Employer of Record in The Bahamas
Last updated
- Capital City
- Nassau
- Languages
- English
- Currency
- Bahamian Dollar (BSD)
- Population Size
- 400,000
- Employer Taxes
- 5.9%
- Employee Costs
- 3,9%
- Payroll Frequency
- Weekly/Bi-weekly
Hire Globally, Pay Locally, Expand Effortlessly
Establishing a separate legal entity in The Bahamas involves navigating a complex and often lengthy administrative process.
An Employer of Record (EOR) in The Bahamas serves as a trusted partner for global workforce mobility, providing comprehensive compliance assurance in the local market for international employees. By leveraging an EOR in The Bahamas, businesses gain essential local knowledge that simplifies global expansion. With INS Global, companies can onboard and manage employees seamlessly within 48 hours, backed by full HR support.
Acting as the official employer for tax and HR administration, an Employer of Record in The Bahamas offers employment outsourcing solutions that allow organizations to efficiently hire and oversee overseas staff. INS Global’s EOR service in The Bahamas enables businesses to quickly and cost-effectively manage international hiring in under 48 hours.
Want to have a Team in Bahamas TODAY?
Show me how to grow my business now!
We prefer to let others grow their business.
The Difference Between PEO And Employer of Record Services in The Bahamas?
When expanding abroad, you may be considering working with a PEO (Professional Employment Organization) or an EOR (Employer of Record) in The Bahamas. Here’s a quick look at the difference between these options:
- PEOs offer HR-related services to your employees and handle tasks such as processing payroll, tax contributions, and contract management.
- EORs are very similar to PEOs but can recruit and hire employees on your behalf, thereby becoming their legally responsible employer.
- In a PEO arrangement, the primary employment contract is established directly between you and the employee.
- In an EOR arrangement, you oversee the contract which is made officially between the EOR and the employee on behalf of your business.
PEO/EOR Vs Company Incorporation
The Advantage in Figures
| PEO/EOR | Company Incorporation | |
|---|---|---|
| Price | 80% Less Expensive | |
| Market Entry | 2-5 Days | 6 Months |
| Employee Turnover | Decrease by 14% | |
| Recommendation | 98% of the Current PEO Clients | |
| Administrative Fees | Saves an Average of $450 | |
| Costly Payroll and Compliance Fines | Help Avoid | |
| Company Growth Rate | 7 – 9% | |
| ROI | 27% | |
| Closed During Pandemic | -58% | |
| Contact Us Today |
The Advantages of Using a EOR in The Bahamas
Ensure Legal Compliance
EORs in The Bahamas have local experience and can help you find and manage staff internationally while also abiding by complex labor laws. This helps prevent costly fines and penalties.
Reduced Cost And Time
Working with a local EOR allows you to expand abroad at a fraction of the cost. Working with a EOR in The Bahamas means that you don‘t have to set up a company there, reducing your overheads while expanding.
Grow Your Company
EORs take all the HR-related responsibilities off your shoulders so that you can focus on what really matters: your business. Partnering with a local EOR in The Bahamas empowers your business and staff to stay focused on your goals while we handle all the HR for you.
Expand Quickly
If you were to set up a new company abroad, the process can take anywhere from 4 to 12 months. Working with a EOR in The Bahamas streamlines the process and allows you to launch in a new market in less than a week.
Manage Your HR Remotely
INS Global offers you a way to manage your international workforce online. With a modern, cloud-based HR platform, you can keep track of your staff from anywhere in the world.
How Does an EOR In The Bahamas Work?
INS Global’s EOR in The Bahamas helps your company to expand in 4 simple steps:
- 1
We work with your business to create an expansion plan that meets all your needs.
- 2
Our organization provides a legal entity to help hire and manage staff in The Bahamas.
- 3
We handle HR-related tasks such as recruitment, contract management, and payroll processing to ensure legal compliance.
- 4
Your employees focus on your goals while we manage the rest.
INS GUIDES
Check Our Labor Law GuideS
Learn how the Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
Download the Guide
Labor Law in The Bahamas
Employment Contracts in The Bahamas
- Employment in The Bahamas starts with an official letter of employment.
- Employers can include a probation period, but it cannot last longer than 12 months.
- An employer can end the contract early if the employee violates the conditions specified in the employment contract.
- Employees typically get 2 weeks’ notice if they have been with the company for less than a year. This extends to 1 month if they have been with the company longer.
- Employees who are eligible for severance pay typically get 2 weeks’ salary for every year of service up to a maximum of 24 weeks, or 1 month for each year up to a maximum of 48 weeks for management positions.
The working week in The Bahamas starts on Monday and ends on Friday.
Full-time employees work 8 hours per day, 40 hours per week.
Part-time employees work 20 hours per week and can’t work more than 40 hours.
Employees are entitled to a higher hourly rate for overtime. This is generally 150% of the standard hourly rate and 200% on public holidays.
Types Of Leave
The Bahamas has 11 official national holidays.
Employees are entitled to a minimum of 2 weeks of paid time off per year.
Employees may be entitled to additional time off according to their employment contract.
Employees are only entitled to all of their annual leave after 12 months of service.
Bahamian labor law allows employees up to 1 week of sick leave.
Employees should notify their employers before the working day starts and provide a medical certificate as proof of illness.
Proof of illness must be given to the employee’s department head within 48 hours of returning to work.
Employers are required to pay the employees their full salary during this time.
Sick leave exceeding the minimum allocation can be claimed from social security.
According to Bahamian law, female employees are entitled to 12 weeks of maternity leave.
This can be extended if there are multiple births or complications at birth.
The employee must fill out an application and submit it at least 3 months before the expected date of birth.
Employers are responsible for paying 33.3% of the employee’s salary during maternity leave.
Paternity leave can be taken for a period of 1 week after childbirth but is unpaid leave.
Tax Laws in The Bahamas
- Employers in The Bahamas are responsible for withholding all social contributions.
- Employers are required to contribute an amount equivalent to 5.9% of an employee’s salary toward social security, with a salary ceiling of 36,924 BSD. Employees contribute 3.9% with a salary ceiling of 36,924 BSD.
- Bahamian employees do not have to pay any personal income tax.
- All employees are required to file their own tax returns each year.
- The corporate income tax rate in The Bahamas is 0%.
Contact Us Today
Frequently Asked Questions
Global Employer of Record is an effective solution for companies looking to expand their workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiently, providing access to a global talent pool while still managing payroll compliance in each country.
Start Hiring Today