TSS: Wages for most are low in DR

[Dolores]

The Dominican Social Security Treasury (TSS) bulletin confirms the low wages that most Dominicans employed in formal businesses make, as reported in Listin Diario. Of the 2,404,218 formal workers currently registered with the TSS, only 17.04% earn between RD$30,000 and RD$50,000 (approximately $500 to $833 US dollars). A staggering 49.36% of workers earn less than RD$30,000, with 16.8% earning between RD$5,000 and RD$15,000.

The data indicates that the distribution of workers registered with the TSS across the country is skewed towards urban areas, with 52.01% residing in the National District, 14.20% in Santo Domingo, 11.26% in Santiago de los Caballeros, and 4.41% in La Altagracia (Punta Cana).

The services sector dominates the formal employment landscape, accounting for 82.08% of all formal workers. Within this sector, public administration, commerce, and...

Continue reading...

 

[LindseyKaufman]

Interesting information. I have some employees who are registered, but because they work only part time teaching one or two classes, they earn less than the minimum wage. However, due to the TSS tax structure, I must pay TSS for them based not on the wages they earn, but a full time minimum wage.

 

[bob saunders]

Many employers pay their employees on paper a certain amount, but they take home more. The TSS will not reflex this. Public school teachers make $ 50,000 pesos plus per month. Many of those registered with TSS are not working fulltime, for example we have 6 teachers that only work mornings, and their wages reflex that. Most still make more than the minimum wages.

 

[drstock]

I bet many of those who work in the informal sector make even less than the ones in the article.

 

[NALs]

Many employers pay their employees on paper a certain amount, but they take home more. The TSS will not reflex this. Public school teachers make $ 50,000 pesos plus per month. Many of those registered with TSS are not working fulltime, for example we have 6 teachers that only work mornings, and their wages reflex that. Most still make more than the minimum wages.

Many also do that when selling real estate. The value of the sale reported to the government is less than the actual value. Government taxes are on the value reported to them.

 

[NALs]

I bet many of those who work in the informal sector make even less than the ones in the article.

The informal sector also includes people such as independent professionals.

 

[Aguaita29]

I bet many of those who work in the informal sector make even less than the ones in the article.

You can make more in the informal sector.

 

[drstock]

The informal sector also includes people such as independent professionals.

That's why I said "many" people in the informal sector earn less.

 

[CristoRey]

Wages will continue to remain low.

 

[NALs]

Wages will continue to remain low.

Average Dominican wages have actually been increasing in various sectors. In fact, this goes without saying when we take into account that when many expats were born there hardly was a middle class in the DR while now it’s much bigger. Without increasing wages the growth of the middle class would had been impossible. The bulk of today’s middle class Dominicans are from families that in the 1970’s and back were poor.

 

[CristoRey]

Average Dominican wages have actually been increasing in various sectors. In fact, this goes without saying when we take into account that when many expats were born there hardly was a middle class in the DR while now it’s much bigger. Without increasing wages the growth of the middle class would had been impossible. The bulk of today’s middle class Dominicans are from families that in the 1970’s and back were poor.

Low wages helped attract foreign investment which provided jobs. Raise wages too fast and most will pack up and leave.
I do agree most of today's middle class were indeed yesteryear's poor.

 

[El Hijo de Manolo]

Low wages helped attract foreign investment which provided jobs. Raise wages too fast and most will pack up and leave.
I do agree most of today's middle class were indeed yesteryear's poor.

You are the quintessential blue collar analyst, sir.

 

[josh2203]

The informal sector also includes people such as independent professionals.

That would be those who mostly in fact offer the most competent service/product and who definitely earn every peso they charge...

 

[CristoRey]

You are the quintessential blue collar analyst, sir.

Thank you.

 

[NALs]

Low wages helped attract foreign investment which provided jobs. Raise wages too fast and most will pack up and leave.
I do agree most of today's middle class were indeed yesteryear's poor.

They are replaced by other activities that won’t require wages at such levels. Similar to what happened in the Free Trade Zones. When the 2003 crisis hit, Dominican wages were greatly reduced not in nominal terms but in their purchasing power (due to very strong devaluation of the peso.) Dominican Free Trade Zones witness an increase in textiles manufacturing essentially because Dominican wages had fallen. Today textiles are no longer as a percentage of the Free Trade Zones production because companies requiring textiles prefer other places where wages are as low as they need. Had Dominican wages remained same as in the 2003 crisis, textiles would still be dominating that sector.

When Singapore started to develop rapidily in the 1960’s, textiles were one of their biggesr manufacture. As wages started to go uñ, textiles produxtion began to decline. Try finding textiles production in modern Singapore where wages have increased to such levels that are unknown in developing countries.

Singapore didn’t had something the DR has and that is a surplus working population (ie. Illegal immigrants.) As wages increased, Singapore instead of importing more people from a poorer country adopted mechanization to as much as it could. In the DR instead of mechanization, many simply import more Haitians (nowadays importing Haitians isn’t necessary since they now go on their own.) That reduces not just the growth rate of wages (they can still increase, but not at the rate they’re suppose to), but also the need for mechanization. There is not a single high income country where they were able to avoid mechanization and yet, have high wages. Not one.

 

[MariaRubia]

Low wages helped attract foreign investment which provided jobs. Raise wages too fast and most will pack up and leave.
I do agree most of today's middle class were indeed yesteryear's poor.

The issue is that even on RD$ 50,000 a month I don't see it is easy to make ends meet. If you have a family of four, your grocery bill has got to come to RD$ 20,000 a month, absolute minimum. And then you have rent, anywhere vaguely decent in the capital is minimum RD$ 20,000. Then there's transport, electricity, etc.etc.

The whole model in DR always seemed to be to have a massively poor underclass, keep them badly educated and control the media, the police and all lines of power so that the rich families get much richer. That worked until, I would say, the early 2000's and over the last 20 years we've seen an explosion of the middle class, at least in the capital, with people - mainly the business owners and the self-employed - beginning to earn much better wages. But there is still a long way to go.

 

[tht]

Are these Medic's salaries correct (from Diario Libre today)? Any idea anybody? I'm just curious what professionals actually make. Do not worry I'm not a medic and I'm not in the market for a job.

 

[JD Jones]

Are these Medic's salaries correct (from Diario Libre today)? Any idea anybody? I'm just curious what professionals actually make. Do not worry I'm not a medic and I'm not in the market for a job.

Do you think Diario Libre is posting false information?

These are govt. positions.

 

[tht]

Do you think Diario Libre is posting false information?

No. Just asking. Curious nothing else.

 

[JD Jones]

No. Just asking. Curious nothing else.

They are positions that all new doctors must fill for a limited time to be officially qualified. I suspect you feel they are a little low, and I agree with you.

Many stay in those positions, but the sharper ones move on to bigger and better jobs when they can.