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Dominican Republic Establishes New Criteria for Enterprise Size and Corresponding Minimum Salary Amounts — Orbitax Tax News & Alerts

The Dominican Republic has published Resolution No. 01/2021, which establishes the criteria for a company to qualify as a large, medium, small, or micro enterprise and sets the minimum monthly salary (MMS) for each enterprise type. The established criteria are as follows:

  • Large enterprise - 151 or more employees or gross annual sales exceeding DOP 202 million
  • Medium enterprise - 51 to 150 employees or gross annual sales exceeding DOP 54 million up to 202 million
  • Small enterprise - 11 to 50 employees or gross annual sales exceeding DOP 8 million up to 54 million
  • Micro enterprise - up to 10 employees or gross annual sales up to DOP 8 million

Where criteria are met for different size classifications, i.e., the employee count of one classification and gross annual sales of another, the higher (larger) classification will apply.

Regarding the MMS amounts, Resolution No. 01/2021 sets the amounts as follows with effect from 16 July 2021, based on the enterprise size classification:

  • Large enterprise - DOP 20,000
  • Medium enterprise - DOP 18,500
  • Small enterprise - DOP 12,400
  • Micro enterprise - DOP 11,500

With effect from 1 January 2022, the MMS amounts are set as follows:

  • Large enterprise - DOP 21,000
  • Medium enterprise - DOP 19,250
  • Small enterprise - DOP 12,900
  • Micro enterprise - DOP 11,900

In addition, certain fixed amounts are provided for specified occupations. For workers providing services as guards in security and private surveillance companies, the MMS is fixed at DOP 16,750 from 16 July 2021 and DOP 17,250 from 1 January 2022. For field workers, a daily minimum salary is set at DOP 500 from 16 July 2021 for 10-hour workdays. Where the number of hours worked per day is higher or lower than 10 hours, the minimum is adjusted proportionately. Rules are also provided for adjustments in the MMS for part-time workers.

For social security contribution purposes, the MMS affects the maximum contribution basis, which is 20 times MMS for pension, 10 times MMS for healthcare, and 4 times MMS for labor risks insurance.