
Lucas Botzen
Founder & Managing Director
Last updated:
October 7, 2025
What is an Employer of Record in Bahamas?
View our Employer of Record servicesAn Employer of Record (EOR) helps you hire employees in the Bahamas without setting up a local company. The EOR acts as the legal employer, handling all the administrative and legal parts of employment for you. This means you can build a team in the Bahamas while the EOR manages payroll, benefits, taxes, and compliance with local labor laws. If you're looking to hire in the Bahamas, a provider like Rivermate (https://rivermate.com/employer-of-record) can handle these complexities.
How an Employer of Record (EOR) Works in Bahamas
An EOR simplifies hiring in the Bahamas. You find the talent, and the EOR puts them on its payroll.
Here is the process:
- You Choose Your Team Member. You find and interview the person you want to hire in the Bahamas.
- The EOR Hires Them Legally. The EOR hires the employee through its local Bahamian entity. It drafts a compliant employment contract and handles all the onboarding paperwork.
- The EOR Manages HR and Payroll. The EOR processes payroll in the local currency, withholds necessary contributions, and administers employee benefits. They make sure everything follows the rules set by authorities like the National Insurance Board of The Bahamas (https://www.nib-bahamas.com/).
- You Manage Daily Work. The employee works for your company. You direct their daily tasks, projects, and performance, just like any other team member. The EOR handles the HR administration in the background.
Why use an Employer of Record in Bahamas
Using an EOR is a practical way to grow your team in the Bahamas. It removes the major hurdles of international hiring, letting you access new talent quickly and legally. You can test a new market without the significant cost and time commitment of establishing a legal entity.
Here are the main benefits:
- Ensure Full Compliance. You don't have to become an expert on Bahamian labor law. The EOR keeps up with all legal requirements, including the Bahamas' Employment Act, which you can find on the government's Labour Acts and Laws page (https://www.bahamas.gov.bs/labour). This protects you from legal risks.
- Start Hiring Quickly. Setting up a company abroad can take months. With an EOR, you can onboard a new employee in a matter of days.
- Reduce Your Costs. You avoid the expensive legal fees, administrative costs, and capital requirements needed to register a business in the Bahamas.
- Handle Payroll and Benefits Easily. The EOR manages all aspects of payroll, including contributions for social security. They can also offer competitive benefits packages to attract top talent.
Responsibilities of an Employer of Record
As an Employer of Record in Bahamas, Rivermate is responsible for:
- Creating and managing the employment contracts
- Running the monthly payroll
- Providing local and global benefits
- Ensuring 100% local compliance
- Providing local HR support
Responsibilities of the company that hires the employee
As the company that hires the employee through the Employer of Record, you are responsible for:
- Day-to-day management of the employee
- Work assignments
- Performance management
- Training and development
Costs of using an Employer of Record in Bahamas
Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Bahamas includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Bahamas.
Employ top talent in Bahamas through our Employer of Record service
Book a call with our EOR experts to learn more about how we can help you in Bahamas







Book a call with our EOR experts to learn more about how we can help you in Bahamas.
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Hiring in Bahamas
Hiring in the Bahamas comes with its own set of rules and cultural practices. The tourism and financial services sectors drive the economy, creating a unique job market. To hire employees, you generally need to establish a local business entity. If you're hiring foreign workers, you'll need to secure work permits and prove that no qualified Bahamian is available for the position.
Employment contracts & must-have clauses
While verbal agreements are permissible, it's always better to have a written contract in the Bahamas. This helps avoid confusion and disputes down the road. You can create indefinite or fixed-term contracts.
Your employment contracts should include these key clauses:
- Parties' information: Names and addresses of both you and the employee.
- Job details: The employee's title and a clear description of their work.
- Start date: The official first day of employment.
- Work location: Where the employee will be based.
- Compensation: The salary or wage rate and how often you'll pay the employee.
- Working hours: The expected hours of work.
- Leave entitlement: Details on vacation, sick leave, and other time off.
- Termination conditions: The notice period and conditions for ending the employment.
- Confidentiality: A clause to protect your company's sensitive information.
Probation periods
The Bahamas doesn't have a legally mandated probation period. However, you can include a probationary period in a collective agreement, which typically lasts up to one year. This gives both you and the new hire a chance to see if it's a good fit.
Working hours & overtime
A standard workweek in the Bahamas is 40 hours, with a typical 8-hour workday. The maximum legal workweek is 48 hours.
Here's how overtime pay works:
- Standard overtime: For any hours worked beyond the standard 40-hour week, you must pay 1.5 times the employee's regular hourly rate.
- Public holidays: If an employee works on a public holiday, they are entitled to double their regular rate of pay.
Public & regional holidays
Your employees are entitled to paid time off for public holidays. If a holiday falls on a weekend, it's usually observed on the following Monday.
Here are the public holidays for 2025:
Date | Holiday |
---|---|
January 1 | New Year's Day |
January 10 | Majority Rule Day |
April 18 | Good Friday |
April 21 | Easter Monday |
June 6 | Randol Fawkes Labour Day |
June 9 | Whit Monday |
July 10 | Independence Day |
August 4 | Emancipation Day |
October 13 | National Heroes' Day |
December 25 | Christmas Day |
December 26 | Boxing Day |
Hiring contractors in Bahamas
You can hire independent contractors in the Bahamas for more flexibility. This allows you to access specialized skills without the commitment of a full-time employee.
When you hire a contractor, you'll use a service agreement instead of an employment contract. This agreement should clearly define the scope of work, payment terms, and project timeline.
A key difference is that you don't have to withhold taxes or pay National Insurance contributions for contractors. They are responsible for their own taxes.
However, it's crucial to classify workers correctly. If you treat a contractor like an employee, you could face misclassification risks, which can lead to penalties and back taxes. An Employer of Record (EOR) can help you mitigate this risk. An EOR acts as the legal employer for your workers, ensuring compliance with local labor laws and handling all HR tasks like payroll and taxes. This lets you focus on managing your team's work without worrying about the legal complexities.

Compensation and Payroll in Bahamas
In the Bahamas, you'll find a straightforward approach to compensation and payroll. The country has no income tax. Instead, both you and your employees contribute to a social security program. The primary law governing employment is the Employment Act of 2001.
Payroll cycles & wage structure
You can pay your employees on a monthly, bi-weekly, or weekly schedule. Monthly pay is the most common. You decide the pay cycle and include it in the employment contract. There are no mandatory 13th or 14th-month bonus payments.
Overtime & minimums
The minimum wage is 260 Bahamian dollars (BSD) per week. You must pay overtime for any work that exceeds 8 hours in a day or 40 hours in a week. The standard overtime rate is 1.5 times the employee's regular pay. If an employee works on a public holiday, the pay is double their regular rate.
Employer taxes and contributions
Your primary responsibility is to contribute to the National Insurance Board (NIB). This funds social security benefits for your employees.
Contribution | Rate |
---|---|
National Insurance Board (NIB) | 5.9% |
Employee taxes and deductions
Your employees also contribute to the National Insurance Board. They do not pay any income tax.
Contribution | Rate |
---|---|
National Insurance Board (NIB) | 3.9% |
Income Tax | 0% |
How an Employer of Record, like Rivermate can help with payroll taxes and compliance in Bahamas
An Employer of Record (EOR) manages monthly payroll calculations, employer contributions, and tax filings in-country on your behalf. Rivermate handles registrations, payslips, statutory reporting, and remittances to authorities so you stay compliant with local rules and deadlines—without setting up a local entity. Our specialists monitor regulatory changes and ensure correct rates, thresholds, and caps are applied to every payroll cycle.
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Benefits and Leave in Bahamas
In the Bahamas, providing the right benefits and leave is key to hiring and keeping great people. It's not just about following the rules. It's about showing your team you value them. The law sets the minimum, but many companies offer more to stand out.
Statutory Leave
Here are the legal minimums for paid time off in the Bahamas.
- Annual Leave: After one year of service, employees get at least two weeks of paid vacation. This increases to three weeks after seven years of employment.
- Sick Leave: Employees who have worked for at least six months are entitled to one week of paid sick leave per year. A medical certificate is required for any absence longer than one day.
- Maternity Leave: Female employees are entitled to 12 weeks of maternity leave. The employer pays a portion of the salary, and the National Insurance Board (NIB) may cover the rest.
Public Holidays & Regional Holidays
Employees are entitled to paid time off for public holidays. If they have to work, they must receive premium pay.
Holiday | Date in 2025 |
---|---|
New Year's Day | January 1 |
Majority Rule Day | January 10 |
Good Friday | April 18 |
Easter Monday | April 21 |
Randol Fawkes Labour Day | June 6 |
Whit Monday | June 9 |
Independence Day | July 10 |
Emancipation Day | August 4 |
National Heroes Day | October 13 |
Christmas Day | December 25 |
Boxing Day | December 26 |
Typical Supplemental Benefits
Beyond the legal requirements, many employers offer additional benefits to attract top talent.
Statutory Benefits | Non-Statutory (Supplemental) Benefits |
---|---|
National Insurance Board (NIB) Contributions | Private Health Insurance |
Paid Annual Leave | Life and Disability Insurance |
Paid Sick Leave | Performance-Based Bonuses |
Paid Maternity Leave | Additional Paid Time Off (e.g., paternity leave) |
Severance Pay | Retirement or Pension Plans |
How an EOR Can Help with Setting Up Benefits
Setting up a competitive benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.
We handle the details of Bahamian employment law. This means we ensure you comply with all mandatory contributions and leave policies. We can also advise you on what supplemental benefits are common in your industry to help you attract the best candidates.
An EOR helps you:
- Stay compliant with local labor laws.
- Administer payroll and NIB contributions correctly.
- Offer competitive benefits packages without the administrative burden.
- Save time and resources, so you can focus on growing your business.
How an Employer of Record, like Rivermate can help with local benefits in Bahamas
Rivermate provides compliant, locally competitive benefits—such as health insurance, pension, and statutory coverages—integrated into one EOR platform. We administer enrollments, manage renewals, and ensure contributions and withholdings meet country requirements so your team receives the right benefits without added overhead.
Termination and Offboarding in Bahamas
When you part ways with an employee in the Bahamas, you need to follow a clear process. You cannot simply fire someone on the spot. The law requires a valid reason for termination, such as misconduct, redundancy, or a breach of contract. You must provide the employee with notice and, in many cases, severance pay. The whole process is about ensuring a fair and respectful exit for your team members.
Notice periods
Giving proper notice is a key step. The amount of notice you provide depends on the employee's job and how long they have worked for you. You can give notice either in writing or verbally.
Here is a simple breakdown of the minimum notice periods:
Employee's Time with Company | Non-Managerial Position | Managerial or Supervisory Position |
---|---|---|
Less than 90 days | No notice required | No notice required |
91 to 179 days | No notice required | No notice required |
180 days to 1 year | 1 week's notice or pay | 1 month's notice or pay |
More than 1 year | 2 weeks' notice or pay | 1 month's notice or pay |
If an employee's role becomes redundant, the notice periods are two weeks for non-managerial staff and one month for managerial staff, provided they have been with you for at least one year.
Severance pay
Severance pay is also a critical part of the offboarding process, unless you are terminating an employee for serious misconduct. The amount of severance depends on the employee's role and their length of service.
For terminations not related to redundancy:
- Non-managerial employees (more than one year of service): 2 weeks' salary for each year of service.
- Managerial or supervisory employees: 1 month's salary for each year of service.
If the termination is due to redundancy, the payments are:
- Non-managerial staff: 2 weeks' basic pay for each year of service, up to a maximum of 24 weeks.
- Managerial staff: 1 month's basic pay for each year of service, up to a maximum of 48 weeks.
How Rivermate handles compliant exits
When you work with us, you don't have to navigate these rules alone. We make sure every termination and offboarding process is handled correctly and in full compliance with Bahamian law.
Here’s how we help:
- Clear Guidance: We walk you through the necessary steps for a compliant termination, from notice periods to final pay.
- Correct Calculations: We calculate the exact notice and severance pay required for each employee, so you avoid costly mistakes.
- Documentation: We help you prepare the necessary paperwork to ensure a smooth and professional exit process.
- Risk Reduction: By ensuring everything is done by the book, we help protect you from potential legal disputes or claims of unfair dismissal.
Our goal is to manage these sensitive situations with clarity and professionalism, allowing you to focus on running your business.
Visa and work permits in Bahamas
Navigating the visa and work permit process in the Bahamas requires a clear understanding of the local regulations. If you're looking to hire someone to work in the Bahamas, they will need the correct authorization. The Bahamian government requires foreign nationals to have a valid work permit to be legally employed in the country. This process is employer-led, meaning you as the employer are responsible for handling the application on behalf of your employee.
There are two main types of work permits in the Bahamas:
- Short-term work permit: This is for work assignments lasting up to 90 days.
- Long-term work permit: For employment extending beyond 90 days, a long-term permit is necessary. This permit is typically issued for one year and can be renewed.
The core of the work permit application is demonstrating that a Bahamian citizen is not available to fill the position. This involves advertising the job locally and providing proof of these efforts to the Department of Immigration.
Employment visas & sponsorship realities
Sponsoring a work permit in the Bahamas is a significant commitment. The sponsoring company must be a locally registered entity. This can be a challenge if you don't have a legal presence in the Bahamas.
This is where an Employer of Record (EOR) can help. An EOR in the Bahamas can act as the legal employer for your employee. This means the EOR can sponsor the work permit on your behalf, removing the need for you to set up your own local company.
An EOR handles the complexities of the work permit application process, ensuring everything is compliant with Bahamian immigration and labor laws. They can manage the necessary paperwork, including the employment contract and contributions to the National Insurance Board (NIB).
Keep in mind that even with an EOR, the requirement to advertise the position locally still applies. The authorities need to be satisfied that no qualified Bahamian is available for the role.
Business travel compliance
It's important to distinguish between business travel and work. A business visa allows for certain activities, but it is not a substitute for a work permit.
Visitors traveling to the Bahamas for business purposes can typically do so for short periods without a work permit. Permissible activities on a business visa may include:
- Attending meetings and conferences
- Engaging in business negotiations
- Conducting market research
However, a business visa does not permit you to engage in any form of gainful employment. If the purpose of the visit involves productive work that would otherwise be done by a Bahamian resident, a work permit is required. It is crucial to ensure that your employees' activities in the Bahamas align with their visa status to avoid any legal issues.
How an Employer of Record, like Rivermate can help with work permits in Bahamas
Navigating work permits can be complex and time‑sensitive. Rivermate coordinates the entire process end‑to‑end: determining the right visa category, preparing employer and employee documentation, liaising with local authorities, and ensuring full compliance with country‑specific rules. Our in‑country experts accelerate timelines, minimize refusals, and keep you updated on each milestone so your hire can start on time—legally and confidently.
Frequently asked questions about EOR in Bahamas
About the author

Lucas Botzen
Lucas Botzen is the founder of Rivermate, a global HR platform specializing in international payroll, compliance, and benefits management for remote companies. He previously co-founded and successfully exited Boloo, scaling it to over €2 million in annual revenue. Lucas is passionate about technology, automation, and remote work, advocating for innovative digital solutions that streamline global employment.