Bermuda: A Guideline to Payroll and Employer of Record

Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Bermuda.

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Overview

Bermuda is a British Overseas Territory located in the North Atlantic Ocean, about 650 miles east of Cape Hatteras, North Carolina. Bermuda is an archipelago of 181 islands, but the most significant islands are connected by bridges and appear to form one landmass. It has a land area of 54 square kilometres (21 sq mi). Bermuda has a sub-tropical climate, with mild winters and warm summers.Tourism has been a significant contributor to Bermuda's economy since the 19th century 

Do your organization's expansion plans require hiring employees in Bermuda? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo – one of the best Global payroll providers, assists organizations worldwide with onboarding and managing employees in Bermuda - payroll accounting and payroll software processing, managing local and global payroll compliance requirements, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Hamilton

Currency

Bermudian dollar

Official Language

English

Fiscal Year

1 April - 31 March 

Date Format

dd/mm/yyyy 

Country Calling Code

+1

Time Zone

AST (UTC-4)

Global Payroll

Overview

Handling payroll for a widespread workforce can pose as a major challenge for any firm. The added complication of compliance can make things worse and drastically effect the time and efforts that can be used in other equally important aspects of an organization's development. 

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the welfare of the general population.

Employee Taxes

Employee Insurance Contribution BMD 35.92


 

Employer Taxes

Social Insurance Contribution BMD 35.92

Payroll Cycle

Overview

Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature of it that provides a sense of accountability for an employee to be paid consistently for their work.

Frequency

The employer's pay cycle determines the frequency of wages paid to employees, with weekly, biweekly, and other pay cycles receives monthly pay compensation.

13th Month Cycle

There is no statutory requirement to pay the 13th or 14th month salary.

Global Work

Overview

An Employer of Record service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance. payroll taxes, and employee benefits to comply with local tax laws and regulations.

This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

The minimum wage in Bermuda is $16.40 per hour as of June 1, 2023.

Overtime

According to the Act, every hour worked over 40 hours in a week is considered overtime.

An employee who works in excess of 40 hours a week is entitled to be paid at the overtime rate of 1.5 times his normal hourly wage.

As an alternative, the employee may receive additional remuneration by being given the same number of hours as a substitute in addition to being paid his regular hourly rate for the extra hours.

Data Retention Policy

In Bermuda, there is no set maximum period for data retention. However, there are laws and policies that mandate businesses make sure that personal data is not maintained for any longer than is necessary for the intended use.

Hiring and Onboarding Requirements

Hiring

Hiring of Employees: 

Preferences and descrimination which forbids it on the basis of a variety of factors, including race, national origin, religion, sex, age, marital status, sexual orientation, handicap, public service, and political views. As a result, companies in Bermuda are not allowed to discriminate against job seekers or employees based on any of these reasons. . Employers can choose to hire a Bermudian candidate over a non-Bermudian candidate, even if the non-Bermudian candidate is more qualified.However, it is important to note that this preference only applies to hiring. Employers cannot discriminate against Bermudian employees in terms of promotion, pay, or other benefits.

Onboarding

Following are the documents needed for onboarding: 

  1. CV 
  2. ID Card 
  3. Birth Certificate 
  4. Proof of Address 
  5. National Tax Registry (RTN) 

Probation

Probation period should not exceed Six Months.

Leave

Public Holidays

  • 1 January - New Year's Day 
  • 3 January  - 'New Year's Day' day off 
  • 15 April - Good Friday 
  • 27 May - Bermuda Day 
  • 20 June - National Heroes Day 
  • 28 July - Emancipation Day 
  • 29 July - Mary Prince Day 
  • 5 September - Labour Day 
  • 11 November - Christmas Eve 
  • 25 December - Christmas Day 
  • 26 December - 'Christmas Day' day off 
  • 26 December - Boxing Day 
  • 27 December - Christmas/Boxing Day Holiday

The Bermuda EMPLOYMENT ACT 2000 govern's the country's leave policies. The following types of leave are allowed under the Employment Act:

Sick Leave

8 paid sick days per year after completing one year of continuous employment.

An employee shall not be entitled to be paid in respect of a period of two or more consecutive days unless, where his employer so requests, the employee provides the employer with a certificate from a registered medical practitioner certifying that the practitioner has examined the employee and determined that he is unable to work due to sickness or injury.

Maternity Leave

If an employee who has completed at least one year of continuous employment or will have done so by the expected date of delivery, a period of 13 weeks paid leave will be granted . In any other case, a period of 13 weeks unpaid leave will be granted.

Paternity Leave

Paternity leave must be taken within 14 weeks of the birth of the child and can only be taken once within a 12-month period.

Annual Leave

An employee shall be entitled to a period of two weeks annual vacation leave after they have completed:

  1. the first year of continuous employment; and
  2. each subsequent year of continuous employment

Antenatal Care Leave:

Pregnant employees are entitled to take time off during their working hours to receive antenatal care. An employee who has completed at least one year of continuous employment is entitled to be paid at her normal hourly wage for the time taken off. 

Bereavement Leave:

Unpaid leave for up to 3 days in a row in the event of a death in the employee's close family or for up to 5 days in a row to travel to another country to attend a funeral. 

Employees are allowed to take reasonable breaks during working hours to fulfill their civic responsibilities, such as attending meetings of government boards, the Senate, the House of Assembly, the Bermuda Regiment, or the Bermuda Reserve Police. Additionally, there is a right to time off for jury duty and Parliamentary voting. 

For time taken off under this section, an employee who has worked for at least a year continuously is entitled to compensation at his regular hourly rate; however, if the employee receives any payment in connection with his duties, the employer is allowed to deduct the equivalent amount from any wages payable under this subsection.

Termination

Overview

If an employer decides to terminate an employee's employment, they must provide the employee with notice. The amount of notice required depends on how long the employee has been employed with the company. For example, employees who have been employed with the company for less than six months are entitled to one week's notice, while employees who have been employed with the company for more than six months are entitled to two weeks' notice.

Notice Period

If an employee is paid weekly, they are entitled to at least one week's notice, biweekly employees are entitled to two weeks' notice, and monthly employees are entitled to one month's notice.

Severance Pay

According to the Act, an employee is entitled to severance pay if their employment is terminated as a result of being made redundant or the employer's firm being dissolved. An employee's right to severance pay is determined by their length of service and their income. Less than a year of employment with the company does not qualify an employee for severance pay. Employees with one year or more of service with the company are entitled to severance compensation in the amount of two weeks' earnings for each year that has been finished up to the first 10 years, and three weeks' wages for each year that has been completed after that, up to a maximum of 26 weeks' wages.

Visa

Overview

Documentation Work Permit:

  1. Completed and signed visa application form 
  2. Copies of valid passport (like the bio page) 
  3. Certified copies of your qualifications and passport 
  4. Certified copies of your degree and professional qualification certificates 
  5. Police certificate confirming that you have no criminal record 
  6. Proof of health insurance coverage 
  7. Proof of payment of the work permit fee

Employee Background Checks

Legal and Background Checks

There are no specific laws in Bermuda relating to employment references or background investigations of employees. However, the person being checked must consent to the release of information. 

Following background checks in Bermuda: 

  1. Credit checks 
  2. Criminal record checks are permitted in Bermuda.

Last updated on November 7, 2023

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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