Economy July 21, 2021 | 4:09 pm

New salary, RD$110.15/hour

Santo Domingo, DR.

The calculation per hour worked in the country is analyzed in an institutional and differentiated way to arrive at the final value. The prevailing labor system is that of a monthly base salary for an average of 44 to 50 hours per week of work, in a working day of eight hours, contrary to that of other countries that are fixed by hours and days worked.

In the case of a worker who works in a large company and will now accrue RD$21,000 (US$368) a month, according to the most recent wage increase ordered by the National Wages Committee (CNS) for the non-sectorized private sector, he has to take into account that this is a base amount because with the discounts of law he will observe a reduction for his contribution of the Family Health Insurance (SFS) and the contribution to the pension insurance, through an AFP (Pension Risk Manager).

In this example, the salary per day comes out to RD$110.15 (US$2.00) per hour of the day worked, taking into account that the 44 hours a week becomes an average of 23.83 days worked.

The wage per day worked is divided between the average number of days worked, between 23.83 and, the result, between eight hours. Thus, a salary of RD$21,000 contributes to the health system 3.04% of the total (RD$638.40 (US$11.20) per month), and 2.87% for the pension that is RD$602.70 (US$10.60).

The minimum wages in the country are exempt from income (ISR), so only the contributions of costs to the worker that are health and pensions are calculated since the occupational risk is borne by the State and the contributions of the employers.

Value subject to the final amount
For a worker with a salary of RD$65,000 per month, outside the minimum, things are different, because, at the end of each fortnightly payment, he only receives a little more RD$27,800, that is, RD$55,600, almost RD$10,000 less, because he has already been withheld from the rent payment (IRS) and the contributions to health insurance and pensions, among others as final expenses (funerals). But, of course, that’s taking into account that the type of health insurance is only the basic one, and there is no added family member.

IN POINTS

Minimum wages
The application method in the country is done by taking a base salary that comes from the calculation of 44 to 50 hours per week of work and a daily working day of eight hours.

Dollarized
In a list of 128 countries in the world, the Dominican Republic was 94th, with an average of US$344 per month.