On July 14, 2021, the minimum wage increase for workers in private companies in the Dominican Republic was announced in Santo Domingo.
The National Wage Committee, through tripartite dialogue with representatives from the worker sector, the employer sector, and the government sector, under the authority granted to them by the Labor Code, reached an agreement on a salary increase for the private sector.
Regulatory Background
With Resolution No. 01 of 2021 on the National Minimum Wage for Non-Sectorized Private Sector Workers, the National Wage Committee formalized the salary increase for the private sector.
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Considerations of this Resolution
- The National Wage Committee must review the minimum wage rates for each economic activity at least once every two years, taking into account all factors affecting each activity.
- The National Wage Committee is responsible for setting the minimum wage rates for workers in all economic activities.
- The worker sector and the employer sector have reached agreements to set minimum wage rates that benefit both parties and help mitigate the adverse effects caused by the economic situation due to the Covid-19 pandemic.
Reclassification of Companies (July 2021):
According to Resolution No. 01 of 2021 on the National Minimum Wage for Non-Sectorized Private Sector Workers, a new classification of companies is established:
| Type of Company | Number of Workers | Annual Gross Sales |
| Microenterprises | Up to 10 workers | RD$8,000,000.00 |
| Small Enterprises | 11 to 50 workers | Between RD$8,000,001.00 to RD$54,000,000.00 |
| Medium Enterprises | 51 to 150 workers | Between RD$54,001,000.00 to RD$202,000,000.00 |
| Large Enterprises | 151 workers or more | More than RD$202,000,000.00 |
In cases where a company meets the number of workers criteria for one type of company but also meets the gross annual sales criteria for another, the higher scale will be taken as valid for determining its classification and, consequently, the applicable minimum wage.
Setting the Minimum Wage:
Through the powers granted by Article 455 of the Labor Code, the National Wage Committee sets the minimum wage increase for private companies, which will take effect in stages starting from July 16, 2021, as follows:
| Category of Company | Salary from July 16, 2021 | Salary from January 1, 2022 | % Increase |
| Microenterprises | RD$11,500.00 | RD$11,900.00 | 11% |
| Small Enterprises | RD$12,400.00 | RD$12,900.00 | 20% |
| Medium Enterprises | RD$18,500.00 | RD$19,250.00 | 59% |
| Large Enterprises | RD$20,000.00 | RD$21,000.00 | 19% |
These rates must be calculated by working hours, dividing the monthly salary by 23.83, and then dividing the result by 8 for part-time employees.
Another change brought about by this new resolution affects security and private surveillance employees working in companies, who have been assigned a salary of SEVENTEEN THOUSAND TWO HUNDRED FIFTY DOMINICAN PESOS WITH 00/100 (RD$17,250.00) per month.
| Category of Company | Salary from July 16, 2021 | Salary from January 1, 2022 |
| All | RD$16,750,00 | RD$17,250,00 |
Additionally, a daily wage of FIVE HUNDRED DOMINICAN PESOS WITH 00/100 is established for farm workers for ten (10) hours of work. This wage could increase or decrease depending on whether the number of hours is more or less than the ten (10) hours established by the resolution.
Effective Date
The regulation has been in effect since July 16, 2021.
