2019News

Will the new wage minimum be overturned?

A recent decision by the Superior Administrative Court (TSA) has stirred labor and management. The TSA has declared “inadmissible” the recent increase in minimum wages. The court said that the National Committee on Salaries did not comply with Law 187-17 that reclassifies companies and orders minimum wages set accordingly.

The sentence handed down by the court on 24 October 2019 is 0030-02-2019-SSEN-00341. The decision was officially notified by the TSA on 18 December 2019 when it was sent to all government institutions with ties to micro, small and medium-sized businesses, according to statements from the Dominican Federation of Merchants and the Federation of Industrial Associations that had filed the appeal to the TSA.

The business groups say the salary committee now needs to meet again and correct Resolution 22/2019 on minimum wages.

Felix Hidalgo, the president of the National Salary Committee on Salaries, told reporters that the sentence handed down by the court orders to reconsider the wage increase. Still, it recognizes the authority of the National Committee on Salaries to establish minimum wages, not only by economic segments or by occupation as established in the Labor Code, but also by the size or working capital of each company.

Read more in Spanish:
El Nacional
Diario Libre
El Nacional

23 December 2019