Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Bermudian Dollar
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Bermuda is located in the North Atlantic Ocean and is a British Overseas Territory. It is located approximately 1,035 kilometers east-southeast of Cape Hatteras, North Carolina; 1,236 kilometers south of Cape Sable Island, Nova Scotia; 1,759 kilometers northeast of Cuba; and 1,538 kilometers north of the British Virgin Islands. Bermuda has 181 islands, the largest of which is Main Island, despite being commonly referred to in the singular. Hamilton is Bermuda's capital. Bermuda is self-governing, with a constitution and cabinet of ministers chosen from the elected lower house of a Parliament that enacts local legislation. The Government of the United Kingdom, as the national government, is ultimately responsible for maintaining good governance in British Overseas Territories, as well as for defense and foreign affairs. It has a population of 71,176 people as of July 2018, making it the most populous of the British overseas territories. Offshore insurance, reinsurance, and tourism are Bermuda's most significant sectors. For most of the twentieth century, Bermuda had one of the highest GDP per capita in the world. Bermuda's climate is subtropical, owing to its chilly yet moderate winter temperatures. Summers are mild, too, compared to other designated subtropical regions, with temperatures rarely exceeding 30°C in the hottest months of July and August. Its climate shares oceanic characteristics with other oceanic islands and the western coasts of Northern Hemisphere continents: the mean wind direction is from the west, carrying wet, moist air from the ocean, ensuring relatively high humidity and temperature stability. Bermuda is located in Hurricane Alley, making it vulnerable to extreme weather; however, a coral reef and its location to the north of the belt provide some protection, limiting the path and intensity of incoming storms.

04. Public holidays

05. Types of leave

Paid time off

Employees are given two weeks of paid annual leave each year, which cannot be carried over.

Public holidays

Bermuda recognizes the following holidays:New Year’s DayGood FridayBermuda DayNational Heroes’ DayEmancipation DayMary Prince DayLabour DayRemembrance DayChristmas DayBoxing Day

Sick days

After one year of work, employees are entitled to eight days of sick leave. After two days, the employee must present a certificate from a medical practitioner stating that he or she is unable to work due to sickness. Employees on sick leave are not eligible for a termination notice unless they have missed four weeks of work due to sickness.

Maternity leave

After one year of employment, female employees are entitled to 13 weeks of paid maternity leave as well as time off from work to attend doctor visits relating to the pregnancy. Employees who have worked for less than a year are entitled to 13 weeks of unpaid leave. Employees must produce a medical document stating that they are pregnant and the estimated due date.

Paternity leave

After one year of employment, male employees are entitled to five days of paternity leave. Employees on maternity or paternity leave are not eligible for a termination notice.

Parental leave

Other than the already mentioned terms for both maternity and paternity leaves, there are no provisions in the Bermuda law regarding parental leave.

Other leave

For the loss of a spouse, child, parent, sibling, or member of the employee's household (not a landlord, employer, or employee), employees are entitled to three days of bereavement leave. If an employee has to attend an overseas burial for a close relative, bereavement leave is extended to five days.Employees are also given time off to vote, perform public tasks, and serve on juries. A notice of termination cannot be served on an employee who is on vacation or bereavement leave.

06. Employment termination

Termination process

In Bermuda, employment can be terminated at the end of a fixed-term contract or at the conclusion of a project, by the employer for a legitimate cause, or by the employee. During the probationary phase, an employee may be terminated without cause. Bermuda does not have a mandatory probation term, however one may be stated in the employment contract.

Additionally, an employee may be terminated without notice for significant misbehavior that is so damaging that retaining the person would be unreasonable. When an employee's conduct does not reach to this degree of seriousness or when the employee's performance is substandard, the employer is required to issue a written warning. If the employee's behaviour or performance does not improve after six months, the employer may fire the employee without warning.

Outside of the probationary period and in the absence of grave misbehavior, the employer must have a legitimate basis for terminating the employment and provide written notice to the employee.

Employers may remove roles that are superfluous. Employers are required to notify the union or other representative body of the termination and cooperate with the union to reduce the effect of cutbacks, which may include reassignments.

Notice period

For weekly employees, the notice period is one week; for biweekly employees, it is two weeks; and for all other employees, it is one month. Employers may substitute remuneration for notice.

Severance pay

Severance pay is payable to employees who have served at least one year. The severance pay is two weeks for each completed year of service up to ten years and three weeks for each subsequent completed year of service. The maximum severance is 26 weeks.

Probation period

Bermuda does not have a mandatory probation period, but one may be specified in the employment contract.

07. Working hours


The standard workweek in Bermuda is 40 hours over five days. This is from Monday to Friday from 9 A.M. to 5 P.M. An employer ought to give at least a 30-minute meal break to an employee who has worked for five continuous hours.


Overtime is typically compensated at 150 percent of the basic rate.

08. Minimum wage


In Bermuda, employees are entitled to a monthly minimum wage. However, the law requires that wages include bonuses and tips to offset the employer's cost of redundancies and termination.

Bermuda's current minimum wage is 400 BMD per month. The average monthly salary can reach 7,120 BMD.

09. Employee benefits


Employers must offer health insurance to their workers and nonworking spouses. Employees who work more than 15 hours per week and for more than two calendar months in a year must be covered.

Employers pay the whole insurance payment and must contribute half of the premium rate. The remainder of the premium rate may be taken from the workers' pay. The insurance must be purchased from a licensed insurer in a local area. Employers are liable for their workers' health-care expenses at any time when they are not covered by an insurance plan.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.