Employer of Record in Bhutan

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Bhutan . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Bhutan.

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1. Grow your team in Bhutan with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Bhutan , particularly if you don't have established local relationships. You can hire employees in Bhutan effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Bhutan, formally known as the Kingdom of Bhutan, is a landlocked nation in the Eastern Himalayas situated in the geographical subregion of Southern Asia between China and India. Bhutan is known as the "Land of the Thunder Dragon," or "Druk Yul." Although Nepal and Bangladesh are close neighbors, they do not share a geographical boundary. The nation has a population of about 754,000 people and a land area of 38,394 square kilometers (14,824 square miles), ranking 133rd in terms of land area and 160th in terms of population. Bhutan is a constitutional monarchy and the national religion is Vajrayana Buddhism.

The country's lush subtropical lowlands in the south give way to the subalpine Himalayan mountains in the north. There are peaks in Bhutan's Himalayas that rise more than 7,000 meters (23,000 feet) above sea level. Gangkhar Puensum is Bhutan's highest peak and the world's highest unclimbed mountain. Bhutan's fauna is noted for its richness, notably the Himalayan takin. Thimphu is the capital and biggest city.

Bhutan and adjacent Tibet saw the expansion of Buddhism, which started in the Indian subcontinent during Gautama Buddha's lifetime. The Vajrayana style of Buddhism spread to Bhutan from the southern Pala Empire of Bengal in the first century. During the fall of Buddhism in India, Tibet, Bhutan, Sikkim, and portions of Nepal were the last bastions of the Mahayana schools. Bhutan was also influenced by the Tibetan Empire. Ngawang Namgyal united the valleys of Bhutan into a single empire in the 16th century. Namgyal repulsed three Tibetan invasions, conquered competing religious schools, formalized the Tsa Yig legal system, and formed a theocratic and civil administration regime. Namgyal was the first Zhabdrung Rinpoche, and his successors served as Bhutan's spiritual leaders, similar to the Dalai Lama in Tibet. During the 17th century, Bhutan ruled over huge sections of northeast India, Sikkim, and Nepal, as well as Cooch Behar State. During the Bhutan War in the nineteenth century, Bhutan relinquished the Bengal Duars to British India. The House of Wangchuck ascended to the throne and strengthened links with the British in the subcontinent. A pact signed in 1910 provided British foreign policy guidance in return for domestic autonomy in Bhutan. The agreement was maintained via a new treaty with India in 1949, in which both nations acknowledged the sovereignty of the other. Bhutan became a member of the United Nations in 1971. Since then, it has strengthened ties with 55 nations, including Bangladesh, Israel, Kuwait, Brazil, Japan, Thailand, and Turkey, as well as the European Union. Bhutan retains its own military divisions despite its reliance on the Indian military.

The 2008 Constitution creates a parliamentary administration with an elected National Assembly and National Council. Bhutan founded the South Asian Association for Regional Cooperation (SAARC). Bhutan placed third in South Asia on the Human Development Index in 2020, after only Sri Lanka and the Maldives. Bhutan also belongs to the Climate Vulnerable Forum, the Non-Aligned Movement, BIMSTEC, the International Monetary Fund, the World Bank, UNESCO, and the World Health Organization (WHO). In 2016, Bhutan was rated top in SAARC for economic freedom, ease of doing business, peace, and absence of corruption. Bhutan boasts one of the world's greatest hydroelectric water supplies. Climate change-related glacier melting is a major problem in Bhutan.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Bhutan is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Employers and workers alike have the right to cancel their contracts at any moment with sufficient notice. During this phase, both parties must submit at least 30 days' notice of contract termination or payment equal to income. Employers are permitted to fire employees without notice or compensation for specific circumstances. These justifications may include violating contract terms or creating other types of harm. The labor laws provide the following grounds for dismissal: theft, fraud, or misappropriation of property, willful disobedience, assault or another serious crime, sabotage, wilful absence, sexual harassment, causing damage, or violating the Tsa Wa Sum (disrespecting the King).

Notice period

Bhutan has no legislation regulations governing notice periods.

Probation period

A contract of employment of one year or more may include a probationary period of up to 180 days, during which period either party may terminate the contract by giving the other party seven days notice. Employers are not permitted to require an employee to repeat a probationary period for the same or substantially similar work.

Severance pay

When an employer has worked for at least five years and their contract is terminated rather than dismissed, they may be entitled to severance pay based on their length of service.

6. Working hours

There is no information about the working hours for this country.

General working schedule

The standard workweek in Bhutan consists of eight hours per day and forty-eight hours per week. Every week, employees are entitled to a 24-hour rest period, which employers should specify in the employment contract.


Employees have the option of working up to two overtime hours per day or 12 per week. Each employee is permitted to work only one overtime night shift per week. The overtime rate is determined by a company's internal service rules, but it must be at least equal to a person's standard pay rate.

7. Minimum wage

There is no information about the minimum wage for this country.

Employers may establish their own minimum wages through internal service rules, but they cannot be less than the federal minimum wage. The Ministry of Labor and Human Resources has the current minimum wage set at Nu. 125 a day.

Pay periods must be monthly or less frequent, and employers must maintain records of all paychecks.

8. Employee benefits

There is no information about the employee benefits for this country.

The government offers free public healthcare to all residents as part of the country's constitution. In the capital, there is just one private health care facility. Employers are not needed or obliged to provide health insurance.

The country's employment regulations do not cover any extra perks or incentives. Employers may add their own criteria in their businesses' internal service standards.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Bhutan's Corporate Income Tax rate was 30% on net earnings, with an additional 30% on net profits levied by the Business Income Tax.

Individual income tax

The Department of Revenue and Customs imposes no taxes on the first Nu.100,000 of income.

For an income of more than Nu. 100,000 but less than Nu. 250,000, the income tax rate is 10 percent.

For an income of more than Nu. 250,000 but less than Nu. 500,000, the income tax rate is 15 percent.

For an income of more than Nu. 500,000 but less than Nu. 1,000,000, the income tax rate is 20 percent.

For an income more than 1,000,001, the income tax rate is 25 percent.

In addition, property transfers are taxed at 5%. Rural taxes are also imposed on land, houses, and cattle. Other direct duties includes the motor vehicle tax, foreign travel tax, royalties, business and professional licenses, health contribution taxes, and municipal taxes.

VAT, GST and sales tax

Bhutan does not impose a value-added tax (VAT) or a goods and sales tax (GST).

10. VISA and work permits

There is no information about VISA and work permits for this country.

Travelers visiting the Kingdom of Bhutan will almost certainly need a Bhutan Visa. The Bhutan Visa Policy of "High Value, Low Impact Tourism" governs travel to this nation. This occurs as a result of the Bhutanese government's efforts to protect the country's cultural history.

Bhutan's Visa Policy was developed to minimize the influence on the country's distinctive society and environment. As a result, this approach assures that only a small number of visitors enter the nation at any one moment, preventing the country from being overrun by mass tourism. The country's character and ecosystem would be altered if widespread tourism occurred.

All nations, with the exception of those bordering Bhutan, will be required to get a Bhutanese visa before visiting its territory. This visa is only accessible by arranging a tour, which may be costly (USD 200 per day), but this is because the tours include a variety of services to let you get to know the nation as well as possible. Furthermore, these itineraries include accommodations, food, and transportation.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts


Description of the job

Notice periods for termination


Hours of work

Granted leave

With Rivermate being your Employer of Record (EoR) in Bhutan, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

For service of a year or more, Bhutan labor rules demand formal employment contracts. If an employer does not write down an agreement, it is considered an unwritten contract, and employment terms must meet all basic legal criteria.

Employment contracts may be for a specific or indeterminate amount of time, and they must include all information about the nature of the employment.

Payment currency

Bhutan Ngultrum (BTN)

13.Opening a subsidiary in Bhutan

There is no information about the working hours for this country.

How to set up a subsidiary

The Ministry of Economic Affairs will be the first stop on your subsidiary procedure. The Company Registry Division is in charge of keeping track of all registered company names and ensuring that no names are repeated. You'll need to identify and reserve an available business name for your incorporation.

You'll require a security clearance certificate (SCC) from the Royal Police after reserving your name. These certificates are valid for a year, and you must renew them yearly to keep your clearance.

You'll then return to the Ministry of Economic Affairs for the Industrial Department Division. You must submit an application as well as a project proposal, and the government will determine if your company concept aligns with the country's industrial development ambitions.

After you've completed all of the preceding stages, you'll be able to legally register your firm with the Regulatory Authority for Companies at the Ministry of Economic Affairs. A number of papers will be required, including your firm name clearance form, SCC, and industry clearance. Officials will also ask for your passport from your country of origin.

Subsidiary laws

The necessary articles of incorporation are one of the most noteworthy subsidiary laws. This document, which describes the structure of your firm, must be submitted when you register for incorporation. It should contain details such as how you plan to choose directors and keep track of your money.

When you apply for registration, your board of directors will sign a statement of conformity, confirming that your business will abide by all applicable laws. You may wish to consult with a lawyer while drafting your articles of incorporation to guarantee that all procedures are in accordance with the law.

Once you've registered your firm, the law requires you to have a business license on file. Along with your ID and SCC, you must present your project permission from the Industrial Department Division. This license also necessitates obtaining a site approval from the Thimphu City Corporation in order to do business.

13. Why choose Rivermate as your Employer of Record / PEO in Bhutan

Establishing an entity in Bhutan to hire a team takes time, money, and effort. The labor law in Bhutan has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Bhutan 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 (EOR) solutions in Bhutan 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 Bhutan via our Employer of Record (EOR) / PEO solution.

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