The 20% increase in minimum wage will not go into effect this 15 April 2017.
The Dominican Republic Management Confederation (Copardom) and the Confederación Dominicana de la Pequeña y Mediana Empresa (Codopyme) have objected Resolution 05/2017 by the National Salary Committee (CNS) that ordered a 20% minimum wage increase.
The document objecting to the resolution was deposited on Monday, 10 April at the Ministry of Labor. It is signed by Fermín Acosta, president of Copardom and Luis Miura Ramírez, president of Codopyme). The business organizations call for new talks at the National Committee of Salaries and that any decision incorporate the reclassification of companies ordered by Law 488-08 on the Regulatory Regime for the Development and Competitiveness of Micro, Small and Medium Sized Companies (MSMEs) so as not to affect small enterprises that make up most of the businesses in the Dominican Republic.
Law 488-08 establishes that micro businesses are those that have 1 to 15 employees and assets up to RD$3 million and billing of up to RD$6 million a year. A small company is classified as having 16 to 60 employees and assets of RD$3 million to RD$12 million and billings for RD$6 million to RD$40 million. A medium-sized company is described as one with 61 to 200 employees, assets of RD$12 million to RD$40 million and billings for RD$40 million to RD$150 million.
Instead, the National Committee of Salaries, with the backing of labor unions and Ministry of Labor officers, voted in favor of the 20% for companies with assets of RD$4 million or more to be increase to RD$15,447.60. Those companies with assets of RD$2-$4 million will be subject to a minimum wage rate of RD$10,620 per month. And those companies with assets of less than RD$2 million will have the minimum wage set at RD$9,411.60.
Read more in Spanish:
Diario Libre
El Nacional
Listin Diarioo
11 April 2017
