Undoubtedly, payroll is a critical process for any organization. Pay cycle in Bhutan refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

In Bhutan, the pay cycle is monthly.

There is no statutory requirement to pay the 13th or 14th month salary.

Minimum wage is 3,750 Bhutanese ngultrum per month.

An employee working overtime shall be paid overtime pay for the number of hours worked:

• Normal rate of pay calculated on an hourly basis for work other than between 10 PM and 8 AM
• 1.5 times the normal rate of pay calculated on an hourly basis for work between 10 PM and 8 AM

Employee records should be maintained and stored for a minimum duration of 3 years.

• Human Resource specialists are responsible to upshot good hiring decisions, according to the needs of an organization’s workforce.
• Interview is the particular step in the selection process. It is the opportunity for the employer and forthcoming employee to learn more about each other and authenticate information provided by both.
• Once the employee is selected, employment contract is rolled out to employees.
• Employment contracts should contain duration, description of the job, notice periods for termination, wages, hours of work, granted leave.

Show new hires your company is well organized and considerate by preparing a comprehensive welcome pack. This kit should include:

• Company Policies
• Office perks
• Introductions to team members and important names to know
• An understanding of your management structure and where to go when they have questions
• A clear rundown of paperwork and other forms needed by HR

An employee who is employed for one year or more shall be on probation for 6 months days within which period either party may terminate the contract by giving the other party notice of 7 days.

Bhutan has 16 public holidays.

January 2: Winter Solstice
January 22: Traditional Day of Offering
February 21: Dangpa Losar | Anniversary of his Majesty the King
February 22: Losar Holiday | Anniversary of his Majesty the King Holiday
February 23: Anniversary of his Majesty the King Holiday
April 30: Zhabdrung Kuchhoe
May 2: Birth Anniversary of the 3rd Druk Gyalpo
June 4: June Lord Buddha's Parinirvana
June 23: Birth Anniversary of Guru Rinpoche
July 21: The first Sermon of Lord Buddha
September 23: Blessed Rainy Day
October 24: Dassain
November 1: Druk Gyalpo Coronation Anniversary
November 4: Descending Day of Lord Buddha
November 11: Anniversary of the 4th Druk Gyalpo
December 17: National Day

• Employees who work for 6 months or more in continuous employment are entitled to be paid sick leave.
• For full-time employees, sick leave entitlements accrue at a minimum rate of 5 working days per year, such accrual to commence after the employee has completed 6 months of service.

• A female employee shall be entitled to three months’ maternity leave in addition to other leaves on production of a medical certificate duly signed by a recognized medical practitioner in Bhutan
• A female employee shall be entitled to maternity leave with salary subject to three confinements during the entire service of the employee.
• In the event of miscarriage, a maximum leave of four weeks shall be granted on the production of a medical certificate from a recognized medical practitioner in Bhutan

Male employees are entitled to 10 working days of paid paternity leave

Those employees who have been a part of the company for six constant months are allowed to take advantage of paid casual leave in case of a family emergency or self-care day. These holidays can also be utilized if the employee is getting married, there is a marriage in their family, family births and deaths, to care of family members in case of sickness, and any other reason that has been discussed with the employer.

• A minimum of one month's notice shall be issued by the Employer/Employee intending to terminate the contract before expiry of the term.
• In the event of failure to serve the notice in advance of the required period, the defaulting party shall pay to the other, the basic pay of the employee for the stipulated notice period.
• A contract employee shall not be indispensable to the Government of Bhutan and hence shall be liable to be removed from service at any time when the Government finds his services redundant or on violation of any of these provisions.
• An employee who retires on superannuation or after completion of 5 years’ service shall be eligible for receiving gratuity and other benefits
• The amount of gratuity payable to an employee shall be an amount equivalent to one month’s last basic pay of the employee for every completed year of service with the employer times the number of years of his active service with the employer.
• If at any time during his employment, the employee shall be tried for gross misconduct or breach or non-observance of any of the stipulation herein.
• The employee shall, at the option and discretion of the employer, forfeit the gratuity.
• In addition to such forfeiture, the employer may terminate the services of the employee forthwith and without any notice or payment in lieu thereof.
• Upon such termination, the employee shall not be entitled to claim any compensation or damages.

A minimum of one month's notice shall be issued by the party intending to terminate the contract before expiry of the term.

Section 24 of the Labour Act prescribes the procedure for dismissing a worker, which requires providing the allegation to him or her in writing and giving the opportunity for a hearing. However, no prior approval from a government agency is required by law.

An employee who retires on superannuation or after completion of 5 years’ service shall be eligible for receiving gratuity and other benefits.

The amount of gratuity payable to an employee shall be an amount equivalent to one month’s last basic pay of the employee for every completed year of service with the employer times the number of years of his active service with the employer.

The government of Bhutan issues the work permit for one year for just one time. Once the permit expires, the applicants have to reapply annually to maintain their legal employment status. In addition, if an employee has extended their work permit for three years, the permit holder must leave the country for at least six months and then they can reapply.

Documents required for Bhutan work permit are:

• One must have a valid passport
• One must have approval from the department of labor
• One must have an employer undertaking form
• One must have a medical fitness certificate
• One must have a signed declaration of the compliance

• Criminal Records
• Civil Records
• Education Degree
• Employment Verification
• ID Check
• Social Media check