The minimum salary of a large number of companies that are currently defined as large, would be reduced to RD$7,763 or RD$6,880 from the current RD$11,292, if the business sector proposal to reclassify companies according to size goes through. The proposal was made through the Dominican Republic Management Confederation (COPARDOM), as a starting point for a salary increase for non-sector private employees on a minimum wage. Those minimum salaries, according to the reclassification suggested by the business sector, which is supported by Law 488-08 on the regulation of the Mipymes, would be enacted in these companies for the new employees, but not for those who already receive the minimum salary of RD$11,292.
The proposal has met with opposition from labor representatives on the grounds that very few companies would have to pay the current minimum wage of RD$11,292, affecting the welfare of future employees. In the DR a company is defined as big if its installations are equal to or greater than RD$4 million. The business sector proposes to reclassify big companies based on assets of RD$40 million.
According to Law 488-08, a company is considered small when it has assets of between RD$3 million and RD$12 million, which means that with this patrimony they used to have to pay the highest minimum wage, and now they would pay the lowest minimum wage, of RD$6,880. Given the possibility that the companies that classify for a minimum wage, which is less than the current level, might fire personnel in order to contract employees with the new and lower minimum wage, the business sector representative said that this would be unlikely because one of the main problems for the companies is having to meet the cost of severance payments.
http://acento.com.do/2015/economia/8242957-burgos-dice-mipymes-son-clasificadas-como-grandes-empresas/