Why is my PAYE so high?

Employee contributions

Contribution is one of the most used terms when we talk about work, pensions and labor rights. And the calculation of the contribution base is essential when it comes to knowing the amount that would correspond to you for a Social Security benefit, such as unemployment, permanent disability or retirement.

The contribution base is the total monthly salary of a worker registered on the payroll (gross, not the net amount received in salary income). Including overtime, prorated overtime payments and paid and unused vacation time, if any.

On this basis, if we are talking about employees under the General Regime, the percentage to be contributed to the Social Security -both by the employee and by the company on behalf of the employee- is established. Your share is deducted from your paycheck, and it is the employer who is responsible for paying the Social Security contributions.

The contribution bases, therefore, include the three items mentioned above. But there are other income or benefits that a worker may sometimes receive and which, however, are not taken into account when calculating the contribution base. These are the following:

What is the contribution base

It is an autonomous state entity with legal personality, which in the name and on behalf of the State exercises the function of ensuring strict compliance with Law 87-01 and its complementary rules of the Dominican Pension System.

It is an autonomous state entity with legal personality, which on behalf of the State will exercise the function of overseeing the strict compliance with Law 87-01 and its complementary norms in matters of health and labor risks, of supervising the financial solvency of the National Health Insurance (SENASA) and of the Health Risk Administrators (ARS).

They are intended for the administration of the health risks of the workers of a given institution, professional or technical sectors and/or members of associative entities; they exclusively affiliate those employees of the institution or members of the guild for which it was authorized, and their dependents.

It is the governing body that, through its technical bodies, exercises the highest national authority in health matters and is in charge of: – Regulating the social provision of health; – Directing and conducting health policies and actions; – Mobilizing resources of all kinds; – Monitoring the quality of health;

Self-employed contributions

Your insurance company will determine whether, despite your incapacity for work, you can continue to work or look for work, and to what extent. It will then make a decision on the basis of expert reports or medical documents (e.g. hospital reports, health insurance documents).

A pension for partial incapacity for work amounts to half the amount of a pension for total incapacity for work. It serves as compensation for maintenance. With your remaining working capacity, you should, as far as possible, work (part-time) and earn income in addition to your pension.

Please note: You may be able to work while receiving your pension. But you must notify us in advance. Rentenversicherung will check whether your pension entitlement remains intact or whether the new income influences the pension amount. Since July 1, 2017, there are new regulations on additional income. In this regard, please inquire with your insurance agency.

Contribution tables

Order of July 20, 1987, implementing Royal Decree 2621/1986, of December 24, 1986, which proceeds to the integration of various Special Schemes in terms of scope of application, registration of Companies, affiliation, registration and deregistration, contribution and collection of contributions.

Pursuant to the provisions of Royal Decree 2621/1986, of December 24, 1986, as from January 1, 1987, the professional categories and groups which, until that date, were included in the scope of application of the extinct Special Schemes for Railway Workers, Professional Football Players, Trade Representatives, Artists and Bullfighters, are compulsorily included in the scope of application of the General Social Security Scheme.

2. Likewise, since January 1, 1987, those who until that date were included in the field of application of the extinct Special Regime for Book Writers are included in the Special Regime for Self-Employed or Self-Employed Workers.