Foreign nationals working in the Dominican Republic must have the appropriate immigration status and work authorisation. A Labour Temporary Residence (RT-3) is available for foreigners entering the country exclusively for employment and is valid for one year. The application requires, among other documents, an employment contract for one year or an indefinite period that has been notarised and stamped by the Ministry of Labour.

• Employers must register employees with the Dominican Social Security System and with the relevant tax authorities. 
• Payroll is generally processed monthly
• Employers are responsible for withholding Personal Income Tax (ISR) from employee remuneration and remitting it to the Dirección General de Impuestos Internos (DGII). 
• Social Security Contributions:
  
  • Employer: 7.10% pension + 7.09% family healthcare + 1.20% labour-risk insurance
  • Employee: 2.87% pension + 3.04% family healthcare
  • Total employee contribution: 5.91%, excluding employer-only labour-risk insurance. 
• INFOTEP, the national vocational training institute.
  
  • Employers contribute: 1% of total monthly payroll to
  • Employees contribute: 0.5% of bonuses received 
• Employees are entitled to a mandatory Christmas salary, generally calculated as one-twelfth of ordinary salary earned during the calendar year and payable by 20 December.

• Contract Types: Employment contracts may be indefinite, fixed-term, or for a specific work or service. Fixed-term arrangements are subject to statutory restrictions, and indefinite employment is generally the standard form of employment.
• Probation: There is no formally defined statutory probation period. However, the first three months of employment are generally treated as a practical trial period because certain termination and severance protections do not apply until the employee has completed three months of service. 
• Working Hours: The ordinary working schedule is up to 8 hours per day and 44 hours per week, with employees generally entitled to at least 36 consecutive hours of weekly rest. 
• Overtime: Hours worked above the normal weekly limit are generally paid at premium rates. Overtime is generally compensated at 135% of the ordinary hourly rate, while hours exceeding 68 hours per week are subject to a higher premium. 
• Notice Periods: Where an indefinite employment contract is terminated without cause, the applicable notice period is:
  
  • 3–6 months' service: 7 days
  • More than 6 months to 1 year: 14 days
  • More than 1 year: 28 days. 
• Termination: Employment may be terminated with or without cause, subject to the statutory requirements. Termination without cause generally requires advance notice and severance. Termination for legally recognised just cause does not generally require severance. 
• Severance: For termination without cause, statutory severance is generally calculated according to length of service: 6 days' salary for 3–6 months, 13 days for more than 6 months to 1 year, 21 days' salary per year for 1–5 years, and 23 days' salary per year after five years. 
• Minimum Wage: From February 2026, the monthly minimum wage for the non-sectorised private sector is RD$29,988 for large enterprises, RD$27,489.60 for medium enterprises, RD$18,421.20 for small enterprises and RD$16,993.20 for microenterprises.

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• Social Security: Employees are covered by the Dominican Social Security System, including pension, family healthcare and occupational-risk insurance. Employer and employee contributions apply as outlined above.
• Annual Leave: Employees who have completed one year of continuous service are entitled to at least 14 working days of paid vacation. After five years of service, vacation compensation increases to 18 days of ordinary salary. 
• Sick Leave: Employees may receive social-security benefits for common illness and temporary incapacity, subject to the applicable requirements. Common-illness benefits may apply for up to 26 weeks, while disability benefits may extend for up to 52 weeks. 
• Maternity Leave: Female employees are entitled to 14 weeks of maternity leave, with six weeks generally taken before childbirth and the remainder after childbirth. Maternity benefits are funded through the social-security system, subject to the applicable requirements. 
• Paternity Leave: The Labour Code previously provided two paid working days of paternity leave. The Constitutional Court declared the relevant provision unconstitutional in 2023 and deferred the effect of its decision while Congress was instructed to establish a new entitlement. Current employment-law guidance continues to refer to the two-day entitlement pending legislative reform. 
• Christmas Salary: Employees receive a mandatory Christmas salary equal to one-twelfth of ordinary salary earned during the calendar year, payable by 20 December. The payment is exempt from income tax up to the statutory limit.
• Profit Sharing: Employers generally must distribute 10% of net profits among eligible employees. Individual payments are capped at 45 days' salary for employees with less than three years of service and 60 days' salary for employees with three or more years of service. 
• Public Holidays: Employees are entitled to paid statutory public holidays. Work performed on applicable holidays attracts additional compensation under the Labour Code.

• Tax Residency: Individuals are generally considered resident in the Dominican Republic if they remain in the country for more than 182 days during a calendar year, whether continuously or not.
• Residents: The Dominican Republic applies a territorial taxation principle. Dominican-source income is generally subject to tax. Residents may also be subject to tax on certain foreign investment income and financial gains. 
• Non-Residents: Dominican-source employment income is generally subject to Dominican income tax.
• Tax Year: January 1 – December 31.
• System: Progressive Personal Income Tax rates range from 0% to 25% for 2026. The first RD$416,220 of annual taxable income is exempt.
• Payroll Withholding: Employers must withhold income tax from employee remuneration monthly. Individuals generally only need to file an annual personal income-tax return where they receive income from sources for which tax has not already been withheld by the employer.
• Double Taxation Treaties: The Dominican Republic has entered into tax treaties with a number of jurisdictions, which may provide relief from double taxation depending on the individual's circumstances.