25% minimum wage hike for free zones

Dolores

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The Ministry of Labor, in conjunction with the National Wage Committee (CNS), has announced a significant 25% increase to the minimum wage for workers in the country’s manufacturing and service free zone sector.

The raise will be implemented in two phases: a 13% increase effective 1 June 2025, followed by a further 12% increase on 1 June 2026, stated Labor Minister Eddy Olivares Ortega. The minimum wages are reviewed every two years.

“This is the largest wage increase in history for free zone workers and will directly contribute to improving their quality of life,” affirmed Minister Eddy Olivares Ortega. He added that the raise aligns with the government’s commitment, spearheaded by President Luis Abinader, to ensure dignified jobs and fair wages as outlined in the Labor Code.

The minister emphasized the government’s ongoing dedication to...

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JD Jones

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Heads will roll when they trim the fat.
 

CristoRey

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In theory sounds great.
In practice these wage increases may be rolled out as scheduled by the companies operating in the Zona Francas but management doesn't always play by the rules.
 

JD Jones

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In theory sounds great.
In practice these wage increases may be rolled out as scheduled by the companies operating in the Zona Francas but management doesn't always play by the rules.

What makes you think that?
 

Manuel01

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Apr 1, 2009
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Great News for Asia !
Every % Point of increasing wages moves another 1000 Jobs abroad.
I'm well aware of the fact that everything got more expensive and many family's can't have a decent living regardless that both are working.
But i believe that salary increase should be based on performance and performance only.
Let's be honest, the DR work Force is not actually known for it's accuracy and outstanding performance.
Wouldn't be the first time that "fishing for votes" cause large damage to the local economy.
 
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JD Jones

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I know several people working in Zona Francas here in Santiago and over in Moca.

I can tell you every person working in a free zone is a lawyer, and they will be on this like stink on poo.

They'll be at HR's door confirming their new salaries, and will not give a moments thought about the ones who will be let go.

I've got multiple decades of free zone management under my belt and I've seen it happen.
 
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CristoRey

Welcome To Wonderland
Apr 1, 2014
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I can tell you every person working in a free zone is a lawyer, and they will be on this like stink on poo.

They'll be at HR's door confirming their new salaries, and will not give a moments thought about the ones who will be let go.

I've got multiple decades of free zone management under my belt and I've seen it happen.
From what I have been told, in Moca the management pays off the same people who are meant to enforce the labor laws and the employees who filed the complaint end up losing their job afterwards.
 

Big

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Apr 24, 2019
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Great News for Asia !
Every % Point of increasing wages moves another 1000 Jobs abroad.
I'm well aware of the fact that everything got more expensive and many family's can't have a decent living regardless that both are working.
But i believe that salary increase should be based on performance and performance only.
Let's be honest, the DR work Force is not actually known for it's accuracy and outstanding performance.
Wouldn't be the first time that "fishing for votes" cause large damage to the local economy.
This is the exact reason I do not buy union made vehicles. They are assembled by people who are guaranteed a top wage even if they assemble the parts incorrectly.
 

JD Jones

Moderator:North Coast,Santo Domingo,SW Coast,Covid
Jan 7, 2016
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From what I have been told, in Moca the management pays off the same people who are meant to enforce the labor laws and the employees who filed the complaint end up losing their job afterwards.
It's possible for a small factory, I guess.

All of my management years were in factories with close to 2K employees, except for my last 19 years in a small operation with 20 employees.
 
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