DR1 Daily News - Dominican Republic

In the Dominican Republic, most people are employed in small entities known as “micro-businesses.” The definition of a micro-business is “no more than 10 employees, and gross incomes of less than RD$9,118, 990.74 per year.

For years, it has been known that more than 50% of all employees are not registered with any government agency for social security or health benefits, and this is known as the “informal” sector.

A recent study, sponsored by the International Labor Organization (ILO) and the Business Confederation of the Dominican Republic (Copardom) now shows that most of these small enterprises choose not to register their employees because of the costs associated with being formally registered.

The study reveals that a major factor behind the lack of enthusiasm for government registration is the bureaucratic labyrinth that needs to be traveled.

To carry out the...