Although the 62.7 % of the Dominican population working age is affiliated with the pension systemone third of these workers have never made a price, reflecting the weight of the Labor informality which characterizes the Dominican labor market.
The data follows from the study “Labor history and contribution density in the Dominican system of pensions”, Prepared by the World Bank and the Superintendency of Pensions (Sipen).
The analysis states that affiliation and informality are the two most challenging axes for the pension systema reality that Latin America and the Caribbean also share.
Indeed, the Labor informality In the Dominican Republic it is a very dynamic phenomenon, since a 30 % of affiliates has less than 10 % of contribution densitywhile only 20 % have formal trajectories almost complete.
The Dominican workers They contribute Only four out of 10 months possible to the system. In addition, those who earn more than three minimum wages record a contribution density 25 percentage points greater than those with income below half of the minimum wage.
Generational differences
From a generational perspective, cohorts born after 1980 They show one higher contribution frequency and higher wages.
At 30 years, for example, 50 % of those born in 1990 quotedcompared to 30 % of those who were born in 1975 at that age.
The study – realized by economists Ignacio Apella, of the global practice of social protection and work in Latin America and the Caribbean of the World Bank; and Gonzalo Zunino, director of the Uruguay Economic Research Center – indicates that they do not exist significant differences Between men and women in contribution density nor in salaries once affiliated, except in 2023, when the rate of male participation It was 6.7 percentage points higher.
Researchers conclude that Dominican workers that they wish to achieve a High accumulation for retirementthey must increase or maintain constancy in their contributions and quotes through a continuous formal participation or accessing the Complementary pension plansan option that allows you to increase savings over time.
