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Dominican Republic

World bank, 2021
Poverty headcount ratio at $6.85 a day (2017 PPP) (% of population)
23%
Population below international poverty line

Varies per business size and type of labour.
WageIndicator Foundation, 2023

variable
National minimum wage

Equivalent to 27,209 Dominican pesos per worker per month.
Global Living Wage Coalition, 2023

460
per month
Rural living wage

Equivalent to 36,943 Dominican pesos per worker per month.
Global Living Wage Coalition, 2023

 

626
per month
Urban living wage
World bank, 2021
Employment in agriculture (% of total employment) (modeled ILO estimate)
8%
Agricultural workforce
World bank, 2022
Agriculture, forestry, and fishing, value added (% of GDP)
6%
Agriculture share of GDP

ITUC Global Rights Index, 2023
Repeated violations of rights

2
low
Risk to workers' rights

Context

The Dominican Republic has a population of around 11 million,[1] with nearly 82%[2] of inhabitants residing in urban areas. The agricultural sector employs 8%[3] of the working population of the Dominican Republic and is responsible for 6% of the nation’s GDP.[4]

Agriculture is the fourth largest economic sector in the Dominican Republic, however traditional agriculture has been declining for the last four decades, meaning that many rural households have to supplement their income with off-farm work. Conversely, over the last ten years the Dominican Republic has become one of the top exporters for organic and Fairtrade products.[5]

The top produced crops in the Dominican Republic are sugar cane, bananas, papayas, rice and plantains.[6] In terms of export quantity, the top commodities are bananas, raw sugar, molasses, cocoa beans and wheat flour. [7]

Footnotes
  1. ^ World Bank. (2021). https://data.worldbank.org/indicator/SP.POP.TOTL?locations=DO
  2. ^ World Bank. (2021). https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=DO
  3. ^ World Bank. (2021). https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=DO
  4. ^ World Bank. (2022). https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=DO
  5. ^ IFAD. (2017). https://www.ifad.org/en/web/operations/country/id/dominican_republic
  6. ^ FAOSTAT (2019). http://www.fao.org/faostat/en/#rankings/commodities_by_country
  7. ^ FAOSTAT (2019). http://www.fao.org/faostat/en/#rankings/commodities_by_country_exports

Wages

Minimum wage

The minimum wage in the Dominican Republic ranges between 11,900 (201 EUR) and 21,000 (355 EUR) Dominican pesos per month and varies based on the business market value and the type of labour.[1] By law, a standard workweek is 44 hours, with a maximum of 8 hours per day. As an exception, agricultural workers are allowed 10-hour workdays without additional compensation. It is common practice for many agricultural workers to work overtime in dangerous working conditions and generally receive less than the legally established minimum wage.[2]

 

Living wage

The Global Living Wage Coalition has developed 2 living wage benchmarks the Dominican Republican, one for rural areas in the Northern region, where banana is grown, and for urban areas around the capital, Santo Domingo. 

In rural banana producers areas, the estimated living wage is 27,209 Dominican pesos (460 EUR) per worker per month.[3]Agricultural wages are particularly low in the Dominican Republic compared to other sectors, hence a living wage is crucial for farm workers to afford a decent standard of living. Additionally, further research is needed to estimate the living income that smallholder farmers should receive. Smallholder farmers are considered business owners and receive an income rather than a wage. In the Dominican Republic, there is a large number of smallholders who, it is believed, are not earning enough to support themselves, let alone pay their workers a living wage.[4]

A living wage was also estimated for the capital of the Dominican Republic, more specifically in the urban areas of Bajos de Haina, San Cristobal and San Gregorio de Nigua which are located around Free Trade Zones in Santo Domingo. The esimated value is 36,943 Dominican pesos (626 EUR) per worker per month. 

Living income

The Living Wage Benchmarks included a Living Income report, estimating the living income in both regions. For rural areas in the Northern region, a living income was estimated at 43,208 Dominican pesos (731 EUR) per month[5] . For the Santo Domingo region, the value was estimated at 58,877 Dominican pesos (996 EUR) per month[6]. This is the net income a typical family of 4, with 1.67 and 1,71 workers respectively, needs monthly to afford a basic but decent living.

 
 
Footnotes
  1. ^ WageIndicator Foundation. (2023).https://wageindicator.org/salary/minimum-wage/dominican-republic
  2. ^ U.S. Department of State. (2019). https://www.state.gov/reports/2019-country-reports-on-human-rights-practices/dominican-republic/
  3. ^ Global Living Wage Coalition. (2023) Living Wage Update: August 2021. Dominican Republic, rural areas. https://www.globallivingwage.org/living-wage-benchmarks/rural-dominican-republic/
  4. ^ Anker R., & Anker, M. (2013). Living Wage for Rural Dominican Republic with Focus on Banana Growing Area of the North.. https://www.globallivingwage.org/wp-content/uploads/2018/05/Living_Wage_Report_Dominican_Republic_en.pdf
  5. ^ undefined
  6. ^ undefined

What's happening

resource

Living Wage Benchmark, urban areas around Santo Domingo, Dominican Republic

Living wage estimate for urban areas around Santo Domingo, Dominican Republic. Global Living Wage Coalition. 

initiative

Dominican Republic Cocoa Supply Case Study

Project from Gaia Cacao coordinated by the International Executive Service Corps (IESC) with advice of the Fine Cacao and Chocolate Institute (FCCI) and funded by the U.S. Department of Agriculture (USDA). 

resource

Living Wage Benchmark, rural Dominican Republic

Living wage estimate for rural Dominican Republic, focussing on banana farm workers. Global Living Wage Coalition. 

initiative

Tracking living and minimum wages in the banana sector

A report commissioned by the World Banana Forum in 2015 with information on wages for 9 banana producing countries.

initiative

External costs of banana production

Study on the negative effects of banana production in main banana producing countries to capture the external costs in the price.

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