One of the most important tasks that the payroll and human resources department of any company or society must perform is the calculation and settlement of their employees’ payroll.
We know that payroll includes concepts such as salary, vacations, overtime, bonuses, incapacities, social security, among others.
It is necessary to know about payroll management, as well as the types of payroll that exist and how each one is applied.
In this article, we will explain the differences between the different types of payroll so that you know which one you should put into practice.
What is payroll?
The payroll of workers is the document where the remuneration received by a worker monthly for the work performed is specified.
The payroll should specify all the deductions and contributions applied to the worker’s salary, such as payments to Social Security, Income Tax (ISR) reports, among others.
Payroll Concepts
- Salaries: Base salary that workers receive for a determined period and is assigned according to each one’s position.
- Perceptions: The income that workers receive for different concepts.
- Deductions: The discounts made to the worker for concepts such as social security, among others.
A payroll model in the Dominican Republic should include the following elements to ensure proper salary management and compliance with the country’s labor regulations:
In the following article, you can learn about a payroll model in the Dominican Republic, as well as payroll deductions by law in the Dominican Republic: calculating payroll.
If you want to hire a payroll administration service that takes care of calculating and paying your employees’ payroll, at Contadores Dominicanos we are ready to help you. Contact us.
Types of Payroll:
They can be classified into two: payroll by time periods and payroll by job positions.
Payroll by Time:
- Hourly Payroll: It is the type of payroll used in sectors such as call centers, where workers’ salaries are paid based on the hours worked.
- Weekly Payroll: When workers receive their payments weekly (every 7 days), usually paid on the same day each week.
- Biweekly Payroll: When workers receive their payment biweekly (every 15 days), usually paid in the middle and end of the month.
- Monthly Payroll: When workers receive their payments monthly (once a month), usually paid at the beginning or end of each month.
Payroll by Job Positions:
- Executive Payroll: This is for high-level executives and positions in a company, and this type of payroll usually contains sensitive and confidential information.
- Workers’ Payroll: The standard payroll that contains the perceptions, salaries, and earnings that workers of a company receive. This information is usually easily accessible to the company’s staff.
Payroll for Other Concepts:
- Special Payroll: Contains extraordinary perceptions made to workers, such as bonuses, extra bonuses, among others.
- Confidential Payroll: Refers to the payroll that contains payment information for senior officials of a company, such as presidents, general managers, or directors. Access to this type of payroll information is confidential.
Legal Framework for Payroll in the Dominican Republic:
The legal framework governing payroll regulations in the Dominican Republic is contained in the Labor Code (Law 16-92), its application regulations, and related laws.
Wage Legislation:
Wages must be paid in legal tender and within a period not exceeding one month. The employer’s failure to pay wages constitutes an offense that can be punished with imprisonment.
Minimum Wage:
The National Wage Committee is responsible for periodically setting minimum wages in the Dominican Republic, according to the type of company. The following rate currently applies:
| Company Category | Minimum Wage in Dominican Pesos |
| Microenterprises | RD$11,900.00 |
| Small Enterprises | RD$12,900.00 |
| Medium Enterprises | RD$19,250.00 |
| Large Enterprises | RD$21,000.00 |
Types of Salary in the Dominican Republic:
In the Dominican Republic, there are various types of salaries that vary according to the labor sector and the country’s labor laws. The minimum wage is an important category and is divided into two subgroups: the minimum wage for the public sector and the minimum wage for the private sector.
If you want to learn more about the types of salaries, read the following article: fixed salary in the Dominican Republic.
If you need help calculating your company’s or society’s payroll, at Contadores Dominicanos we are ready to help you.
