Average income in DR?

[Loula]

Hi,

out of curiosity: What is the average monthly income in DR? Let's say for a nurse, a bank clerk and a carpenter.... or other jobs for that matter.I'm not talking about what a foreigner can make. I'm after the average income for a dominican. Thanks.

 

[Loren]

I have a friend who is the Dominican equivalent of a DEA agent and asked him the same question. He pointed out some construction laborers, and said they make about 9 US dollars a day. He told me how much he makes, and I forgot exactly, but it wasnt much more than that.

I know someone else who is in trade school for computer operator, and they said that they expected an income of about $200 US monthly in an entry level position when they finished.

I know a Dominican engineer/agronomist who along with his wife in the tourism bureau make around $70,000 US, so it is all across the board.

The US government says the per capita income is around $3400 anually, but I suspect this is skewed down by rural areas where subsistence and tenant farmers and workers make or report almost nothing.

 

[Tom]

I befriended a female waitress/bartender at a bar in Sosua. She was paid 150 pesos/night for her 6pm-2am shift (this comes out to about $9.50 US)plus tips. From what I observed, virtually nobody tipped (a practice I found shocking since it is quite common and indeed expected here in the states). Despite what I consider slave wages, she was later let go because business slowed down. Needless to say, its a life and death struggle for people trying to get by on the lower end of the socio-economic scale.

 

[Jim Hinsch]

A couple of my friends own bars (different bars) by the beach. The waitresses there earn RD$3000-8000/mo in tips alone. A housekeeper/maid earns RD$1500-2500/mo. A Hotel manager earns RD$4000-5000/mo. A Bank teller earns RD$6000/mo. A massage women on the beach earns RD$10,000/mo giving just two massages/day. Another friend of mine is a waitress at a restaurant. They pay her RD$3000/mo. before tips.

JimHinsch JimHinsch@CSI.COM

 

[Des]

Ask DR 1 daily news, tuesday june 1 "minimum wage increased", and wednesday june 2 "new minimum wages established". See also Santo Domingo Homepage, Pais y Gobierno, Secretario de Trabajo, salarios minimos. des

 

[Jodi]

From what I've seen this "minimum wage" is not indicative of what the average Dominican makes. I know Dominicans who are working very hard for far less.

 

[Jim Hinsch]

Average doesn't mean much. It only takes a few very very rich folks to skew the average. Typical or median income might be more appropriate. I can't even tell you what the average income is in the USA, but I can tell you what is typical. Better to just list various occupations and what typical Dominicans in those fields earn.

Jim Hinsch JimHinsch@CSI.COM

 

[scaramooch]

So Jim after reading what the everage income a Dominican makes, well then some one with an imcome of US$4000.00 a month should be able to live in the high end of the living scale. Am I right?? What do you think.

 

[Jim Hinsch]

Someone with an imcome of US$4000.00 a month can live in the high end of the living scale, relative to how the typical Dominican lives. In fact, ask most teenagers and many adults, and they will tell you one can live in the high end of the living scale right here in the USA with that kind of a net income.

Jim Hinsch JimHinsch@CSI.COM

 

[Loren]

If I could make $4000 US a month in the Dominican Republic, I would pack everything up and leave tomorrow...no, tonight! I barely spend that down there on vacation, including rental car and hotel! That worked out to $133 a day, and two of us stayed at Occidental's Esplanada Sosua all-inclusive resort for about $110 a day (total, not each!)

For 4 grand a month, I would live in Arroyo Hondo and eat grey poupon!

By the way, Jim, I noticed you got that chart from OSU. Did you go there? I am from Columbus.

 

[Tom]

Re: Don't Depend on Tips

Your estimated earnings for the different job descriptions are close to what I suggested. However, it has been my observation that many people in the DR are horrible tippers - Europeans and Dominicans alike. Maybe its a cultural thing. I would hate to depend on tips for survival.

 

[Loren]

A creative suggestion on tips

I always go by a major bank before I leave the USA and stock up on about $100 or so of $2 bills to use as tips. These seem to be very well appreciated by young and old alike, (especially when given for a $4 meal!) and the nice thing is that even though they are rare, if the people really need the money and want to change them to pesos, they easily can. Most people think that $2's are out of circulation, but they are quite current. Any bank branch can order them from their cash office, and larger branches will have them always in stock.

 

[Jim Hinsch]

I did not go to OSU, I just found it on the web.

People frequently ask very subjective questions like "How much does a house cost" or "Where is the best place to live". There is no right answer, other than, "It depends".

Everyone has their own idea of what "living well" means or how much money is "enough". I think there are Dominican CD's paying upwards of 20%. So, with US$240,000 in savings, one could retire down there with a monthly interest income of US$4000/mo. (RD$63,200/mo.).

Jim Hinsch JimHinsch@CSI.COM

 

[Jim Hinsch]

Re: Don't Depend on Tips

I'm told they get that amount in tips (RD$3000-8000/mo) by the cocktail waitresses themselves and the owners who supervise the dividing of the tips each night.

Even those numbers listed represent poor tipping by USA standards. For a Dominican to earn RD$5,000 a month in tips, working six days a week, that's just RD$192/day. In a 6 hour shift from 8pm to 2am, that's RD$32/hr (about US$2). That's a pretty small amount of tip for a cocktail waitress to earn in an hour, yet quite easily done at a busy bar and a great income for unskilled labor. No wonder those jobs in the tourist industry or so coveted.

Jim Hinsch JimHinsch@CSI.COM

 

[Loren]

Not to pick nits but as a point of interest; I wonder what the real rate of return on those CD's would be compared against the rate of inflation of the Peso?

You have seen the billboards advertising credit cards in the Dominican Republic for 2.98% monthly, over 30% per year, where here credit cards are advertised for that rate annually!

I do agree with you though, I would love to retire quite early to the Dominican Republic, My brother is planning to do that in about 4 years, and he is under 30! (he saves 50% of his income!)You can live off your assets, and if you have some other gig like a small guest house, restaurant, or even something more ambitious, then even better!

 

[Jim Hinsch]

The rates are excellent even when considering the inflation rate of the Peso, which has been about 5% annually for the last 5 years over the US$ (from about RD$12.5/US$1 in 1994 to about RD$16/US$1 in 1999).

It would be great if they meant a CD with an interest rate paid at 20% monthly instead of annually, but I doubt it. It is the risk of any investment that needs considering, and the cost of converting back to dollars, should you want your money in US$.

Jim Hinsch JimHinsch@CSI.COM