Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
BTN Nu (Bhutanese Ngultrum)
Employer contributions
10% employer NPPF
Minimum wage
BTN 7,000/month (civil service reference)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Thimphu
Timezone
BTT (GMT+6)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~BTN 22,000 total
/month
For a gross salary of
BTN 20,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
10% employer NPPF
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll - NPPF by 15th - PIT withholding - annual March return
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~BTN 22,000 total
Example gross salary
BTN 20,000 gross/month
~BTN 16,000 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~BTN 2,000 NPPF
Employer contributions on that salary
Employer contributions
10% employer NPPF
Employee contributions
5% employee NPPF + income tax (PIT)
Total cost above gross
~10% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~BTN 15,000
Per month
Thimphu
BTN 20,000 - 60,000
~40%
Phuentsholing
BTN 15,000 - 45,000
~10%
Monthly gross. National average salary per year:
~BTN 180,000
Minimum wage
BTN 7,000/month (civil service reference)
Paid:
Monthly
Extra pay
Annual Bonus
Government: Dasain bonus; private: discretionary
October (Dasain)
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to BTN 300,000 / 10% / 15% / 20% / 25%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 15th
Social security payments
March 31 (annual PIT return)
Income tax
End of March
Employee tax certificate
Annual Salary Certificate
March 31
Annual return
Annual PIT Declaration
Late payment penalties
Late NPPF: 24% annual; late PIT: 24% annual
Who collects what
DRC
Income tax
NPPF
National pension and provident fund
Department of Labour
Labor law enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
14 days/year
Public holidays
~11 public holidays
Sick leave
Sick Leave
14 days/year from employer
Maternity leave
12 weeks (84 days) maternity
Full pay employer for 3 months
The contracts you can use, and what ending an employment relationship costs.
Permanent
Permanent Employment Contract
Fixed term
Fixed-Term Contract
Independent contractor
Service Contract
Collective agreements
No general private sector CBA
Ending employment
Severance
How it is calculated
Per Labour and Employment Act 2007
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Gross National Happiness (GNH) Employment Principles
Risk Level: MEDIUM
Bhutan's employment framework incorporates GNH principles requiring workplaces to promote employee wellbeing beyond financial compensation. The Labour and Employment Act 2007 reflects these values. International employers must ensure working conditions meet GNH standards, not just minimum legal requirements.
Foreign Worker Restrictions
Risk Level: HIGH
Bhutan strictly limits foreign workers through work permit quotas and sector restrictions. Indian nationals have preferential access but still require permits. Other foreign nationals face significant restrictions.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
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$49
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Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.