Business & Pleasure December 1, 2024 - 11:00 am

From buying land to paying off debts: what people will do with double salaries

Santo Domingo – December not only marks the beginning of the Christmas festivities, but it also stands out as a much-awaited month from a financial point of view for a simple reason: the delivery of the double salary (or Christmas salary). This is an additional money that employees (public and private) receive every year in December.

This benefit, which is protected under Law 16-92 of the Labor Code, increases consumption and strengthens the country’s economy.

According to the labor legislation, the double salary must be paid before December 20. And it is a mandatory right for employers.

Through the section “Ask Listín,” which the newspaper publishes every day on its social networks, readers share their ideas on what they will do when they receive that money.

The thousands of comments relate to taking advantage of the Christmas salary to pay off debts or save money, and others to creating investment funds, cruising, traveling, buying land, or building a house.

People shared that they plan to spend this additional benefit in the different Christmas festivities that will be celebrated throughout this month.

Last Monday, 25, President Luis Abinader informed that during the first week of December, State institutions will start paying double salaries or Easter royalty to public employees in the amount of RD$30,777 million.

According to official reports, in 2023, the Christmas salary counted with the delivery of RD$27,000 million, which means an increase of RD$3,777 million, 14%, for this year.

How to calculate the double salary?

You can calculate your double salary by adding up all your income and then dividing it by 12 (hence the twelfth part).

In a simple way, if a person earns a salary of RD$20,000 per month and has been working in a company for one year, adding those 12 salaries gives a result of RD$240,000.

Then, divide this last amount by 12, and you will get RD$20,000, which is the same salary you will receive, but twice.

Likewise, if you have been working in that company for less than a year, you will divide the salaries received to date by 12.

In other words, if you have been working for three months and earn RD$15,000, when you add them up, you get RD$45,000, and when you divide it by 12, you get a result of RD$3,750.

Details of the double salary

According to the law, a double salary is exempt from income tax (ISR) payment, which means that the worker receives full compensation.

This benefit consists of one-twelfth of the ordinary salary earned by the employee during the year. However, the Christmas salary will never be greater than the legally established amount of five minimum wages.

This salary excludes overtime wages and the salary corresponding to participation in the company’s profits.

The Christmas salary shall not be computed for notice, severance, or economic assistance provided in this Code.

The employee who has not rendered services during the year is entitled to a Christmas salary in proportion to the time worked.

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