Country Payroll Guide Bermuda

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Key Facts

Capital
Hamilton
Date format
dd/mm/yyyy
Currency
Bermuda Dollar (BMD)

Contributions

Employers

Social Insurance
Social Insurance - 35.92
Total Employment Cost
Total Employment Cost - 35.92

Employees

Social Insurance
Social Insurance - 35.92
Total Employee Cost
Total Employee Cost - 35.92

Minimum Wage

Minimum Wage

No national minimum wage.

Payroll

Payroll Cycle
Monthly

Income Tax

Employee Income Tax (1)
Up to 48,000 BMD - 2%
Employee Income Tax (2)
48,001 to 96,000 BMD - 8.5%
Employee Income Tax (3)
96,001 to 235,000 BMD - 9%
Employee Income Tax (4)
235,001 to 900,000 BMD - 9.5%

Working Hours

General Working Hours

40 hours per week.

Overtime

Those who work over 40 hours per week must be given overtime pay. Standard rate is one-and-a-half times the usual hourly wage. Workers must be given the same number of hours off from work the next day.

Leave

Paid Time Off

Employees are entitled to 2 weeks of paid annual leave after completion of the first year of continuous employment and for each subsequent year of continuous employment.

Public Holidays

10 public holidays.

Sick Days

Employees are entitled to eight days sick leave with pay after the first year of continuous employment except that the employee will not be entitled to more than two consecutive days unless he provides the employer with a doctor’s certificate.

Maternity Leave

A pregnant employee is entitled to 13 weeks of paid maternity leave after one year of continuous employment as of expected due date.

A pregnant employee who has been employed for under one continuous year is entitled to 13 weeks’ unpaid leave.

Paternity Leave

Fathers with at least one year’s continuous employment by their baby’s expected birth date will be entitled to five consecutive days of paid leave. Fathers must use the leave within 14 weeks of the birth and can take only one paternity leave in any 12-month period.

Fathers who don’t meet the minimum criteria are entitled to five consecutive days of unpaid leave.

Other Leave

Bereavement Leave: an employer shall grant to an employee an unpaid leave of up to 3 consecutive days on the death of a member of the employee’s immediate family and or 5 consecutive days to attend the funeral of a member of the employee’s immediate family overseas.

Termination

Termination Process

An employee who has completed a probationary period, may not be dismissed without a valid reason relating to ability, performance or conduct, or the operational requirements of the employer’s business.

Warnings must be given in the event of repeated misconduct (falling short of serious misconduct) or unsatisfactory performance. The employer must provide the employee with a certificate of termination stipulating the reason for the termination if requested.

Notice Period

At least 14 days before giving notice of termination for reasons of redundancy, employers will be required to inform and consult with both individual employees and their trade unions.

Severance Pay

Two weeks wages, for each completed year of employment up to the first ten years; and three weeks wages for each completed year of continuous employment from tenth year forward, up to a maximum of 26 weeks wages.

Probation Period

Six months, can be extended to 9 under special circumstances.

Visa

Employment Visa

Only an employer can apply for a work permit. The employee can only enter the country to work after receiving permission. You cannot seek employment while visiting as a tourist.

The main criterion in assessing whether or not to grant permission to work in Bermuda is whether there is a suitably qualified Bermudian, Spouse of a Bermudian or PRC holder who is interested in the job and available to do it.

Consequently, most work permit categories require employers to conduct a genuine search including advertising vacancies on www.bermudajobboard.bm and in the newspaper. Additionally, employers should take care to hire suitably qualified Bermudians, Spouses of Bermudians or PRC holders who fulfil the minimum advertised requirements.