Build a global team in minutes
Get expert helpThe Bahamas is more than a travel destination. For global companies, it's also a gateway to a skilled, English-speaking workforce in a time zone that syncs with major markets. But hiring here? It comes with its own set of rules.
Whether you're building your first international team or expanding an existing one, you need to know exactly how to hire and pay employees in the Bahamas without getting tangled up in compliance issues.
This guide walks you through the process step by step, so you can stay focused on what matters: finding great people and getting them to work.
Step 1: Understand legal requirements for hiring in the Bahamas
To legally hire in the Bahamas, you have to lay the right foundation. That means knowing who you can hire, which registrations are required, and the labor laws that apply to you.
Work permits and visas
If you're hiring a Bahamian citizen, you can skip the permit process. But for non-Bahamians, a work permit is required, and the employer is responsible for applying. That typically involves submitting a job description, proof that no qualified Bahamian applied, and paying a fee that can range from BSD $500 to BSD $10,000 per year, depending on the role.
Want a breakdown of those fees? View the full government fee schedule.
The basics of Bahamian labor law
The Bahamas Employment Act lays out the rules you'll need to follow: maximum 40-hour workweeks, overtime pay at 1.5x the hourly rate, mandatory paid vacation and sick leave, and clear rules for termination. To be enforceable, contracts must meet these legal minimums.
Do you need to open a local entity?
To hire directly, yes. That means registering with multiple government bodies and staying compliant. But there's a faster way: partner with an Employer of Record (EOR). An EOR legally hires employees on your behalf, handles payroll, taxes, and contracts, and keeps you compliant from day one.
Step 2: Recruiting, screening, and contracting employees
Now that you're ready to hire, where do you find great talent, and how do you bring them on legally?
If you're hiring non-Bahamians, be sure to post locally first. You'll need proof that you tried to hire within the country before applying for a work permit.
Contracts in the Bahamas must clearly outline the job title, salary, benefits, hours, probation period, and termination terms. You can offer fixed-term or open-ended agreements, but they must follow the Employment Act.
Step 3: Managing payroll and paying employees in the Bahamas
Once your team is in place, your next priority is paying them correctly and on time.
Start by registering with the National Insurance Board (NIB). Both employer and employee contribute, 5.9% and 3.9% of insurable wages, respectively. While there's no income tax, NIB deductions must be accurately calculated and submitted monthly.
Minimum wage in the Bahamas is BSD $260 per week. Employees are also entitled to at least two weeks of paid vacation, public holidays, sick leave, and 12 weeks of maternity leave (partially paid by NIB).
Most employees expect to be paid in Bahamian dollars, which are pegged 1:1 to USD. Direct deposit is the preferred method. If you're operating from abroad, using an EOR or payroll provider helps streamline payments and avoid delays.
Employers must issue payslips and keep payroll records for three years. These should clearly show gross pay, deductions, and net pay.
Tips for a smooth application process
Work permit delays are common, so start early. Keep all supporting documents well organized, and always advertise roles locally before making international offers. Local compliance is non-negotiable, cutting corners will cost more in the long run.
How EOR providers simplify Bahamas hiring
An Employer of Record (EOR) is your compliance safety net. They're the legal employer on paper, while your team still works for you. A trusted EOR partner manages work permits, local contracts, payroll, benefits, and stays on top of changing regulations-so you don't have to.
Working with an EOR is a smart move if you want to scale quickly without setting up a full legal entity. It's global hiring, minus the guesswork.
Make your next hire in the Bahamas the right way
Hiring in the Bahamas gives you access to top talent in a business-friendly environment. But there's a right way to do it. This guide is your roadmap-use it to stay compliant and confident at every step.
Pebl helps you hire and pay in the Bahamas with zero guesswork
Pebl's global payroll service makes it easy to hire, pay, and stay compliant in the Bahamas. We handle the legal paperwork, permits, payroll, and contracts, so you can focus on growing your business.
Want to get started? Let's talk.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.
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