Employee liability

A

Adrian Bye

Bronze
Jul 7, 2002
2,077
138
0
Hi guys,

When I hire an employee, where do I have liability that I have to pay additional to the salary?

This is for a reasonably high level employee, lets assume I pay them RD$40,000/month.

Additionally I have to pay:
- 6.42% government pensiones
- 6.67% government health insurance
- christmas bonus of 1 month
- liquidation when they leave

Are there any other liabilities I need to be aware of or are these the main 4?

Adrian
 
Robert

Robert

Stay Frosty!
Jan 2, 1999
20,574
341
83
dr1.com
Factor in 23-25% in order to cover all costs. If you paying RD$40k, set aside RD$10K.

The employment laws in the DR are archaic and I'm sure have turned many investors away. Work on the basis that your Dominican employee will eventually try and screw you. Sad but true.
 
C

Campesina

New member
Sep 12, 2004
464
20
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Just something that irritates me (like using the term "the dominican" when referring to the country.

"Christmas Bonus" as I understand it is actually the last pay period of the year if you pay on the 1st and 15th, twice a month. If you pay using this schedule, you are only paying for 48 weeks of work. There are 52 weeks of the year so the 4 weeks not paid during the year are traditionally paid at Christmas time.

I hate that people call it the Christmas Bonus because it is treated as such and no "real" Christmas gift is given because of the timeliness of it. Even the government likes to call it the "Christmas Salary", but I think it gives a false impression. Am I wrong in this thinking?
 
Bronxboy

Bronxboy

Well-known member
Jul 11, 2007
14,107
595
113
Campesina said:
Just something that irritates me (like using the term "the dominican" when referring to the country.

"Christmas Bonus" as I understand it is actually the last pay period of the year if you pay on the 1st and 15th, twice a month. If you pay using this schedule, you are only paying for 48 weeks of work. There are 52 weeks of the year so the 4 weeks not paid during the year are traditionally paid at Christmas time.

I hate that people call it the Christmas Bonus because it is treated as such and no "real" Christmas gift is given because of the timeliness of it. Even the government likes to call it the "Christmas Salary", but I think it gives a false impression. Am I wrong in this thinking?
Click to expand...

If you are paid the 1st and the 15th or the 15th and the last day of the month, you are being paid 24 times a year. This means that the 2 weeks not paid are actually paid in the 24 weeks.

For example, if you make 24K a year, that is 923 a paycheck for 26 weeks. (every two weeks).

If you get paid the 1st and the last day of the month, you will be getting paid 1000 24 times a year.

Hopes this helps.
 
F

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
2,359
252
83
www.drlawyer.com
The Christmas Salary is paid in addition to the regular salary. The amount due is 1/12th of the regular salary paid out during the year. If the employee works the full year, he or she will get an extra month's salary. The Xmas salary is payable on or before December 20.
 
D

donquixote

New member
Aug 2, 2005
158
6
0
Campesina said:
Just something that irritates me (like using the term "the dominican" when referring to the country.

"Christmas Bonus" as I understand it is actually the last pay period of the year if you pay on the 1st and 15th, twice a month. If you pay using this schedule, you are only paying for 48 weeks of work. There are 52 weeks of the year so the 4 weeks not paid during the year are traditionally paid at Christmas time.

I hate that people call it the Christmas Bonus because it is treated as such and no "real" Christmas gift is given because of the timeliness of it. Even the government likes to call it the "Christmas Salary", but I think it gives a false impression. Am I wrong in this thinking?
Click to expand...


you could be wrong in your thinking..the reason i say this is that it depends on how you consider you are paying. If you are paying a person by the month then, yes you are giving a Christmas bonus..if you are paying someone by the week, then you are shorting them 4 weeks wages if you only pay them twice a month.
It is my opinion that the common pay is by the month, so i believe that this is a bonus that is forced on by government and law.
 
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