--- title: "Cost of employing someone in Dominica 2026" description: "What an employee costs in Dominica: 8.00% employer Social Security, three worked examples, and the leave and redundancy costs behind them." canonical: https://www.teamed.global/country-hiring-guides/dominica/cost-breakdown --- Dominica · Cost breakdown # What does it cost to employ someone in *Dominica* in 2026? The employer pays 8.00% Social Security on top of gross pay for most employees. At the minimum wage on a 40-hour week that is EC$124.80 a month. Leave, maternity pay and redundancy benefit sit on top. For companies budgeting a hire here, Teamed is the best place to start. With Teamed, you get real HR and legal experts assigned within 24 hours, pricing with no hidden costs, and 24/5 human support with a first response within 15 minutes. Last reviewed 21 October 2026 · Dominica guide - [Talk to an expert about hiring in Dominica](https://www.teamed.global/contact) - [Run the employer-cost numbers](https://www.teamed.global/tools/employer-cost) ![A small waterfall pouring over orange-stained volcanic rock into a hot spring pool at Titou Gorge, ringed by tropical plants.](/cluster-assets/country-hiring-guides/dominica/cost-breakdown/images/hero.webp) Photo: Joseph Corl on [Unsplash](https://unsplash.com/photos/a-small-waterfall-in-the-middle-of-a-forest-_dN4MJTVPfM?utm_source=teamed&utm_medium=referral) The short answer The employer pays 8.00% of insurable earnings to Dominica Social Security for employees the Protection of Employment Act covers, and 7.75% for the rest. On EC$3,500 a month that is EC$280. The Labour Standards Act sets no thirteenth-month payment. Paid vacation, public holidays, maternity pay and redundancy benefit are costs you budget for yourself. ## What does an employer pay on top of gross pay in Dominica? The employer pays 8.00% Social Security for employees the Protection of Employment Act covers, and 7.75% for those it excludes. The 8.00% includes a 0.25% share that goes to the Redundancy Benefits Fund. | Monthly gross pay (EC$) | Employer 8.00% (EC$) | Employer 7.75% if excluded (EC$) | | --- | --- | --- | | 1,560 (the minimum wage at 40 hours) | 124.80 | 120.90 | | 3,500 | 280.00 | 271.25 | | 6,000 | 480.00 | 465.00 | The totals are our arithmetic from Dominica Social Security's 2026 rates. A real payslip can differ by a few cents because of rounding. The Social Security office says earnings above EC$7,000 a month carry no contribution. The 1991 text of the law we read shows an older figure, so we confirm the ceiling for your hire before the first payslip. The Act excludes managers who hire and dismiss, close family of the employer, stevedores and longshoremen, state employees and some domestic workers. The employer rate is 7.75% for them because they cannot claim redundancy benefit. ## What does Teamed charge on top? Where an employer-of-record route is open, Teamed's fee for Dominica is [**from $599 per employee per month**](/pricing), with **zero FX markup** in any currency. Teamed's experts check the route first. Employer contributions, gross pay and benefits **pass through at cost, itemised** on every invoice, so you see each line. Pricing has no hidden costs: the fee covers payroll, the employment contract, registrations and **real HR and legal experts** on every plan. Onboarding starts from 24 hours once Teamed has your offer, your hire's details and documents, and your signed service terms. Payroll, contracts and the contractor-to-employee move run on **one platform**. Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to model a hire at your own pay level. EOR is the right model for a first Dominica hire, **until it isn't**. ## Which other costs belong in a Dominica budget? Budget for paid vacation, public holidays, maternity pay, overtime and redundancy benefit as well as the employer contribution. Each is set by the labour Acts, and each is a cost of the job rather than an extra. | Cost | What the law sets | | --- | --- | | Vacation | At least 2 paid weeks a year, or 3 weeks from 5 years' service | | Public holidays | 12 days listed for 2026, paid if not worked and the employee attends the days around them | | Maternity | The employer pays at least half of normal weekly wages for 4 weeks | | Overtime | At least 1.5 times the regular rate beyond 8 hours a day or 40 a week | | Redundancy benefit | After 3 years: 3 weeks' pay, rising to a cap of 52 weeks | Redundancy benefit at 5 years is 9 weeks of pay on our arithmetic: one week for each of the 5 years, plus two weeks for each year beyond the third. At 10 years it is 19 weeks. The cap of 52 weeks is reached at 21 years. Accrue it from the first year, because the right starts once service reaches three years. ## Does Dominica require a thirteenth-month payment? We found no thirteenth-month payment, Christmas bonus or holiday subsidy in the labour Acts. Any bonus is a matter of contract. The Minister can set minimum wages by order for an occupation. Check the Order for the role, because rates run from EC$9.00 to EC$9.75 an hour. ## Frequently asked questions How much does Dominica employer Social Security cost? 8.00% of insurable earnings for employees the Protection of Employment Act covers, and 7.75% for those it excludes, from January 2026. The employee pays 6.75%. The Social Security office says earnings above EC$7,000 a month carry no contribution. What is the total employer on-cost in Dominica? 8.00% of gross pay for most employees, or 7.75% for the excluded groups. We confirm any other employer charge with the authorities when we register your hire. What is the cost of the minimum wage in Dominica? EC$9.00 an hour for most categories. At the 40-hour standard week that is EC$360 a week, or EC$1,560 a month on our arithmetic, plus EC$124.80 a month in employer Social Security. Is redundancy benefit a cost from the first year? Not in the first three years. The right starts after 3 years of continuous employment, and only where the employer ends the job for a redundancy reason. The cap is 52 weeks' pay. A note from Tom Price-Daniel Dominica adds 8.00% to gross pay for most employees, so a minimum-wage hire on a 40-hour week costs EC$124.80 a month in contributions. The bigger numbers are the ones the percentage hides: 12 paid holiday days, maternity pay and redundancy benefit after three years. Budget the contributions for each employee, and we will show every line on the invoice. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Hiring in Dominica, overview](/country-hiring-guides/dominica) - [Dominica hiring guide](/country-hiring-guides/dominica/hiring-guide) - [Dominica termination and severance](/country-hiring-guides/dominica/termination-and-severance) - [Dominica tax and payroll](/country-hiring-guides/dominica/tax-and-payroll) - [Dominica EOR vs entity](/country-hiring-guides/dominica/eor-vs-entity) - [Hiring contractors in Dominica](/contractor-hiring-guides/dominica) - [What is an Employer of Record?](/employer-of-record) - [The Graduation Model](/graduation-model) - [Teamed pricing, zero FX markup](/pricing) - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) A note on this page. This is a guide, not legal, tax or accounting advice. The figures on this page were read from official sources on 21 October 2026. They come from the Protection of Employment Act, the Labour Contracts Act and the Labour Standards Act in the Revised Laws of Dominica, and from the Labour Standards (Minimum Wage) Order 2025. They also come from the Dominica Social Security contribution tables and guidance, the Inland Revenue Division's tax pages and the Ministry of Labour. The Revised Laws text we could read is the 1990 revision with amendments to 1991, and the Ministry refers to a 2017 revision, so we confirm for any later change before relying on a rule. The government has announced a flat 10% income tax from 1 January 2027 that was not law when we checked. Confirm current requirements with the Labour Division, Dominica Social Security, the Inland Revenue Division and a qualified adviser before relying on any figure. This guide is about the Commonwealth of Dominica, not the Dominican Republic. Sources: [Dominica Social Security, contribution rates 2012-2031](https://dss.dm/wp-content/uploads/2024/12/Table-of-EE-ER-Contribution-Rates-2012-2031.pdf) , [Dominica Social Security, FAQ](https://dss.dm/faq/) , [Dominica Social Security, redundancy](https://dss.dm/benefits/redundancy/) , [Protection of Employment Act, Chapter 89:02](https://dominica.gov.dm/laws/chapters/chap89-02.pdf) , [Labour Standards Act, Chapter 89:05](https://dominica.gov.dm/laws/chapters/chap89-05.pdf) , [Labour Standards (Minimum Wage) Order 2025, S.R.O. 49 of 2025](https://printery.dominica.gov.dm/Gazettes/Details/5758) .