Federal Department of Foreign Affairs FDFA

Social security and insurance

Switzerland has concluded international social security agreements with 44 countries, aimed primarily at ensuring equal treatment for citizens, determining which legislation is applicable, and paying benefits abroad. Switzerland and the Dominican Republic have not signed a social security agreement.

Social security system

In the Dominican Republic, the Tesorería de la Seguridad Social (TSS), the social security institution, is responsible for the social security system.

The TSS is an autonomous and decentralised state institution under the authority of the Ministry of Labour.

It is charged with managing the Sistema Único de Información y Recaudo (SUIR), the unified information and collection system, and for distributing and paying out the funds of the Sistema Dominicano de Seguridad Social (SDSS), the Dominican social security system. It does so efficiently and transparently through its reliable, service-oriented and pro-active management model.

Pensions / retirement

In 2003, the state social security system was replaced by private but state-supervised general pension funds (AFP) as regards retirement benefits. Employees pay a basic contribution based on how much they earn, with employers also paying into the system. Employers are obliged to enrol their employees in a general pension fund and pay contributions into it. There is no statutory retirement age in the Dominican Republic. People generally retire at the age of 65 although the law grants them the right to start drawing an old-age pension from the age of 60 if they have contributed for at least 360 months.

Health and accident insurance

Benefits from the general pension fund provide employees with only rudimentary social security and do not allow them to build up reserves for healthcare costs. Taking out private health insurance is highly recommended, especially as it is not compulsory under the law to be insured.

There are occupational accident insurance schemes, which employers must pay for. The system also provides for paid maternity and sick leave.

Occupational pension scheme

The Superintendencia de Pensiones (higher pension supervisory authority) is an autonomous state institution constituting a separate legal entity and holding its own assets. It is tasked, on behalf of the Dominican state, with ensuring strict compliance with Act 87-01 and its supplementary provisions, protecting the interests of its members, monitoring the solvency of pension fund administrators (AFPs) and helping to strengthen the Dominican pension system. Act 87-01 created the Dominican Republic's social security system. The Superintendencia de Pensiones provides information online about the occupational pension system.

Unemployment insurance

There is no unemployment insurance in the Dominican Republic.

Swiss old-age and survivors' insurance (OASI) and invalidity insurance (IV)

Payment of ordinary pensions

Ordinary OASI and IV pension payments (except quarter pensions under the IV scheme) for Swiss nationals can be transferred to their place of residence anywhere in the world. The pension is paid out directly by the Swiss compensation office, generally in the currency of the country of residence. You may also choose to have your benefits paid into a personal postal or bank account in Switzerland. Helplessness allowances and supplementary benefits are only paid if you are resident in Switzerland.

Voluntary OASI/IV

Swiss nationals who do not live in an EU/EFTA member state may join the voluntary OASI/IV scheme if they had compulsory insurance cover for at least five consecutive years immediately prior to their departure. Enrolment in the Swiss voluntary OASI/IV system does not exempt you from enrolling in a compulsory insurance system in your country of residence or employment. Employed persons contribute 10.1% of their salary to the pension fund. The minimum annual contribution is CHF 950. The voluntary OASI/IV system offers protection against the risks of old age, disability and death, in particular to persons who are not gainfully employed and who in many cases are not entitled to join a foreign social security scheme.

Special provisions for people employed by a Swiss company

Special provisions apply to persons who live abroad and are employed and on the payroll of an employer based in Switzerland and to their accompanying spouses abroad provided they are not gainfully employed. For further information, please contact your OASI office.

OASI pensioners (1st pillar) and pension fund beneficiaries (2nd pillar)

Make sure that pension payments from your old-age and survivors' insurance (OASI), your pension fund or other insurance policies you have taken out are being properly transferred to you. Whenever you change your address, you must inform the OASI compensation office, your pension fund and insurance provider. The Swiss Compensation Office (SCO) sends all persons who are receiving benefits a certificate of life and marital status form each year. To ensure uninterrupted payment of your pension, please return the form to the SCO within 90 days, duly endorsed by your local authority, or any other officially recognised administration.

Taxation of pension fund income

Switzerland imposes a withholding tax on pension fund income if the beneficiary resides abroad. Double taxation agreements sometimes allow the withholding tax to be waived or to be reclaimed by the pension recipient in their country of residence.

Social assistance for Swiss citizens abroad

In certain circumstances, the FDFA's Social Assistance Service for the Swiss Abroad (SAS) provides social assistance to Swiss nationals living abroad who have run into financial difficulty. If you find yourself in financial distress, you must first make every effort to manage with your own resources. If you really cannot manage on your own, you should try to get financial help from your family or from friends or acquaintances. You should also find out what social assistance or other support you can receive from the authorities in your country of residence. Support from the SAS should be a measure of last resort.