Economist Antonio Ciriaco, assistant dean of the School of Economics at the state university, UASD, estimates RD$100 billion will be circulating this December 2018, when the Christmas bonus comes bundled with the December salary. The Christmas bonus is at least a monthly wage that is paid to government employees, private sector employees and even those working in the informal sector.
The government alone will be paying RD$17 billion plus a similar amount in Christmas bonus to employees this December. The government’s portion of the Christmas bonus has increased from RD$12.4 billion in 2016 to RD $17.0 billion in 2018.
Ciriaco says its estimates are based on Social Security Treasury numbers, the low inflation rate and the amount of money that circulated last year during the Christmas season. The Social Security Treasury received RD$83.3 billion in September 2018.
Private sector employees are estimated to receive around RD$28 billion for their Christmas bonus along with their normal salaries.
Although the informal sector is not registered under the Social Security Treasury, it is estimated that some RD$38 billion circulates in that sector taking into account that this sector employs 58% of the working population, according to the economist. This means that there are more than 2 million persons receiving a salary that are not registered in the TSS system, according to Ciriaco’s comments to El Día.
Economist Pavel Isa Condé explained that the economic growth in December is, of course, seasonal with money in circulation much higher because the demand for money also increases. However, in the month of January, the Central Bank stabilizes the economy in order to avoid excessive money in circulation.
The private sector begins paying the Christmas bonus to employees between the 10 and 15 of December, according to the executive vice president of the Dominican Republic Association of Industries (AIRD), Circe Almanzar.. The Labor Code says that the Christmas bonus must be paid by 20 December.
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El Dia
19 November 2018
