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Talent Wiki - Bhutan

Your quick guide on talent and labor compliance norms in Bhutan

Capital

Thimphu

Currency

Bhutanese Ngultrum (BTN)

Languages

Nepali, Dzongkha, Lepcha, Tshangla

Payroll Frequency

Monthly

GDP per Capita

$3,562

Employer Tax

5%

Talent Overview

Bhutan is one of the least developed countries in the world with a freedom score of 59.3. Over 60% of its population depends on agriculture and animal husbandry making up 50% of its GDP. Its close trade relations with India assist them through monetary and trade exceptions. It had a downturn in GDP growth sliding to -10.1% in 2020. Bhutan largely protects its culture hence its apprehension toward progressive modernization.

Major economic hubs:

Thimphu, Phuntsholing

Skills in demand:

Construction and Trade Professionals, Information and Communications Technology Professionals, Tourism Professionals

Map Bhutan

Local Universities

The top local universities in Bhutan are as follows:

Royal University of Bhutan

RANKING

Local: 1

World : 5481

Royal Thimphu College

RANKING

Local: 2

World : 15669

Royal University of Bhutan Paro College of Education

RANKING

Local: 3

World : 8648

Royal University of Bhutan College of Science & Technology

RANKING

Local: 4

World : 16763

Royal Institute of Management

RANKING

Local: 5

World : 17927

Salary Data

The monthly salary in Bhutan for some job title are;

Job Title Average Monthly Salary (BTN) Average Monthly Salary (USD)
Developer / Programmer 37,900.00 458
Network Engineers 33,500.00 4105
Lawyers 72,100.00 872
General Manager 64,700.00 782
Chief Executive Officer 83,010.00 1,004
Chief Financial Officer 74,500.00 901
Information Technology Manager 62,500.00 756
Talent Source - Bhutan

Talent Sourcing Tips

Top Local Job Boards:

JobNet.com.mm, JobsInYangong, Myjobs.com.mm

Number of LinkedIn users:

95,960

Top Recruitment Agencies:

Bhutan Recruitment, BISHT Overseas Employment Agency

Employing in Bhutan

Hiring employees in Bhutan is a breeze when you are knowledgeable about its employment laws, benefits, payroll, and tax systems. Know how to employ and onboard talents from Bhutan with the information below.

Employee Contract

Written employment contracts in Bhutan are required if the contract schedule is more than one year of service. When a written contract is not met, the employer must adhere to the Labor Law of Bhutan. Contracts are generally written in Choke but as a rule, they must be understood by both parties.

Public and Provincial Holidays 2023

Date Name Type
2 Jan Winter Solstice (Nyilo) Public Holiday
22 Jan Traditional Day of Offerings Public Holiday
21 Feb Losar (New Year) Public Holiday
21 Feb King’s Birthday Public Holiday
22 Feb Losar Holiday Public Holiday
22 Feb King’s Birthday Holiday Public Holiday
23 Feb King’s Birthday Holiday Public Holiday
30 Apr Death Anniversary of Zhabdrung (Zhabdrung Kuchoe) Public Holiday
2 May Birth Anniversary of Third Druk Gyalpo Public Holiday
4 Jun Buddha’s Parinirvana Public Holiday
28 Jun Birth Anniversary of Guru Rinpoche Public Holiday
21 Jul Buddha’s First Sermon Public Holiday
23 Sep Blessed Rainy Day Public Holiday
24 Oct Dashain Public Holiday
1 Nov King Jigme Khesar Namgyel’s Coronation Public Holiday
4 Nov Descending Day of Lord Buddha Public Holiday
11 Nov Birth Anniversary of the Fourth Druk Gyalpo/Consitution Day Public Holiday
17 Dec National Day Public Holiday

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave  Minimum 18 days Yes
Sick Leave Based on requirement Yes
Maternity Leave 3 to 6 months Yes

Payroll

Payroll Cycle

Compensations in Bhutan are paid monthly.

Minimum Wage

The minimum wage in Bhutan is BTN 3,750 per month.

Overtime Pay

Overtime hours should not exceed 2 hours per day or 12 hours per week. A worker is paid at a minimum of their normal rate of pay or may depend on the employee-employer contract. If the employee is needed to work from 10:00 p. m. – 8:00 a. m. then the rate is 50% in addition to their normal rate.

Bonus

13th Month Pay

The 13th-month salary is mandatory in Bhutan.

Employee Benefits

  • Pension
  • Permanent Disability Benefit
  • Surviving Spouse Benefit
  • Surviving Children Benefit
  • Orphan Benefit
  • Dependent Parent Benefit

Taxes

Employer Payroll Tax

The contribution taxes are dependent on which contributions the employee is available to provide.

Type Contribution Rate
Employer Not lower than 5%

Employee Payroll Tax

Type Contribution Rate
Employee Not lower than 5%

Employee Income Tax

Income tax is levied at a progressive rate on all annual income as follows:

Income Group (in BTN) Taxes
0 – 300,000 0%
300,001 – 400,000 10%
400,001 – 650,000 15%
650,001 – 1,000,000 20%
1,000,001 – 1,500,000 25%
1,500,001+ 30%

VAT

The GST (VAT) rate in Bhutan is 7%.

Offboarding & Termination

An employer must provide an employee with at least two weeks written notice of their intention to terminate the employment of an employee. Thereafter, the employer must pay the employee two weeks wages at a regular rate.

However, federally regulated employees do not have to give their employer notice if they choose to quit.

An employer is required to provide a minimum 30 days notice period in the employment contract.

On termination of contract, employees with a minimum service of 5 years with constant contribution will receive the provident fund contributions including interest from employee and employer contribution. With less than five years of constant contribution, employees are entitled to their provident fund contributions with interest but not the employer’s contribution.

It is not stipulated in the law that requires the employer to provide a severance pay package.

Visa and Immigration

Getting a Business Visa or Work Permit in Bhutan depend on the rules and regulations of the Ministry of Foreign Affairs (MFA).

For a Business Visa, you must have documentary evidence of the business existing in the country.

For a work permit, it depends on the relevant agencies for processing but generally, you must apply for a permit from the Department of Labour and must be over 18 years of age.

Visa and Immigration - Bhutan

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration