Expand your global workforce in Bahamas
Your guide to the employment landscape, working customs and local labor laws in Bahamas
Capital
Nassau
Currency
Bahamian dollar (BSD)
Languages
English (Official), Bahamian (Dialect)
GDP per Capita
$32,246
Employer Tax
5.9%
Payroll Frequency
Monthly
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
Bahamas
Top local universities in Bahamas
University of The Bahamas
Ranking
Local: 1
World: 6727
Top Local Job Board
242jobs ; Indeed Bahamas ; Employ Bahamians
Number of LinkedIn users
167,700
Top Recruitment Agencies
Advantage Business Consultants Bahamas ; Bahamas Recruitment Agency
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
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 |
Employ in Bahamas
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
| Date | Name |
| January 1 | New Year’s Day |
| January 10 | Majority Rule Day |
| April 18 | Good Friday |
| April 21 | Easter Monday |
| June 6 | Randol Fawkes Labour Day |
| June 9 | Whit Monday |
| July 10 | Independence Day |
| August 4 | Emancipation Day |
| October 13 | National Heroes Day |
| December 25 | Christmas Day |
| December 26 | Boxing Day |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 2 weeks | Yes |
| Sick Leave | 1 week | Yes |
| Maternity Leave | 12 weeks | Yes |
Leave Compliance
Payroll in Bahamas
Payroll cycle
Salaries in the Bahamas are released every month.
Minimum wage
Employees in the Bahamas should be paid a minimum wage of BSD 260.00 per week.
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 1.5 times their regular rate. For extra hours of work performed on a public holiday or a day off, employees receive 2 times their regular rate.
How taxes work
Employer Payroll Tax
| Type of Contribution | Contribution Rate |
| Social Security | 6.65% |
Employee Payroll Tax
| Type of Contribution | Contribution Rate |
| Social Security | 4.65% |
Employee Income Tax
Employees in the Bahamas do not pay income taxes.
VAT
The standard VAT rate is at 10%
Bonus
13th Month Pay
A 13th-month pay is not mandatory in the Bahamas.
Employee Benefits
- Statutory leaves
- Unemployment Insurance
- Retirement
- Pension
- Allowance
Employee offboarding
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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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration