Introduction:
To answer the question about the base salary for calculating an employee's vacation pay in the Dominican Republic, we must refer to the provisions of the Dominican Republic Labor Code. According to Article 177 of the Code, employers are obligated to grant all employees a paid vacation period according to the following scale:
- After continuous work of no less than one year and no more than five, they are granted fourteen (14) days of ordinary salary.
- After continuous work of no less than five years, they are granted eighteen (18) days of ordinary salary.
Article 181 of the Dominican Republic's Labor Code clearly establishes the employer's obligations regarding the payment of wages during employees' vacation periods. In this regard, two main points should be highlighted:
Payment Time:
The salary corresponding to the vacation period must be paid to the employee the day before their vacation begins. This ensures that the employee has access to their financial resources during their time off, contributing to their well-being and that of their family. This advance payment includes not only the salary corresponding to the vacation period but also any other wages the employee has earned up to that date that have not yet been paid.
Composition of Holiday Pay:
Vacation pay is not limited solely to the ordinary or cash salary that the employee regularly receives, but also includes the equivalent of their remuneration in kind, If applicable. This means that any additional or in-kind benefits that the employee receives as part of their regular compensation must be considered and adequately compensated during their vacation period. Examples of in-kind compensation may include, but are not limited to, accommodation, meals, and use of a company vehicle.
Base salary for calculating the average daily vacation pay:
It is important to note that, in order to obtain the average daily wage for calculating vacation pay, The salary that the worker is earning at the time of taking the vacation period must be used. In other words, a monthly average of the last 12 months or fraction actually worked is not used, as in the case of notice and severance pay, but rather the worker's current salary is taken.
Furthermore, this salary is subject to contributions to the Social Security Treasury and counts towards the calculation of the Christmas Bonus.
- You can learn more about the topic of vacations in this article: ANNUAL VACATIONS: An inalienable right of workers.
Opinion of Rafael Alburquerque:
In the words of the distinguished and renowned jurist, Rafael Alburquerque: “Vacation pay is an advance because it has to be paid the day before going on vacation. For example: “If I work bi-weekly, I get paid for the first half of the month on the 14th, but on the 14th they must also pay me for the second half of that month so that I can enjoy my vacation because if I go, I'll go without a penny for vacation. It's not extra, it's an advance.”. [1]
Conclusion:
In summary, Article 181 emphasizes the worker's right to receive their full and timely remuneration before beginning their vacation period, ensuring that this remuneration reflects both their regular cash salary and any other benefits in kind that form part of their compensation package. This provision underscores the importance of guaranteeing workers' ability to effectively enjoy their vacations by providing them with the necessary financial means.
[1] https://www.diariolibre.com/economia/que-me-corresponde-cuando-me-voy-de-vacaciones-LY8177814
