When building an international team, compensation and benefits are critical for attracting and retaining talent. Choosing and dispersing these provisions requires a clear understanding of a country’s labor laws to maintain compliance from the beginning.
Bermuda compensation laws
There are no minimum wage laws in the country, but there are various collective agreements for different classes of employees that define wage requirements. Before making payments, an employer must provide a “Written Statement of Employment” that includes an employee’s gross wage and the method of calculation.
For every payment, the employee must receive a pay statement that details the rate, hours worked, amount and purpose of deductions, the period of time the wages cover, and the net wages the employee earns.
Employers are also required to contribute to the country’s social insurance fund for all employees who are over 17 years old and work more than four hours a week. Employers must match the sum an employee submits — the total weekly contribution is BMD 71.84 with the employer and employees paying BMD 35.92 each.
Guaranteed benefits
According to the Employment Act, all employees must receive a series of benefits for employers to remain compliant. Employees must receive time off for public holidays in addition to two weeks of paid vacation leave for the first year of employment and two additional weeks for every subsequent year of employment.
Employees are also entitled to eight days of paid sick leave annually. If these sick days are taken consecutively, pay is only required for the first two. The Employment Act also requires 13 weeks of paid maternity leave after one year of employment and five days of paid paternity leave. Additionally, employees must receive three to five consecutive days of bereavement leave depending on the circumstance of the loss.
Bermuda benefits management
While employers will provide the required benefits for compliance, many companies will offer additional benefits and perks to make their vacancies more competitive in the market. Providing additional offerings on top of the guaranteed benefits can help you improve employee retention, increase team happiness, and make it easier to fill positions.
Possible perks and benefits include:
- Optional pension funds
- Wellness programs or gym memberships
- Transportation stipends
When building a competitive benefits plan, you can research employers in the area to uncover what types of benefits different companies offer. It can also help to regularly update your benefits packages by getting input from your team about their priorities and preferences.
Restrictions on benefits
The Employment Act of 2000 will identify any restrictions related to benefits, but you will also need to consider your status as a company in the country. To hire a team of employees and manage their benefits, you must have a legal entity in the country. Setting up a subsidiary can take time, but with G-P, your new team members are hired through our Bermuda entity, so you can avoid the restrictions of benefits management.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ and team of in-country experts make it quick and easy to hire anyone, anywhere, while helping you offer competitive benefits that adhere to local regulations. Learn more about our platform and request a proposal today.