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CODOPYME Calls for Dialogue on Labor Reform and Measures to Reduce Informality
The Dominican Confederation of Micro, Small and Medium-Sized Enterprises (CODOPYME) is urging government, employers and labor representatives to resume discussions on the country's labor reform while advocating policies that encourage businesses to enter the formal economy.
Fernando Pinales, president of the Dominican Confederation of Micro, Small and Medium-Sized Enterprises (CODOPYME), has called for renewed dialogue among the parties involved in the Dominican Republic’s labor reform, arguing that consensus is essential while also promoting measures to reduce the country’s high level of business informality.
Speaking during the television program Esferas de Poder, Pinales said the country has more than 400,000 informal businesses and approximately 1.2 million formal enterprises, according to figures cited by the business sector. He emphasized that addressing informality should be a national priority alongside discussions on labor legislation.
Informality Remains a Major Economic Challenge
Pinales explained that informal businesses generate economic activity and employ workers but operate outside the tax system and do not provide employees with the labor protections and social security benefits required under Dominican law.
Citing official data from the Central Bank of the Dominican Republic, he noted that the country’s informal economy represents between 50% and 60% of total economic activity, reflecting the large number of businesses operating outside the formal regulatory framework.
MSMEs Drive Employment and Economic Activity
According to Pinales, micro, small and medium-sized enterprises (MSMEs) account for nearly 98% of formally registered businesses in the Dominican Republic and generate more than 65% of employment, representing an estimated two to three million jobs.
He also stated that about 1.2 million MSMEs are registered with the National Taxpayer Registry (RNC) managed by the General Directorate of Internal Taxes (DGII), while roughly 70% of Dominican businesses belong to the microenterprise segment.
Greater Support Needed for Small Businesses
Pinales argued that reducing informality would strengthen economic growth and improve the country’s productive capacity. He said creating conditions that encourage businesses to formalize should remain a public policy objective.
To support that goal, he called for broader access to financing and credit, as well as increased participation by MSMEs in public procurement processes. According to the CODOPYME president, these measures would help strengthen small businesses while promoting a more competitive and inclusive economy.
