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Bahamas Employment Guide

Your quick guide on talent and labor compliance norms in Bahamas




Bahamian dollar (BSD)


English (Official), Bahamian (Dialect)

Payroll Frequency


GDP per Capita


Employer Tax


Talent Overview

The Bahamas, an English-speaking nation in the Caribbean, is well known for its pristine clear waters and tropical climate. Tourism has greatly contributed to their economy and employed two-thirds of their working population, while financial services come in second. Moreover, the country is also known as a tax haven, as the government does not impose taxes on income, capital gains, wealth, and on companies.

Major economic hubs:

Nassau, Lucaya, Freeport

Skills in demand:

Financial Services, Engineering, Tourism, Pharmaceuticals

Map 34

Local Universities

The top local universities in Bahamas are as follows:

Uni1 58

University of The Bahamas


Local: 1

World: 6727

Salary Data

Some of the common jobs in the Bahamas with average monthly salary is mentioned below;

Job Title Average Monthly Salary (BSD) Average Monthly Salary (USD)
Technical Engineer 2,930 2,930
Software Engineer 3,950 3,950
Data Analyst 3,760 3,760
User Experience 3,330 3,330
Project Manager 4,350 4,350
Sales Representative 2,470 2,470
Accounting and Finance 4,010 4,010
Talentsource 42

Talent Sourcing Tips

Top Local Job Board

242jobs ; Indeed Bahamas ; Employ Bahamians

Number of LinkedIn users


Top Recruitment Agencies

Advantage Business Consultants Bahamas ; Bahamas Recruitment Agency

Employing in The Bahamas

Employees working in the country are protected by the Bahamas’ Employment Act. Bahamian employers are expected to be knowledgeable of the regulations before they onboard local workers to their company. Below is some helpful information to

Employee Contract

There is no specific regulation that an employment contract in the Bahamas should be in writing, nor does it specify a language to be used. It can either be verbal or written, so long as the terms are well communicated to their employees in a language both parties understand.

Probation Period

The probation period for the Bahamas is not mandatory. However, some have a mutual agreement that stipulates 12 months of probation period.

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Year’s Day Public Holiday
2 Jan New Year’s Day observed Public Holiday
10 Jan Majority Rule Day Public Holiday
7 Apr Good Friday Public Holiday
10 Apr Easter Monday Public Holiday
29 May Whit Monday Public Holiday
2 Jun Randol Fawkes Labour Day Public Holiday
10 Jul Independence Day Public Holiday
7 Aug Emancipation Day Public Holiday
9 Oct National Heroes Day Public Holiday
25 Dec Christmas Day Public Holiday
26 Dec Boxing Day Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 2 weeks Yes
Sick Leave 1 week Yes
Maternity Leave 12 weeks Yes


Payroll 1

Payroll Cycle

Salaries in the Bahamas are released every month.

Payroll 2

Minimum Wage

Employees in the Bahamas should be paid a minimum wage of not less than BSD 42.00 per day or BSD 210.00 per week.

Payroll 3

Overtime Pay

Employees working in excess of the required 40 hours per week will be entitled to overtime pay. For extra hours of work performed in a regular work day, employees receive 150% of their regular rate. For extra hours of work performed on a public holiday or a day off, employees receive 200% of their regular rate.


13th Month Pay

A 13th-month pay is not mandatory in the Bahamas.

Employee Benefits

  • Statutory leaves
  • Unemployment Insurance
  • Retirement
  • Pension
  • Allowance


Employer Payroll Tax

Type of Contribution Contribution Rate
Social Security 5.9%

Employee Payroll Tax

Type of Contribution Contribution Rate
Social Security 3.9%

Employee Income Tax

Employees in the Bahamas do not pay income taxes.


The standard VAT rate is at 10%

Offboarding & Termination

Termination of an employment contract may occur in the following circumstances:

  • Unsatisfactory work performance
  • Retirement
  • Resignation
  • Redundancy

A notice is expected to be provided by either party before a contract is ended.

The Notice period for Bahamian employees can be up to a month.

The Severance payment in the Bahamas varies on the reason for termination. For termination due to redundancy, the following calculation must be followed:

Employment Duration and Hierarchy Severance Pay
Each year served – Rank and File 2 weeks of pay (capped at 24 week’s worth of pay)
Each year served – Managers and Supervisors 1 month of pay (capped at 48 week’s worth of pay)

For termination due to personal reasons (resignation, retirement, etc.), the following is observed:

Employment Duration Severance Pay
Less than a year (6 to 12 months) 1 week of pay
Each year served – Rank and File 2 weeks of pay (capped at 24 week’s worth of pay)
Each year served – Managers and Supervisors 1 month of pay (capped at 48 week’s worth of pay)

Visa and Immigration

Foreigners planning to work in the Bahamas must secure a work permit from the Department of Immigration to legally stay and be employed in the country. They may either apply for a short-term work permit if they are to work for only 90 days or a regular work permit for a period longer than 90 days.

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Minimum Wage

Overtime Pay

Visa & Immigration