If you are an employer in the Dominican Republic, you may be wondering, what percentage should I pay to the TSS? In this article we tell you about the contributions that you must make to this organization, in order not to incur penalties or fines.
What is the TSS in the Dominican Republic?
The Social Security Treasury (TSS) is the institution responsible for managing the Single Information and Collection System (SUIR), as well as the distribution and payment of the Resources of the Dominican Social Security System (SDSS).
It is a dependency of the National Security Council (both created by Law 97-01). Its main objective is the collection, distribution and payment to all participating public or private institutions, guaranteeing transparency and equity.
All public or private for-profit or non-profit companies and corporations with salaried workers must be registered with the Social Security Treasury (TSS) and make their payments on a monthly basis. With the exception of companies that are not regulated by Law 87-01.
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Contributions to be paid by the employer to the TSS:
Family Health Insurance (SFS):
Its objective is the integral protection of the physical and mental health of the affiliate and his family. The employer must pay to the TSS a percentage for the employee’s family health insurance, currently this percentage corresponds to 7.09% of the employee’s salary.
Pension Fund (AFP):
Also known as Old Age, Disability and Survivorship Insurance. Its purpose is to manage the personal accounts of affiliated workers, in order to grant them a pension at the end of their working life, whether due to retirement, disability, old age, industrial accident or survival.
The employer must pay a percentage to the TSS for the employee’s pension fund; this percentage currently corresponds to 7.10% of the employee’s salary.
Labor Risks Insurance (SRL):
Aims to prevent and cover the damages caused to an employee due to an occupational accident and/or occupational disease. It covers any injury or illness suffered by the worker as a result of the work performed for an employer.
It has a contribution payable solely by the employer and has two components:
- A fixed contribution of 1% to all employers.
- An additional variable fee of up to 0.6% depending on the risk level of each company.
INFOTEP:
Its objective is the training of professional technicians in the Dominican Republic. The employer will have the duty to pay to the Instituto Nacional de Formación Técnico Profesional (INFOTEP) the corresponding 1% of its employee payroll.
Employee and employer withholding and contribution amounts:
| Contributions | % Employer | % Employee |
| Family health insurance | 7.09% | 3.04% |
| Old age, disability and survivors insurance | 7.10% | 2.87% |
| Insurance against occupational hazards | 1% fixed fee plus a percentage of 0.10 -0.30, depending on the company risk factor | It is 100% covered by the employer. |
| INFOTEP | 1% of the employee payroll | 0% |
Salary ceilings for contributions to the Dominican Social Security System:
| Insurance | Salary Caps |
| Family health insurance | 10 national minimum wages |
| Old age, disability and survivors insurance | 04 national minimum wages |
| Occupational hazard insurance | 20 national minimum wages |
Where to make inquiries about the TSS?
To make your queries about the TSS, you must access the website of the Social Security Treasury where you can find the following sections:
- Payment calendar.
- Affiliated benefits.
- Validate certification.
- Refund of contributions.
- Collector network.
In each item you can find the information you need about the employer TSS, in order to be up to date in the payment of your company’s contributions and avoid possible fines and penalties before the TSS.
When do I have to pay the TSS?
Payment notices are generated from the 20th of each month, with the deadline for payment being the first 3 working days of the following month. If you are an employer you can consult the calendar of payment deadlines on the web portal of the Social Security Treasury (TSS).
What happens if I do not pay the TSS by the deadline?
Employers who do not make the payment within 3 working days of each month, must pay:
- A surcharge calculated on the basis of 5% per month of the amount of contributions withheld.
- An indemnity interest of 0.99%.
What disadvantages can I expect if I have a debt with the TSS?
- Suspension of your employees’ ARS coverage.
- Lack of individual capitalization of the employees’ ITC.
If you wish to know the amount to be paid to the TSS, you can access the Suir Plus companies via the Internet: queries > account statement.
It is important to make the payment to the Social Security Treasury (TSS) on time, within the established deadlines, in order not to incur in fines and faults that could affect the company.
