Global PEO and Payroll Services in Bhutan

Hiring employees in Bhutan presents unique operational and regulatory challenges. While the Labour and Employment Act of 2007 provides the legal framework, in practice, compliance processes can be opaque, underdeveloped, or inconsistently enforced. For international companies without prior experience in Bhutan, establishing a legal entity is both expensive and unnecessary, especially for lean teams or project-based hires.

Acumen International enables you to hire, pay, and manage employees in Bhutan without setting up a subsidiary. Through our Global Professional Employer Organisation (PEO) and Employer of Record (EOR) solution, we become the legal employer of record. We handle every employment obligation on your behalf, contracts, registration, statutory benefits, and payroll, while you retain full day-to-day control over your team.

Local Employment with Full Operational Control

Our Global PEO model gives you the ability to hire talent in Bhutan compliantly, without sacrificing speed, control, or flexibility. We assume full legal responsibility for employment, while you direct performance, projects, and team structure.

Included in our end-to-end employment support:

• Legally compliant contracts tailored to Bhutanese law and your organisation’s requirements
• Employee registration with the National Pension and Provident Fund (NPPF)
• Timely and accurate payroll processing with statutory deductions and reporting
• Leave tracking, end-of-service calculations, and compliant offboarding
• Ongoing workforce administration, documentation, and audit readiness

Bhutan Payroll: Compliance Considerations

Running payroll in Bhutan involves more than just monthly salary calculations. Local regulations require employers to meet mandatory contributions, observe statutory deductions, and remain responsive to changing procedures—many of which are still paper-based and must be submitted manually.

Key elements of Bhutan payroll

• Income Tax Withholding: Bhutan uses a progressive personal income tax system. Employers are responsible for calculating and withholding the correct amount each month and remitting it to the Department of Revenue and Customs.
• NPPF Contributions: Both employer and employee must contribute to the National Pension and Provident Fund. This is mandatory for all eligible employees and must be registered and maintained through the NPPF office.
• Leave Entitlements: Annual leave, maternity leave, and other statutory allowances must be accurately tracked and reflected in payroll records, including pro-rata entitlements.
• Severance and End-of-Contract Payments: Labour law in Bhutan requires end-of-service benefits to be paid in certain scenarios. These must be calculated based on tenure, salary history, and contract type.
• Manual Reporting Obligations: There is limited digital infrastructure in Bhutan’s payroll administration, which means filings and updates often require in-person submission or local liaison.

PEO and Payroll Solution in Bhutan

We simplify Bhutan payroll for global employers by managing the entire lifecycle of employee compensation and compliance. Our payroll services include:

• Gross-to-net salary calculations, fully aligned with Bhutanese tax bands and contribution schemes
• Monthly payslips issued to employees, with itemised breakdown of salary, deductions, and contributions
• NPPF registration and ongoing management, including timely employer and employee remittances
• Year-end tax compliance, including certificates, summaries, and any required government reporting
• Audit-ready documentation, maintained securely and accessible for regulatory checks

By outsourcing payroll to Acumen, you reduce your exposure to compliance failure, penalties, or employee disputes—while ensuring your team is paid accurately and on time, every time.

Benefits of Using a Global PEO and Payroll Provider in Bhutan

• No local entity required – ideal for short-term projects or testing new markets
• Faster hiring and onboarding – employment contracts and payroll setup finalised in days
• Full legal compliance – all statutory responsibilities transferred to Acumen
• Risk mitigation – avoid misclassification, late filings, or tax errors
• Scalable employment model – easily add or remove employees as project needs evolve

Common Scenarios We Support in Bhutan

• Hiring project managers or local specialists for donor-funded or development projects
• Converting long-term contractors to compliant full-time employment
• Managing payroll and contracts for Bhutan-based employees after closing a local NGO or branch office
• Deploying specialists to Bhutan temporarily without setting up a legal presence
• Supporting global operations where Bhutan is one of several covered jurisdictions

Hire and Pay Employees in Bhutan with Confidence

Whether you need to onboard a single employee or manage a small in-country team, Acumen International provides the compliant infrastructure you need to operate in Bhutan without legal exposure or operational delay. Our Global PEO and Payroll solution offers a seamless route to local employment, statutory compliance, and precise compensation management.

Contact us to scope your Bhutan hiring and payroll needs.osts, fast onboarding, and full compliance anywhere you hire.

Contact Acumen International for expert guidance and an instant quote.

Estimate Salary Costs with the Global Payroll Calculator

Before entering the market or onboarding a Bhutan-based employee, you can use Acumen’s Global Payroll Calculator (GPC) to model expected employer costs, including gross-to-net salary breakdowns, social security contributions, and income tax liabilities.

This tool helps international HR and finance teams:

• Plan total compensation budgets for Bhutan-based roles
• Compare statutory cost structures across multiple jurisdictions
• Validate internal assumptions before engaging in-country talent
• Make informed decisions when evaluating EOR vs entity setup trade-offs

The GPC is updated with Bhutan-specific parameters and can be customised by role, salary range, or hiring model. It’s particularly useful for regional planning, multi-country programme budgets, and early-stage project feasibility.