Dominican Republic Severance Calculator 2026
Last updated: January 2026
The labor settlement (liquidación) in the Dominican Republic for 2026 is calculated according to the Labor Code in Dominican pesos. Key components: advance notice (preaviso) ranging from 7 to 28 days depending on tenure, severance (cesantía) from 6 to 23 days per year depending on tenure tier, proportional vacation (14 business days/year), and proportional Christmas salary. The DR uses a unique daily salary divisor of 23.83 (not 30). Cesantía tiers: 3-6 months = 6 days, 6-12 months = 13 days, 1-5 years = 21 days/year, 5+ years = 23 days/year. Severance is exempt from ISR. The maximum company size affects certain calculations through the haCompanySize flag.
FAQ
What does a labor settlement include in the DR?
A settlement includes: preaviso (7-28 days), cesantía (6-23 days/year by tier, dismissal only), proportional vacation (14 business days/year), proportional Christmas salary, and pending wages. Voluntary resignation excludes preaviso and cesantía.
How is cesantía calculated in the Dominican Republic?
Cesantía uses tiered rates: 3-6 months = 6 days, 6-12 months = 13 days, 1-5 years = 21 days per year, 5+ years = 23 days per year. The daily salary is monthly salary ÷ 23.83 (unique DR divisor). It only applies for employer-initiated dismissal without just cause.
What is the preaviso in the Dominican Republic?
Preaviso (advance notice) varies by tenure: 3-6 months = 7 days, 6-12 months = 14 days, 1+ years = 28 days. If the employer does not give notice, they must pay the equivalent in salary. The daily salary uses the 23.83 divisor.
How many vacation days are in the settlement?
The DR grants 14 business days of vacation per year of service. Unused vacation is paid proportionally in the settlement using the daily salary (monthly ÷ 23.83). Workers must have at least 5 months of service to earn vacation rights.
Is the settlement taxable in the DR?
Cesantía (severance) and proportional Christmas salary (up to 5× minimum wage) are ISR-exempt. Preaviso and vacation compensation are subject to normal ISR withholding. Social security deductions do not apply to settlement payments.