Latest Mandated Wage Increase

addition to Ken's post

Can free rent be used in lieu of wages? At what rate? ie free rent in a two bedroom 1 bath apt with utilities paid is worth 6500 pesos. Can that be applied to wages?

cork

PS sorry Ken but your question is exactly the same I had, and I needed to add these questions.

chuck

What did I miss?

Has there been some new rule about minimum wages or what's the story...

Thanks,

Minimum wage

MrNiceGuy said:

Has there been some new rule about minimum wages or what's the story...

Thanks,

Click to expand...

Read today's DR1 news. Minimum wage will go up 30% in Nov and all wages, up to RD$20,000, will increase 25%.

cork

Free Zone

Have heard that companies that operate in the Free Zones will be exempt for the 25% increase. Is there any truth to this?

Does this apply to resorts?

Does this apply to resorts? It doesn't sound like it. I guess they are exempt due to the provision of room and board...anyways as long as someone is going to get more money there it has to be a good thing...

What about free zones?

Ken said:

According to news reports I have read, rules for tourism industry still in process of being worked out.

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We are operating in a Free Zone in Santiago, and right now our people make more than actual minimum wage but less than 20,000 a month, what we have to do?

How about those who make more than 20,000 a month? How much will they get if anything?

Thanks

Did you get an answer?

bienamor said:

Have heard that companies that operate in the Free Zones will be exempt for the 25% increase. Is there any truth to this?

Click to expand...

We are in the same position, would you please share if find an answer?

Thanks

connleafdominicana@yahoo.com

Folks, give me some time to answer this one. I've been away from the DR for the last 2 weeks. I need to find out what's happened in the Dominican labor front in my absence.

revised wages

Fabio J. Guzman said:

Folks, give me some time to answer this one. I've been away from the DR for the last 2 weeks. I need to find out what's happened in the Dominican labor front in my absence.

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Sr. Guzman,

I know you are busy and that you answer these questions for free, but we have already had to pay our domestics for 5 days under the new wages. Payday comes around pretty soon and we need to know how much to pay.

With the dollar dropping like a rock it is easy to see that many domestics will become unemployed shortly if this wage increase stands.

Many of us provide room or board in addition to wages. How are the wages affected then.

Thank you for your most valuable time,

cork

Pursuant to articles 452 to 464 of the Labor Code, the institution in charge of raising minimum salaries in the Dominican Republic is the Comit? Nacional de Salarios (?National Salary Committee?), a special section within the Ministry of Labor, consisting of a Director General, a labor representative and a business representative. The decisions or resolutions taken by the Committee are subject to review by the Minister of Labor and to appeal by the labor or business sector. In the meantime, they are not in force. Article 464 of the Labor Code states that a salary increase will only be in force 15 days after publication in a national newspaper of the definitive resolution rejecting any appeal.

The National Salary Committee met on October 20, 2004 and agreed to a 30% increase in the minimum salary of non-specialized workers. I have read in the press that this decision has been appealed by the employers and that the appeal is still pending. Therefore, as of today, there is no mandated wage increase in the Dominican Republic.

Please Update, Especially Free Zone Wages
Thanks

The National Salary Committee approved on November 12, 2004 a minimum wage increase for workers in the general private sector. The new minimum wage scale will be as follows:

a) RD$6,400 Pesos per month for workers in businesses with more than RD$4 Million Pesos in assets.
b) RD$4,400 Pesos per month for workers in businesses with assets between RD$2 Million and RD$4 Million Pesos.
c) RD$3,900.00 Pesos per month for workers in businesses with less than RD$2 Million Pesos in assets.

In the hotel and restaurant sector, the new minimum wage will be RD$4,970 Pesos per month for workers in businesses with more than RD$500,000 in assets.

For farm workers, the new minimum wage will be RD$130 Pesos per ten-hour work day.

It is my understanding that the minimum salary increase for free zone workers is still under study.

Fabio J. Guzman said:

The National Salary Committee approved on November 12, 2004 a minimum wage increase for workers in the general private sector. The new minimum wage scale will be as follows:

a) RD$6,400 Pesos per month for workers in businesses with more than RD$4 Million Pesos in assets.
b) RD$4,400 Pesos per month for workers in businesses with assets between RD$2 Million and RD$4 Million Pesos.
c) RD$3,900.00 Pesos per month for workers in businesses with less than RD$2 Million Pesos in assets.

In the hotel and restaurant sector, the new minimum wage will be RD$4,970 Pesos per month for workers in businesses with more than RD$500,000 in assets.

For farm workers, the new minimum wage will be RD$130 Pesos per ten-hour work day.

It is my understanding that the minimum salary increase for free zone workers is still under study.

Click to expand...

OK Fabio thats great....but how does it all apply to "domestic" staff such as maids and gardeners.

I believe that the Free Zones were granted a 25% increase last week. 15 % in January and 10% in April. Does this apply to all wages or only raise the minimum wage?

Fabio J. Guzman said:

The National Salary Committee approved on November 12, 2004 a minimum wage increase for workers in the general private sector. The new minimum wage scale will be as follows:

a) RD$6,400 Pesos per month for workers in businesses with more than RD$4 Million Pesos in assets.
b) RD$4,400 Pesos per month for workers in businesses with assets between RD$2 Million and RD$4 Million Pesos.
c) RD$3,900.00 Pesos per month for workers in businesses with less than RD$2 Million Pesos in assets.

In the hotel and restaurant sector, the new minimum wage will be RD$4,970 Pesos per month for workers in businesses with more than RD$500,000 in assets.

For farm workers, the new minimum wage will be RD$130 Pesos per ten-hour work day.

It is my understanding that the minimum salary increase for free zone workers is still under study.

Click to expand...

There is no minimum salary for domestics. See below a post from a few weeks ago.

Pursuant to Article 4 of the Labor Code, domestics are the subject of special rules and as such, do not benefit from many of the provisions of the Labor Code.

These special rules are contained in Articles 258 to 265 of the Labor Code.

Art. 258: Defines what is a domestic and expressly states that the employees of a condominium ARE NOT domestics.

Art. 259: States that the only rules applicable to domestics are those of Articles 258 to 265 of the Labor Code.

Art. 260: Defines salary for a domestic as what is paid in currency PLUS lodging and food. Estimates that the salary received in food and lodging is equivalent to 50% of what?s received in currency.

Art. 261: States that the work of a domestic is not subject to any regular work hours although every domestic must have a minimum of 9 hours per day of uninterrupted rest.

Art. 262: Grants domestics a weekly rest of 36 hours without interruption (usually, half a day Saturday and all of Sunday).

Art. 263: Domestics have the right to two weeks of paid vacation a year after their first year at work. They also have the right to a Christmas bonus.

Art. 264: Gives domestics the right to coordinate with their employers time to go to school and to go to the doctor when sick.

Art. 265: If a domestic catches a contagious disease directly from a member of the household, he or she has the right to receive his or her full salary for the duration of the disease.

Is inventory an asset?

To know which level of minimum wage a business has to pay, is the inventory included in the assets?

Barnab?

A concierge at a condo building is not considered a domestic (Art. 258 of the Labor Code) therefore the minimum salary rules for the general private sector should apply.