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NEWS

Basic basket puts pressure on Dominican workers’ purchasing power

Santo Domingo, Sep 17 (Prensa Latina) The minimum wage at large companies in the Dominican Republic barely exceeds the cost of the basic basket for the first quintile—representing the lowest-income 20 percent of households.

  Central Bank data places the cost of this basket at 29,756.89 pesos per month (approximately 503 dollars), while the minimum wage for workers at the largest companies stands at 29,988 pesos (507 dollars).

  This difference of just over 200 pesos (3.38 dollars) shrinks further when accounting for income deductions and other work-related expenses, such as transportation. Commuting costs represent a significant burden for employees, particularly those earning the lowest wages.

  Analysts agree that this pressure on income extends to personnel earning higher salaries.

  The agency notes significant regional differences. In the Metropolitan Region—home to Santo Domingo—the average cost of essential goods and services reaches 57,220 pesos per month (around 966 dollars), whereas in the Southern region, it stands at 42,182 pesos (712 dollars).

  These figures demonstrate that the amount required to cover basic needs varies by region, while workers must also shoulder additional financial burdens related to transportation, housing, food, clothing, healthcare, and other services.

  The relationship between income and the cost of living also dictates households’ ability to save and have resources available for unexpected expenses.

  Consequently, specialists point out that even when nominal wages exceed the value of certain baskets, deductions and the costs associated with getting to work reduce the income families have at their disposal.

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