Free Zone Minimum Wage in the Dominican Republic: What Employers Must Pay in 2026

Labor is the largest recurring cost of most free zone operations in the Dominican Republic, and it is the one line item the government resets by resolution, not by negotiation with each employer. For companies budgeting a nearshoring move, getting the current wage floor wrong by even one resolution cycle distorts the entire business case.

The National Salary Committee (Comité Nacional de Salarios) of the Ministry of Labor periodically fixes the minimum wage for employees of free zone companies operating under Law 8-90. The most recent adjustment, Resolution CNS-03-2025, ordered a total increase of 25% in two phases: the monthly minimum rose to RD$18,781 on June 1, 2025, and to RD$20,875 (roughly US$340) on June 1, 2026 — the largest increase in the sector’s history. Unlike the general private-sector scale, the free zone minimum is uniform: it does not vary by company size.

The sectoral resolutions also settle recurring compliance questions. Part-time work is capped (historically at 29 hours per week under the free zone rules, with no overtime beyond it), the daily wage is computed by dividing the monthly wage by the 23.83 factor, trainees are paid under Labor Code rules based on training hours, and employees already earning above the minimum have no automatic right to the increase unless the parties agree otherwise.

A frequent investor misconception is that free zone tax exemptions extend to labor obligations. They do not. Free zone companies are fully subject to the Dominican Labor Code (Law 16-92) — severance (prestaciones laborales), Christmas salary, profit-sharing rules where applicable, and social security contributions to the TSS, which are calculated on the updated wage. Underpayment is a labor infraction exposing the employer to fines and retroactive claims.

Practical guidance for employers: confirm which sectoral scale actually governs your operation (free zone, tourism and the general private sector each have separate tables with different effective dates), update payroll and TSS contributions from the exact effective date, and document the classification. If you are evaluating a free zone investment, build the June 2026 wage — and the pattern of biennial increases — into your labor cost projections.

Our labor and foreign investment team advises free zone companies on wage compliance, employment contracts and workforce structuring in the Dominican Republic. A short compliance review now costs far less than a retroactive wage claim later.

Do you want more information about our services on free zones wages and salaries in Dominican Republic? Contact Us.

Disclaimer: This publication is not intended to provide advice or suggest a guaranteed outcome as individual situations will differ and the situation may have changed since publication. For specific advice on the information provided and related topics, please contact the author.

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