Employer of record in Bermuda

We make it easy and smooth to expand your business into Bermuda. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

Accelerate your growth into Bermuda compliantly and hassle-free

At Serviap Global, we handle all employee onboarding, payroll, compliance, risk, mitigation, and benefits, so you can focus on what matters most: your business.

How we can help you expand in Bermuda

As your EOR in Bermuda, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in Bermuda provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team. 

Expand to Bermuda with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in Bermuda, being sure that your staff will be hired in compliance with labor and tax regulations.

Table of contents

Quick facts

Bermudian Dollar (BMD)


Payroll Cycle:


The economy

Aside from its long history of success within the financial sector, Bermuda is considered to be a tax haven for corporations. There are very few taxes imposed on corporations, and none levied on individuals; however, this contributes to an inflated cost of living.

Population characteristics

Bermuda has about 63,000 citizens and English is the primary language spoken on the island. Specifically, the local population speaks Bermudian English, a dialect of English with Portuguese and French influences. 

The people are friendly and open with a strong work ethic and characteristic British sensibilities due to the ties to the United Kingdom.

Economic opportunities

Though many business sectors would flourish in Bermuda, finance and technology would be the best operations to outsource to the island. At the last Bermuda Virtual Tech Summit in October 2021, the executive director of Ignite Bermuda stated there is currently a significant effort to increase tech presence on the island.

Efforts to increase technology education within Bermuda have only just begun, but the island population has demonstrated an intense desire to learn. As a result, the workforce in Bermuda would be highly motivated and take to training easily.

Key sectors of the national economy

Human talent
Bermuda is considered an international hub for the financial and insurance sectors. Here are a few examples of thriving industries:
  • Asset management: Bermuda hosts over 2,000 funds from the top US and European private equity groups
  • Insurance & risk: the island has over 50 years of experience in the insurance and risk management industry
  • Climate risk: Bermuda is one of the world’s key markets in the climate risk insurance industry Bermuda is also a leader in infrastructure industries and high-net-worth services. Any business that deals in large sums of money should see Bermuda as a desirable location for operations outsourcing.

Prominent cities for business

Bermuda is a 21 square mile territory located a few hundred miles off the East Coast of the US. While there are no cities, the island is separated into the following regions:
  • St. George’s and The East End: St. George is the location of top attractions in Bermuda, historic sites, and nature reserves.
  • Hamilton and Central Bermuda: Bermuda’s capital is located in the area. It’s also home to the harbor and the epicenter of city living on the island.
  • Royal Naval Dockyard and The West End: This area is one of the islands’ most popular destinations, home to many beaches and cruise ship ports.

Technological ecosystem

Currently, Ignite Bermuda projects that more than 60% of the island’s jobs will soon be in tech. Local charity Connectech aims to teach technology to Bermudians; since their launch they’ve taught more than 3,000 students. 

The program has been integrated with local school systems, creating a generation of tech-literate Bermudians entering the workforce within the next few years.

Facilities for foreign investment

Bermuda has been an international player in the financial industry for over 50 years. The Bermudian workforce has extensive banking experience and currently maintains its status as a world leader in financial matters. 

Combined with the lack of tax regulation on the island, Bermuda positions itself as an ideal choice for all money matters. Furthermore, an entrepreneurial acceleration program has propelled job creation and diversity on the island.

Bermuda gastronomy: regional and traditional cuisines

Fish and other seafood are main staples of the Bermuda diet along with abundant fresh vegetables and the native banana. On Sunday, having a big codfish breakfast is tradition. It’s steamed cod with potatoes, onions, sliced bananas and a hard boiled egg. Black rum cake is the famous desert that comes from this island.

General highlights



States / provinces

7 islands

Principal regions

Hamilton, Sandys, Southampton, Pembroke, St


English and Portuguese

Local currency

Bermudan dollar (BMD)

Date format


Thousands separator format


Country dial code


Time zone

AST (UTC -4)


63,500 (2022)

Border countries

East of Cape Hatteras (North Carolina, U.S.)

Continental surface

53.2 km2

Fiscal year

April 1st to March 31st 


There is no VAT or sales tax in Bermuda

Minimum wage

BM$16.00 to BM$16.40 per hour

Taxpayer identification number name in the

Bermuda does not issue tax identification numbers
(TINs) or equivalent identifiers for tax purposes

Laws and agencies that regulate labor relationships

LawsBrief description
ConstitutionFormed in 1968
Labor codeEmployment Act 2000
Tax codeOffice of the Tax Commissioner (OTC)
Social securityContributory Pensions Fund

Key tax and labor authorities

Office of the Tax

Commissioner (OTC)

Bermuda’s tax office
Labour & Industrial Relations DepartmentCertifies unions, helps with resolutions, etc.

Labor contracts

Employment Act 2000This act was updated in 2021 and applies to anyone who works more than 15 hours
Workers Compensation Act 1965All businesses located in Bermuda are liable for workplace accidents
The Human Rights Act 1981This act outlines how both the employer and employee are protected
Occupational Safety and Health Act 1982All employers must have a committee to review health and safety standards. The employees should be safe from harmful substances, tobacco, machinery, radiation and have clean air
Work hoursThe standard is 8 hours a day or 40 hours per week, Mondays to Fridays
Basic requirements
Labor contracts must contain:
a.  The full names of the employer and employee
b.  The date when the employment began
c.  The job title and brief description of the work for which the employee is employed
d.  The place or places of work
e.  The gross wage or the method of calculating it, and the intervals at which it is to be paid
f.  The normal days and hours of employment or, where the job involves shift work, the normal pattern of the shifts
g.  The entitlement to holidays, including public holidays, and paid annual vacation
h.  The terms relating to incapacity for work due to sickness or injury, including provision for sick leave
i.  The length of notice which the employee is obliged to give, and entitled to receive, to terminate his contract of employment
j.  Details of any pension provided, whether under the National Pension Scheme (Occupational Pensions)
Act 1998 or otherwise
k.  Any disciplinary and grievance procedures applicable
l.  Where the employment is not expected to be permanent, the period for which it is expected to continue or, if it is for a fixed term, the date on which it is to end 11
m.  Any probationary period
n.  Any dress code
o.  The existence of any collective agreement which directly affects the terms and conditions of the employment
p.  Such other matters as may be prescribed; and may contain other details relating to the terms and conditions of employment (3) Where there are no particulars to be entered under paragraphs (k) to (o) of subsection (2), that fact shall be noted in the statement (4) The statement may refer the employee for particulars of the matters mentioned in paragraphs (g) to (k) and (n) of subsection (2) to (a) the provisions of any collective agreement which directly affects the terms and conditions of his employment; or (b) to any other relevant document.


Paychecks should be in the local BMD currency.

Payroll tax is payable on a quarterly basis, commencing on the first day of April, July, October, and January. Payments are due within 15 days of the end of each tax period. 

Bermuda’s contributory pension scheme requires employers to make monthly contributions to the Contributory Pensions Fund for every employee above 17 years of age, for each week the employee works more than four hours. 

An employer must ensure that each qualifying employee registers with the department and obtains a social insurance number. Civil and criminal penalties may apply to employers for failure to register or pay in for each qualifying employee.

Employees contribute a matching sum via weekly payroll deduction, with several exceptions. Full-time students under the age of 26 who are employed during holidays, weekends, and summer breaks, and their employers, are entirely exempt from social insurance contributions. 

Employees over the age of 65 are exempt from contributing their half, although the employer must still contribute its part. The current total contribution per employee per week is BM$71.84. The employer portion is BM$35.92 and the employee portion is BM$35.92.

Legal benefits in Bermuda 

Minimum wage

BM$16.00 to BM$16.40
Overtime(1) Any hours worked by an employee in excess of forty hours a week shall either— (a) be paid at the overtime rate; or (b) be paid at the employee’s normal hourly wage and compensated by giving him the same number of hours off in lieu
Occupational risk insuranceAlthough not required, without it you open yourself up to legal repercussions
Vacations or PTO(1) An employee shall be entitled to a period of two weeks annual vacation after he has completed— (a) the first year of continuous employment; and (b) each subsequent year of continuous employment, but such periods of vacation are not cumulative

Leaves of absence

Employees have the right to paid absences for the following things:

Ante-natal care: An employee who is pregnant and who has, on the advice of a registered medical practitioner, made an appointment to receive antenatal care, is entitled to take time off during her working hours to attend the appointment Maternity leave: 12 weeks coverage consisting of 8 weeks paid leave and 4 weeks unpaid leave

Sick leave: An employee who has completed at least one year of continuous employment shall be entitled to be paid at his/her normal hourly wage eight days per year when he or she is unable to work due to sickness or injury. 

If an employee will be out sick for two or more days, the employer can require the employee to provide a certificate from a registered medical certifying the practitioner has examined the employee and determined that he or she is unable to work due to sickness or injury Bereavement leave :

 (a) three consecutive days on the death of a member of the employee’s immediate family; or (b) five consecutive days in order to attend the funeral of a member of the employee’s immediate family overseas

Annual taxable income

There are no income taxes levied on individuals in Bermuda. Taxation in Bermuda is focused on land ownership and employer payroll. As of April 2017, however, the employer payroll tax can now be levied on the employee as well. 

The employer and the employee can split the liability of this tax, with the employer paying some and the employee paying the rest.

Students, employees caring for loved ones, or any employers making contributions to an approved pension or health insurance plan are exempt from this tax. No income derived from Bermuda is subject to taxes, so long as the company is incorporated within the country.

However, employers should expect to pay a payroll tax. This tax is calculated based on the total annual pay given to employees. Depending on the size of the workforce on payroll, this tax can be as high as 10.25%. Certain specialties, such as schools, charities, government, and religious bodies, are exempt from this charge.

Public holidays

DateHoliday name
1 JanuaryNew Year’s Day
Friday before Easter SundayGood Friday
28 MayBermuda Day
21 JuneNational Heroes Day
29 JulyEmancipation Day
30 JulyMary Prince Day
6 SeptemberLabour Day
11 NovemberRemembrance Day
25 DecemberChristmas Day
26 DecemberBoxing Day
The Labor Code outlines rules for termination of an employment contract
Type of terminationBrief description
Justified dismissal

1.   In   lieu   of   providing   notice   of   termination   of   employment in accordance with section 20, an employer may, at his discretion, pay an employee a sum equal to the wages and other remuneration and confer on him all other benefits that would have been due up until the expiry of any required period of notice. Termination of employment means termination by reason of—

b.       redundancy

c.       the winding up or insolvency of an employer

d.       the death of an employer

e.       the death of an employee from an occupational disease or accident resulting from that employment. Severance allowance is not payable where an employee— (a) unreasonably refuses to accept an offer of reemployment by the employer at the same place of work under no less favorable terms than he was employed; immediately prior to the termination (b) is employed by a partnership and his employment ceases on the dissolution of the partnership and—(i) he enters into employment with one or more of the partners immediately after the dissolution

Unjustified dismissal

The following do not constitute valid reasons for dismissal or the imposition of disciplinary action—

an employee’s race, sex, religion, colour, ethnic origin, national extraction, social origin, political opinion, disability or marital status

a.       an employee’s age, subject to any other enactment or any relevant collective agreement regarding retirement

b.       any reason   connected   with   an   employee’s   pregnancy,   unless it involves absence from work which exceeds allocated leave entitlement

c.       an employee’s trade union activity

d.       an employee’s temporary absence from work because of sickness or injury, unless it occurs frequently and exceeds allocated leave entitlement

e.       an employee’s absence from work for any of the reasons mentioned in section 13 (public duties), or due to service as a volunteer fire officer

f.         an employee who removes himself from a work situation which he reasonably believes presents an imminent and serious danger to life or health

g.       an employee’s participation in any industrial action which takes place in conformity with the Labour Relations Act 1975

h.       the filing of a complaint or the participation in proceedings against

an employer involving alleged violations of this Act

Voluntary resignation2. Where an employee terminates his contract of employment without notice in circumstances in which notice was required, and his employer has not waived the right to notice, the employee shall be entitled only to such wages and other remuneration which accrued at the date of termination

Other forms of compensation upon termination include Severance pay grades:

The employer must make a severance payment of two weeks for each year that the employee worked for the company until ten years pass. After ten years, severance pay increases to three weeks for each year until the maximum of 26 weeks of wages. 

The employee is entitled to a written itemized statement with each payment of severance pay when they are let go. The contract itself may also call for other forms of compensation.

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