In the Dominican Republic, a mandatory bonus is disbursed to employees each year, often referred to as the “Sueldo Anual Complementario”. This compensation is equivalent to one month’s salary. The calculation involves summing the total ordinary wages earned by the employee throughout the year and dividing that sum by twelve. For instance, if an employee earned a total of $120,000 in ordinary wages over a year, the bonus would be $10,000.
The annual bonus provides significant financial relief to workers. It can be used for various purposes, such as covering expenses during the holiday season, paying off debts, or investing in long-term goals. Historically, this benefit has played a role in stimulating the local economy, particularly during peak shopping seasons. The implementation of this benefit promotes financial stability and improved quality of life for employees.
