Bermuda – Employment Terms and Conditions

What are the working hours in Bermuda?

Employment in Bermuda is governed by the Employment Act 2000. It applies to employees working 15 or more hours per week wholly or mainly in Bermuda for remuneration under a contract of employment, or to others performing services on terms akin to an employment relationship, subject to certain statutory exceptions. The Act establishes minimum standards that cannot be contracted away by either employer or employee.

The standard working week in Bermuda is generally 40 hours, with 8 hours per day across 5 days a week. Specific industries or sectors may have different working hour norms. This is broadly comparable to the standard working week in many countries, though notably different from jurisdictions such as France, which imposes a statutory 35-hour working week.

There is no concept of maximum working time for adults in Bermuda. The Employment Act does not impose a statutory cap on the maximum total hours an adult employee may work (including overtime), provided rest periods are adhered to. This is a significant distinction from countries in the European Union, where the Working Time Directive limits most workers to an average of 48 hours per week.

Pursuant to the Employment Act 2000, all employees are entitled to a 24-hour rest day each week, with the exception of police officers, prison officers, fire officers, medical practitioners, and nurses employed at the hospital, whose working hours are regulated and may be determined in accordance with a shift system.

Employees are entitled to overtime compensation for hours worked beyond the standard 40 hours. Overtime pay is usually at a rate of 1.5 times the regular hourly wage. Professional or managerial employees are generally exempt from statutory overtime provisions. The Statement of Employment for such employees may state that their yearly salary is calculated based on, for example, a 40-hour work week, without an entitlement to overtime pay.

According to the Employment of Children and Young Persons Act 1963, children under the age of 13 are not allowed to be employed without being given a rest period of 36 consecutive hours. Children under the age of 16 cannot work during school hours and can only work after school for 2 hours. Individuals under the age of 18 cannot be employed at night.

What employment rights and benefits are you entitled to in Bermuda?

If you work wholly or mainly in Bermuda, receive a wage, are over the age of sixteen, work at least fifteen hours every week and you are not a student, you may be entitled to the protections and benefits under the Employment Act 2000. The Employment Act 2000 offers benefits and protection to both Bermudian employees and work permit holders. This means that as an expat on a valid work permit, you have the same core statutory entitlements as local workers.

Written Statement of Employment

Employers must, within a week of an employee commencing employment, provide them with a statement of employment setting out numerous required particulars. These particulars must include meal breaks, rest periods, overtime pay, work permit particulars, and the existence of the employer’s policy against bullying and sexual harassment.

Minimum Wage

In 2023, the government enacted legislation establishing Bermuda’s first ever statutory minimum wage: the Employment (Minimum Hourly Wage Entitlement) Act 2022 (effective 1 June 2023) and the Employment (Minimum Hourly Wage) Order 2023 (effective 1 June 2023). The Order establishes that, for each pay reference period, an employee is entitled to be paid a gross hourly wage which on average is not less than the minimum wage, set at BD$16.40 per hour (as of 2023).

Annual Leave

Employees are entitled to two calendar weeks of paid vacation per year after completing one year of employment. There are currently 10 public holidays observed in Bermuda. According to the Act, you are entitled to a holiday with pay for each public holiday you work, unless you and your employer agree in writing that this entitlement will not apply to you. If a public holiday falls on your rest day, your employer must grant you a compensatory paid day off.

Sick Leave

Sick leave in Bermuda is governed by the Employment Act 2000. Employees are entitled to a maximum of 10 days of paid sick leave per year after completing one year of continuous service. Employers usually require a medical certificate to substantiate sick leave claims, and sick leave is paid directly by the employer. This is broadly similar to statutory sick pay frameworks found in countries such as Canada, though unlike state-funded sick pay schemes (such as those in Germany), the cost falls directly on the Bermudian employer.

Maternity and Paternity Leave

Regulations for maternity leave are specified in the Employment Act 2000. Female employees are entitled to 13 weeks of paid maternity leave if they have completed at least one year of continuous employment by the expected date of delivery. There is no governmental organisation in Bermuda that provides for the payment of wages during maternity leave — all paid maternity leave is paid directly by the employer to the employee.

Paternity leave regulations are outlined in the Employment (Maternity Leave Extension and Paternity Leave) Amendment Act. Fathers with at least one year of continuous employment by the expected birth date of their child are entitled to five consecutive days of paid paternity leave. This leave must be taken within 14 weeks of the child’s birth and can only be taken once in any 12-month period.

Redundancy and Severance

Pursuant to the Employment Act 2000, if terminated for redundancy, employees are entitled to a maximum payment of 26 weeks — two weeks’ pay for each completed year worked up to ten years and three weeks’ pay thereafter. Notice entitlements depend on your pay period: an employee is entitled to at least one week’s notice if paid on a weekly basis, two weeks’ notice if paid every two weeks, and in all other cases, to one month’s notice.

Workplace Protections

The Human Rights Act of 1981 prohibits discrimination by employers based on specified human rights-protected characteristics, and sexual harassment is an offence under the Act. As of 1 June 2021, employers must have in place a compliant, clear written policy statement against bullying and sexual harassment.

Pensions as an Employment Benefit

Labour laws in Bermuda address employee benefits and leave entitlements. Employers are required to provide certain benefits, such as health insurance and pension contributions, as specified by law. Employers are required to establish and register pension plans in accordance with the National Pension Scheme (Occupational Pensions) Act 1998 and make required employer pension contributions, currently set at 5% of an employee’s pensionable earnings.

What types of pensions can expats receive in Bermuda?

Bermuda operates a two-tier pension system: a government-managed public fund and employer-based occupational plans. Understanding how both work — and how they interact with any pension provisions you may have from your home country — is essential planning for any expat.

The Contributory Pension Fund (CPF)

The Contributory Pension Fund (CPF) is a defined benefit plan regulated by the Government of Bermuda. If you are over 18 and working more than four hours per week in Bermuda, including as a self-employed expat, you must contribute unless exempt. As a general rule, every person over the age of 18 who is gainfully occupied in Bermuda for a period of more than four hours per week is required to pay Social Insurance Contributions. Check the Government of Bermuda pension page for the current contribution rates.

To draw a CPF pension, you must be over 65 and have made 25–50 annual contributions. The benefit amount is based on your contribution history. If you paid into the CPF but failed to meet the requirements for a contributory pension, you can receive a refund of the total contributions paid into the plan by you and on your behalf.

Occupational (Employer-Based) Pension Plans

Private pension requirements are stipulated in the National Pension Scheme (Occupational Pensions) Act 1998. Effective 1 January 2000, mandatory occupational pension plans are required to be established for all Bermudian employees or the husband or wife of a Bermudian employee, employed in Bermuda, who are between the ages of 23 and 65 and who have completed 720 or more hours of employment with an employer in any given calendar year prior to membership in their employer’s pension plan.

Expatriate employees working in Bermuda for periods exceeding 12 months must enrol in a Bermuda-registered pension plan. Under the old law, only Bermudians and their spouses were required to enrol. However, US citizens enrolled in a 401(k) plan are exempt. The plans can be either defined benefit (DB) or defined contribution (DC) in structure. If you have a defined benefit plan, you will know how much you will receive based upon specific factors such as your years of service and final salary. If you are in a defined contribution plan, the amount of your pension will depend upon the current market value of the contributions made into the plan.

A self-employed person between the age of 23 and 65 who has pensionable earnings exceeding $20,000 from self-employment is required to participate in a registered pension plan and make contributions. This is similar in concept to superannuation obligations for the self-employed in Australia, though the thresholds and administration differ significantly.

Accessing Your Pension at Retirement

You may take early retirement from age 55 onwards, but in doing so you will generally receive a lower pension amount than if you retire at age 65, the normal retirement age. A member or former member who has attained age 65 or older may receive a lump sum payment of up to 25% of their account balance. Small pensions having a commuted value or account balance of $50,000 or less may be paid out as a lump sum where a member or former member has attained age 65.

Government Employee Pension

Government workers are enrolled in a separate pension plan. For government employees, pension requirements are governed by the Public Service Superannuation Act 1981. With increasing life expectancy, it has been necessary to implement adjustments to the Public Service Superannuation Fund to ensure pension benefits for future retirees. The maximum retirement age — the age at which you must leave the public service — will increase over the next 10 years.

Overseas and Home-Country Pensions

If you retire in Bermuda, you can generally continue receiving your retirement benefits from your home country, but specifics depend on your home country and benefit type. US citizens benefit from the US-Bermuda Tax Treaty, which prevents double taxation. Pension plans from other countries can often be transferred, and private retirement savings are accessible. It is important to seek independent financial advice tailored to your specific nationality and pension type, as the rules on international pension transfers can be complex and vary considerably by jurisdiction.

An Overseas Retirement Product is defined as a retirement plan provided by a body or person outside Bermuda which provides retirement benefits and which is recognised by the Pension Commission. For full details, visit the Bermuda Pension Commission website.

What is the retirement age in Bermuda?

The official retirement age in Bermuda is 65, but private pensions are accessible from age 55. The rules differ, however, depending on whether you work in the private or public sector.

The normal (non-compulsory) retirement age for employees in the private sector is 65, while the compulsory retirement age for government employees is 68. For most private-sector employees, reaching 65 triggers the ability to draw from both your occupational pension and the CPF, but there is no requirement to stop working at that age.

If an employer wishes to continue to employ an employee who reaches the normal retirement age of 65, the employee has the right to either continue to participate in their employer’s pension plan (in which case contributions must still be made by both the employer and employee), or decide they wish to start receiving their pension while they keep working (in which case no further contributions are required by either party).

For most employers, a retirement policy is usually implemented for employees who reach the pensionable age of 65. A retirement policy is usually implemented for employees who reach the pensionable age of 65, and the retirement age should be stated in your employee handbook, collective agreement (if you work in a unionised environment), or another policy document.

For public-sector workers, the retirement landscape is changing. With increasing life expectancy, adjustments to the Public Service Superannuation Fund have been implemented to ensure pension benefits for future retirees, and the maximum retirement age — the age at which you must leave the public service — will increase over the next 10 years. Under these reforms, pensions will be based on the average salary over the last 10 years, rather than the previous final-salary calculation.

If you are over pension age (i.e. age 65), you do not have to pay Social Insurance Contributions, but your employer is still required to pay on your behalf. This is an important distinction for those who choose to continue working beyond 65.

Frequently asked questions

Does Bermuda have a statutory cap on maximum working hours?

The Employment Act does not impose a statutory cap on the maximum total hours an adult employee may work (including overtime), provided rest periods are adhered to. The key requirement is a minimum rest period of 24 consecutive hours per week.

What is the minimum wage in Bermuda?

As of 2023, an employee is entitled to be paid a gross hourly wage which on average is not less than BD$16.40 per hour. For workers earning gratuities, service charges, or commissions, these may be combined with the base wage to add up to BD$16.40 per hour, failing which the employer must pay the employee the difference. Check the Government of Bermuda Labour Relations Office for any updates.

Are expats in Bermuda entitled to the same employment rights as local workers?

The Employment Act 2000 sets out laws in Bermuda that cover all employees, regardless of immigration status. The Act provides the minimum standards of employment for all employees. This means that work permit holders and expat workers have access to the same statutory minimum protections as Bermudian citizens.

Must expats contribute to a pension in Bermuda?

Expatriate employees working in Bermuda for periods exceeding 12 months must enrol in a Bermuda-registered pension plan. Self-employed expats are also required to contribute to the Contributory Pension Fund if they work more than four hours per week and earn over the relevant threshold. Speak to an independent financial adviser for guidance on how this interacts with any pension you may hold in your home country.

Can I access my Bermuda pension early?

You may take early retirement from age 55 onwards, but in doing so you will generally receive a lower pension amount than if you retire at age 65, the normal retirement age. Early retirement within 10 years of the normal retirement date is defined as early retirement under the National Pension Scheme Act.

What happens to my pension if I leave Bermuda before retirement?

Portability refers to the options available for transferring a member’s or former member’s benefit on termination of employment or retirement. If, on a business sale or change of employer, an employee leaves their original employer’s pension plan and joins a plan provided by a successor employer, the employee will retain entitlement to benefits accrued in the original employer’s plan up to the effective date of the change. For transfers to overseas retirement products, check directly with the Bermuda Pension Commission for recognised schemes.

Is there a redundancy payment if I am made redundant in Bermuda?

Pursuant to the Employment Act 2000, if terminated for redundancy, employees are entitled to a maximum payment of 26 weeks — two weeks’ pay for each completed year worked up to ten years and three weeks’ pay thereafter. Accepting a statutory severance payment formally ends the employment relationship.

Does Bermuda have an unemployment benefits system?

Bermuda currently does not have an unemployment benefits system. This is an important consideration for expats — unlike countries with state-funded unemployment insurance (such as those operating under EU social security frameworks or Canada’s Employment Insurance scheme), there is no income replacement available if you lose your job in Bermuda. Maintaining personal financial reserves is strongly advisable.