Economic Overview, Global Reinsurance Capital & Digital Assets
Bermuda is the world's leading center for reinsurance and insurance-linked securities, alongside pioneering global digital asset regulation overseen by the Bermuda Monetary Authority (BMA).
Key Economic Sectors
- Reinsurance & Captive Insurance: Houses the world's largest concentration of catastrophic property/casualty reinsurers.
- Digital Asset Business & FinTech: Global hub for licensed cryptocurrency, blockchain, and digital financial institutions under DABA.
- Trusts & Wealth Management: World-class legal and private family office administration.
Employment Contracts, Employment Act 2000 & Probation
Regulated by the Employment Act 2000 (and 2021 Amendments).
- Written Statement of Employment: Mandatory within 7 days of commencing work, detailing duties, pay, hours, leave, and disciplinary policies.
- Probation Period: Maximum statutory probation is 6 months (extendable once by up to 3 months).
Working Hours, Overtime & Rest Periods
- Standard Hours: 35 to 40 hours per week.
- Overtime: Non-managerial staff working beyond 40 hours/week receive 150% (1.5× base wage) or equivalent paid time off.
Annual Leave, Public Holidays & Maternity Protections
- Annual Paid Vacation: Minimum 2 weeks (10 working days) of paid annual leave per year, scaling to 3–4 weeks under commercial market practice.
- Public Holidays: 10 official public holidays (including Bermuda Day in May and Cup Match in August).
- Maternity Leave: 13 weeks of maternity leave (8 weeks fully paid after 1 year of service). Paternity leave is 5 consecutive paid days.
Payroll Tax, National Pension Scheme & Health Insurance
| Statutory Benefit / Tax | Employer Share | Employee Share | Description |
|---|---|---|---|
| National Pension Scheme | 5.0% | 5.0% | Mandatory occupational pension for Bermudians/spouses |
| Social Insurance (Contributory Pension) | BMD $37.92 / wk | BMD $37.92 / wk | Fixed weekly government social insurance |
| Standard Health Insurance (SHB) | 50% of premium | 50% of premium | Mandatory employer-provided health cover |
| Bermuda Payroll Tax | Progressive business rate | Max 10.25% withheld | Government tax on total remuneration |
Termination, Notice & Severance Pay
- Notice Periods: At least 1 to 4 weeks written notice based on pay frequency and contract terms.
- Severance Pay: Payable for redundancy after 1 year of service: 2 weeks' salary per year of service for the first 10 years, plus 3 weeks per year thereafter (capped at 26 weeks' pay).
Why Use an Employer of Record (EOR) in Bermuda
- Fast Market Entry: Avoid 4–8 week corporate registration hurdles in an elite offshore jurisdiction.
- Payroll Tax & Pension Compliance: Accurate administration of Bermuda Payroll Tax and National Pension Scheme contributions.
- Department of Immigration Work Permits: EOR navigates work permit advertising, vetting, and sponsorship for expatriate talent.
Hiring in Bermuda? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:
