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Employees become entitled to annual leave after a year of service. Annual leave is based on tenure at work and paid in advance, as basic salary:

• 6 months to one year of employment - 1 week of basic salary
• For 1 year to 7 years of service - 2 weeks
• For employees who have been employed for more than 7 years - 3 weeks

For public sector employees, annual leave may be accumulated for up to 3 years. If an employee's contract is terminated before utilizing all leaves, they will be entitled to payment for the remaining leave duration on a pro-rata basis.

The Bahamian labor code grants employees who have worked for at least 6 months with the same employer the right to paid sick leave of 1 week per year if they are unable to work due to an illness. Sick leave cannot be rolled over or claimed in cash if it is not used within a year. Employees are required to produce a medical certificate when the sick leave lasts longer than 1 day.

An employer may, on processing a claim for sick leave by an employee, require such employee to be examined by an independent physician and may refuse such leave if the physician is of the opinion that the employee is fit for work.

The Bahamian Employment Act entitles female employees to 12 weeks of maternity leave. The leave must begin at least 1 week before the date of delivery and last for at least 8 weeks after. The employee is required to submit a certificate issued by a medical practitioner or midwife setting forth her expected delivery date.

Maternity Benefit is a weekly payment made by the National Insurance Board of the Bahamas to eligible insured women while they remain at home during late pregnancy and delivery. The benefit is paid at a weekly rate of 66.66% of the woman’s average insured income.

During the employee's maternity leave, the employer must pay the mother a minimum sum equivalent to 33.33% of that portion of her wages which does not exceed the National Insurance ceiling on insurable wages (BSD 810 per week). A woman on maternity leave may not receive payment from her employer more than once every 3 years.

Per Bahamian labor law, an employee who has been employed for at least 6 months is entitled to family leave without pay for a period not exceeding 1 week per year following the birth of a child.

Minimum Wage

The minimum wage is BSD 260 (Bahamian dollars) per week beginning January 2023.

Salary must be paid at regular intervals, not exceeding 1 month, and employers must maintain a payroll record for at least 3 years.

Overtime, Holiday & Vacation Pay

According to the Employment Act of the Bahamas, the employer is obligated to pay for overtime (work done in excess of the standard working hours of 40 hours per week) at 1.5 times the regular wages of the employee for regular workdays and 2 times the regular wages for a public holiday or day off.

Employees are entitled to their basic wage for the duration of annual leave.

Notice Period

When an employee (at least 1-year tenure) is dismissed because of redundancy, the following notice periods must be observed:

• 2 weeks or 2 weeks' basic pay in lieu of notice if the employee has been employed for more than 12 months
• If the employee holds a supervisory or managerial position - 1 month or 1 month's basic pay in lieu of notice

In case of dismissal due to causes other than redundancy, the following notice period must be observed:

• 1 week or 1 week pay in lieu of notice if the employee has been employed for more than 6 months or more but less than 12 months
• 2 weeks or 2 weeks pay in lieu of notice if the employee has been employed for more than 12 months
• 2 weeks’ notice if the employee has been employed for one year or more but less than 2 years.
• 4 weeks’ notice if the employee has been employed for more than 2 years.
• If the employee holds a supervisory or managerial position - 1 month or 1 month's pay in lieu of notice

Severance Benefits

Dismissed employees receive severance pay that varies according to their tenure, supervisory status, and reason for dismissal:

Dismissal due to redundancy

• 2 weeks' basic pay (or a part thereof on a pro-rata basis) for each year up to 24 weeks of pay
• If the employee holds a supervisory or managerial position - 1 month's basic pay (or a part thereof on a pro-rata basis) for each year up to 48 weeks.

Dismissal due to causes other than redundancy

• If the employee has been employed for 6 months or more but less than 12 months, 1 week's basic pay
• If the employee has been employed for more than 12 months, 2 weeks' basic pay (or a part thereof on a pro-rata basis) for each year up to 24 weeks of pay
• If the employee holds a supervisory or managerial position - 1 month's basic pay (or a part thereof on a pro-rata basis) for each year up to 48 weeks.

Employees who are summarily dismissed are not entitled to severance benefits.

Pension

The legal retirement age is 65 years. Employees have the option of retiring early from the age of 60 years with a reduced pension. They must fulfill the following conditions to be eligible for pension:

• Paid 500 contributions to the National Insurance Board, and
• Aged 60 to 64 years, retired from gainful employment,
  or if still working, is not earning more than half of
  the insurable wage ceiling, or
• Aged 65 or older

Retirement benefits are paid as a percentage of the average monthly income in the last 3 years before retirement, ranging from 16% to 60% of the average income depending on the number of contributions paid. Employees who continue working beyond 65 years of age are entitled to an increased pension amount when they retire. The minimum pension is BSD 363.87 per month at the age of 65.

If an employee fails to meet the 500 contributions condition for the award of the monthly pension, a one-time Retirement Grant is paid to them if they are 65 years or older and have paid at least 150 contributions.

Dependents/Survivors Benefits

Eligible dependents include widow(ers), surviving children under 16 (21 if they are full-time students), and parents, amongst others. Benefits are paid as below:

• Widow/widower receives 50% of the survivors benefit, depending on work status or childcare situation.
• Children each receive 10% of the survivors benefit per month.
• Other survivors are eligible to receive 50% of the survivors benefit.

Survivors' Grant is a one-time payment made to a widow/widower of a deceased insured person who does not qualify for Survivors Benefit on account of their age or lack of dependents. They must have been married for at least 1 year, and the deceased must have paid at least 150 contributions to be eligible.

Invalidity Benefits

The National Insurance Board provides disability benefits to eligible individuals who must:

• Be under 65 years of age
• Be permanently disabled with a non-occupational injury
• Have paid at least 150 contributions to the National Insurance Board

The invalidity benefit ranges from 16% to 60% of the insured person’s average weekly insurable wage income, depending on the period of contributions.

For work-related disability, employees are entitled to disablement benefit, as follows:

• If the disability ranges from 1% to 24%, a lump sum grant is paid as BSD 100 (Bahamian dollars) for each percentage point of disability, i.e., from BSD 100 to BSD 2,400
• If the disability is above 25%, a lump sum grant is paid as an amount between BSD 500 and BSD 1,000 and a monthly pension ranging from 20% to 100% of the injury benefit (66.6% of the monthly average income of the insured person)

There is invalidity assistance paid to residents, aged between 16 and 65 years, who are permanently incapable of working and do not qualify for invalidity benefit.

Personal Income Tax

According to the Department of Inland Revenue, the Bahamas does not levy taxes on personal income or benefits.

Visas

The Bahamas has the following categories of visas:

• Tourist visa - issued to foreign nationals traveling to the Bahamas for leisure purposes
• Seaman visa - issued to crew members of boats or cruise ships temporarily visiting the Bahamas. The visa fee is BSD 110 (Bahamian dollars).
• Diplomatic visa - issued to the holders of Diplomatic and Official passports
• Single entry visa - issued for one entry within 3 months, for foreign nationals temporarily visiting the Bahamas. The visa fee is BSD 100.
• Multiple entry visa - issued to foreign nationals for multiple entries to the Bahamas for the periods of 3 months, 6 months, 1 year and 3 years; this type is also for a foreign national who is married to a Bahamian national but is not a resident of the Bahamas, or the spouse of a foreign national who works in the Bahamas.
• Extended Access Travel Stay -- issued to foreign nationals wishing to study or work remotely in the Bahamas. The visa acts as a residence and work permit for 12 months and costs BSD 1,025 for remote workers and BSD 525 for students.

Work Permits

Foreign nationals who wish to work in the Bahamas for more than 90 days are required to obtain a work permit with the following documents (not a full list):

• A letter of request from the prospective employer stating reasons for the application, the position, and the period of time required
• A police certificate of character covering five years of residence in the Bahamas
• A medical certificate dated not more than 30 days prior to the submission of the application
• Written references from previous employers (up to two)
• A certificate from the Department of Labour, with Notification of Vacancy attached, indicating that a Bahamian is not available to fill the position.

The long term work permit is valid for 1 year and has to be renewed annually.

For short-term work lasting less than 90 days, a short-term work permit (also with application requirements) is required.

For foreign nationals wishing to work remotely for a foreign company, a visa program named BEATS grants a residence and work permit for 12 months. The cost of this program is BSD 1,025, and it can be renewed annually for a maximum duration of 3 years. No minimum length of stay is required. Citizens from the USA, Canada, the EU, and Britain do not need an additional travel permit.

The legal minimum working age in the Bahamas is 14 years. A person below the age of 18 years cannot be employed during school hours. It is prohibited to hire a person below the age of 16 years to work on ships, except the ones where only the family members of the person are employed or the ones that travel within the waters of the Bahamas. The law prohibits the employment of children in night shifts between 8:00 P.M. and 6:00 A.M. Minors under 18 years of age cannot be employed for more than 3 hours on a school day, for more than 24 hours in a school week, or 40 hours in a non-school week.

If employers hire anyone below the legal employment age and violate the rules, they are liable to a fine of up to BSD 1,000 (Bahamian dollars).