The Bahamas has many opportunities for companies to expand internationally, with an economy boosted by the tourism and finance industries. There is no corporate tax in the Bahamas, and several types of companies that can be established based on your business needs.

Payroll and Labor Considerations in the Bahamas:

  • Minimum wage in the Bahamas is BSD 210 per week
  • Written employment contracts are recommended but not mandatory
  • Employers must pay overtime at 1.5 times the regular wages and double regular wages for holidays
  • Employees receive severance pay according to their tenure, supervisory status, and reason for dismissal. Severance can range from 2 weeks basic pay for each year up to 24 weeks

HR and Statutory Benefits

  • Annual leave is based on tenure and is paid in advance
  • Employees who have worked for 6 months are entitled to 1 week per year of paid sick leave
  • Female employees receive 12 weeks of maternity leave and leave must begin 1 week prior to the date of delivery. Maternity leave is paid from the National Insurance Board of the Bahamas
  • Employees who have been employed at least 6 months is entitled to 1 week of family leave without pay for paternity leave
  • The legal retirement age is 65 years old. Benefits are paid as a percentage of average monthly income for the last 3 years of retirement
  • The minimum pension is BSD 301 per month

Holidays in the Bahamas

  • January 1 – New Year’s Day
  • January 3 – New Year’s Day observed
  • January 10 – Majority Rule Day
  • April 15 – Good Friday
  • April 18 – Easter Monday
  • June 3 – Randol Fawkes Labor Day
  • June 6 – Whit Monday
  • July 10 – Independence Day
  • July 11 – Day off for Independence Day
  • August 1 – Emancipation Day
  • October 10 – National Heroes Day
  • December 25 – Christmas Day
  • December 26 – Day off for Christmas Day / Boxing Day

If you are just getting started in the Bahamas, or need to simplify current operations, we can help. Blue Marble has a cloud-based payroll platform with aggregated monthly reporting so you can view your payroll in real-time across all countries and currencies. Our unique-to-the-industry hybrid service model provides a dedicated US-based team and direct access to in-country experts to help when questions come up. Get payroll and compliance under control and avoid fines and penalties. To learn more about simplifying payroll in the Bahamas, click here