Bhutan

Bhutan charms with its “Gross National Happiness” ethos and pristine mountains. Its labour market balances tradition and modern rules. You’ll find no personal or corporate income tax below certain thresholds, but you must navigate social security, GST, work‑hour limits and leave entitlements to stay on the right side of the law.
Contractor Management
Currency
Bhutanese Ngultrum (BTN)
Payroll Frequency
Monthly
Employer Taxes
10%

Overview

Population
790 000
Language
Dzongkha
Capital
Thimphu
Currency
Bhutanese Ngultrum (BTN)
Country code
+975
Min wage
BTN 215/day
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
  • Mandatory
Avg employer tax

10%

Tax Breakdown

Social Security (Provident Fund & Insurance):

Employer contributes
5% of gross salary
Employee contributes
5% of gross salary

Income Tax (Pay As You Earn):

Up to BTN 300 000
0%
BTN 300 001–400 000
10% 
BTN 400 001–650 000
15%
BTN 650 001–1 000 000
20%
Above BTN 1 000 000
30%

Goods and Services Tax (GST):

Standard rate
7%
Essentials such as food and medicine
0%

Corporate Tax:

Standard rate
25% for resident and foreign companies

VAT

VAT

7%

Tax Calculation for Bhutan
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BT
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Bhutan typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Put it in writing. Cover title, duties, start date, salary, hours, probation, notice, leave and benefits.

Register Employees

Sign them up with the Ministry of Labour and the National Pension and Provident Fund.

Tax Registration

Get a Tax ID from the Department of Revenue and Customs and set up PAYE withholding.

Collect Documents

National ID or passport, work permit for foreigners, bank details and pension‑fund number.

Payroll Setup

Deduct social security, income tax and GST where applicable. File returns monthly by the 15th.

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Bhutan
When drafting an employment contract for employees in Bhutan, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • 5 working days per year after six months; medical certificate required
Maternity leave
  • 8 weeks paid at last basic pay; you can extend with unused sick or annual leave

Paternity leave
  • 10 working days paid within two weeks of birth

Casual Leave:

  • 5 working days per year

Annual Leave
  • 18 working days after six months’ service

14 Public holidays in Bhutan
2nd
Winter Solstice (Nyilo)
30th
Traditional Day of Offering
21st
King’s Birthday
22nd
King’s Birthday
23rd
King’s Birthday
28th
Losar (New Year)
1st
Losar (New Year)
2nd
Birth Anniversary of 3rd Druk Gyalpo
7th
Death Anniversary of Zhabdrung
11th
Lord Buddha’s Parinirvana
5th
Birth Anniversary of Guru Rinpoche
28th
First Sermon of Lord Buddha
23rd
Blessed Rainy Day
2nd
Dashain Festival
1st
Coronation Day of His Majesty
11th
Birth Anniversary of 4th Druk Gyalpo and Descending Day of Buddha
17th
National Day

Termination Process

Notice period

At least 30 days for both parties; common practice ties it to service length (under 6 months: 1 week; 6 months–5 years: 1 month; over 5 years: 3 months)

Severance

No statutory severance beyond pay in lieu of notice and accrued leave; contracts may offer more

Fair Procedure

You need written warnings for performance or conduct issues; gross misconduct allows immediate dismissal

Probation Period

  • Up to 180 days for roles of one year or more
  • Either party may end employment with 7 days’ notice during probation

Personal Details

Name, contact information, and role of the employee.

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Grow Your Team in Bhutan
with RemotePass

Bhutan’s low‑tax environment rewards compliance with clear rules. RemotePass handles contracts, social security, GST and PIT filings so you can focus on building your Himalayan dream team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Bhutan.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Bhutan

Bhutan charms with its “Gross National Happiness” ethos and pristine mountains. Its labour market balances tradition and modern rules. You’ll find no personal or corporate income tax below certain thresholds, but you must navigate social security, GST, work‑hour limits and leave entitlements to stay on the right side of the law.
Contractor Management
العملة
Bhutanese Ngultrum (BTN)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
10%

نظرة عامة

التركيبة السكانية
790 000
اللغة
Dzongkha
العاصمة
Thimphu
العملة
Bhutanese Ngultrum (BTN)
رمز الاتصال الدولي
+975
الحد الأدنى للأجور
BTN 215/day
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
  • Mandatory
متوسط ​​ضريبة صاحب العمل

10%

تحصيل الضرائب

Social Security (Provident Fund & Insurance):

Employer contributes
5% of gross salary
Employee contributes
5% of gross salary

Income Tax (Pay As You Earn):

Up to BTN 300 000
0%
BTN 300 001–400 000
10% 
BTN 400 001–650 000
15%
BTN 650 001–1 000 000
20%
Above BTN 1 000 000
30%

Goods and Services Tax (GST):

Standard rate
7%
Essentials such as food and medicine
0%

Corporate Tax:

Standard rate
25% for resident and foreign companies

ضريبة القيمة المضافة

ضريبة القيمة المضافة

7%

حساب الضريبة في Bhutan
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BT
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Bhutan عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Put it in writing. Cover title, duties, start date, salary, hours, probation, notice, leave and benefits.

Register Employees

Sign them up with the Ministry of Labour and the National Pension and Provident Fund.

Tax Registration

Get a Tax ID from the Department of Revenue and Customs and set up PAYE withholding.

Collect Documents

National ID or passport, work permit for foreigners, bank details and pension‑fund number.

Payroll Setup

Deduct social security, income tax and GST where applicable. File returns monthly by the 15th.

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Bhutan
عند إعداد عقد عمل للموظفين في Bhutan يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • 5 working days per year after six months; medical certificate required
إجازة الأمومة
  • 8 weeks paid at last basic pay; you can extend with unused sick or annual leave

إجازة الأبوة
  • 10 working days paid within two weeks of birth

Casual Leave:

  • 5 working days per year

الإجازة السنوية
  • 18 working days after six months’ service

14 عطلات رسمية في Bhutan
2nd
Winter Solstice (Nyilo)
30th
Traditional Day of Offering
21st
King’s Birthday
22nd
King’s Birthday
23rd
King’s Birthday
28th
Losar (New Year)
1st
Losar (New Year)
2nd
Birth Anniversary of 3rd Druk Gyalpo
7th
Death Anniversary of Zhabdrung
11th
Lord Buddha’s Parinirvana
5th
Birth Anniversary of Guru Rinpoche
28th
First Sermon of Lord Buddha
23rd
Blessed Rainy Day
2nd
Dashain Festival
1st
Coronation Day of His Majesty
11th
Birth Anniversary of 4th Druk Gyalpo and Descending Day of Buddha
17th
National Day

عملية إنهاء العقود

Notice period

At least 30 days for both parties; common practice ties it to service length (under 6 months: 1 week; 6 months–5 years: 1 month; over 5 years: 3 months)

Severance

No statutory severance beyond pay in lieu of notice and accrued leave; contracts may offer more

Fair Procedure

You need written warnings for performance or conduct issues; gross misconduct allows immediate dismissal

Probation Period

  • Up to 180 days for roles of one year or more
  • Either party may end employment with 7 days’ notice during probation

Personal Details

Name, contact information, and role of the employee.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في Bhutan
مع ريموت باس

Bhutan’s low‑tax environment rewards compliance with clear rules. RemotePass handles contracts, social security, GST and PIT filings so you can focus on building your Himalayan dream team.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Bhutan.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

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