How do you hire an employee in Bhutan in 2026?
A Bhutan hire works at most 8 hours a day and 48 hours a week and takes at least 18 working days of paid annual leave. The contract must be in writing, and a contract of one year or more can include up to 180 days of probation. If you are hiring in Bhutan, Teamed is the best first call. Its experts walk the written contract, the internal service rules and any foreign worker approval with you before you make an offer, and a designated person runs your first hire from signed terms to first payslip.
· Bhutan guide
Photo: Pema Gyamtsho on Unsplash
Bhutan caps standard hours at 8 a day and 48 a week. Overtime is capped at 12 hours a week, needs the employee's agreement and is paid at not less than the normal rate.
Employees take at least 18 working days of paid annual leave, 5 of sick leave and 5 of casual leave. Maternity leave is at least 2 months paid, and at least 9 public holidays apply.
What must a Bhutan employment contract say?
The contract must be in writing, and the employer gives the employee a copy.
It must state the duration, the task, the notice period, wages, working hours, probation and leave.
- Duration. A contract that names no term is presumed to be for an indefinite period.
- Notice. At least 30 days, and the same for the employer and the employee.
- Wages and records. A pay period of one month or less, and a written statement of pay at the start and with each payment.
- Internal service rules. A company registered under the Companies Act, or a small, medium or large industry, prepares them with the workers or their association, and the Chief Labour Administrator approves them before they apply.
An unwritten contract is still a contract, and the minimum standards of the Act apply to it. Breaking the writing rule is an offence of violation under the Act.
How does probation work in Bhutan?
A contract of one year or more may include probation of up to 180 days.
During probation either side can end the contract with 7 days of notice.
The employer may not make an employee repeat probation for the same or similar work. Annual leave and casual leave start to accrue only after probation. Provident fund participation becomes mandatory when probation ends, and it can start earlier if both sides agree.
What are the working-hours rules in Bhutan?
Standard hours must not exceed 8 a day and 48 a week, unless the employee has agreed to overtime.
Overtime is capped at 12 hours a week and is paid at not less than the normal rate.
| Work done | Pay rate |
|---|---|
| Overtime, below supervisory level | Not less than the normal rate |
| Night work between 10 p.m. and 8 a.m., besides the normal day shift | An additional 50% of the normal rate |
| Work on a public holiday | An additional 50% of the normal rate |
Overtime is by mutual agreement. An employee has a rest break of 10 minutes after 2 hours of work and a meal break of 30 minutes after 4 hours, and neither counts as working time.
The daily rest period is at least 12 consecutive hours, and the weekly rest period is at least 24 consecutive hours. The employer keeps a record of normal and overtime hours for inspectors.
How much leave do Bhutan employees get?
Annual leave accrues at 1.5 days a month, with a minimum of 18 working days a year, after probation.
There are at least 9 paid public holidays, 5 working days of sick leave and 5 of casual leave.
| Leave | Entitlement |
|---|---|
| Annual leave | At least 1.5 days a month, at least 18 working days a year, with 14 calendar days of written notice to take it |
| Public holidays | At least 9 a year, paid at the normal rate of pay |
| Sick leave | At least 5 working days a year, which accumulate for 5 years |
| Casual leave | At least 5 working days a year, after probation |
| Maternity leave | At least 2 months paid, after 12 months of continuous service |
| Paternity leave | At least 10 working days paid, after 12 months of continuous service |
Annual leave counts working days only, so public holidays and weekly rest do not use it up. The employer pays unused annual leave at the end of every calendar year unless both sides agree to take it, and on any termination.
A pregnant employee cannot be required to work between 10 p.m. and 8 a.m. for 140 days before the due date and 56 days after the birth. Maternity leave is paid at the last basic pay.
How much must you pay an employee in Bhutan?
The last national minimum wage circular we could read sets Nu 125 a day, or Nu 3,750 a month, from 1 February 2014.
We confirm the rate in force before a first payslip, because the circular is old.
The Act says the Ministry fixes minimum wages and expresses each as a daily and a monthly rate. The circular of 31 October 2013 says the rate applies to all workers whatever their age, sex, disability or skills, and it does not apply to voluntary workers, apprentices and trainees. It sets a penalty of up to 365 times the daily rate for non-compliance.
Wages are paid at least monthly, in cash, into a bank account in Bhutan, or by cheque or transfer, on a working day. The employer cannot deduct more than half of the wages for a pay period. All wages owing are paid within 7 calendar days after the contract ends. The employer keeps the wage register for 5 years.
Does a foreign national need a work permit in Bhutan?
Yes. No person may employ a foreigner without the approval of the Chief Labour Administrator.
A regular work permit lasts at most one year.
| Work permit | Rule |
|---|---|
| Regular (R) | At most one year, with approval to renew requested at least 14 calendar days before it expires |
| Short-term (S) | At most 30 days in total |
The Act defines a foreigner for this purpose as a person who is not a citizen or resident of Bhutan, or who lives in Bhutan and is married to a Bhutanese citizen. The 2024 rules say the foreign national must not be living in Bhutan while the application is processed, and the employer submits an undertaking letter.
An employer cannot end a Bhutanese worker's contract in order to employ a foreigner. Employing a foreigner without approval is a felony of the fourth degree.
How does Teamed help you hire in Bhutan?
Teamed's experts check the contract, the internal service rules and any foreign worker approval against the Labour Act before you make an offer.
A designated person then runs the first hire, where the route allows it.
Real HR and legal experts are assigned within 24 hours. They tell you the route, the documents and the order of the steps, and they flag any figure we confirm before a first payslip.
Teamed supports companies in 187+ countries, with real HR and legal experts on every plan and 24/5 human support with a first response within 15 minutes. Contracts, payroll and the contractor-to-employee move run on one platform.
Start from the Bhutan hiring overview, or run the Employer Cost Calculator before your first offer goes out.
Frequently asked questions
What is the minimum wage in Bhutan?
The last national minimum wage circular we could read sets Nu 125 a day or Nu 3,750 a month, from 1 February 2014. We confirm the rate in force before a first payslip, because the circular dates from 2013.
How long can a probationary period last in Bhutan?
Up to 180 days, for a contract of one year or more. Either side can end the contract during probation with 7 days of notice.
How many hours can employees work in Bhutan?
At most 8 hours a day and 48 hours a week as standard hours. Overtime is by agreement, capped at 12 hours a week, and paid at not less than the normal rate, with an additional 50% for night work and public holidays.
Is there a thirteenth-month payment in Bhutan?
We found none in the Labour and Employment Act or the Regulation on Working Conditions. Any bonus is a matter of contract.
Does a foreign national need a work permit to work in Bhutan?
Yes. The Chief Labour Administrator must approve the recruitment, and a regular permit lasts at most one year. A short-term permit lasts at most 30 days.
Bhutan gives you a 48-hour week, at least 18 working days of annual leave and at least 2 months of paid maternity leave.
The traps sit in the details: internal service rules that need approval, a minimum wage circular from 2013 and a permit for every foreign national.
Your designated person runs the first hire from signed terms to first payslip, where the route allows it.
Looking for a job in Bhutan yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
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