GLOBAL EMPLOYER OF RECORD IN 190+ countries
Employer of Record in Bhutan
Hire the people your business needs in Bhutan without making entity formation the starting point. Acumen acts as your Employer of Record, so you can establish an initial presence, keep headcount aligned with demand and preserve flexibility while the opportunity develops.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employing in Bhutan through an Employer of Record
An Employer of Record is a third party that carries the legal and administrative duties of employing people for a client company. In Bhutan, Acumen International becomes the legal employer of the specialists working for your business: it issues their written contracts under the Labour and Employment Act, runs payroll, income tax and provident fund contributions, seeks approval for foreign experts and answers for compliance with Bhutanese labour law. Your business selects the people and directs their work.
This lets a company take on work in Bhutan, whether a hydropower contract, a development programme or an early presence near the Gelephu Mindfulness City, without first licensing a local business and without changing its own corporate structure. The team can then grow or wind down with the project. Where the right person has not yet been found, Acumen International can also run the search, from specialist recruitment to executive search, with background and education checks before the offer.
Situations where an Employer of Record serves a Bhutanese hire
- Contractor compliance. Specialists working full time for your business in Bhutan move onto written employment contracts, with personal income tax and provident fund handled as the law requires.
- One accountable provider. Contracts, payroll, foreign worker approvals and compliance sit with Acumen International rather than with several local advisers.
- No entity to set up or maintain. You employ in Bhutan without obtaining a business licence or incorporating a company.
- Market tests and short-term projects. A feasibility study, an infrastructure package or a fixed-term advisory mandate is staffed for its duration.
- Bridge to your own entity. While your Bhutanese company or project office is being licensed, the first hires start with Acumen International and transfer once it can employ them.
- Fast team launch. Bhutanese professionals are contracted directly while approvals for foreign experts are sought in parallel.
- Mergers and restructuring. Staff in Bhutan stay employed without a break while the group structure around them changes.
- NGO staffing. Development partners and international NGOs employ programme and technical staff under Bhutanese law.
- Employer liability. Acumen International holds the Bhutanese employer’s liability, so statutory duties sit with the party the Department of Labour and the Department of Revenue and Customs hold accountable.
- Remote team expansion. Team members based in Bhutan join a distributed team with Bhutanese contracts, tax and provident fund.
Employing for another business in Bhutan: the legal basis and its limits
The Labour and Employment Act of Bhutan 2007 sets minimum standards for every employment relationship, written or not. Acumen International employs your team under the Act and provides their services to your business under a commercial agreement. These rules frame the arrangement:
- Anyone acting as an employment agent needs a licence from the Chief Labour Administrator and must keep the terms of placed employees within the Act.
- Employing a foreign national needs the Chief Labour Administrator’s approval, and a permit cannot be varied or transferred to another employer without approval; breaching these rules is a fourth-degree felony.
- Bhutanese citizens may not be dismissed to make room for a foreign worker, and where staff are cut, foreign workers in similar roles must go first.
- The Gelephu Mindfulness City is a Special Administrative Region with its own legal framework under GMC Law No. 1 of 2024, which applies Singapore common law and Abu Dhabi Global Market regulations to incorporation, employment and taxation within the zone.
What Acumen International handles in Bhutan, from recruitment to exit
| Stage | What it involves in Bhutan |
|---|---|
| Recruitment and checks | Finding the candidate where needed, with background and education checks before the offer |
| Foreign worker approval | The application to the Department of Labour, then the work permit from the Department of Immigration with employer and employee undertakings and a medical fitness certificate |
| Contract | A written contract stating duration, task, notice period, wages, working hours, probation and leave |
| Pay | Monthly payroll in ngultrum, with personal income tax, provident fund and group insurance |
| Leave | Paid public holidays and the leave set by the labour rules |
| Exit | At least 30 days’ notice, redundancy notice where it applies, and final settlement |
Minimum wage and pay rules in Bhutan
Bhutan’s national minimum wage is fixed by the Ministry responsible for labour as both a daily and a monthly rate, and a revised rate takes effect 90 days after the Ministry’s order (Labour and Employment Act 2007, ss.138–139). The current rate is Nu 215 a day, or Nu 6,450 a month. For the skilled and senior roles filled through an Employer of Record the floor is rarely the reference point: salaries for engineers, project leads and specialists are negotiated individually, and for a foreign hire the offered package is part of the case put to the Department of Labour.
- Currency: wages are paid in ngultrum (Nu), pegged at par to the Indian rupee.
- Written terms: pay, its frequency and any allowances are set out in the written contract.
- Deductions: only lawful deductions are made, such as personal income tax, provident fund and Group Insurance Scheme contributions.
- Overtime: staff below supervisory level receive at least their normal rate for extra hours (s.124).
- Public holidays and night work: paid at a premium of at least 50% (ss.110 and 125).
Employment contracts and working time in Bhutan
Every employee in Bhutan must have a written contract (s.61), and the Act lists what it has to contain, from the parties and job title to pay, hours, leave and notice (s.64). Acumen International issues the contract as employer, built around the role and objectives your business defines.
| Topic | What applies |
|---|---|
| Contract term | Fixed-term or indefinite; a contract that states no term is treated as indefinite (s.65) |
| Probation | Up to 180 days on contracts of one year or longer, ended by either side on 7 days’ notice; a second probation for the same employee is not allowed (ss.72–73) |
| Working hours | Normal hours and rest periods are set by executive order of the Ministry responsible for labour (s.104) |
| Public holidays | At least 9 paid public holidays a year (s.108) |
| Leave types | The Act provides for annual, sick, bereavement, maternity and paternity leave, with the day counts fixed by the Ministry’s regulations (ss.106–107) |
| Foreign hires | The contract term and role must match the Department of Labour approval and the work permit issued on it |
Ending employment in Bhutan
Termination in Bhutan follows the contract and the Labour and Employment Act, and the cost of getting it wrong is set by statute. Acumen International handles notice, final pay and the exit paperwork, and for foreign employees the closure of the work permit.
- Notice: at least 30 days, and the same period applies to both employer and employee (ss.68 and 70).
- Redundancy: an employee whose post is made redundant receives a further 7 days’ notice for each year of service, up to 42 days (s.91(b)).
- Order of reductions: when a workforce is reduced, foreign workers in the same role go before Bhutanese employees (ss.223–224).
- Wrongful dismissal: compensation of one month’s wages for each year of service, up to six months’ wages (s.94(b)).
- Retirement: gratuity and provident fund or pension entitlements are settled on retirement (s.99).
- Foreign employees: Acumen International notifies the authorities and closes the work permit when the employment ends.
Employment risks in Bhutan and how they are managed
| Risk | Where it arises in Bhutan | How it is managed |
|---|---|---|
| Worker misclassification | Long-term individual consultants on projects in Bhutan who work under the client’s direction, on fixed hours, without the written contract the Act requires | The person is employed by Acumen International on a compliant written contract, with tax and provident fund handled through payroll |
| IP ownership | Designs, software and project documents produced in Bhutan belong first to the employer | The employment contract assigns work product to Acumen International, which passes it to your business under the service agreement |
| Client liability for pay and contributions | Unpaid wages, tax or contributions can be pursued against those who benefit from the work | Payroll, tax and contributions are run and remitted on time by Acumen International, with records kept for inspection |
| Permanent establishment | A senior hire who signs contracts or runs a fixed place of business in Bhutan can create a taxable presence for your company | The role is scoped at the outset so the employee’s authority stays within what your structure allows; take tax advice for revenue-generating roles |
| Sponsor obligations | Foreign employees may only work for the approved employer, in the approved role, for the approved period | Acumen International keeps the approval and permit valid, reports changes and starts renewals in good time |
| Exit cost | Redundancy notice and wrongful dismissal compensation are fixed by statute | Termination follows the contract and the Act, with costs set out in advance |
Hiring foreign experts in Bhutan
Bhutan admits foreign workers to fill skills its own workforce cannot yet supply, and the decision sits with the Chief Labour Administrator (s.219). The approval is granted to a named employer for a named role, within quotas the Ministry may set by sector (s.226), and employers that hire without it commit an offence.
- Approval from the Department of Labour. The employer, or a licensed Foreign Worker Recruitment Agency, applies with the role, the qualifications required and the reasons the post cannot be filled locally.
- Work permit from the Department of Immigration. Once labour approval is granted, the Department of Immigration or a Regional Immigration Office issues the permit on the employer’s and employee’s undertakings, a medical fitness certificate and a valid visa or entry permit. Nationals of India, Bangladesh and the Maldives also submit their academic certificates.
- Renewal and change. The permit cannot be transferred to another employer (s.221); a new role, a new employer or a longer stay needs a fresh decision, and refusals can be appealed (s.227).
Family members who will accompany the employee need their own entry and residence permission from the Department of Immigration, which is arranged alongside the employee’s application.
What Acumen International contributes
In a labour market that opens to foreign hires only where the case is made, the employer’s standing and the quality of the application decide the outcome.
- A qualifying sponsoring employer in Bhutan. Acumen International acts as the employer named in the labour approval and the work permit, so your expert is not waiting for your business to establish itself there first.
- An application built to be approved. The role description, qualifications and salary are set out to show why the skill is needed and why it cannot be sourced locally, within any sector quota.
- Status kept valid. Renewals are started in good time, and changes of role, location or term are put to the authorities before they take effect, never after.
- A clear line on what is possible. Where the rules will not support a role, you are told at the outset, before time and goodwill are spent on an application.
Employer cost and income tax in Bhutan
Bhutan has no general social security tax on payroll. The main statutory items are personal income tax withheld from salary, the provident fund administered by the National Pension and Provident Fund (NPPF), which covers employees of licensed firms, companies, civil society organisations and NGOs, and the Group Insurance Scheme. Contributions to the provident fund and the Group Insurance Scheme are deductible from salary income for tax.
Under the Income Tax Act 2025, personal income tax on salary applies at these rates from income year 2026:
| Annual taxable income | Rate |
|---|---|
| Up to Nu 300,000 | 0% |
| Nu 300,001 – 500,000 | 5% |
| Nu 500,001 – 750,000 | 10% |
| Nu 750,001 – 1,200,000 | 15% |
| Nu 1,200,001 – 2,000,000 | 20% |
| Nu 2,000,001 – 3,500,000 | 25% |
| Above Nu 3,500,000 | 30% |
Acumen International withholds tax monthly through payroll, remits it to the Department of Revenue and Customs and issues the annual statements employees need. The cost estimate for each hire sets out the salary, the employer’s provident fund share and any agreed allowances, so the full figure is known before the offer.
Sectors where an Employer of Record supports hiring in Bhutan
- Hydropower and energy: engineers, geologists and project managers for generation, transmission and the newer solar programmes.
- Construction and infrastructure: site leads, structural and civil engineers, and quality and safety specialists for roads, bridges and public buildings.
- Gelephu Mindfulness City: advisers, planners and specialists for the special administrative region and the investors setting up there.
- Tourism and hospitality: general managers and senior hotel staff for the high-value, low-volume tourism model.
- Information technology: developers, data specialists and digital project leads for government and private programmes.
- Development and international organisations: programme managers, technical advisers and monitoring and evaluation specialists on donor-funded projects.
Hiring cases in Bhutan and how they are handled
| Case | What Bhutanese rules add | How it is handled |
|---|---|---|
| An engineering firm needs a foreign dam safety specialist on a hydropower project | Approval from the Chief Labour Administrator, given only for skills not available in Bhutan, then a work permit from the Department of Immigration | Acumen International applies as employer, with the role and qualifications set out to show why the skill is needed |
| A development agency with no office in Bhutan hires a Bhutanese programme manager in Thimphu | A written contract, monthly income tax withholding and provident fund contributions to NPPF, all owed by the employer | Acumen International employs the manager and runs the Bhutanese payroll, while the agency directs the programme |
| A foreign specialist’s role changes or the project runs longer than planned | A permit covers the approved employer and role only and cannot be transferred | A fresh approval is sought before the change takes effect |
| A project ends and the team is reduced | Redundancy adds 7 days’ notice per year of service, up to 42 days, and foreign staff go before Bhutanese staff in the same role | Notice, order of selection and final pay are worked out before the decision |
Payroll and benefits in Bhutan
| Item | How Acumen International handles it |
|---|---|
| Salary | Paid monthly in ngultrum, with a payslip showing pay, deductions and contributions |
| Income tax | Withheld at source each month and remitted to the Department of Revenue and Customs |
| Provident fund | Employee and employer shares calculated and paid to NPPF |
| Group Insurance Scheme | Premiums deducted and remitted for eligible employees |
| Leave and holidays | Tracked against the contract and the Ministry’s regulations, and paid accordingly |
| Supplementary benefits | Health cover, housing or relocation support for foreign experts, added where agreed with your business |
| Records | Payroll and employment records kept for inspection by the Department of Labour and the tax authority |
Sources
- Labour and Employment Act of Bhutan 2007
- Work Permit for Foreign Workers
- Foreign Worker Work Permit Requirements
- Personal Income Tax
- National Pension and Provident Fund
- Details on the laws that will apply in GMC
- Bhutan’s minimum wage trails far behind global benchmarks
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can we use an Employer of Record for a project team in Bhutan?
Potentially, yes. An Employer of Record can support defined local headcount for a client engagement, technical project or market requirement in Bhutan without creating a company solely for that workforce. The roles, work location and expected duration should be assessed before onboarding.
Can we use an Employer of Record in Bhutan while our own entity is still being set up?
Yes, where the hire is feasible. Acumen can employ the candidate through its Employer of Record structure while your company completes its local set-up, helping you avoid making the recruitment timeline depend entirely on incorporation.
What happens if we later open our own entity in Bhutan?
The Employer of Record arrangement can act as a bridge rather than a permanent commitment. When your Bhutan entity is ready and direct employment becomes the preferred model, Acumen can coordinate the employee transition subject to the local requirements that apply at that point.