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Pay raise at 20% will be in two stages

Minister of Labor José Ramón Fadul announced his decision on Wednesday, 3 May 2017 to go ahead with the 20% increase in the minimum wage in the private sector, but said that the pay raises will be phased in. Fadul said that a first 13% increase will be effective as of 1 May and the remaining 7% will be applied as of 1 November.

The National Salaries Committee had approved this 20% increase at the end of March, but management representatives at the discussions challenged the decision. Because the sides in the labor dispute could not agree to a solution, the final decision to authorize a salary adjustment rested in the hands of the minister.

With yesterday’s approval by Fadul, beginning this month the basic salary of the non-sectorized private sector will be the following: RD$8,862.59 for the smallest companies; RD$10,000.54 for medium-sized companies and RD$14,546.49 for the large establishments in the sector.

When in November an additional 7% will be added to these salaries, the minimum wage for these companies will be RD$15,447.60. Those companies with assets of RD$2-$4 million will be subject to a minimum wage rate of RD$10,620 per month. And those companies with assets of less than RD$2 million will have the minimum wage set at RD$9,411.60.

The president of the Dominican Federation of Employers (Copardom) Fermín Acosta accepted the phased in 20% wage increase. He said the phasing in of the wage increase will enable this to be absorbed by the smaller companies. He said the next step should be the complying with Law 488-08 on small business that calls for the reclassification of businesses.

Source: DR1, Hoy

May 4, 2017

Category: DR News |

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Last updated December 17, 2017 at 1:23 AM
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