The high cost of employee severance payments in the Dominican Republic deters hiring and keeps wages low, reports Diario Libre in a recent story on the issue. For instance, an employee paid RD$20,000 and who works in a company will have accumulated RD$96,517 in severance payments just after five years on the job. An employee making RD$30,000 will accumulate RD$231,640 after just eight years on the job.
The high cost of severance payments can bankrupt a company. Likewise, many times employees will hang on to their low-paying jobs to not lose this important employee benefit.
Read more in Spanish:
Diario Libre
23 March 2022