Minimum wage increase (effective date).
As of April 1, 2023, the following comes into effect: Resolution No. 1-2023 of the National Wage Committee, which establishes a mandatory increase in the minimum wage for the non-sectorized private sector in the Dominican Republic. This wage increase will affect companies of different sizes and workers in various sectors.
New minimum wage rates for the non-sectorized private sector.
According to the Resolution, Large companies that previously paid RD$1,000 will now have to pay RD$24,150.00 and, from February 1, 2024, this amount will increase to RD$24,990.00. On the other hand, medium-sized companies, which had a salary of RD$19,250.00, will now pay RD$22,138.00 and, from February 1, 2024, RD$22,908.00.
In the case of small businesses, the minimum wage will increase from RD$12,900 to RD$14,835.00, and from February 1, 2024, to RD$15,351.00. Micro-enterprises, which had a minimum monthly wage of RD$1,900, will pay RD$13,685 and, from February 1, 2024, RD$14,161.00.
Classification of companies in the Dominican Republic
According to national legislation, companies in the Dominican Republic are classified as follows:
- Large companies: More than 151 employees and annual gross sales exceeding RD$202,000,000 million Dominican pesos.
- Medium-sized companies: Between 51 and 150 workers, with annual gross sales of RD$54,000,000 to RD$202,000,000 million Dominican pesos.
- Small businesses: Between 11 and 50 employees, with annual gross sales of RD$8,000,000 to RD$54,000,000 Dominican pesos.
- Micro-enterprises: From 1 to 10 workers, with annual gross sales that do not exceed RD$8,000,000 million pesos.
The salary increase includes workers in private security companies and farm workers.
This salary increase will also apply to workers employed by private security companies. These employees, who previously received RD$1,417,250.00, will now earn RD$19,837.00 until February 1, 2024, when they will receive an additional increase and begin earning RD$20,527.50
In addition, farm workers will receive a 15% increase in their daily wage. Effective April 1, 2023, these workers will earn RD$575.00, instead of the RD$1,400,000 they previously received. From February 1, 2024, their daily wage will increase to RD$595.00.
Download Resolution 1-2023 (Corrected) at this link:
Download Resolution 1-2023 (with calculation error) at this link:
