How many severance days am I owed?

6 days with 3 to 6 months, 13 days with 6 to 12 months, 21 days per year between 1 and 5 years, and 23 days per year with 5 years or more.

How are year fractions paid?

A fraction over three months is paid using the first brackets: 6 days if it's 3 to 6 months and 13 days if it's 6 to 11 months. Loose days aren't counted under the Ministry's methodology.

Am I owed severance pay if I resign?

No: severance pay is paid by the employer when it exercises severance notice (desahucio); it doesn't apply to a resignation.

What if I'm dismissed with just cause?

It doesn't apply either. If the dismissal is declared unjustified, both the notice period payment and severance pay are owed (Art. 95).

Is severance pay subject to income tax?

No, it's exempt from income tax (Art. 86) and must be paid within ten days of the contract's termination.

Dominican Republic Severance Pay Calculator

Dominican Republic · Employment

Calculate the severance pay (auxilio de cesantía) in the Dominican Republic under Article 80 of the Labor Code: 6 and 13 days for less than a year of service, 21 days per year between 1 and 5 years, and 23 days per year with 5 years or more. It depends on the reason for termination.

How is it calculated?

Article 80 of the Labor Code, on the ordinary daily wage: from 3 to 6 months of service, 6 days; from 6 months to one year, 13 days; from 1 to 5 years, 21 days for each year of service; with 5 years or more, 23 days for each year. Any fraction of a year over three months is paid using the scale of the first brackets: 6 days with 3 to 6 months and 13 days with 6 to 11 months. Following the official Ministry of Labor calculator's methodology, the fraction's loose days aren't counted: only full years and months are considered. Daily wage = the period's ordinary wage averaged over the last 12 months (or months worked) ÷ 23.83 (11.91 per biweekly period, 5.5 per week, 1 per day). For contracts predating the Code's enactment (June 1992), prior years are calculated at 15 days per year. Severance pay applies when the employer exercises severance notice (desahucio), or the dismissal is unjustified, or the resignation is justified; not for a plain resignation or a justified dismissal. It's exempt from income tax and must be paid within ten days (Art. 86). This is a rough estimate.

Examples

5 years of service (09/01/2021 to 08/31/2026), monthly salary of 30,000, employer's severance notice
23 days × 5 years = 115 days × 1,258.92 = 144,775.49.
2 years, 7 months, and 15 days (12/10/2023 to 07/24/2026)
21 days × 2 years plus 13 days for the 7-month fraction = 55 days: 69,240.45.

How many severance days you're owed

With a salary of 30,000 and 5 years of service, the employer's severance notice gives 115 days of severance pay: 144,775.49. Figures are illustrative. Severance pay doesn't apply if you resign or if you're dismissed with just cause.

Seniority	Days of ordinary wage
3 to under 6 months	6
6 to under 12 months	13
1 to 5 years	21 per full year (prorated fractions)
More than 5 years	23 per full year (prorated fractions)

Sources

Ministry of Labor (Dominican Republic) — Labor Code (Law 16-92 and amendments): notice period (Art. 76 and 79), severance pay (Art. 80), vacation (Art. 177 to 182), overtime and night hours (Art. 203 and 204), Christmas salary (Art. 219 to 222), and profit sharing (Art. 223) — in effect since June 1992 · reviewed on September 25, 2026
Ministry of Labor (Dominican Republic) — Official benefits and vested-rights calculator: calculation methodology used as a cross-check reference (indicative results) — in effect since January 2026 · reviewed on September 25, 2026

Frequently asked questions

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