Employer of Record Bhutan
Last updated
- 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
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.
Want to have a Team in Bhutan TODAY?
Show me how to grow my business now!
We prefer to let others grow their business.
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% | |
| Contact Us Today |
The Advantages of Using an Employer of Record or Professional Employer Organization in Bhutan
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
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
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
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.
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.
Download the Guide
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.
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
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.
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
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%.
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