Employer of Record Bhutan | INS Global

Country Guide

Employer of Record Bhutan

Last updated: May 19, 2025

Capital City

Thimphu

Languages

Dzongkha

Currency

Bhutanese Ngultrum (BTN)

Population Size

Approximately 800,000

Employer Taxes

Around 12%

Employee Costs

Around 10%

Payroll Frequency

Monthly

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Expanding to Bhutan? EOR (Employer of Record) Services Help You Hire Globally, Pay Locally, and Expand Effortlessl

Are you contemplating a venture or expansion in Bhutan? INS Global’s Employer of Record in Bhutan solutions offer a seamless approach to finding and managing personnel, eliminating the need for a local establishment. Skillfully manage a globally dispersed workforce and swiftly enter new markets with the assistance of adept HR recruitment and payroll specialists.

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Why Choose an Employer of Record in Bhutan Over Company Incorporation?

Establishing a new company in a foreign jurisdiction is often intricate, especially if unfamiliar with local regulations and employment norms.

Engaging with a Bhutanese Employer of Record:

  • Curtails expansion costs
  • Reduces timelines
  • Assures local compliance
  • Makes the most of local expertise
  • Permits a focus on business development within Bhutan’s distinctive landscape

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%

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%
employer of record

The Advantages of Using an Employer of Record or Professional Employer Organization in Bhutan

icon EOR

Legal Compliance Assurance

Select an Employer of Record (EOR) service well-acquainted with Bhutan’s regulatory intricacies for efficiently recruiting and supervising a global workforce. This proactive strategy safeguards against potential penalties, providing tailored support aligned with Bhutan labor laws 

icon EOR

Lower Expansion Costs

Partnership with an Employer of Record in Bhutan accelerates and simplifies global expansion while substantially trimming the typical expenses linked with growth. Expand your operations without the need for a new entity in Bhutan, resulting in significant overhead savings

icon EOR

Focus on Growing Your Company

An Employer of Record in Bhutan shoulders all HR responsibilities on your behalf by streamlining operations and helping you to concentrate solely on your business’s international objectives

icon EOR

Expand Effortlessly

Establishing a new enterprise in Bhutan can be time-consuming, ranging anywhere from a number of weeks to a full year, thanks to unfamiliar local challenges. Conversely, aligning with a local Employer of Record expedites the expansion process, ensuring entry into the Bhutanese market in as little as a week.

icon EOR

Manage Your HR Online

INS Global presents an effective avenue for managing your diverse, global workforce online through an advanced digital platform. Leverage our cutting-edge proprietary cloud-based HR system to effortlessly supervise all your employees and their requirements remotely.

How Does an Employer of Record In Bhutan Work?

INS Global’s Employer of Record in Bhutan paves the way for your company’s overseas expansion in four tailored steps precisely calibrated to the Bhutanese business environment.

1

Collaborate with your business to devise a personalized expansion plan

2

Provide the requisite legal entity for hiring or transferring staff in Bhutan, ensuring adherence to all local legal mandates

3

Manage HR tasks, encompassing hiring, contract administration, and payroll management, guaranteeing local compliance in Bhutan

4

Enable your employees to concentrate on business objectives in the future by continuously addressing evolving HR and legal compliance needs

The Differences Between PEOs and Employer Of Record

When considering a partnership with a PEO in Bhutan, you will likely also hear the term EOR (Employer of Record). Typically, the two terms are largely interchangeable based on the kind of services they offer. The main difference between the two is the level of liability taken on by the PEO/EOR and the parties involved in the agreement.  

  • A PEO provides all HR services to employees on behalf of other companies 
  • A PEO agreement is made between the PEO and the original company to share the responsibilities for the employee 
  • An EOR in Bhutan legally hires the employee on behalf of the original company and provides all HR services 
  • An EOR agreement is made between the EOR and the employee on behalf of the original company 

In Bhutan both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements 

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.
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Labor Law in Bhutan

Employment Contracts in Bhutan

  • Professional employment in Bhutan always starts with an official letter of employment.
  • Employers can usually include a 6-month probation period in labor contracts.
  • An employer can end an employment contract early if the employee violates the conditions of the contract.
  • Employees are entitled to 1 month’s notice in the event of contract termination.
  • Severance pay is required for employees who have served for more than 5 years. This is calculated at a rate of 1 month’s pay for every year of active service.

Working Hours

  • The typical working week in Bhutan runs from Monday to Friday.
  • Full-time employees generally work 8 hours per day, 48 hours per week.
  • Employees are not allowed to work more than 40 hours per week without receiving overtime pay.
  • Employees are entitled to a higher hourly rate for overtime. This is 150% of the basic rate.

Types Of Leave

Annual Leave in Bhutan

  • Bhutan has 13 official national holidays.
  • Employees are entitled to 18 days of paid annual leave every year.
  • Annual leave is calculated and accumulated at a rate of 1.5 days per month of service.

Sick Leave in Bhutan

  • When an employee is unable to attend work due to illness, they need to get a doctor’s note and present it to HR as soon as possible
  • Employees are entitled to up to 5 days of sick leave
  • Employees can claim from social security during this time

Maternity / Paternity Leave in Bhutan

  • According to Bhutanese law, female employees are entitled to 2 months of maternity leave. However, they must have been working for the company for 12 months prior
  • Maternity leave allowance can be claimed from social security
  • Male employees are entitled to 10 days of paternity leave

Tax Laws in Bhutan

  • Employers in Bhutan are responsible for withholding all taxes and social contributions.
  • Employers contribute the equivalent of 5% of the employee’s salary to their social security fund, while employees contribute 5%.
  • The corporate income tax rate is set at 25% for both local and foreign companies.
  • Personal income tax ranges from 0% to 30%.

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Frequently Asked Questions

faqs

While creating a local entity is an option, teaming up with a local Employer of Record proves more efficient in Bhutan. Employer of Record services bring local expertise as well as facilitate hiring and staff management on your behalf. 

An Employer of Record in Bhutan manages various HR tasks, such as payroll processing, tax compliance, employment contracts, and contributions to social security, ensuring comprehensive compliance for your entire workforce. 

Establishing a new company abroad can take months to a year, but with INS Global’s EOR services, you can recruit employees and enter a new market in as little as a week. 

EOR service costs are directly tied to your employee’s salary, calculated as a percentage and covering all HR functions for compliant employment in Bhutan. 

Yes, collaborating with an Employer of Record in Bhutan is a legal and efficient solution, streamlining your expansion plans while reducing costs. 

Salaries are typically processed monthly for full-time employees, while part-time workers may receive weekly or bi-monthly payments. 

Recruitment costs in Bhutan vary, but INS Global simplifies remote recruitment and staff management, reducing the expenses associated with managing an international workforce. 

An Employer of Record in Bhutan can recruit and hire employees from all regions, facilitating swift expansion across the country. 

Modifications to employment contracts require mutual agreement. 

Yes, employers in Bhutan are responsible for withholding taxes and social contributions from employee salaries, including an employer’s contribution to each employee’s social security fund. 

INS Global customizes its services to your company’s needs, assisting with recruiting and hiring as many or as few employees as required for your expansion plans. 

Severance pay is required for employees who have served for more than 5 years. This is calculated at a rate of 1 month‘s pay for every year of active service. 

In Bhutan, employees can be hired for both in-person and remote opportunities, allowing for reduced overheads during international expansion. 

Certainly! Our local experts bring extensive experience in finding top talent globally by providing support in recruiting, hiring, and managing your workforce, regardless of your location. 

Bhutan observes 13 national holidays where employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate. 

Employers must adhere to strict labor laws and regulations to avoid costly penalties and fines. Partnering with an experienced EOR in Bhutan ensures compliance during your expansion. 

Yes! INS Global assists in the recruitment and management of a diverse workforce, simplifying the process of hiring both Bhutanese citizens and foreigners. 

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Bhutan

Date Day Holiday Notes
January 2 Thursday Winter Solstice (Nyilo) Marks the return of longer days; traditional New Year in western Bhutan
January 30 Thursday Traditional Day of Offering Day of gratitude and offerings; also known as Chunipa Losar
February 21 Friday Birth Anniversary of His Majesty the King Celebrates the birthday of King Jigme Khesar Namgyel Wangchuck
February 22 Saturday King’s Birthday Holiday Additional day to honor the King’s birthday
February 23 Sunday King’s Birthday Holiday Additional day to honor the King’s birthday
February 28 Friday Losar (New Year) Bhutanese New Year; based on the lunar calendar
March 1 Saturday Losar Holiday Second day of Losar celebrations
May 2 Friday Birth Anniversary of the 3rd Druk Gyalpo Honors King Jigme Dorji Wangchuck; also celebrated as Teachers’ Day
May 7 Wednesday Death Anniversary of Zhabdrung (Zhabdrung Kuchoe) Commemorates the passing of Zhabdrung Ngawang Namgyal
June 11 Wednesday Lord Buddha’s Parinirvana Marks the death and enlightenment of Lord Buddha
July 5 Saturday Birth Anniversary of Guru Rinpoche Honors the birth of Padmasambhava, the second Buddha
July 28 Monday First Sermon of Lord Buddha Commemorates Buddha’s first teaching at Sarnath
September 23 Tuesday Blessed Rainy Day (Thruebab) Marks the end of monsoon; day for ritual purification
October 2 Thursday Dashain Hindu festival celebrated by the Nepali community
November 1 Saturday Coronation Day of His Majesty the King Commemorates the coronation of King Jigme Khesar Namgyel Wangchuck
November 11 Tuesday Birth Anniversary of the 4th Druk Gyalpo Honors King Jigme Singye Wangchuck; also observed as Constitution Day
November 11 Tuesday Descending Day of Lord Buddha (Lhabab Duechen) Marks Buddha’s descent from heaven after teaching his mother
December 17 Wednesday National Day Commemorates the establishment of the monarchy in 1907

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