During the government of President Luis Abinader, salary increases have been announced for different sectors of national life, including the constructionwhose representative assures that the recently announced increase, linked to public policies, could help “Dominicanize” the workforce in this economic activity in the country.
“A very high percentage of this workforce in the sector is occupied by Haitians, by foreign labor. With this increase, if we make the right policies, we could encourage more Dominicans to participate in the construction”, indicates the president of the Dominican Confederation of Micro, Small and Medium Enterprises of the Construction (Copymecon), Eliseo Cristopher.
He points out that it is necessary to take into consideration that, if the appropriate strategies are not implemented so that more Dominicans participate in the constructionthe increases that are made will be directed to a group of foreign people, “not impacting the Dominican economy as expected.”
Recently, the Minister of Labor, Luis Miguel De Camps, said that during the government of President Abinader there have been more than 14 increases in wages minima.
Among the sectors that have received the increases are: constructionnon-sectorized private, tourism, incorporated non-profit associations, sugar and industrial free zones, among others.
According to the statements of Luis Miura, president of the Dominican Confederation of Micro, Small and Medium Enterprises (Codopyme), in general, said wage increases are fair and timely to compensate for the purchasing power of the population, in the face of inflation. caused by the pandemic and now potentiated by the war in Russia and Ukraine.
“The disadvantage for MSMEs is that, due to the high level of informality, the application of wages The minimum wage is a bit complicated and there remains a high level of discretion, which affects the formal sector, which is obliged to assume salary increases,” he points out.
He understands that it is urgent to complete the reform of the Labor Code and the Social Security Law, which, together with a simplified tax regime, facilitate the formalization of MSMEs and allow competition on equal terms.
Last Monday, President Luis Abinader announced a 24% wage increase for workers in the construction sector. According to what was reported, the salary increase will be effective by 21% from next May 1 and the remaining 3% from October 1 of this year. Another salary increase executed in this administration went to the non-sectorized private sector in July 2021. The new salaries are: 21,000 pesos, equivalent to a 19% increase in large companies; 19,250 pesos for a 59% increase in medium businesses, 12,900 pesos for a 20% increase in small businesses, and 11,900 pesos for an 11% increase in micro businesses. An average percentage equivalent to a 24% increase.
