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Average Wage in Dominican Republic

The average wage for a common laborer in the Dominican Republic is around 3,000 to 6,000 pesos a month. I came to this estimate after reading through some apparently well honed statistics earlier this morning. Though this knowledge stretched the bounds of my observations, and I had difficulty believing that this amount of pay could sustain a person with a family in Sosua — a town where a small piece of cooked chicken costs 30 pesos, an uncooked chicken breast 70, an avocado 25, and a loaf of bread 35 OUTSIDE of the tourist areas.

The Dominican Republic Peso is currently trading at 36 to 1 USD. Which means that the average wage for a common worker is around 86 to 172 US dollars a month, or $5 – $10 a work day (if on a five day a week schedule).

This low rate of pay compared to the high price of food ratio had me thinking: are these statistics correct? Or are they the result of the average wages of the entire country being pooled together where the cheaper regions dilute the sample so that the wages of the more expensive regions are not properly represented?

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Wade from www.VagabondJourney.com
Sosua, Dominican Republic — February 15, 2009
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It is my impression that we are in a particularly expensive region of the country — the north coast — and I was wondering if the people working here really were paid the wages represented by the statistics — or if they were paid more.

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Restaurant worker in the Dominican Republic

I walked out of the hotel where our apartment is located with Petra. I was looking for some people who were working that would be willing to tell me how much money they made. I found a group of ladies at the back door of a restaurant/ bar. I walked up to them.

They began oogling over Petra, and I was provided with an in for my inquiry.

After the initial excitement of the baby — I handed her over to one of the women — I asked them if I could ask a question. They said OK.

“In the Dominican Republic, how much money does the common worker receive each month?” I asked in understandable Spanish.

The women stared at me as if I was nuts. This was probably not the question they were expecting. I admit, I was asking a very vague question, but I needed to open the conversation somehow. I wanted to ask directly, “How much money do you make?” but needed a couple primer questions first.

Petra and a cook in the Dominican Republic

The women just sat there bumping Petra up and down on her knee for a minute trying to decide how to answer. A bright younger girl from the kitchen came running out to field my inquiries.

“It depends,” she said, “what kind of work are you talking about? Domestic work? To take care of a baby”?

“How much money does a restaurant worker make here?”

The answer was around 3,00o pesos a month.

“How much does a domestic worker get paid?”

Around 6,000.

My wife comes over and joins the conversation. The women mention baby care a couple of times, then the younger girl asked, “Are you looking for someone for day or night work?”

I was momentarily confused.

“They think you are trying to hire them,” Chaya pointed out to me in English.

I laughed, “No, I don’t want a worker, only information.”

Ice cream shop employee in the Dominican Republic

The ladies laughed a little as well. My intentions were a little clearer. I was then told approximations of what people get paid for doing various occupations, but they stressed that everything dependent on other factors — such as a bartender at an expensive bar would make more money than one at a cheap bar. But I was only looking for estimates, I was only testing the bounds of the formal statistics that I had available.

From the impression that I took from this conversation, it seems as if the statistics stand — even for an expensive town like Sosua.

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Average rates of pay and minimum wage in the Dominican Republic

The minimum wages of the Dominican Republic are tier and divided between what economic sector a person is working in.

In the Free Trade Zones, 4,900 Dominican pesos a month is the minimum wage.

Outside of the Free Trade Zones, the minimum wage is 4,485 and 7,360 pesos a month, which depends on the size of the company.

In the public sector, 2,600 pesos a month is the minimum wage.

For farm workers who are covered by minimum wage regulations, the minimum wage is 150 pesos a day, 95 pesos per day for cane workers in the sugar industry.

Average wages in the Dominican Republic by economic sector (some of the below stats are from 2004/ 2005 and may be outdated)

General private sector workers

  • RD$3,900 – RD$6,400 per month depending on the company’s assets.

Farm workers

  • RD$150 per day for farm workers
  • RD$5,400 per month for night watchmen

Hotels, Bars, and restaurants

  • RD$3,200 – RD$4,970 per month

Bakeries

  • RD$2,607 – RD$4,439 per month

Industrial Free Trade Zone Workers

  • RD$4,900 per month

Heavy duty machine operators

  • RD$10,875 per month for operators
  • RD$5,415 per month for assistants

Heavy duty farm equipment operators

  • RD$5,000 per month

Construction workers:

  • Non skilled: RD$268 per day
  • Skilled: RD$294 per day
  • Assistant: RD$345 per day
  • Operators: RD$448 – RD$639 per day

Master of trade

  • RD$830 per day

A Dominican woman with an older foreign boyfriend reputedly gets at least 10 to 15,000 pesos a month. A sex worker proper probably makes a lot more.

Unemployment is around 15%

Information collected from second hand sources

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Street side shoe salesman

Impression of family size in Dominican Republic

I read that the average family size in the Dominican Republic is around 5.5 people in urban areas and 6 people in the rural areas.

I began asking people in a random, highly unscientific way how many brothers and sisters they have. Most seemed to have at least three siblings, one lady had 15. I asked a group of four women how many children the average family in the Dominican Republic has, they all answered virtually simultaneous: “Mucho!”

“Seis, siete, ocho hijos es normal.”

“That is a lot of children,” I replied.

They agreed.

I did not ask how all of these kids could be supported on the wages outlined above and the going rates of food that I have observed here in Sosua.

Though I do know that something is not matching. I need to find out more.

Fruit vendor outside Sosua

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When traveling, it is good to know the economic bounds of the people who live where you are passing through. If you know that the average wage of a general laborer is $3 a day, then you know that a public bus filled with common people that goes to the next town should not cost $15.

Knowing the amount of money that people make relative to how much goods and services in a country costs is also a good way to gauge the status of living to compliment independent observation.

Most people that I have observed here are smiling, happy, wed fed, and relaxed. The Dominican Republic is a very good country. It is my impression that the official demonstrators of income do not match the happiness index of this country.

I want to learn more.

Bartender in the Dominican Republic

Sources

Filed under: Caribbean, Culture and Society, Dominican Republic, Economics

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  • Mike Crosby

    The picture with Petra and that lady are priceless. Looks like Petra gives you an “in” with people. A beautiful baby breaks down a lot of barriers.

    • Wade | Vagabond Journey.com

      Hello Mike,

      Traveling with Petra really does provide a connection with people in the streets. It is vastly easier to have conversations with people because of the fact that I now have a baby because it shows instantly that we have something in common: most people in the world have children at some point. So I can talk about my baby, they can talk about theirs, and then we can talk about anything else we want to — I can ask my questions.

      Thanks,

      Wade

  • Trevor

    Very useful information., I have been travelling to DR for the last 4 years about 3 times per year, and have been paying consideralbe more in the tourist towns. I also find that if they know you are tourist the price goes up. Eg I rented a jeep from a private person, cost me $35.00 per day. Went into Sousa and rented from a locat place cost me 1000pesos per day after i spoke spanish to them.Even though i am a person of color, it does not matter.
    But interesting comments, will continue to look at your site.

  • Lorenzo

    Great article Wade: I have been visiting DR for a few years. Twice a year. My first visit for business at the Jaragua Hotel in Santo Domingo. Priced at U.S. $74.00 per day for 7 days plus meals. I over tipped the room service staff for sure, before I learned what their salaries were. I now look to rent apartments rainging between U.S. $165.00 and $450.00 per month, for an annual rental. The price that I paid with meals and tips for one week, could have rented an apartment for six months. Your article is a life saver Wade. Thanks.

    • Wade Shepard

      Thanks for the comment. I don’t understand why you’re tipping in the DR. It’s not really the custom there.

      • Joe

        I was not aware that tipping was not a cultural habit. I am looking to return for several months this coming winter. Would you recommend that I hire security for protection as I’m not fluent in the language and an older white male?

        • Wade Shepard

          Yeah, tipping is not expected in the DR. I actually recommend against it as it makes you look like a foolish tourist. As far as hiring a security guard, well, that probably depends on what you’re planning on doing. If you’re just going to the tourist sites I would not recommend it, but if you go there for the ladies, then it may not be a bad idea. In point, it is my opinion that the DR is currently one of the most dangerous countries on the planet.

      • LUS

        Tipping not a custom here? I think you are wrong. Most people expect you to tip and most restaurants already include 10% in the bill.

        • Wade Shepard

          Sure, if you’re eating in tourist/ expensive restaurants.

          • LUS

            You know, I think I might understand what generates our different statements.
            We Dominicans see differently a “negocio de comida” than “un restaurante”. So if you go to the first one, a place where there is the typical rice, beans and meat food (RD$120-$180 in Santo Domingo) already prepared, you pay the service, eat/take… No tip. Same with Chinese fried chicken (RD$120) and other fast food (RD$150-$400, depending on what you get). But if you go to a restaurant, where you actually order from a menu, you do tip. And there are cheap restaurants, where you can have a meal for the same price as other “negocio de comida”. So it is not about how much it costs, it s about the nature of the business.

            I hope it makes sense to you.

  • LUS

    The problem is that only 40% of people here are formally employed and the rest of the numbers is hard to tell and regulate. The ONE statistics can be very helpful, they actually average per geographical zone. Which means you ll see the average for the “metropolitan” areas, for the northern regions, etc. For example, for 2007 the average wage of someone in Santo Domingo was about 12 000 peso, which is still quite low… It can be puzzling, yes, to think how someone can survive with such low income and big family… We have our ways! :D