Dominican Republic Profit-Sharing Calculator

Dominican Republic · Employment

Simulator for profit-sharing in the Dominican Republic (Labor Code, Art. 223): 10% of the company's annual net profit is distributed among indefinite-term workers, with an individual cap of 45 or 60 days of ordinary salary.

A company figure; the pool is 10% of it.

If you worked less than 12 months, the cap is prorated.

What every worker would have been owed if the 45- or 60-day cap were fully covered. Ask the company for it. 0 = unknown.

How is it calculated?

Article 223: every company grants a 10% share of its annual net profit to indefinite-term workers. An individual's share can't exceed 45 days of ordinary salary for someone with less than three years of service, or 60 days for someone with three years or more; if the worker didn't work the full fiscal year, the share is prorated to the salary for the time worked. Under Regulation 258-93 (Art. 38), the daily salary for the cap is the fiscal year's ordinary salaries ÷ 12 ÷ 23.83, multiplied by 45 or 60. If the 10% pool isn't enough to cover every worker's caps, the pool is divided by the sum of everyone's caps and the resulting ratio is multiplied by each worker's cap. That's why knowing your exact share requires a figure only the company has: the sum of every worker's individual caps. Without that figure, this calculator shows your individual maximum and doesn't invent an equal split. Payment must be made between 90 and 120 days after the fiscal year closes (Art. 224). Free-trade-zone companies and certain agricultural or new companies are exempt, among others (Art. 226).

Examples

  • Net profit of 10,000,000, salary of 23,830 for 12 months, less than 3 years, no company-wide data

    10% pool: 1,000,000. Daily salary 1,000: 45-day cap = 45,000 (individual maximum; the company's sum of caps is missing).

  • The same case, with a company-wide sum of caps of 2,000,000

    The pool covers 50% of the caps: estimated share of 22,500.

  • With 3 years or more of service (60-day cap)

    The pool covers every cap: you receive your 60-day cap, 60,000.

Individual cap on the profit share

The company distributes 10% of its net profit. What you receive is capped at 45 days of salary if you have less than three years at the company, and 60 days if you have three or more.

With a net profit of 10,000,000 and a salary of 23,830, your individual cap is 45,000. Your exact share depends on the sum of the caps of the entire workforce, a figure only your company has: the calculator is a simulator. Figures are illustrative.

These payments are independent of your net salary and of the Christmas salary.

SeniorityIndividual cap
Less than 3 years45 days of salary
3 years or more60 days of salary

Sources

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