

Both employers and employees in the Dominican Republic must pay health insurance contributions. Employers must pay 3% of salary and employees must pay 7%. Additionally, employees must pay around7% of salary to disability/pension and employers must pay 1.25% to workplace insurance.

Income tax in the Dominican Republic is progressive, with workers paying a higher percentage in tax at higher income levels. The rates range from 0% to 25%.

Corporate tax in the Dominican Republic is 27%.

Health coverage in the Dominican Republic

The Dominican Republic does have public healthcare that is available to all, but standards are generally not considered to be on par with the developed world. For this reason, many employers choose to provide private medical insurance for employees as part of their benefits packages.

Dominican Republic compensations & benefits

Compensation laws in the Dominican Republic

The minimum wage in the Dominican Republic depends on the type and size of employer that an employee works for. For example, field workers must be paid a rate of at least 320.4 Dominican pesos per day, but most other workers are paid a minimum monthly rate that differs depending on the value of the company they are employed by. Due to this complex system, it is crucial that you understand the specific laws that apply to you when doing business and hiring in the Dominican Republic.

Benefit management in the Dominican Republic

Building a benefits system for your Dominican workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently can take several weeks and potentially lead to unexpected delays.

New Horizons can simplify your Dominican Republic benefits management. Our Dominican Republic experts can handle everything for you, helping you focus on a successful expansion operation.

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New Horizons helps businesses expand into the Dominican Republic faster

New Horizons’ Dominican Republic PEO, employer of record, and payroll services provide businesses with everything they need to commence trading in Dominican Republic as rapidly as possible. Our expansion experts will help you set up your operation and start trading in the Dominican Republic in as little as 48 hours, and could save more than 80% in expansion costs, whether or not you have registered an entity in the country.

We will take care of your expenses, payroll, and legal compliance in the Dominican Republic, as well as all HR work. And as the only global PEO with a dedicated recruitment team in-house, we can also source and hire your local employees, using our Dominican subsidiary to act as employer of record so you don’t need to have a Dominican entity.

Talk to our Dominican Republic payroll experts today to learn how our services can assist your expansion into Dominican Republic.

Explore our expansion solutions in the Dominican Republic