Economic Overview, Global Reinsurance Capital & Digital Assets
Bermuda is the world's leading center for reinsurance and insurance-linked securities, alongside pioneering global digital asset regulation overseen by the Bermuda Monetary Authority (BMA).
Key Economic Sectors
- Reinsurance & Captive Insurance: Houses the world's largest concentration of catastrophic property/casualty reinsurers.
- Digital Asset Business & FinTech: Global hub for licensed cryptocurrency, blockchain, and digital financial institutions under DABA.
- Trusts & Wealth Management: World-class legal and private family office administration.
Employment Contracts, Employment Act 2000 & Probation
Regulated by the Employment Act 2000 (and 2021 Amendments).
- Written Statement of Employment: Mandatory within 7 days of commencing work, detailing duties, pay, hours, leave, and disciplinary policies.
- Probation Period: Maximum statutory probation is 6 months (extendable once by up to 3 months).
Working Hours, Overtime & Rest Periods
- Standard Hours: 35 to 40 hours per week.
- Overtime: Non-managerial staff working beyond 40 hours/week receive 150% (1.5× base wage) or equivalent paid time off.
Annual Leave, Public Holidays & Maternity Protections
- Annual Paid Vacation: Minimum 2 weeks (10 working days) of paid annual leave per year, scaling to 3–4 weeks under commercial market practice.
- Public Holidays: 10 official public holidays (including Bermuda Day in May and Cup Match in August).
- Maternity Leave: 13 weeks of maternity leave (8 weeks fully paid after 1 year of service). Paternity leave is 5 consecutive paid days.
Payroll Tax, National Pension Scheme & Health Insurance
| Statutory Benefit / Tax | Employer Share | Employee Share | Description |
|---|---|---|---|
| National Pension Scheme | 5.0% | 5.0% | Mandatory occupational pension for Bermudians/spouses |
| Social Insurance (Contributory Pension) | BMD $37.92 / wk | BMD $37.92 / wk | Fixed weekly government social insurance |
| Standard Health Insurance (SHB) | 50% of premium | 50% of premium | Mandatory employer-provided health cover |
| Bermuda Payroll Tax | Progressive business rate | Max 10.25% withheld | Government tax on total remuneration |
Termination, Notice & Severance Pay
- Notice Periods: At least 1 to 4 weeks written notice based on pay frequency and contract terms.
- Severance Pay: Payable for redundancy after 1 year of service: 2 weeks' salary per year of service for the first 10 years, plus 3 weeks per year thereafter (capped at 26 weeks' pay).
Why Use an Employer of Record (EOR) in Bermuda
- Fast Market Entry: Avoid 4–8 week corporate registration hurdles in an elite offshore jurisdiction.
- Payroll Tax & Pension Compliance: Accurate administration of Bermuda Payroll Tax and National Pension Scheme contributions.
- Department of Immigration Work Permits: EOR navigates work permit advertising, vetting, and sponsorship for expatriate talent.
