Dominica EOR & PEO

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Hire in Dominica

The Commonwealth of Dominica is a small island nation in the eastern Caribbean near the French territories of Guadeloupe and Martinique in the Lesser Antilles archipelago. Not to be confused with the Dominican Republic, located on the eastern side of Hispaniola Island, Dominica was settled by the Arawak and then the Kalinago people before becoming a colony of France and then Britain. This nation only gained independence from Britain in 1978. Since then, the island’s population has grown to over 73,000 people, and its GDP reached nearly $654 million in 2023. Healthy GDP 4.6% growth is predicted in 2024, with the economy driven by agriculture, tourism, and offshore financial services. If your company is looking to hire local employees, now may be a great time to partner with an EOR in Dominica to help you do so.

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hire employees in Dominica

What Is a Dominica EOR?

A Dominica EOR is an employer of record, a type of service provider that helps companies hire Dominicans. This type of provider may also be called a PEO or professional employment organization. If you wanted to hire Dominican employees yourself, you’d normally need to register a business entity in Dominica like a corporation or limited liability company. However, partnering with an EOR allows you to avoid this lengthy and costly process. The EOR can instead hire employees on your behalf and contract them to work for your company. An EOR will normally handle all the human resources (HR) functions related to your Dominican employees, including recruiting, contracting, payroll, benefits, and termination. In exchange, your company pays the EOR a fee for each employee that it recruits and manages over the long term.

Save Money And Time with A Dominica EOR

What Are the Benefits of a Dominica EOR?

Some companies choose to do the hard work of setting up an entity and hiring Dominican employees on their own. However, there are many reasons to instead partner with an EOR, leveraging its professionalism and expertise to gain such benefits as:

Not needing an entity: The main reason why most companies choose to work with EORs is that they allow you to hire local workers without setting up an entity in Dominica. This process is difficult, time-consuming, and often not worth the expense. An EOR can hire employees on your behalf and act as their sole legal employer in Dominica. This lets you get local employees on your payroll while the EOR handles all related legalities.
Language skills: The official language of Dominica is English, which makes international communication easy and convenient. At the same time, Dominican workers also speak Dominican Creole French which makes them valuable when doing business across the Caribbean as well.
Fast recruitment and onboarding: An EOR can recruit, hire, and onboard Dominican employees in a matter of days to just a few weeks. This is possible because they normally have their own talent pools and local networks on the island and know specifically what recruitment strategies are effective locally. If you tried to hire Dominicans on your own, you’d likely find that it takes months, not weeks, to find the top talent you need to fill all of your vacancies.
Affordability: Dominica is an upper-middle-income country where wages are still relatively low. In addition, employers need to pay just 6.75% of each employee’s salary towards social security. This makes Dominican employees quite affordable for most foreign-based employers.
Constant compliance: When you work with an EOR, it hires employees directly and contracts them to work for your company. Thus, the EOR becomes their sole legal employer in Dominica. This also places the responsibility of compliance with local tax and labor laws on the EOR. To ensure constant compliance with all tax and employment statutes, the EOR’s staff prepare legal contracts, monitor working conditions, and handle payroll and tax payments.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Dominica EOR through:

A strong regional presence in North America, meaning senior management are on the ground to deal with any issues.
Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
Cost-effective solutions. At $499 per employee, per month, no EOR in Dominica is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client. Horizons is:
- The only EOR doing this in-house — no subcontracting
- The only EOR doing this without a retainer — clients are only charged upon success
- The only EOR charging just a 2% fee per month.

Step-by-step Dominica EOR

How Does a Dominica EOR Work?

When you want to hire Dominican workers, you can partner with an EOR to do so. You pay the EOR a fee for each employee it manages, and it provides you with the following professional services:

Hiring your employees: The EOR can hire employees for you, but of course, it will first need to know what your recruitment needs are. Once you communicate the number of vacancies you have, the job types, and the standards you have for them, the EOR can get to work. It will dip into its talent pool and use its local networks to select suitable candidates for you. If you need specialized workers, it may also publicly advertise for the positions you require. The EOR will present you with candidates, and once you accept them, it will hire them directly, becoming their sole legal employer in Dominica.
Managing employment contracts and onboarding: The EOR will work with you to recommend working conditions and compensation packages that are appropriate and attractive. The candidates will have a chance to negotiate terms with you, and once these have been hammered out, the EOR will write them into their contracts. The EOR then enters these contracts with the employees but hires them to provide work for your company. It will next collect their personal and payment details and enter them into their employee databases. The EOR will also register these workers with the local tax and social security authorities as the law requires.
Processing payroll and handling employment taxes: Each pay period, you’ll need to provide the EOR with funds to pay your employees. You’ll also have to share their hours worked data so the EOR can calculate each employee’s gross salary. From that gross, it will calculate and withhold taxes and social security contributions. It will remit these payments and your employer contributions and pay the remainder, the net salaries, to the employees. Employees will receive their detailed pay slips from the EOR and you’ll receive all records of these payroll activities.
Administering benefits: In addition to mandatory benefits like rest days and annual leaves, the EOR can also manage extra benefits if you choose to provide these for your workers. If required, it will seek out appropriate programs for benefits like private pension funds and insurance, sign the employees up for them, and manage regular contributions.
Taking care of exit procedures: Since the EOR is the legal employer, it’s also the party that can legally terminate the employees. When you give individual or group reasons for termination, the EOR will assess their validity and provide notice periods and severance payments as required by law.

stay compliant with Dominica labor laws

Labor Laws

With a history of British common law, the Commonwealth of Dominica has an extensive body of law that protects the rights of both employers and employees. These laws are found in the Labour Contracts Act of 1983 (amended 1990), the Labour Standards Act of 1977 (amended 1991), the Social Security Act of 1986, the Employment Safety Act of 1983 and many other pieces of legislation. When you work with an EOR, its staff will have expert knowledge of all relevant statutes and experience ensuring compliance with them. As an employer, however, you should also familiarize yourself with these major points of law so you know what you have to provide for your Dominican workers.

Employment contract types

Workers in Dominica must receive written contracts from their employers within 14 days of starting work. Contracts must include the names of the employee and employer, the start date of employment (and end date if applicable), a description of duties, the rate and interval of pay and overtime pay, a probation period, working hours, annual leave, sick leave, and notice period. Fixed-term contracts are allowed.

Project-based

Fixed-term

Indefinite

Working hours in Dominica

Regular working hours in Dominica should not exceed eight hours per day and 40 hours per week. Overtime is allowed and is not limited by law. However, employees must be requested to perform overtime work at least four hours in advance and must give their consent.

Overtime must be compensated in the following way:

Holiday Schedule in Dominica [2024]

Dominica normally has 12 paid public holidays each year. These are a mixture of national days and religious observances.

Dominica’s public holiday schedule for 2024 is:

Date	Holiday name
1 Jan, 2024	New Year’s Day
12 Feb to 13 Feb	Carnival
29 Mar, 2024	Good Friday
1 Apr, 2024	Easter Monday
1 May, 2024	Labor Day
20 May, 2024	Whit Monday
1 Aug, 2024	Emancipation Day
3 Nov, 2024	Independence Day
4 Nov, 2024	Community Service Day
25 Dec, 2024	Christmas Day
26 Dec, 2024	Boxing Day

Paid time off

All employees must receive at least one full day of rest per week, and this day should normally be on Sunday.

Sick leave in Dominica

Employees become eligible for sick leave after six months of service. The amount of leave must be set in their contracts or collective bargaining agreements.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Over 6 months of sick leave

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Dominica

Expecting mothers are entitled to 12 weeks of maternity leave after working for at least one year. There is no mandated paternity leave in Dominica.

Annual leave in Dominica

After each calendar year of service, employees are entitled to annual leave. Workers with under five years of service receive at least two weeks per year, while those who have worked over five years receive at least three weeks of annual leave.

Termination & severance in Dominica

Employers may terminate workers for serious misconduct. In other cases, the employer must give notice according to an agreed period set in the employee’s contract. If an employee terminates the contract, they must give one month’s notice if they are paid monthly or just one week’s notice if paid more frequently. Employers must give 14 days’ notice for employees who have worked less than one year, 28 days for service up to five years, and 42 days’ notice for service over five years. Severance should be paid equal to six days’ wages for service less than a year, 13 days’ wages for one to five years, and 21 days’ wages for service over five years.

Dominica's compulsory social security contributions

Social security are mandatory and support various benefits including pensions, sickness, maternity, and other forms of social insurance.

The contributions fund various benefits including old age pensions, survivor benefits, disability benefits, sickness benefits, maternity benefits, and funeral grants.

Dominica social security for foreigners

Foreign employees working in Dominica are typically required to contribute to the social security system, just like local employees. However, details can vary depending on employment contracts and specific agreements between employers and employees.

Individual income tax

Income tax system is progressive and involves several tax brackets. Taxpayers may be eligible for various allowances and deductions, which can reduce taxable income. Common deductions include personal allowances, dependent allowances, and specific deductions related to expenses.

Health insurance

The government provides basic health services through public hospitals and clinics, which are funded by general taxation and government revenue. This scheme covers essential medical services but may have limitations in terms of coverage and access to specialized care.

Individuals can purchase private health insurance from various insurance companies operating in Dominica. These plans offer more comprehensive coverage, including private hospital care, specialist treatments, and additional services that may not be covered under the public system.

hassle-free Dominican compensation & benefits

Compensation & Benefits

Dominica compensation laws

The minimum wage in Dominica was last set in 2021 at 7.50 XCD (East Caribbean dollars)/hour (about 2.80 USD/hour). This translates to 1,299 XCD/month (about 480 USD/month).

Overtime pay must be at least 150% of a worker’s regular wages. Employees must be paid 200% of their normal wages for any work performed on public holidays.

13 month salary in Dominica

A 13th-month annual bonus is not mandatory in Dominica. However, it is given by many employers as a “Christmas Bonus” to reward employees during the holiday season.

Social security for Dominican nationals

Employers in Dominica pay contributions equal to 6.75% of a worker’s salary for old age, invalidity, and survivor’s benefits. Employees are deducted 6% of their salaries for a total of 12.75% for these same benefits.

Dominica Employer Of Record Peo

Navigation

Hire in Dominica

What Is a Dominica EOR?

What Are the Benefits of a Dominica EOR?

Why Choose Horizons?

How Does a Dominica EOR Work?

Labor Laws

Employment contract types

Working hours in Dominica

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

How does an EOR in Dominica handle local tax compliance?

Dominicans need to pay 0-35% income tax depending on their annual income level. When you work with an EOR, it handles payroll and tax payments on your behalf. It will calculate the taxes to be withheld from each employee’s gross salary each pay period and then remit these taxes to the Inland Revenue Division. These tax withholdings will show up on the employees’ pay slips for their records.

What are the key benefits of using an EOR for hiring in Dominica?

Above all else, partnering with an EOR in Dominica means that you can hire Dominican employees without having to own a registered business entity in the country. EORs can also recruit and onboard employees on your behalf very quickly because of their local connections. Their knowledge of local tax and employment laws allows them to manage your employees with full compliance to give you full peace of mind.

Dominica EOR & PEO

Start hiring in Dominica

Simple, compliant hiring with Horizons EOR & PEO

Hire in Dominica

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hire employees in Dominica

What Is a Dominica EOR?

Save Money And Time with A Dominica EOR

What Are the Benefits of a Dominica EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Dominica EOR

How Does a Dominica EOR Work?

stay compliant with Dominica labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Dominica

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in Dominica

Less than 6 months of sick leave:

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in Dominica

Annual leave in Dominica

Termination & severance in Dominica

Dominica's compulsory social security contributions

Dominica social security for foreigners

Individual income tax

Health insurance

hassle-free Dominican compensation & benefits

Compensation & Benefits

Dominica compensation laws

13 month salary in Dominica

Social security for Dominican nationals

Hire in Dominica in 24h without your own local entity.

Frequently asked questions

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