Country Payroll Guide Bahamas

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Key Facts

Capital
Nassau
Date format
dd/mm/yyyy
Currency
Bahamian dollar (BSD)
VAT
the standard rate is 12%

Contributions

Employers

National Insurance
National Insurance - 5.9%
Total Employment Cost
Total Employment Cost - 5.9%

Employees

National Insurance
National Insurance - 3.9%
Total Employee Cost
Total Employee Cost - 3.9%

Minimum Wage

Minimum Wage
The minimum wage in Bahamas is 909.30 BSD per month.

Payroll

Payroll Cycle
Monthly
13th Salary

13th month bonus around Christmas time.

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime pay of time and a half or two times regular rate.

Leave

Paid Time Off

Employees who work for a year to five years should receive 10 days of paid annual leave. Those working for 10 years should get 15 days of paid annual leave.

Public Holidays

10 days.

Sick Days

Two weeks of paid sick leave on average.

Maternity Leave

Female employees who have worked for your company for at least 12 months are eligible for maternity leave. However, each individual can take maternity pay from the same employer only once every three years. The statutory minimum for maternity leave is 12 weeks of paid time off.

Termination

Termination Process

If an employee is terminated with a justified reason – meaning the employee committed a fundamental breach of his contract or acted in a manner repugnant to the fundamental interests of the employer – the employer may dismiss the employee without notice and without severance pay.

Notice Period
  • Entitlement of employees whose tenure is between 91 and 179 days: No notice required.
  • Entitlement of employees whose tenure is between 6 and 12 months: One week’s notice OR one week’s salary en lieu of notice.
  • Entitlement of non-managerial employees whose tenure exceeds 1 year: Two weeks’ notice OR two weeks’ salary en lieu of notice.
  • Entitlement of managerial staff: Four weeks’ notice OR pay en lieu of notice.
Severance Pay
  • Between 91 and 179 days: Accrued vacation – 4% of total salary earned for the applicable period.
  • Between 6 and 12 months: One week’s salary.
  • Non-managerial employees whose tenure exceeds 1 year: Two week’s salary.
  • Entitlement of managerial staff: Four weeks’ salary for every year of employment, up to 12 years.

 

 

Probation Period

6-12 months.