How EOR Services Work in Bhutan

✅ Faster Market Entry – No need to establish a local entity.
✅ Legal & Tax Compliance – Ensures adherence to employment laws.
✅ Risk Mitigation – Reduces compliance risks and penalties.
✅ Cost-Effective – Saves time and resources on HR administration.

Advantages of Using Global EOR Services in Bhutan

Deep understanding of Bangladeshi labor laws.
Proven expertise in managing international employment challenges.
Transparent pricing with no hidden costs.
End-to-end support for onboarding, payroll, compliance, and offboarding.

Employer of Record (EOR) Services in Bhutan

Expanding your business to Bhutan requires compliance with local employment laws, payroll regulations, and taxation policies. Employer of Record (EOR) services help companies hire employees in Bhutan without setting up a legal entity, ensuring full compliance with labor laws.

---

Why Use an EOR in Bhutan?

Hire employees in Bhutan without a legal entity

Ensure compliance with Bhutanese labor laws and taxation

Streamline payroll processing and benefits administration

Reduce administrative burden and focus on business growth

Manage work permits and visa requirements for foreign employees

---

Employment Laws in Bhutan

1. Employment Contracts

Written contracts are required and must outline salary, benefits, job responsibilities, and termination conditions.

Contracts can be fixed-term or indefinite.

2. Working Hours

Standard workweek: 40 hours (8 hours per day, 5 days a week).

Overtime pay is required for hours beyond the standard workweek.

3. Employee Leave

Paid Annual Leave: 30 days per year.

Sick Leave: 10 days per year with full pay.

Maternity Leave: 3 months with full pay.

Paternity Leave: 10 days with full pay.

Public Holidays: Bhutan has 14+ public holidays, depending on religious and national events.

4. Termination and Severance

The notice period varies based on the length of employment.

Severance pay applies if termination is not for misconduct.

---

Payroll and Taxation in Bhutan

1. Payroll Processing

Employees are typically paid on a monthly basis.

Payments are made in Bhutanese Ngultrum (BTN).

2. Social Security and Taxation

Personal Income Tax: Progressive tax rates apply based on salary levels.

Corporate Tax: Applies to companies operating in Bhutan.

Social Security Contributions: Employers contribute to pension and other social benefits.

---

How EOR Services Work in Bhutan

Onboarding Employees: The EOR hires employees on behalf of your company under local contracts.

Payroll & Tax Compliance: The EOR manages salary payments, tax deductions, and benefits administration.

HR & Legal Compliance: Ensures adherence to Bhutanese labor laws and regulatory requirements.

Work Permits & Immigration: If hiring foreign employees, the EOR handles work permits and visa processes.

Looking to hire employees in Bhutan without setting up a legal entity? Contact us today to explore EOR solutions in Bhutan!

Employment Law and Considerations for EOR Services in Bhutan

Expanding into Bhutan requires a deep understanding of employment laws, payroll regulations, and compliance requirements. Employer of Record (EOR) services provide a seamless solution for companies to hire employees in Bhutan while ensuring full legal compliance.

---

Key Employment Laws in Bhutan

1. Employment Contracts

Employment contracts must be written and include salary, benefits, job roles, and termination terms.

Contracts can be fixed-term or indefinite, with clear conditions for renewal or termination.

Bhutan follows strict labor laws, ensuring employee rights are well-protected.

2. Working Hours & Overtime

Standard Workweek: 40 hours (8 hours/day, 5 days a week).

Overtime Pay: Employees are entitled to additional compensation for extra hours worked.

Breaks & Rest Periods: Employees must receive adequate rest breaks.

3. Employee Leave Policies

Annual Leave: Employees are entitled to 30 days of paid annual leave.

Sick Leave: 10 days per year with full pay.

Maternity Leave: 3 months of paid leave.

Paternity Leave: 10 days of paid leave.

Public Holidays: Bhutan has 14+ public holidays that vary each year.

4. Termination & Severance

Employers must provide written notice before termination.

Severance Pay: Employees terminated without misconduct are entitled to severance based on their length of service.

Dismissal must comply with Bhutan’s Labor and Employment Act to avoid legal risks.

---

Payroll and Taxation in Bhutan

1. Payroll Processing

Employees are paid monthly in Bhutanese Ngultrum (BTN).

Employers must deduct and submit income tax and social security contributions.

2. Taxation & Employer Contributions

Personal Income Tax: Progressive tax rates based on salary levels.

Corporate Tax: Applies to businesses operating in Bhutan.

Social Security Contributions: Employers must contribute to social benefits for employees.

---

Considerations for EOR Services in Bhutan

1. Compliance with Local Laws

An EOR ensures that all employment contracts, tax filings, and payroll processes comply with Bhutanese labor laws.

2. Work Permits & Visa Sponsorship

For foreign employees, an EOR manages work permits and visa applications, ensuring compliance with immigration laws.

3. Risk Management

Hiring through an EOR minimizes legal and financial risks associated with employment law violations.

4. Benefits Administration

EORs handle health insurance, social security, and statutory benefits to keep employees satisfied and compliant.

---

Why Use an EOR in Bhutan?

✔ Hire Employees Without a Legal Entity – Save time and resources.
✔ Simplified Payroll & Tax Compliance – Avoid administrative burdens.
✔ Reduced Legal Risks – Stay compliant with Bhutanese labor laws.
✔ Faster Market Entry – Start operations quickly without delays.

Looking to expand your business in Bhutan? Contact us today to learn how our Employer of Record (EOR) services can help you hire employees quickly, legally, and efficiently!