2003News

Minimum wage to rise 25% by January

The National Wages Committee approved an increase of 25% in the non-sectorized employee minimum wage. The adjustment would come in two parts: 15% effective October, and 10% as of 1 January. This would bring the monthly minimum wage for companies with assets of more than RD$500,000 from RD$3,890 at present to RD$4,475. As of January, the minimum wage would be RD$4,920 for larger companies. The obligation to increase the minimum wage goes into effect 15 days after the resolution is published. The committee must now rule on rates for the free zone manufacturing companies, tourism industry, and other sectors that have separate wage categories. Smaller companies are authorized to pay a RD$3,000 monthly minimum wage as of January, up from RD$2,295 at present. Once minimum wages are adjusted, those who earn wages above the minimum levels usually receive an increase, although the exact amount is determined by the individual company and is not enforced.