Quick facts

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The Bahamas is an archipelago in the Atlantic Ocean with a tourism-driven economy, complemented by financial services and agriculture. Its labor market reflects its unique island culture, with regulations supporting fair employment practices and an emphasis on work-life balance.

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Employment Contracts

Employment contracts in the Bahamas can be verbal or written, with terms that may be expressed or implied. There is no legal requirement for a written employment contract.

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Probation Period

The probationary period in the Bahamas typically ranges from 6 to 12 months.

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Working Hours

The standard work week is 40 hours, with 8 hours per day being the norm. Standard business hours are generally 9 AM to 5 PM, Monday to Friday, and 10 AM to 5 PM on Saturdays. Overtime is paid at 1.5 times the regular rate or double the rate for public holidays.

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Vacation Days

Employees are entitled to a minimum of two weeks’ vacation after 12 months of employment. If public holidays occur during the vacation, the leave period is extended accordingly.

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Sick Leave

Employees with at least six months of tenure are entitled to one week of paid sick leave per year. Sick leave for single-day absences is unpaid, and a medical certificate is required for any period exceeding one day, except for the first day.

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Wages and Salary Payment

Salaries are paid two days before the last working day of the month. If the date falls on a weekend, payment is made on the preceding Thursday or Friday.

In 2024 minimum wage in Bahamas was BSD6.50 per hour.

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Public Holidays

The Bahamas recognizes 10 public holidays:

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• New Year’s Day (1st January)
• Majority Rule Day (10th January)
• Good Friday (10th April)
• Easter Monday (13th April)
• Whit Monday (1st June)
• Labor Day (5th June)
• Independence Day (10th July)
• Emancipation Day (3rd August)
• National Heroes Day (12th October)
• Christmas Day (25th December)

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Employer Taxes

Employers are required to contribute 5.9% of the employee’s salary to social security.

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Employee Taxes

Employees contribute 3.9% of their salary to social security. There is no income tax in the Bahamas.

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Notice Period

The notice period and severance entitlements depend on the employee’s tenure:

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• 90 days or less: No notice or compensation.
• 91–179 days: No notice, 4% of total salary as accrued vacation pay.
• 6–12 months: 1 week’s notice or 1 week’s salary in lieu of notice, plus 1 week’s salary.
• Non-managerial employees (1+ year): 2 weeks’ notice or 2 weeks’ salary in lieu of notice.
• Managerial employees: 4 weeks’ notice or 4 weeks’ salary in lieu of notice, plus 4 weeks’ salary for each year of service, up to 12 years.

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Termination and Severance Pay

Managerial employees receive severance pay calculated as four weeks of salary for each year of employment, capped at 12 years. Non-managerial employees are entitled to statutory notice periods and severance payments based on their length of service.