As a preliminary matter, the Organic Code of Production, Trade and Investment (COPCI) imposes on the Ministry of Labor the obligation to establish the value of the annual living wage. This wage must cover, at a minimum, the basic needs of the individual and their family. The aforementioned regulation also establishes the components of this wage, its calculation method, and the mechanism for determining the economic compensation required to reach such wage.

On March 31, 2026, Ministerial Agreement No. MDT-2026-087 was published in the Fifth Supplement No. 255 of the Official Registry, establishing the living wage for the year 2025 at USD 506.99. Additionally, with respect to the procedure for the payment of the economic compensation, the Ministry of Labor, through this Agreement, determined the following:

1. The compensation corresponding to 2025 must be paid by March 31, 2026.

2. The beneficiaries of this compensation are both employees and former employees who provided services during the period from January to December 2025. If an employee worked for less than the full year, the calculation will be made on a pro rata basis according to the time worked. In the case of employees or former employees who worked under a permanent part-time contract, the calculation will be made proportionally based on the weekly hours stipulated in the contract, considering that the standard working week is 40 hours.

3. For the calculation of the monthly income of the employee or former employee during 2025, the following must be included:

a. The monthly salary or wage for 2025;
b. The thirteenth salary (Christmas bonus), calculated proportionally to the time worked in 2025, in accordance with Article 111 of the Labor Code;
c. The fourteenth salary, calculated proportionally to the time worked in 2025, in accordance with Article 113 of the Labor Code;
d. Variable commissions paid by the employer that correspond to legitimate and customary business practices during 2025;
e. Profit-sharing corresponding to fiscal year 2024 and paid in 2025;
f. Additional monetary benefits received by the employee under collective bargaining agreements, which do not constitute legal obligations, as well as voluntary periodic contributions made in cash by the employer during 2025; and
g. Reserve funds corresponding to 2025.

4. Employers must register the 2025 profit-sharing declaration on the Ministry of Labor’s website. Additionally, they must submit the payroll of individuals who worked during that period.

5. Finally, the Directorate of Control, Inspections and Coactive Enforcement of the Ministry of Labor will be responsible for overseeing compliance with these obligations and is empowered to sanction any non-compliance.

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