Employer of Record in the Dominican Republic | INS Global

Employer of Record in Ecuador

Hire Globally, Pay Locally, Expand Effortlessly

Are you planning a company expansion into the Dominican Republic? An Employer of Record in the Dominican Republic can help. Expansions generally require capital and skillful labor, alongside an in-depth understanding of the local market. Still, the more traditional method for foreign market entry can be capital-intensive and inefficient.  

For example, some companies spend many months creating and registering an entity or subsidiary in a new country. Later, these companies have to contend with hiring compliantly, documenting employment contracts, ensuring tax compliance, and administering workers’ benefits. Everyday administrative tasks like these can slow down core business activities and stifle growth.   

As a result, many companies now prefer an Employer of Record (EOR) service like INS Global when expanding into the Dominican Republic. EOR services allow you to compliantly hire or dispatch workers in the Dominican Republic and onboard them in days—instead of months. After that, you can assign tasks to your new employees, like other team members.   

In addition, your EOR partner can handle the following responsibilities on your behalf: 

  • Payroll management 
  • Tax compliance 
  • Employment contracts and documentation 
  • Hiring and firing procedures 
  • Expenses claim declaration 
  • Social security management 
  • Employee benefits and insurance administration 
  • Regulatory compliance 
  • Employment law compliance 

Employer of Record in Ecuador - Summary

The Advantages of Using an Employer of Record in the Dominican Republic

Assured Legal Compliance

Dealing with complex foreign labor laws can be challenging. An EOR service minimizes your company’s legal burden by adhering to local tax and labor regulations. 

Reduced Cost And Time

Outsourcing employment-related functions such as payroll administration, benefits management, and HR administration saves time and money.  

Focus On Company Growth

For companies that may not have the budget or staffing to operate entire HR departments that can manage HR operations for overseas workers, PEOs provide all the services required to function efficiently.

Fast Market Entry

You can safely transfer employment-related risks to an EOR partner and decrease the threats posed by costly legal disputes and reputational damage.  

One Platform For Everything

Access a wide range of countries and regions through an EOR partner with a global presence. Integrate your payroll and HR into one single and easy-to-use platform 

Why Choose an EOR over Company Incorporation?

Company incorporation is a known expansion route, but it may not be the best way to grow for you or your needs. Incorporation is helpful when you must have complete operational control and ownership. Otherwise, the process can be time-consuming, and you are liable for all legal and regulatory compliance, tax obligations, and administrative overheads.  

Alternatively, an EOR allows you to  expand your operations  and start hiring safely and quickly. Your EOR partner becomes responsible for issuing contracts, onboarding hires, managing payroll, and fulfilling legal and tax obligations 

As a result, a reputable EOR like INS Global is helpful for: 

  • Speeding up international expansions  
  • Testing new markets cost-effectively 
  • Handling project-based work in multiple countries at once 
  • Allowing you and your team to focus on core business goals 
testimonial from Manuel Ramos


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 


How Does an Employer of Record in the Dominican Republic Work?

Our EOR manages your employee recruitment or assignment needs in the Dominican Republic in 4 steps:  

  • We discuss your business requirements and employment needs to help us develop a custom plan made uniquely for you. 
  • Next, we provide a legal entity for hiring in the Dominican Republic so you can recruit or dispatch workers without the need for a new local structure. 
  • Immediately, INS Global handles liability for HR administration and legal compliance with tax and labor law in the Dominican Republic as it relates to your operations.  
  • You can focus on managing the day-to-day employee contributions toward your growth. 

PEO vs Employer of Record in the Dominican Republic

A Professional Employer Organization (PEO) and an Employer of Record provide many similar services but the two services remain distinct in some key ways.  

PEOs in the Dominican Republic provide HR services, including payroll, benefits administration, and employee recruiting as a co-employer. Engaging a PEO  means outsourcing your HR duties and sharing employment-related risks and liabilities with a co-employer.  

In contrast, an EOR becomes the legal employer and hires on behalf of the client company in the Dominican Republic. EOR service providers then become responsible for employment-related risk and compliance with labor laws and payroll taxes. 

Labor Law in the Dominican Republic - 2024

Employment Contracts In the Dominican Republic​

 Employment contracts in the Dominican Republic may be verbal or written. Written agreements are recommended since they foster a clear and sound work relationship. 

 At least 80% of a company’s workforce must be Dominican nationals. Similarly, at least 80% of a company’s payroll (with the exception of salaries for technical or executive positions) must correspond to wages earned by Dominicans.  

Employers are required to keep the following records on a permanent basis: 

  • Register of employees, indicating their wages and work hours 
  • Register of the employees’ vacation time during the year 
  • Register of overtime work 
  • Register of visits by labor inspectors 


These records are admissible evidence that may be presented in court against claims by employees. 

Any party of the employment contract in the Dominican Republic can terminate it unilaterally without specifying a cause. However, both employer and employee are required to provide a prior-termination notice period depending on the length of the employment as follows: 


Length of Employment 

Minimum Advance Notice 

From 3 to 6 months   

7 days 

From 6 months to 12 months  

14 days 

More than 12 months  

28 days  

Employers are required to make a severance payment for terminating employment contracts without cause, as detailed below: 

Length of Employment 

Severance Pay 

3 to 6 months   

6 days’ salary 

From 6 months to 1 year  

13 days’ salary 

From 1 year to 5 years   

21 days’ salary per year of employment 

More than 5 years   

23 days’ salary per year of employment 

Working Hours In the Dominican Republic

An employee required to work during his weekly rest period is entitled to a 100% premium on his salary for his or given compensatory time off the following week. 

Work exceeding 44 hours a week is considered overtime and is paid with a 35% premium over regular hours. Work hours over 68 hours a week are paid at a 100% premium. Overtime pay does not apply to managers. 

Employer and employee are free to negotiate salary, but the agreed figure cannot be less than the legally-established minimum salary. 

The National Salary Committee establishes minimum salaries in the Dominican Republic, and the figure varies according to business size or industry type. The current private sector minimum salaries in Dominican pesos (DOP) are: 

Business Size or Industry 

Monthly Minimum Salary in DOP 

Large business  


Medium-sized business 


Small business  


Free trade zones  


Tourism industry  


Farm workers  

267 per day 

Businesses with installations and inventory exceeding 4 million DOP are categorized as large. Meanwhile, those with installations and inventory between 2 – 4 million DOP are medium-sized. Businesses with less than 2 million DOP are small. 

Public Holidays in the Dominican Republic

Employees in the Dominican Republic are eligible for paid leave on the country’s 10 nationally recognized public holidays: 

  • New Year’s Day (Día de Año Nuevo) – January 1st 
  • Epiphany (Día de los Santos Reyes) – January 6th 
  • Duarte’s Day (Día de Juan Pablo Duarte) – January 26th 
  • Independence Day (Día de la Independencia) – February 27th 
  • Good Friday (Viernes Santo) – Date varies each year (movable holiday) 
  • Labor Day (Día del Trabajo) – May 1st 
  • Corpus Christi (Día de Corpus Christi) – Date varies each year (movable holiday) 
  • Restoration Day (Día de la Restauración) – August 16th 
  • Constitution Day (Día de la Constitución) – November 6th 
  • Christmas Day (Día de Navidad) – December 25th 

Every employee in the country receives a “Christmas salary” on or before December 20th, in addition to their regular salary. However, the Labor Code establishes a maximum Christmas Salary as 5 times the minimum wage 

 Still, many employers waive this limitation and pay employees who have worked the whole year a full extra month’s salary. This extra salary is tax-exempt 

Annual Leave in the Dominican Republic

An employee is eligible for annual paid vacation leave as follows: 

  • Under 5 years of service: 14 working days 
  • 5 years service and over: 18 working days 

The employer is required to pay the vacation salary a day before vacation begins.  

In addition, the Labor Code allows employees paid time off or leave of absence in the following scenarios:  

  • Marriage (5 days) 
  • Death of a spouse, child, parent, or grandparent (3 days) 
  • For male employees, childbirth by wife or companion (2 days) 
  • For female employees, childbirth (12 weeks) 

Sick Leave & Maternity/Paternity Leave in the Dominican Republic

Employees in the Dominican Republic can obtain sick leave with proof of illness, but there is no mandatory paid sick leave. 

Pregnant employees are entitled to 12 weeks of paid maternity leave with 6 weeks leading up to the expected birth date and 6 weeks after.  

After childbirth, the employee is entitled to 3 rest periods of 20 minutes each per workday for breastfeeding the infant, and to half a workday every month to allow for visits to the pediatrician. 

Male employees are allowed 2 days off after the birth of their child. 

Profit Sharing in the Dominican Republic

Employers are obligated to share 10% of their annual pretax profits (if any) with their employees. However, the Labor Code allows employers to cap profit sharing as follows: 

  • An employee who has worked for the company for under 3 years receives 45 days’ salary. 
  • Employees who have worked for 3 years or more receive 60 days’ salary. 

Profitable companies must pay employees within a 90 to 120-day period after the end of the company’s fiscal year. 

However, specific industries, such as agricultural, industrial, forestry, mining companies, and free trade zone businesses, are exempt from profit sharing during the first three years of operation. 

Social Security in the Dominican Republic

The country’s social security system considers 3 types of assistance, namely: 

  • Health insurance 
  • Occupational risk insurance 
  • Insurance for health and labor risks 


Employers and employees fund the system by paying a percentage of employee’s salaries as described below:  


Employee Contribution 

Employer Contribution 

Health Insurance 



Risk Insurance     


1.2%  + 0.6 (variable) 

Incapacity/Retirement Fund 



Tax Law in the Dominican Republic

Income tax in the Dominican Republic is progressive, with workers paying a tax percentage in proportion to their income level, ranging from 0% to 25%. 

The country imposes a value-added tax (VAT) on some goods and services. The standard VAT tax rate is 18%. 

The corporate tax rate in the Dominican Republic is 27%. 


Discover More Solutions in the Dominican Republic


No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

Incorporating a new subsidiary in the Dominican Republic can take from 4-12 months. But you can have your team abroad using an existing PEO as the employer of record in just 1 month.  

The price of professional EOR services in the Dominican Republic is a percentage of the worker’s monthly compensation. This price includes all HR-related tasks required to ensure compliance with the local employment laws. 

A Dominican Republic EOR is a safe, legitimate, and efficient way to handle employer responsibilities there without establishing a specific corporate structure. EOR services accomplish this by hiring local legal professionals and offering top-notch HR assistance

Expect your team members to be paid accurately and on time each month. Also, employees will have access to all of Dominican Republic’s employee benefits. In addition, your business will be protected by the law. 

Independent contractors who interact with their clients within a Dominican Republic EOR framework will retain full control of their work and may be eligible for many of the same benefits as regular employees. This is like working via an umbrella organization. 

Our team of expert recruitment consultants can find the best local talent in the Dominican Republic for your needs by utilizing their wide professional networks, in-depth knowledge of regional business resources and benchmarks, and commitment to ethical hiring practices.  

Yes. An Employer of Record can help you find new workers in various cities or regions within the Dominican Republic. An EOR handles headhunting, interviews, and candidate selection in specific cities or regions in the Dominican Republic, depending on your needs or preference 

With INS Global, you can employ however many or few employees you need to achieve your goals. 

The option for your employees to work in a shared workspace whenever convenient is a good idea. But using a PEO service in the Dominican Republic eliminates the need for a local address. 

Yes. We can manage the necessary visa and work permit processes, where local employment laws, tax laws, or employee benefits differ for Dominicans and foreigners. 

EOR and PEO solutions are great for enterprises of all sizes, from SMEs to multinational corporations. These solutions ensure secure and efficient employment of foreign or local workers. Also, our services are scalable, allowing you meet your employment demands as needed.  


The legal expertise of PEO and EOR services is helpful for businesses seeking to avoid cost-scaling difficulties or those without their own structures. Such businesses can instead focus on expansion in the target country. 

Staffing firms and umbrella corporations are third party options that can be used to hire independent freelancers in the Dominican Republic directly or indirectly.  


In the Dominican Republic, most independent contractors are self-employed or run small enterprises. These contractors must be hired in accordance with a work agreement rather than an employment contract, according to the country’s law. 


Hence, independent contractor can provide a CV, portfolio, verified references, and possibly a signed NDA. 

The hiring cost in tthe Dominican Republic should factor costs like salary, recruiting service fees, signing bonuses, taxes and social security contributions, and other direct and indirect expenses, including payment processing and foreign employee tax management fees. 

Employers in the Dominican Republic manage payroll for all workers typically at the end of every month, with employers being responsible for withholding amounts and organizing payment of employees’ individual income tax and social security fund contributions. 

The National Salary Committee establishes minimum salaries in the Dominican Republic, and the figure varies according to business size or industry type as described below (salaries are in Dominican pesos): 


  • Large business: 12,872  
  • Medium-sized business: 8,849  
  • Small business: 7,843  
  • Free trade zones: 8,310  
  • Tourism industry: 9,005  
  • Farm workers: 267 per day  

There are many types of visas available to applicants when traveling to the Dominican Republic. The most commonly applicable visa for work purposes are:  


  • Work Visa (Visa de Trabajo): This is for individuals who have secured a job offer from a Dominican employer. The Work Visa is typically issued for a specific employer and job position. 
  • Temporary Residence Visa (Visa de Residencia Temporal): This visa is for individuals planning to work and reside in the Dominican Republic for an extended period. 
  • Investor Visa (Visa de Inversionista): This visa is for individuals who plan to invest in the Dominican Republic and establish a business.  
  • Independent Contractor Visa (Visa de Contratista Independiente): This visa enables independent contractors or freelancers provide services to clients in the Dominican Republic while maintaining their independent status. 

In the Dominican Republic, employers are responsible for organizing and withholding employees’ income tax payments and social security fund contributions every month. Employers in the Dominican Republic contribute 3.04%, 1.2%, and 2.87% an of an employee’s salary to health insurance, risk insurance, and incapacity/retirement fund respectively. 

ployees in the Dominican Republic are entitled to a 13th-month bonus, public holidays, paid leave (sick leave, annual leave, and parental leave), as well as health insurance. 

Unilateral changes to an employee’s contract are not permitted in the Dominican Republic. Changes to an employee’s working conditions must be agreed upon by both parties. So working contracts should be in writing, with all amendments signed by employer and employee together. 

In addition to public and private healthcare, the Seguro Nacional de Salud (SeNaSa) is the national health insurance system in the Dominican Republic that provides health insurance coverage to various segments of the population, including formal sector employees, public servants, individuals with low incomes, and vulnerable groups. 

Employers are required to make a severance payment for terminating employment contracts without cause depending on the employees’ duration of service as detailed below:  


  • 3 to 6 months: 6 days’ salary  
  • From 6 months to 1 year: 13 days’ salary  
  • From 1 year to 5 years: 21 days’ salary per year of employment  
  • More than 5 years: 23 days’ salary per year of employment 

The Ministry of Labor (Ministerio de Trabajo) regulates and oversee labor regulations in the Dominican Republic. 

Employees in the Dominican Republic are eligible for paid leave on the country’s 10 nationally recognized public holidays. These may also include local or regional holidays.