Dominican wages / salaries

[Gutter Meat]

So there has has been a minimum wage increase of 14%. According to Sosua news, employees of large companies will have a minimum wage of 11,292 pesos a month. So if we do the math (11,292 / 40 x 12). $282 American a month or $3,387 a year American.
Now I know salaries are really low in DR, but is it really this low a year. Maybe some of the companies pay over the minimum wage? Is the overtime at the companies?

Medium companies new minimum wage is 7,763 a month or U.S. $194 a month. That's = to $2,328 a year. Is this true??? Is it really that low ?

[whynotme]

when Thailand tried to raise there minimum wage from 200 hath to 300 baht(6 dollars a day to 9 dollars a day a lot less than the dr ) companies went out of business/ boycotts/civil unrest politicians threatened etc so it will be interesting to see what the fall out will be here................ again in 3rd world countries your either really really rich or really really poor no middle class

[obelix]

Minimum wage is for Dominican's who have a formal employment contract. Most don't! Wages on the beach are somewhere between 4000 and 5000 per month plus whatever tips they get. CMP pays their waitresses the same.....
Someone living in Montellano might pay 1500 - 2500 pesos for rent.... 2000 pesos for transport back and forth to sosua (they work 7 days a week) leaving hmmmmm almost nothing for food.
That's the reality......

[jose1234]

So there has has been a minimum wage increase of 14%. According to Sosua news, employees of large companies will have a minimum wage of 11,292 pesos a month. So if we do the math (11,292 / 40 x 12). $282 American a month or $3,387 a year American.
Now I know salaries are really low in DR, but is it really this low a year. Maybe some of the companies pay over the minimum wage? Is the overtime at the companies?

Medium companies new minimum wage is 7,763 a month or U.S. $194 a month. That's = to $2,328 a year. Is this true??? Is it really that low ?

Yes it is that low and that is for the lucky few that can find a job.

Exchange rate right now is 41.80 pesos per $1 USD

[donquixote]

consider on top of the wages are the benefits one must pay,,,,and they are crazy....about 14 paid holidays a year,,,,2 weeks vacation,,,and the two weeks is more like 3 weeks because you have to give 14 days pay,,,,so if one works five days a week and gets 14 days wages,,,figure....on top of that is payments to their health plan,,,almost impossible to fire someone for any reason,,,theft, damage, no shows,,,etc...to let someone go you have to pay severance of 28 days, plus plus plus plus,,,,if the government did not have such horrific benefits one can pay more for those who deserve,,,but for now figure an exta 35% minimum in costs on top of wages

[jose1234]

consider on top of the wages are the benefits one must pay,,,,and they are crazy....about 14 paid holidays a year,,,,2 weeks vacation,,,and the two weeks is more like 3 weeks because you have to give 14 days pay,,,,so if one works five days a week and gets 14 days wages,,,figure....on top of that is payments to their health plan,,,almost impossible to fire someone for any reason,,,theft, damage, no shows,,,etc...to let someone go you have to pay severance of 28 days, plus plus plus plus,,,,if the government did not have such horrific benefits one can pay more for those who deserve,,,but for now figure an exta 35% minimum in costs on top of wages

That's all true, with all those vacation and sick days off, an extra month of pay in December, severance and health care insurance costs add about 35%.

[hioctane]

You can't compare the wages to the USA or first world countries. Rent is cheaper, food is cheaper... overall cost of living is cheaper!

[jose1234]

You can't compare the wages to the USA or first world countries. Rent is cheaper, food is cheaper... overall cost of living is cheaper!

Ok, come to the DR and live like people here do. Food is cheaper? Really? Eat only rice and beans with a few extras now and then and live in a roach infested house with a leaky roof and without most utilities and etc. The healthcare for the poor would kill you...

[voltage69]

You can't compare the wages to the USA or first world countries. Rent is cheaper, food is cheaper... overall cost of living is cheaper!

The food isnt that much cheaper at all.. take a walk into playero and check out the prices for a pack of chicken breast. its more expensive than here. a 2 liter bottle of soda is the same price as here if not more. you can buy a crate of eggs fairly cheaply but half those eggs are bad. when you crack them they have some gray moldy thing growing inside. or you can buy a dozen in a pack just like we buy for about the same price that we buy em and those eggs are usually good.

i remember going to la sirena in puerto plata and barely having the bottom of my cart filled with food and it was 7000 pesos. over here for that same 200 bucks (35:1 exchange at the time) i would have a cart loaded with meat, vegetables and everything in between filled to the top. i guess if people want to eat rice and bananas and platanos every meal every day they can get it in their town from the vendors that come by fairly cheaply, but if you want anything else. it's not cheap. i actually wonder how they live sometimes. alot of people in thee town go to the colmados every day and buy a couple of handfuls of rice and 30 pesos worth of meat, and a few slices of cheese. the colmado owners cut it off and weigh each piece that the people are buying. its amazing.. big chunk of meat sittingon the counter with flies and ants all over it and the knife and they just cut it off weigh it and give it to the people. the kids buy little sealed bags of water. not even a bottle. its like a clear plastic capri sun bag but with water and no straw. they just tear it to drink the water. those are like 2 or 3 pesos. if you ever stay in the one of the towns where the people really live, you'll see some shit. sosua is like 20 steps up from the way the people really live.

[MrHappy]

consider on top of the wages are the benefits one must pay,,,,and they are crazy....about 14 paid holidays a year,,,,2 weeks vacation,,,and the two weeks is more like 3 weeks because you have to give 14 days pay,,,,so if one works five days a week and gets 14 days wages,,,figure....on top of that is payments to their health plan,,,almost impossible to fire someone for any reason,,,theft, damage, no shows,,,etc...to let someone go you have to pay severance of 28 days, plus plus plus plus,,,,if the government did not have such horrific benefits one can pay more for those who deserve,,,but for now figure an exta 35% minimum in costs on top of wages


That's all true, with all those vacation and sick days off, an extra month of pay in December, severance and health care insurance costs add about 35%.

I got news for you guys. The correct number is 65%..

If you're not using 65%, somewhere down the line, you're going to be losing money. The bare minimum is 55%.

Food is expensive. Hang out at a colmado some day and watch how people buy things. A spoon of tomato paste, a 1/4 lb of rice, a half a plastic cup of oil..... I could go on and on.

The pesos you guys don't pay attention to here, are meticulously counted here.

Remember that for a Dominican, a peso is the same thing as a dollar is to you. So, imagine going to your corner store and paying 100 dollars for a beer. That's the world they live in.

On the other side of the coin, imagine having a factory with 1500-2000 employees. You're struggling to break even. Now you got to give those employees a 14% increase.
It's a lot easier said than done.

[ezsmile]

And then imagine the little beggar boy I saw that took the two 1-peso coins that my taxi driver tried to give him and threw them in the bushes, saying he did not want them. Then when I walked by, he held his hand out for some money.

Not sure why I am bringing that up, it just pissed me off knowing that a lof of people go to the colmado like other posters have said and can only buy an egg or a couple slices of ham.

[donquixote]

I got news for you guys. The correct number is 65%..

If you're not using 65%, somewhere down the line, you're going to be losing money. The bare minimum is 55%.

Food is expensive. Hang out at a colmado some day and watch how people buy things. A spoon of tomato paste, a 1/4 lb of rice, a half a plastic cup of oil..... I could go on and on.

The pesos you guys don't pay attention to here, are meticulously counted here.

Remember that for a Dominican, a peso is the same thing as a dollar is to you. So, imagine going to your corner store and paying 100 dollars for a beer. That's the world they live in.

On the other side of the coin, imagine having a factory with 1500-2000 employees. You're struggling to break even. Now you got to give those employees a 14% increase.
It's a lot easier said than done. hi mr happy; im really curious as to how you figure 55-65%....I have always estimated an extra 35% cost on top of wages for the benefits etc,,,but maybe I am missing something....so anything you can add is of interest

[donquixote]

And then imagine the little beggar boy I saw that took the two 1-peso coins that my taxi driver tried to give him and threw them in the bushes, saying he did not want them. Then when I walked by, he held his hand out for some money.

Not sure why I am bringing that up, it just pissed me off knowing that a lof of people go to the colmado like other posters have said and can only buy an egg or a couple slices of ham. you may be correct but if the beggar boy saved the two 1 peso coins and added to it, he would have enough for needs..... we often wonder how people live but there are differences in cultures....in dr and other third world countries,,,,families look after each other,,,they share ..when one has and others don't,,,,they help...not only families but often others as well...if one has food and is cooking, often they share with neighbours that may not have anything....in our countries, we often do not help our relatives in need as we know there are the welfare agencies that will look after them, our old folks and parents we put in old age homes so someone else looks after them....makes one wonder if we are above or below what life really is when we only think the finances between our two worlds

[MrHappy]

hi mr happy; im really curious as to how you figure 55-65%....I have always estimated an extra 35% cost on top of wages for the benefits etc,,,but maybe I am missing something....so anything you can add is of interest

Give me a chance to dig up the source again.

I use the 65% markup for billing employee hours here, and I've read that number in the news on more than one occasion, so I'm thinking that's a set rate used here.

I'm gonna have my finance folks investigate and let you know.

[Mr. Smooth]

It's a subject like this that makes me feel glad, and blessed, to have been born an American. Period!

[MrHappy]

hi mr happy; im really curious as to how you figure 55-65%....I have always estimated an extra 35% cost on top of wages for the benefits etc,,,but maybe I am missing something....so anything you can add is of interest

I think you're right. I've been reviewing a few of my ex employee records, and almost every one of them received roughly 30% as liquidation pay of their total combined salary for the total time worked.

Even if you include what's paid to TSS, health insurance, life insurance, etc, etc.. it wouldn't be much more.

I haven't got an answer back from my finance folks, but the math is pretty straightforward. I stuck my foot in my mouth there.

[rahsta]

And then imagine the little beggar boy I saw that took the two 1-peso coins that my taxi driver tried to give him and threw them in the bushes, saying he did not want them. Then when I walked by, he held his hand out for some money.

Not sure why I am bringing that up, it just pissed me off knowing that a lof of people go to the colmado like other posters have said and can only buy an egg or a couple slices of ham.

Thats no different from what some chicas do when you paid them the agreed amount. I had a few chicas throw the money i just gave them and say that is no money. 2000 pesos is no money for an hour or two. Thats just how some of those fools think.

[MrHappy]

Thats no different from what some chicas do when you paid them the agreed amount. I had a few chicas throw the money i just gave them and say that is no money. 2000 pesos is no money for an hour or two. That's just how some of those fools think.

That simply shows you how irrational they can be when they are upset.

I don't know how many times I've heard a person here say "I don't understand, the Devil was in me" after assaulting or killing somebody. Some kid raped his mother a couple of days ago, and that was the first thing out of his mouth.

[Gutter Meat]

Minimum wage is for Dominican's who have a formal employment contract. Most don't! Wages on the beach are somewhere between 4000 and 5000 per month plus whatever tips they get. CMP pays their waitresses the same.....
Someone living in Montellano might pay 1500 - 2500 pesos for rent.... 2000 pesos for transport back and forth to sosua (they work 7 days a week) leaving hmmmmm almost nothing for food.
That's the reality......

I wonder what the average worker on beach (someone that rents you a chair, brings you food / drinks ) would make in tips on a good day (say Sunday)?

[WSJ3]

That simply shows you how irrational they can be when they are upset.

I don't know how many times I've heard a person here say "I don't understand, the Devil was in me" after assaulting or killing somebody. Some kid raped his mother a couple of days ago, and that was the first thing out of his mouth.

Are you serious or this is some crazy made up example. Who would rape their mother?!?!?

[Shogun Warrior]

The exact thing informed mongers should think about when the bitch gives you a quote of $100.00 for a shot of that ass. In my opinion,................................ the price of ass in Sosua, should now drop back down to $1000.00 PESO.

[whynotme]

Are you serious or this is some crazy made up example. Who would rape their mother?!?!?

when I was working in the prison system you wouldn't believe the sick puppies that came thru our doors:eek:

we even had a grandma rapist and she was 83:icontd:

[WSJ3]

when I was working in the prison system you wouldn't believe the sick puppies that came thru our doors:eek:

we even had a grandma rapist and she was 83:icontd:

Unbelievable well I shouldn't be surprised people are nuts...

http://i1280.photobucket.com/albums/a485/dotar_sojat_wsj3/1069131_480684632012861_1009708433_n_zps03111a19.jpg (http://s1280.photobucket.com/user/dotar_sojat_wsj3/media/1069131_480684632012861_1009708433_n_zps03111a19.jpg.html)

[Ghost Dog]

Ok, come to the DR and live like people here do. Food is cheaper? Really? Eat only rice and beans with a few extras now and then and live in a roach infested house with a leaky roof and without most utilities and etc. The healthcare for the poor would kill you...

Ohmmmm-

As a small business owner on the ground there, I would like to know what you think about about this, do you think the "pull yourself up by your own bootstraps" message that I hear often preached in the United States would or has worked in the Dominican Republic? or does the "pull yourself up by your own bootstraps, work three jobs if you have too" work in certain contexts i.e first world / industrialize countries? thanks for your feedback

[jose1234]

Ohmmmm-

As a small business owner on the ground there, I would like to know what you think about about this, do you think the "pull yourself up by your own bootstraps" message that I hear often preached in the United States would or has worked in the Dominican Republic? or does the "pull yourself up by your own bootstraps, work three jobs if you have too" work in certain contexts i.e first world / industrialize countries? thanks for your feedback

In this country, the Government, police and military is corrupt... People who make a good living here either do it by corruption or bring money in from another country. There are few examples here of doing the right thing and doing well. The mindset is to live for today or survive this day or week. The concept of working hard to save money for your kids good education or retirement or for something they want even in a few months time is not in most peoples minds.

In example, if a family member is saving money and someone in the family gets sick (they have large families and someone is always sick or in trouble) then they are expected to share and they feel compelled to do so. Another example, some crooks in Santo Domingo shot a security person and and stole his gun. You know how they got caught? The crooks tried to sell the gun the next day... The next day!!! How stupid, but that is the thinking...

The new President of the country seems to be taking the country toward a better and more honest path, but its against the grain of the culture. I wish him success.

All this being said, there is a minority of people here that are honest. So I don't want to be prejudiced, but I would caution anyone thinking they would have an easy time doing business here, investing or working even small deals that might involve money and trust. Some people have done ok here, but its extremely difficult. The mindset is that gringos are for money and that goes from the top of food chain in Santo Domingo to the lawyers to the local government offices to the police on down to the putas... And gringos are not singled out only...that mindset goes to anyone with money here or is thought to have money...

I enjoy life here now, but I drive a small car, dress poorly and don't flash anything of value. When I go out, I tend to hang with the Haitians as I feel its a bit safer that way because they, overall, seem to be less of a problem as they could be deported easily if a problem arises and they are discriminated against by the Dominicans... i.e. I could pay off a policeman easily to take care of a problem with a Haitian much easier than if I had a problem with a Dominican...

[Gutter Meat]

consider on top of the wages are the benefits one must pay,,,,and they are crazy....about 14 paid holidays a year,,,,2 weeks vacation,,,and the two weeks is more like 3 weeks because you have to give 14 days pay,,,,so if one works five days a week and gets 14 days wages,,,figure....on top of that is payments to their health plan,,,almost impossible to fire someone for any reason,,,theft, damage, no shows,,,etc...to let someone go you have to pay severance of 28 days, plus plus plus plus,,,,if the government did not have such horrific benefits one can pay more for those who deserve,,,but for now figure an extra 35% minimum in costs on top of wages


I could never understand the severance package. So someone steals from you and you fire them but you still have to pay them for a month ?? I mean who would enforce this if you didn't pay? I don't think the police would get involved in this civil matter , but then again if there's something in it for them they may.

[whynotme]

I could never understand the severance package. So someone steals from you and you fire them but you still have to pay them for a month ?? I mean who would enforce this if you didn't pay? I don't think the police would get involved in this civil matter , but then again if there's something in it for them they may.

labour laws are fucked up all over the world.

I bought a business in Canada and found out an employee was stealing (almost $1,000 every week ) and fired him within 90 days of me taking over the business.
he then took me to the labour board and during the hearing they said that I owed him 17 weeks severance pay (he had worked for the previous owner 17 years) because I didn't charge him with theft. :eek::icontd:

I asked for a continuance so I could go and have him arrested:corky:
long story short he withdrew his claim for severance:rofl:

[rahsta]

Ohmmmm-

As a small business owner on the ground there, I would like to know what you think about about this, do you think the "pull yourself up by your own bootstraps" message that I hear often preached in the United States would or has worked in the Dominican Republic? or does the "pull yourself up by your own bootstraps, work three jobs if you have too" work in certain contexts i.e first world / industrialize countries? thanks for your feedback

I think it only works in the U.S. There are alot of oppertunities here in the good ol' US of A.

[MrHappy]

I could never understand the severance package. So someone steals from you and you fire them but you still have to pay them for a month ?? I mean who would enforce this if you didn't pay? I don't think the police would get involved in this civil matter , but then again if there's something in it for them they may.

I've explained this before. Long story short, the Labor Board is VERY biased in favor of the employee. David & Goliath. Poor employee against the big, RICH, American corporation.

Over the years, I've been involved (either directly or indirectly) in letting go hundreds of employees who have gone through the entire process of verbal and written warnings before dismissal, employees caught on video tape stealing, and even employees caught with stolen goods on their person (one guy with close to $40K dollars of diodes in a backpack), and all of them went to the labor board and got a ruling in their favor.

That, plus the fact you have to waste literally dozens of hours (and days) in hearings, driving back and forth, lawyers(yep, lawyers in a dismissal hearing) and when all is said and done, it would have been cheaper to just pay them off in the first place.

If you try to have them arrested for theft, you enter the Dominican justice system, where you can go to court dozens of times with no resolution, which is a horrible waste of time and effort, and usually doesn't resolve anything.

The only way you don't have to pay liquidation is if an employee quits. They never quit however, they simply degrade their performance, screw up production output, etc, etc until you fire them. That can be even more expensive. Imagine fucking up ten's of thousands of dollars of raw materials.

So, what most companies do is tell the employees if they give two weeks advance notice, you'll pay their liquidation. They work happy until the last day, they get a nice check at the end, you get the opportunity to find a new employee without disrupting production, and when all is said and done, it's the cheapest option, and a win/win to boot.

In the long run, it makes more sense to pay them off and get rid of them.

[rahsta]

I've explained this before. Long story short, the Labor Board is VERY biased in favor of the employee. David & Goliath. Poor employee against the big, RICH, American corporation.

Over the years, I've been involved (either directly or indirectly) in letting go hundreds of employees who have gone through the entire process of verbal and written warnings before dismissal, employees caught on video tape stealing, and even employees caught with stolen goods on their person (one guy with close to $40K dollars of diodes in a backpack), and all of them went to the labor board and got a ruling in their favor.

That, plus the fact you have to waste literally dozens of hours (and days) in hearings, driving back and forth, lawyers(yep, lawyers in a dismissal hearing) and when all is said and done, it would have been cheaper to just pay them off in the first place.

If you try to have them arrested for theft, you enter the Dominican justice system, where you can go to court dozens of times with no resolution, which is a horrible waste of time and effort, and usually doesn't resolve anything.

The only way you don't have to pay liquidation is if an employee quits. They never quit however, they simply degrade their performance, screw up production output, etc, etc until you fire them. That can be even more expensive. Imagine fucking up ten's of thousands of dollars of raw materials.

So, what most companies do is tell the employees if they give two weeks advance notice, you'll pay their liquidation. They work happy until the last day, they get a nice check at the end, you get the opportunity to find a new employee without disrupting production, and when all is said and done, it's the cheapest option, and a win/win to boot.

In the long run, it makes more sense to pay them off and get rid of them.

I guess they cant use you for a job reference.

[donquixote]

I wonder what the average worker on beach (someone that rents you a chair, brings you food / drinks ) would make in tips on a good day (say Sunday)? I would say 2000 peso, but let me clarify it not just tips...most of them increase the charge that the services cost...if your food was 300 peso, chances are you will be billed more...unless you have a menu with the prices you wont know...

[MrHappy]

I guess they cant use you for a job reference.

The ones that give two weeks notice? Sure!

But references are tricky.

Give somebody a bad reference, and they can take you to court. Most companies now only confirm employment.

Also, lots of folks here will put a family member or friend that will give them a "glowing" reference, so you have to be really careful checking references.

[donquixote]

I could never understand the severance package. So someone steals from you and you fire them but you still have to pay them for a month ?? I mean who would enforce this if you didn't pay? I don't think the police would get involved in this civil matter , but then again if there's something in it for them they may. this is enforced with the labour board,,,believe me,,,,you can not win...

[Leche]

It's a subject like this that makes me feel glad, and blessed, to have been born an American. Period! ...................................................Canadian as well. :wink:

[whynotme]

...................................................Canadian as well. :wink:

except for the super high taxes and the high prices of gas/boose/cigs/chicas/ and divorce settlements:rofl:

[Gutter Meat]

Never heard of this......................

3.3.Christmas Salary

In addition to his regular salary, every employee in the Dominican Republic receives, on or before December 20, a so-called “Christmas salary” equal to one-twelfth (1/12) of the total regular salary earned during the year (Art. 220). To calculate the Christmas salary, only the regular salary received is taken into account, excluding tips, overtime and benefits received from profit sharing. The Labor Code establishes a maximum Christmas Salary of five times the minimum wage. However, many employers waive this limitation and pay employees who have worked the whole year a full extra monthly salary.

[Gutter Meat]

Severance Pay
Time Employed Severance
3 to 6 months 6 days’ salary
6 to 12 months 13 days’ salary
1 to 5 years 21 days per year
Over 5 years 23 days per year

[whynotme]

Severance Pay
Time Employed Severance
3 to 6 months 6 days’ salary
6 to 12 months 13 days’ salary
1 to 5 years 21 days per year
Over 5 years 23 days per year

that's even worse than any north American standard severance pay:eek::icontd:
guess they should just be laid off and rehired every 5 months:icontd:

[Kevy]

that's even worse than any north American standard severance pay:eek::icontd:
guess they should just be laid off and rehired every 5 months:icontd:
That is why Herman fired them every 3 months. No severance.

[bailar]

That is why Herman fired them every 3 months. No severance.

Nice guy!!!!!!!!!!!!!!

[MrHappy]

That is why Herman fired them every 3 months. No severance.

Not too long ago, all of the factories here fired all of their employees every year to avoid accumulating liquidation. SOP.

It's less common now.

[Kevy]

Not too long ago, all of the factories here fired all of their employees every year to avoid accumulating liquidation. SOP.

It's less common now.
A couple of girls sued him. But all he had was the shitty car and no assets. They got nothing.

[MrHappy]

A couple of girls sued him. But all he had was the shitty and no assets. They got nothing.


That happens almost every day here.

[The Sage]

As has been noted here most jobs there pay crápula; however, that doesn't mean some hoe in Sosua is going to feel 1,000 pesos is fair money for her time. Sosua is the fantasyland for both chicas and gringos. Hanging out with free spending vacationers corrupts those chick's view of reality. They're comparing you to what your first world counterparts are willing to pay them. If you want unpolluted get the hell out of Sousa. Attempting to use logic with some chick who has been spoiled by gringos just doesn't work well. Yet, if you find a dominicana who values a peso you need to try real hard not to spoil her. You got to really think like a Dominican, in regard to pesos, to pull this off. Believe it or not it's harder than it sounds. You will regularly have to quash the feeling of being a cheap charley, but not holding the course can lead quickly to things spiraling out of control with the result being the loss of financial innocence for your formerly humble catch.