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Overview
Eastern Caribbean Dollar (XCD)
CURRENCY
Roseau
CAPITAL
weekly
PAYROLL FRECUENCY
11
PUBLIC HOLIDAYS
0 to 7.50
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Dominica
Employer
In essence, companies in Dominica make payroll contributions under one concept: Social Security. Indeed, the percentages are as follows:
0% - 7.50%
Social Security (Maximum contribution: XCD 6,000 per month)
0% - 7.5%
Total Employment Cost
Employee
Workers Payroll Contributions
0%- 6.25%
Social Security (Maximum contribution: XCD 6,000 per month)
0% - 6.25%
Total Employee Cost
Employee Income Tax in Dominica
Workers Income Tax
0%
XCD 30,000 and below
15%
Between XCD 30,001 and XCD 50,000
25%
Between XCD 50,001 and XCD 80,000
35%
Over XCD 80,000
Payroll Contributions in Dominica
Payroll Cycle
In essence, employers make salary payments in Dominica through payroll outsourcing services once a week or a month.
13th Salary
Indeed, Dominica does not have laws and regulations regarding 13th or 14th salaries. Instead, employers in Aruba give holiday pay to employees with more than one year of service.
Employee Benefit in Dominica
Visa and work permit in Dominica
Undoubtedly, your PEO services company in Dominica may tell you that foreigners from several Caribbean islands do not require a visa to visit the country. Indeed, such a list includes Haiti, Dominican Republic, Grenada, and Saint Lucia.
On the other hand, citizens of European Union countries will not require a visa to stay in Dominica for six months.
Finally, foreigners that do not enjoy this advantage will require a work permit to work in the country.
Types of Visas
In essence, you can apply for one of the following visas according to the Employer of Record in Dominica:
- Work Permit: Above all, it applies to foreign professionals who want to exercise their professions in Dominica. Furthermore, the Labor Division will grant it for one year.
- Residence Permit: Indeed, it covers foreigners who want to stay working in Dominica for more than one year. In addition, they can renew it annually.
VAT in Dominica
Working Hours in Dominica
Overtime
Indeed, every Professional Employment Organization in Dominica will advise you that all working hours surpassing the standard hours are overtime. Furthermore, employers must provide an overtime permit and pay them according to their employment contract/collective agreements.
In addition, employees in Dominica with an overtime permit must receive overtime pay as follows:
- 150% of the regular salary if the overtime involves after-working hours on a normal working day.
- 200% of the basic wage if the employee works during a public holiday.
Working Week
In summary, the work week in Dominica is from Monday to Friday.
Employee Termination in Dominica
Termination Process
Indeed, employment laws in Dominica dictate that employees and employers can terminate their employment contracts for several reasons. For instance, employers can do it without notice if their employees commit serious misconduct.
Moreover, employers in Dominica can dismiss an employee if they receive a written warning about specific offenses and commit them again in the following six months.
Notice Period
Similarly to the termination process, it is mandatory to use a notice period depending on the employee’s payroll cycle. Indeed, the length of such a period is one month for employees in Dominica with monthly wages.
On the other hand, it can decrease to one week if their payroll cycle is below one month.
Severance Pay
In essence, employers in Dominica can set the financial compensation related to employment termination as one week’s pay per year if your length of employment is less than three years.
Moreover, they can increase it to two weeks’ pay per year if your length of employment is more than three years.
Probation Period
Indeed, an Employer of Record Company in Dominica must use a probationary period. Above all, employment laws dictate that it cannot exceed six months following the training period.
Employee Leaves in Dominica
Paid Time Offs
When you hire a payroll outsourcing company in Dominica, you must know that your employees have paid time off according to employment laws. Indeed, it will be equal to two weeks for employees with a length of service below five years.
On the other hand, employees in Dominica with a length of employment of more than five years can get paid time off of three weeks.
Public Holidays
There are 11 national holidays throughout the year.
Vacation Holidays
There are 21 vacation holidays throughout the year.
Sick Days
In essence, employees in Dominica can enjoy sick leave if they suffer from a medically certified illness.
On the other hand, this leave period cannot be longer than six months and involves a payment of 60% of the employee’s regular salary from the fourth day.
Paternity Leave
Indeed, Employer of Record in Dominica involves advising workers about their paternity leave. Hence, one piece of advice is that employment laws in Dominica do not include regulations regarding paternity leave.
Maternity Leave in Dominica
Undoubtedly, everyone in your HR and payroll outsourcing company in Dominica will congratulate you on your pregnancy. Besides, they will give you 12 weeks of maternity leave if your length of employment is of at least one year.
Regarding maternity leave payments, employers in Dominica must pay mothers 100% of their salaries during maternity leave.
There are 84 leave throughout the year.