Find your employer of record in Bhutan
Bhutan
Ngultrum (BTN)
Currency
monthly
Payroll Frequency
0 to 5
Employer Tax
With 2 clicks, start your journey to Hire a contractor or remote employees in Bhutan without a entity set up.
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Thimphu
Ngultrum (BTN)
YY/DD/MM
January 1st-December 31st
0 / 5 Star (0 Reviews)
Write ReviewFind your employer of record in Bhutan
Bhutan
Ngultrum (BTN)
Currency
monthly
Payroll Frequency
0 to 5
Employer Tax
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Thimphu
Ngultrum (BTN)
YY/DD/MM
January 1st-December 31st
0 / 5 Star (0 Reviews)
With 2 clicks, start your journey to Hire a contractor or remote employees in Bhutan without a entity set up.
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Overview
Ngultrum (BTN)
CURRENCY
Thimphu
CAPITAL
monthly
PAYROLL FRECUENCY
13
PUBLIC HOLIDAYS
0 to 5
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Bhutan
Employer
Company Payroll Contributions
0% - 5%
Social Security
0% - 5%
Total Employment Cost
Employee
Worker payroll Contributions
0%- 0%
Social Security
0%- 5%
0% - 5%
Total Employee Cost
Employee Income Tax in Bhutan
Worker Income Taxes
0%
Until BTN 300,000
10%
BTN 300,001 to BTN 400,000
15%
BTN 400,001 to BTN 650,000
20%
BTN 650,001 to BTN 1,000,000
25%
BTN 1,000,000 to BTN 1,500,000
30%
More than BTN 1,500,000
Minimum Wage in Bhutan
General
By hiring an Employer of Record in Bhutan you will be able to calculate the minimum wage for your employees without difficulty. In Bhutan, employers can set the minimum wage using internal service rules. However, the salary cannot be below the federal salary.
Likewise, the federal salary is BTN 3750 per month established by the Ministry of Labor and Human Resources.
$45 Minimum Wage per month
Payroll Contributions in Bhutan
Payroll Cycle
With HR and payroll outsourcing, calculate and pay salaries to employees, which is monthly or less frequently. In addition, employers must keep all records of payments made to their workers.
13th Salary
Under the employment laws of the country, there is no set requirement for pay for the 13th month. However, when an employee completes one year of work, they are entitled to receive a tip.
Employee Benefit in Bhutan
Visa and work permit in Bhutan
The Labor Recruitment Committee is in charge of approving employment applications for qualified persons or technicians as long as they are not among the Bhutanese. Likewise, foreigners between the ages of 20 and 50 may have a work permit only with a validity period of 12 months. Furthermore, the worker must appear within this period, before the Labor and Immigration Inspectors for an inspection.
Likewise, the work permit will have the personal information of the foreign worker, such as the name, permit number, activity, and the validity of the permit. In addition, it will bear the position that the worker occupies in the company, and the name and address of the employer who hired him.
On the other hand, the employee may only work in the place and occupation specified in the work permit. In this case, hire a Bhutan Employer of Record to help you manage the paperwork for foreign employees.
VAT in Bhutan
In the country, VAT is the sales tax rate that consumers will pay according to the price of the goods and services. Likewise, this tax is between 0 and 100% and is increased on the free cost of imported items.
Working Hours in Bhutan
General
In Bhutan, the work schedule is 8 hours per day, for a total of 48 hours per week in 6 days.
Overtime
The employer will pay overtime to its workers according to the number of hours worked. In addition, with payroll outsourcing, you will be able to pay for the extra hours. Thus, this overtime goes from 10:00 pm to 8:00 am and is paid at a rate of 1.5 times the normal salary.
Working Week
Monday to Saturday.
Employee Termination in Bhutan
Termination Process
Contract employees can be removed from their jobs if the Bhutanese government deems the services no longer useful. They may also terminate the contract in case the employee violates any of the legal provisions. In this case, process these and other actions in your company by hiring an EOR.
In addition, if the employee commits a serious offense or fails to comply with the rules established in said provisions, he/her will lose his/her bonus. Additionally, the employer can terminate the contract without notice or payment instead. Likewise, the dismissed worker will not have the right to claim for payments or damages caused.
Notice Period
Hire the services of a Professional Employment Organization to make the arrangements and arrangements for notice. Thus, if the worker or the employer wishes to terminate the contract, they must give at least 1 month of notice. However, for teachers and lecturers, the employer will give 3 months of notice.
In addition, if one of the parties does not deliver the notice within the stipulated period, they must pay the other person a basic fee. Likewise, the worker or employer will pay remuneration according to the stipulated notice.
Severance Pay
A worker can leave with retirement or after having completed 5 years of service and will receive tips and benefits. Also, with an employer of record in Bhutan, manage tip payments for your employees. Moreover, this gratuity is equal to the last basic monthly payments of the employee for each year of service with the company.
Additionally, you must multiply this amount by the years of active service of the employee in the job position.
Probation Period
Hire an Employer of Record in Bhutan to arrange probation periods for job candidates. In this case, the probation period is 6 months. Nevertheless, if any of the parties does not wish to continue the contract, they must notify it 7 days in advance.
Employee Leaves in Bhutan
Paid Time Offs
By hiring payroll outsourcing services, pay your workers vacations. In this case, the employee who has worked continuously for 6 months or more is entitled to annual paid vacations. Likewise, the employee can accumulate annual vacations at a minimum rate of 1.5 days for each month, for a total of 18 annual business days.
Additionally, accrual begins after the employee has completed 6 months of work. However, if desired, the worker can accumulate this time for a maximum period of 3 years.
Public Holidays
There are 13 national holidays throughout the year.
Vacation Holidays
There are 18 vacation holidays throughout the year.
Sick Days
Only workers who have completed a work period of 6 continuous months will be entitled to obtain paid sick leave. An Employer of Record in Bhutan can do the calculations and manage sick leave. Hence, full-time employees are entitled to paid sick leave at a minimum rate of 5 business days per year.
In addition, the accrual will begin when the employee has worked for at least 6 months.
Paternity Leave
For parental leave, request the PEO services to calculate the payment of the workers, who are entitled to 10 paid business days.
Paternal Leave
Employees in Bhutan do not have parental leave.
Other Leave
There are no other licenses in the country.
Maternity Leave in Bhutan
Female workers are entitled to 2 months of paid maternity leave if they have worked 12 continuous months. In this way, the employer will make the payment based on the basic salary of the employee.
On the other hand, the employee will enjoy maternity leave time without interruptions. In addition, the worker will have the right to take 3 leave periods during the time she is in the company. In addition, the employee can use unused leave time to extend the paid leave period. With a PEO you can do the procedures related to the payment of maternity leave to its workers.
There are 60 leave throughout the year.
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