One of the most important tasks to be performed by the payroll and human resources area of any company and society is to calculate and settle the payroll of its workers.
We know that payroll includes concepts such as: salary, vacations, overtime, bonuses, disability, social security, among others.
It is necessary to know about payroll management, as well as the types of payrolls that exist and how each of them is applied.
In this article we tell you the differences between the different types of payrolls, so that you know which of them you should put into practice.
Definition of payroll:
Payroll is a document in which the payments of workers’ salaries are kept track of, including perceptions and deductions in a given period of time worked.
Payroll concepts:
- Salaries: basic salary received by workers for a given period of time and assigned according to each employee’s position.
- Perceptions: income received by employees for different concepts.
- Deductions: are the deductions made to the worker, for items such as social security, among others.
Types of payrolls:
They can be classified into two: time-based payrolls and job-based payrolls.
Time-based payrolls:
Hourly payroll: this is the type of payroll used in sectors such as call centers, where workers’ salary payments are made on the workers’ hours worked.
Weekly payroll: is when workers are paid on a weekly basis (every 7 days), usually on the same day each week.
Biweekly payroll: is when workers are paid biweekly (every 15 days), usually paid in the middle and at the end of the month.
Monthly payroll: is when workers are paid on a monthly basis (once a month), usually paid at the beginning or end of each month.
Payroll by job position:
Executive payroll: is the one that is made to senior executives and positions of a company or company, this type of payroll usually has sensitive and confidential information.
Payroll of workers: it is the normal payroll, which contains the perceptions, salaries and payments received by the workers of a company. They usually contain information that is easily accessible to the company’s personnel.
Payrolls for other items:
Special payroll: this is the one that contains extraordinary payments made to workers, such as bonuses, extra bonuses, among others.
Confidential payroll: this refers to the payroll that contains information on payments to senior officers of a company, such as presidents, general managers or directors. Access to this type of payroll information is confidencial.
Legal Framework for Payroll in the Dominican Republic:
The legal framework governing payroll regulations in the Dominican Republic is contemplated in the Labor Code (Law 16-92), its implementing regulations and related laws.
Wage Legislation:
Salary must be paid in legal tender and in a period not exceeding one month. Non-payment of salary by the employer constitutes an infraction punishable by imprisonment.
Minimum Wage:
The National Wage Committee is in charge of periodically setting minimum wages in the Dominican Republic, according to the type of company. Currently the following rate is in force:
| Category of company | Minimum wage in Dominican pesos |
| Micro-companies | RD$11,900.00 |
| Small enterprises | RD$12,900.00 |
| Medium-sized companies | RD$19,250.00 |
| Large companies | RD$21,000.00 |
