Your quick guide on talent and labor compliance norms in Bahamas
Capital
Nassau
Currency
Bahamian dollar (BSD)
Languages
English (Official), Bahamian (Dialect)
Payroll Frequency
Monthly
GDP per Capita
$32,246
Employer Tax
5.9%
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
Local Universities
The top local universities in Bahamas are as follows:
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 |
Talent Sourcing Tips
242jobs ; Indeed Bahamas ; Employ Bahamians
167,700
Advantage Business Consultants Bahamas ; Bahamas Recruitment Agency
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
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.
The probation period for the Bahamas is not mandatory. However, some have a mutual agreement that stipulates 12 months of probation period.
| 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 |
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 2 weeks | Yes |
| Sick Leave | 1 week | Yes |
| Maternity Leave | 12 weeks | Yes |
Payroll
Payroll Cycle
Salaries in the Bahamas are released every month.
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.
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.
Bonus
A 13th-month pay is not mandatory in the Bahamas.
Taxes
| Type of Contribution | Contribution Rate |
| Social Security | 5.9% |
| Type of Contribution | Contribution Rate |
| Social Security | 3.9% |
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:
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.
