How to hire and pay employees in Bermuda
With Instahirin, your business can easily hire employees in Bermuda. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN The Bermuda
Before hiring employees in Bermuda, one key thing employers should be aware of is the Personal Information Protection Act (PIPA). While not yet fully in force, PIPA outlines strict requirements for handling employee personal data, including obtaining consent, ensuring transparency, and protecting against unauthorized access especially when transferring data internationally.
Another important consideration is compliance with Bermuda’s Employment Act 2000. Employers must provide written employment contracts and comply with rules on working hours, rest days, and termination procedures. While Bermuda does not have a formal social security system, employers must contribute to the Contributory Pension Fund, as well as provide health insurance coverage for employees. Employees are entitled to at least two weeks of paid annual leave, public holidays, paid sick leave, and maternity leave. Severance pay and redundancy rules also apply under specific conditions.
At a glance
CURRENCY
BMD
OFFICIAL LANGUAGE
English
PAYROLL FREQUENCY
Monthly
EMPLOYER TAXES
11.9%
of gross salary
13th / 14th SALARY
N/A
Good to know
Bermuda provides universal healthcare through a government-regulated system funded by payroll taxes and mandatory health insurance. Employers are generally required to provide health insurance coverage for their employees, often offering comprehensive private plans.
The standard workweek is 40 hours, typically 8 hours per day over 5 days. Overtime is usually paid at 1.5 times the regular wage and applies for hours worked beyond the standard workweek. Employees are entitled to a minimum of 10 days of paid annual leave, increasing with tenure, plus public holidays.
Labor laws in Bermuda
Working hours and overtime
In Bermuda, the standard workweek is 40 hours, typically from Monday to Friday, 9 AM to 5 PM, with a 30-minute unpaid lunch break. Overtime is mandatory for hours worked beyond 40 per week, compensated at 1.5 times the regular pay, unless the employment contract specifies otherwise for managerial or professional roles. Employers must provide at least 24 consecutive hours of rest each week and maintain accurate records of hours worked.
Employment contracts
In Bermuda, employment contracts must clearly outline job duties, salary, working hours, and termination terms. Written contracts are strongly recommended to protect both parties and ensure compliance with labor laws. Contracts often include probation periods and notice requirements for ending employment.
Probationary period
In Bermuda, probationary periods typically range from 3 to 6 months to evaluate new employees’ performance. These terms should be clearly stated in the employment contract. During probation, employees have basic rights, but termination may require shorter notice periods.
Calculate costs to hire internationally
Benefits and leave in Bermuda
Annual leave in Bermuda
In Bermuda, the Employment Act 2000 stipulates that employees are entitled to a minimum of two weeks (10 working days) of paid annual leave after completing one year of continuous service. Employees who have worked for at least six months but less than a full year can take one week (5 days) of vacation, which is prorated and deducted from their two-week entitlement once they reach their one-year employment anniversary. After five years of continuous service, employees receive three weeks (15 working days) of paid annual leave.
Sick leave
In Bermuda, employees who have completed at least one year of continuous employment are entitled to eight days of paid sick leave per year. If an employee is unable to work for two or more consecutive days due to illness or injury, the employer may request a medical certificate from a registered medical practitioner to certify the employee's inability to work . Once the paid sick leave is exhausted, any additional leave taken is typically unpaid unless otherwise specified in the employment contract.
Parental leave
In Bermuda, the Employment (Maternity Leave Extension and Paternity Leave) Amendment Act 2019, effective January 1, 2020, introduced statutory parental leave entitlements. Mothers with at least one year of continuous employment are entitled to 13 weeks of paid maternity leave. Fathers with the same tenure are entitled to five days of paid paternity leave, both of which must be taken within 14 weeks of the child's birth.
Holidays
In 2025, Bermuda observes 10 official public holidays, including New Year's Day on January 1, Good Friday on April 18, and Christmas Day on December 25. Notably, Emancipation Day on July 31 and Mary Prince Day on August 1 are celebrated together as part of the Cup Match festivities, a two-day cricket event honoring Bermuda's history. Other key holidays include National Heroes Day on June 16, Labour Day on September 1, and Remembrance Day on November 11.
Employer tax
In Bermuda, employers pay payroll tax ranging from 1% to 10% based on annual payroll size. They also contribute a fixed weekly amount to the Contributory Pensions Fund per employee.
Individual tax
Bermuda has no personal income tax, but employers pay a Payroll Tax ranging from 0% to 10.25% based on payroll size. Both employers and employees contribute equally to the Contributory Pensions Fund for social benefits.
Termination in The Bermuda
In Bermuda, termination of employment requires employers to provide notice based on the employee’s length of service, typically ranging from one week to several months as outlined in the contract or the Employment Act. Employees may also be entitled to severance pay and have the right to challenge unfair dismissal through the Employment Tribunal.
Notice period
In Bermuda, the notice period for termination depends on the employee’s length of service and the employment contract, usually starting from one week for short service. Longer service may require several weeks or months’ notice as specified by law or agreement.
Start hiring employees in
Bermuda
Setting up a business entity in every country where you want to hire isn’t scalable it’s time-consuming, costly, and legally complex. In Bermuda, navigating labor laws, tax regulations, mandatory work permits, and social insurance schemes can be challenging. Managing contracts, payroll, and compliance manually through spreadsheets and emails often leads to inefficiencies and risks.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Bermuda and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
