Minimum wage and social security contribution caps increase in non-sectorized sector and free zones
The first phase of the wage adjustment, representing a 12% increase, took effect on April 1, 2025, while the remaining 8% will be applied in February 2026.
According to the powers granted by Article 455 of the Labor Code, the National Wage Committee set new minimum wage rates for non-sectorized private sector workers, to be implemented in stages.
The new minimum monthly wage for large companies increases to DOP 27,988.80 as of April 1, 2025, and to DOP 29,988.00 as of February 1, 2026. For medium-sized companies, the rates increase to DOP 25,656.96 and DOP 27,489.60, respectively; for small companies, from DOP 17,193.12 to DOP 18,421.20; and for microenterprises, from DOP 15,860.32 to DOP 16,993.20.
Following these adjustments, the Social Security Treasury has established the new contribution caps for the Family Health Insurance, Occupational Risk Insurance, and the Pension, Disability and Survivorship Insurance under the Contributory Regime of the Dominican Social Security System, as follows:
| Insurances
Contributory Regime |
Contribution Cap
from April 1, 2025 |
Contribution Cap
from February 1, 2026 |
| Occupational Risk Insurance | DOP 86,699.20 | DOP 92,892.00 |
| Family Health Insurance | DOP 216,748.00 | DOP 232,230.00 |
| Old-Age, Disability and
Survivors Insurance (Pensions)
|
DOP 433,496.00 | DOP 464,460.00 |
Free Zones
In another order, the National Wage Committee approved a 25% increase in the minimum wage for workers in the free zone sector. This increase will also be implemented in two phases: 13% starting June 1, 2025, and the remaining 12% as of June 1, 2026.
These wage increases are legally supported by Article 456 of the Labor Code, which provides for the review of minimum wage rates every two years by sector.
The objective of these adjustments is to strengthen purchasing power, improve working conditions, and contribute to the country’s economic stability.
Expert Opinion
Isabel Andrickson, labor law specialist at Pellerano & Herrera, shares key recommendations for companies facing the recent changes in minimum wage rates:
- Adjustment of minimum wages:
Companies affected by the new rates are not legally required to increase the wages of employees who already earn above the new minimums, pursuant to Article 217 of the Labor Code. However, companies should assess the impact on their salary scales, social security contributions, and other wage-based benefits for employees whose pay will be directly impacted.
- Labor budget and financial planning:
It is essential to incorporate both the new wage rates and the increase in social contributions (such as those paid to the Social Security Treasury and INFOTEP) into payroll budgets for 2025 and 2026. The progressive impact (12% in April 2025 and 8% in February 2026 for non-sectorized companies; 13% in June 2025 and 12% in June 2026 for free zones) must be reflected in financial projections, particularly for SMEs and microenterprises with tighter margins.
- Update internal policies:
Companies should review internal policies linked to the minimum wage to ensure they reflect the new thresholds and comply with the applicable legal framework.
- Maintain transparent communication with employees:
Clear, well-communicated processes strengthen labor relations and help prevent conflicts. Employers are advised to inform their staff of wage changes in a timely and documented manner.
Isabel Andrickson and our labor team are available to support companies in the legal and strategic implementation of these adjustments, as well as in the comprehensive review of their labor policies.