Bermuda’s more than just a postcard-perfect island. It’s a global business hub with proximity to the U.S. and Europe, a stable economy, and a skilled, English-speaking workforce. Whether you’re eyeing your first hire on the island or building out an entire team, there’s a lot to love—and a lot to get right.
Here’s your guide to navigating Bermuda’s hiring landscape. We’ll walk through the legal must-knows, payroll setup, tax responsibilities, and how to stay compliant without getting buried in paperwork. Consider this your step-by-step guide to hiring smart in Bermuda.
Understanding legal foundations for hiring in Bermuda
Hiring in Bermuda starts with understanding its legal playbook. The Employment Act 2000 lays down the rules for contracts, leave, termination, and working conditions. It’s your baseline, and you’ll need to build from there.
Unlike in some countries, there’s not a strong union presence here. That means most of the job details get worked out in the contract. But even then, you’ve got to meet the legal minimums.
Hiring Bermudians vs. non-Bermudians
Here’s the short version: If a qualified Bermudian is available for the role, you’re expected to hire them. That’s written into the Bermuda Immigration and Protection Act 1956. For everyone else, you’ll need to go through the work permit process.
Work permits come in a few forms:
- Standard Work Permit. Good for 1–3 years. You’ll need proof that no Bermudian could fill the role.
- Global Work Permit. A fast-track option if you’re transferring a current employee to Bermuda. No job ad required.
The Department of Immigration handles applications. You’ll need job descriptions, recruitment history, and a clear case for hiring someone from abroad. The process takes a few weeks, so build that into your timeline.
Skip the permit and hire a foreign worker anyway? That’s not just risky, it’s illegal.
Setting up payroll and compensation structures
Now let’s talk money. Setting up payroll in Bermuda means understanding how pay works, which systems to use, and what taxes you’ll be responsible for. It’s not overly complex, but you do need to follow the rules.
1. Register for payroll tax and social insurance
Start by registering with Bermuda’s Office of the Tax Commissioner. You’re responsible for payroll tax, which is calculated on total compensation (wages, bonuses, benefits)—the whole package.
You’ll also need to contribute to social insurance. It supports state pensions, and the rate is fixed: BMD $75.30 per week per employee, split 50/50 with the worker.
2. Pay at least the minimum wage
As of 2024, Bermuda introduced its first minimum wage: BMD $16.40 per hour. No matter what role you’re hiring for, that’s your baseline.
3. Run payroll locally
You’ll pay employees in Bermuda dollars (BMD), which are pegged 1:1 with the U.S. dollar. While some businesses pay in USD, employee pay typically runs through Bermuda-based accounts. Set up your systems accordingly.
You can use a local payroll provider or a global one that supports Bermuda. Just make sure it covers required deductions and local compliance.
Calculating and reporting payroll tax obligations
Here’s the good news: Bermuda doesn’t have personal income tax. But as an employer, you still have payroll tax responsibilities.
Rates range from 0.5% to 10.25%, depending on your total payroll and business category. You’ll file quarterly returns, pay the tax electronically, and keep your records for five years.
Late filings will get you late penalties and assessments, so put your deadlines on autopilot.
Managing employment contracts and onboarding
In Bermuda, a verbal agreement won’t cut it. You need to issue a written contract within a week of your employee starting.
That contract must include:
- Job title and responsibilities
- Salary and pay frequency
- Working hours and overtime rules
- Vacation and sick leave policies
- Termination terms and notice period
You’ll usually include a three-month probation clause, plus confidentiality and dispute resolution terms.
Onboarding also includes payroll and benefits registration, confirming work permit status, and helping with things like local bank account setup. Get it right, and you set the tone for a great working relationship.
Managing employee benefits and ongoing compliance
In Bermuda, some benefits are required, others are up to you. Here’s what you can’t skip:
- Health insurance. You need to provide at least the Standard Health Benefit (SHB), currently BMD $355/month per employee. For the most current Standard Health Benefit rates, check with the Bermuda Health Council or the Department of Health Insurance.
- Social insurance. Covered earlier, but worth repeating.
- Paid time off. Two weeks minimum vacation and eight public holidays.
Optional perks like pensions and wellness programs help you compete for top talent.
Make sure any contract changes or terminations follow the law. Notice periods depend on how long someone’s been with you, and any updates to employment terms need to be in writing.
Staying compliant also means keeping up with renewals, tax filings, and any legal updates. If you don’t have a local HR team, working with legal advisors or outsourcing HR is a smart move.
Adapting to remote and non-resident employment scenarios
Hiring a remote worker in Bermuda? The rules still apply.
Even if your company is based elsewhere, if the employee is physically in Bermuda, you still need a work permit. And unless you have a legal entity on the island, setting up local payroll and benefits gets tricky.
That’s what an Employer of Record (EOR) was made for. An EOR hires the employee on your behalf, handles compliance, and runs payroll legally—without you needing to open a local office.
You can also explore this guide to hiring foreign workers without setting up a legal entity if you’re looking at similar markets beyond Bermuda.
Tips and resources for hiring success in Bermuda
Want your work permit approved on the first try? Keep it clear and straightforward.
- Post the job ad for at least eight days if it’s open to non-Bermudians.
- Document everything—interviews, candidate notes, reasons for selection.
- Give yourself a buffer. Permits take time to process.
Start with gov.bm and the Department of Immigration for up-to-date forms and requirements. And if it’s your first time hiring in Bermuda, talk to a consultant or an employer of record.
Need a broader overview? This guide to hiring international employees outlines key considerations for global teams.
FAQs about Bermuda hiring and payroll
Is there a strong talent pool in Bermuda?
Yes, especially in finance, insurance, and compliance. Tech roles may need international recruitment.
Can I hire employees without a local entity?
Not directly. But you can use an EOR to do it legally.
What should I budget for total employee compensation?
Mid-level finance professionals typically earn BMD $80k–$120k. Add 15% to 20% for benefits and taxes.
Can I pay employees in USD?
Some businesses do, but wages are usually deposited into Bermuda bank accounts, which operate in BMD.
Making it work: Strategic hiring in Bermuda
Hiring in Bermuda isn’t complicated, but it is different. If you understand the rules and plan ahead, you’ll avoid roadblocks and build a team that lasts.
Get clear on your responsibilities. Learn Bermuda’s work permit process. Set up payroll that ticks every compliance box.
And when in doubt, partner with experts who know all the ins and outs.
Skip the permit maze. Start hiring in Bermuda.
Here’s the thing about Bermuda: amazing talent, complex rules. Work permits that take weeks. Advertising requirements. Payroll tax calculations. Social insurance contributions. Health insurance mandates. It’s enough to make you reconsider that brilliant hire in Hamilton.
That’s where Pebl’s EOR in Bermuda changes everything. We’ve already done the heavy lifting—permits, compliance, payroll systems, the whole deal. You find the talent. We make them your employee. Legally, quickly, without the headaches.
No more wondering if you’ve missed some crucial requirement. No surprise penalties. No compliance slips that keep you up at night. Just smooth, legal hiring that lets you move as fast as your business needs to.
Ready to tap into Bermuda’s talent pool without drowning in red tape? Let’s talk about getting your team on the ground—the right way, the fast way, the Pebl way.
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.
© 2025 Pebl, LLC. All rights reserved.
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