Countries › Dominican Republic › Guide › 7. Labor and employment › Christmas salary and profit sharing in the Dominican Republic: the thirteenth month and the 10% profit bonus

Christmas salary and profit sharing in the Dominican Republic: the thirteenth month and the 10% profit bonus

Last verified: 2026-10-30 · Status: Changing

Employers pay a Christmas salary of one twelfth of the year's ordinary pay by 20 December. Companies also share 10% of net annual profit with indefinite staff, capped at 45 or 60 days of salary per person. Ley 30-26 restated in June 2026 that the Christmas salary is tax free even above five minimum salaries.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.9007 per US dollar for 29 October 2026, as shown on its home page on the verification date, rounded to the cent.

Key facts

Christmas salary	One twelfth of annual ordinary salary monthsLey 16-92 art. 219, as of 2026-10-30 · in force
Christmas salary deadline	20 December dateLey 16-92 art. 220, as of 2026-10-30 · in force
Share of net annual profit for workers	10 %Ley 16-92 art. 223, as of 2026-10-30 · in force
Individual cap, under three years of service	45 days of salaryLey 16-92 art. 223, as of 2026-10-30 · in force
Individual cap, three or more years of service	60 days of salaryLey 16-92 art. 223, as of 2026-10-30 · in force
Exchange rate used for USD conversions	60.9007 DOP per USDBanco Central reference selling rate, as of 2026-10-29 · in force

The rule

1. The employer pays a Christmas salary in December equal to one twelfth of ordinary salary earned in the calendar year. The code caps the obligation at five legal minimum salaries unless a higher amount is agreed or customary.Ley 16-92, Código de Trabajo, art. 219, 1992-05-29 official text · verified 2026-10-30

2. Overtime and profit share are left out of the base. The Christmas salary itself does not count for notice, cesantía or economic assistance.Ley 16-92, Código de Trabajo, art. 219, 1992-05-29 official text · verified 2026-10-30

3. Payment is due by 20 December, even if the contract ended earlier and whatever the reason. Part year workers get a proportional amount.Ley 16-92, Código de Trabajo, art. 220, 1992-05-29 official text · verified 2026-10-30

4. At the end of a contract the employer gives the worker written evidence of the Christmas salary owed.Ley 16-92, Código de Trabajo, art. 221, 1992-05-29 official text · verified 2026-10-30

5. The Christmas salary cannot be seized and is free of income tax, even if the amount paid is above five legal minimum salaries.Ley 16-92 art. 222 as amended; Ley 30-26, art. 222 paragraph; Ley 30-26 art. 33, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 art. 33 restated the Ley 204-97 paragraph in June 2026 and defined the exempt amount as one twelfth of ordinary salary.

6. Every company must share 10% of net annual profits with all indefinite workers.Ley 16-92, Código de Trabajo, art. 223, 1992-05-29 official text · verified 2026-10-30

7. Each worker's share is capped at 45 days of ordinary salary with under three years of service and 60 days with three years or more. Workers who did not serve the full year get a proportional share.Ley 16-92, Código de Trabajo, art. 223, 1992-05-29 official text · verified 2026-10-30

8. Payment is due between 90 and 120 days after the fiscal year closes, and the share has the same privileges and exemptions as salary.Ley 16-92, Código de Trabajo, art. 224, 1992-05-29 official text · verified 2026-10-30

9. The share is computed on net profits before arriving at taxable income and before bonuses to directors and managers.Ley 16-92, Código de Trabajo, art. 227, 1992-05-29 official text · verified 2026-10-30

10. Exempt from paying are agricultural, agro industrial, industrial, forestry and mining companies in their first three years, agricultural companies with capital up to RD$1 million, and free zone companies.Ley 16-92, Código de Trabajo, art. 226, 1992-05-29 official text · verified 2026-10-30

11. If workers dispute the amount they can go to the Ministro de Trabajo, who can ask the tax authority to verify it.Ley 16-92, Código de Trabajo, art. 225, 1992-05-29 official text · verified 2026-10-30

12. Workers contribute 0.5% of profit shares and bonuses to INFOTEP, withheld by the employer.Ley 116-80, art. 24, 1980 official text · verified 2026-10-30

Item	Amount	Deadline	Excluded
Christmas salary	One twelfth of ordinary salary	20 December	Overtime and profit share
Profit share	10% of net profit, capped per worker	90 to 120 days after year end	Free zones and start up exemptions

Two annual payments

Worked example

A worker on RD$60,000 a month for the whole year earns RD$720,000 (about US$11,822.52). The Christmas salary is RD$60,000 (about US$985.21), tax free.
A company with RD$10 million in net profit has a pool of RD$1,000,000 (about US$16,420.17). At RD$60,000 a month the daily salary is RD$2,517.83, so a worker's cap is RD$113,302.56 (about US$1,860.45) under three years of service and RD$151,070.08 (about US$2,480.60) after that.

Step by step

Accrue one twelfth each month.
Pay the Christmas salary by 20 December, including to leavers.
Compute net profit for the labor share at year end.
Apply individual caps using the daily salary divisor.
Pay between days 90 and 120 after the close and withhold 0.5% for INFOTEP.

Common traps

Do not read the five salary cap as a tax limit: the tax exemption now applies above it too.
Leavers are still owed the Christmas salary and it is not part of the severance base.
Fixed term and seasonal staff are outside the art. 223 wording, which refers to workers by indefinite time.
Free zones are exempt from profit share, not from Christmas salary.

Sources

← Wages, tips and deductions in the Dominican Republic: how pay must be paid and what can come out of itWorking hours and overtime in the Dominican Republic: the 44 hour week, premiums and monthly reports →

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