Powering Payroll, Compliance & Workforce Management in the Bahamas

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Bahamas at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Bahamas
Work Permits & Visas

Foreign nationals require a work permit sponsored by a local employer. Employers must demonstrate that the role cannot be filled by a Bahamian citizen. Work permits are typically issued for one year and must be renewed annually.

Payroll
  • Employers must register with the National Insurance Board (NIB).
  • The Bahamas does not levy personal income tax.
  • Payroll obligations focus primarily on national insurance contributions.
  • Payroll is typically processed monthly.
  • Employers must remit contributions monthly to NIB.
Employment Contracts
  • Contracts may be fixed-term or indefinite and should be in writing.
  • Probation Period: Commonly 3 to 6 months.
  • Working Hours: Standard workweek is generally 40 hours.
  • Overtime: Paid at 150% of the normal hourly rate.
  • Termination: Notice periods depend on length of service. Severance pay is required in redundancy situations. Employment protections are governed by the Employment Act.
Employee Benefits
  • National Insurance Contributions (Contributions capped at the insurable wage ceiling.):
    • Employer: 5.9%
    • Employee: 3.9%
  • Annual Leave: Minimum 2 weeks after one year of service; 3 weeks after 7 years.
  • Sick Leave: Typically 1 week paid after one year of service.
  • Maternity Leave: 12 weeks, with partial pay under national insurance.
  • Paternity Leave: No statutory entitlement.
  • Public Holidays: 10 paid public holidays annually.
Tax Overview
  • Tax System: Determined by immigration and residency status; there is no personal income tax regime.
Personal Income Tax
Taxable Employment Income Tax Rate
All income levels 0%

Full Country Guide

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Bahamas

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Bahamas

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Bahamas
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Compliance

Stay ahead of legal changes. We ensure your payroll and employment practices remain fully compliant with

Bahamas

's laws

Let’s Talk Bahamas

Whether you need Payroll Outsourcing, Employer of Record services, or advanced Payroll Software, our experts are here to help you find the right solution. Contact us today for support with payroll, compliance, and hiring in

Bahamas