OpenAccountants/Bermuda/Bermuda Payroll & Social Contributions

Bermuda Payroll & Social Contributions

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: payroll & social contributions for Bermuda (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Source-cited draft· Last updated Jun 25, 2026

Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.

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Key figures — Bermuda, 2025

Every figure is drawn from this Tax Guide and cited to its source.

Payroll tax overview

Payroll tax is Bermuda's principal tax on employment income, levied under the Payroll Tax Act 1995 and the Payroll Tax Rates Act 1995. It has an employer portion and an employee portion (which the employer may deduct from pay but remains liable to remit). Remuneration is capped at BMD 1,000,000 per person per year. Rates are set annually in the Budget; the values below should be confirmed against the gov.bm tables for the 1 April 2025 to 31 March 2026 year.

Governing legislation

Payroll Tax Act 1995 and Payroll Tax Rates Act 1995Payroll Tax Act 1995; Payroll Tax Rates Act 1995 (https://www.gov.bm/payroll-tax)

Taxable remuneration cap

BMD 1,000,000 per person per annumPayroll Tax Act 1995 (https://taxsummaries.pwc.com/bermuda/corporate/other-taxes)

Tax structure

Two portions — employer portion (on gross taxable remuneration) and employee portion (progressive across remuneration bands); employer is liable to remit the full amountPayroll Tax Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025)

Employer portion rate (standard, large employers)

Tiered by total annual remuneration of the employer; top standard band around 10.25% (approx — confirm 2025-26 employer band table)Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025)

Employer portion rate (small employers)

Reduced employer rates apply to smaller payrolls and exempt undertakings; lowest bands around 1.50%-5.25% (approx — confirm 2025-26 employer band table)Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025)

Employee portion — Band 1 (first BMD 48,000)

0.50% on the first BMD 48,000 of annual remuneration (confirm 2025-26 band thresholds)Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025)

Employee portion — Band 2

9.25% on remuneration above BMD 48,000 up to the next band threshold (approx — confirm 2025-26 band table and upper threshold)Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025)

Employee portion — band structure

Progressive (marginal) across 5 bands, with higher marginal rates on higher remuneration up to the BMD 1,000,000 cap (confirm 5-band rates for 2025-26)Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025)

Payroll tax filing & payment frequency

Quarterly returns and payment to the Office of the Tax Commissioner; due within 15 days after each quarter end (confirm current due date)Payroll Tax Act 1995 (https://www.gov.bm/payroll-tax)

Social insurance (contributory pension) total contribution

BMD 75.30 per week (combined employer + employee)Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance)

Social insurance split

Employer pays 50% (BMD 37.65/week) and employee pays 50% (BMD 37.65/week) for workers aged 16-64Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance)

Social insurance — employees aged 65+

Only the employer portion is due; no employee contributionContributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance)

Social insurance remittance deadline

Employer billed monthly; payment due by the last Friday of that monthContributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance)

Occupational (private) pension contribution

Mandatory for Bermudians/spouses under the National Pension Scheme; typically 5% employer + 5% employee of pensionable earnings (approx — confirm current rate)National Pension Scheme (Occupational Pensions) Act 1998 (https://www.gov.bm/bermuda-pension)

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full Guide

Payroll tax

Payroll tax overview — Payroll tax is Bermuda's principal tax on employment income, levied under the Payroll Tax Act 1995 and the Payroll Tax Rates Act 1995. It has an employer portion and an employee portion (which the employer may deduct from pay but remains liable to remit). Remuneration is capped at BMD 1,000,000 per person per year. Rates are set annually in the Budget; the values below should be confirmed against the gov.bm tables for the 1 April 2025 to 31 March 2026 year.
Governing legislation — Payroll Tax Act 1995 and Payroll Tax Rates Act 1995 (Payroll Tax Act 1995; Payroll Tax Rates Act 1995 (https://www.gov.bm/payroll-tax))
Taxable remuneration cap — BMD 1,000,000 per person per annum BMD (Payroll Tax Act 1995 (https://taxsummaries.pwc.com/bermuda/corporate/other-taxes))
Tax structure — Two portions — employer portion (on gross taxable remuneration) and employee portion (progressive across remuneration bands); employer is liable to remit the full amount (Payroll Tax Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))
Employer portion rate (standard, large employers) — Tiered by total annual remuneration of the employer; top standard band around 10.25% (approx — confirm 2025-26 employer band table) percent (approx — confirm 2025-26 employer band table) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))
Employer portion rate (small employers) — Reduced employer rates apply to smaller payrolls and exempt undertakings; lowest bands around 1.50%-5.25% (approx — confirm 2025-26 employer band table) percent (approx — confirm 2025-26 employer band table) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))
Employee portion — Band 1 (first BMD 48,000) — 0.50% on the first BMD 48,000 of annual remuneration (confirm 2025-26 band thresholds) percent (confirm 2025-26 band thresholds) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))
Employee portion — Band 2 — 9.25% on remuneration above BMD 48,000 up to the next band threshold (approx — confirm 2025-26 band table and upper threshold) percent (approx — confirm 2025-26 band table and upper threshold) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))
Employee portion — band structure — Progressive (marginal) across 5 bands, with higher marginal rates on higher remuneration up to the BMD 1,000,000 cap (confirm 5-band rates for 2025-26) (confirm 5-band rates for 2025-26) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))
Payroll tax filing & payment frequency — Quarterly returns and payment to the Office of the Tax Commissioner; due within 15 days after each quarter end (confirm current due date) (confirm current due date) (Payroll Tax Act 1995 (https://www.gov.bm/payroll-tax))
Social insurance (contributory pension) total contribution — BMD 75.30 per week (combined employer + employee) BMD/week (Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance))
Social insurance split — Employer pays 50% (BMD 37.65/week) and employee pays 50% (BMD 37.65/week) for workers aged 16-64 BMD/week (Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance))
Social insurance — employees aged 65+ — Only the employer portion is due; no employee contribution (Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance))
Social insurance remittance deadline — Employer billed monthly; payment due by the last Friday of that month (Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance))
Occupational (private) pension contribution — Mandatory for Bermudians/spouses under the National Pension Scheme; typically 5% employer + 5% employee of pensionable earnings (approx — confirm current rate) percent (approx — confirm current rate) (National Pension Scheme (Occupational Pensions) Act 1998 (https://www.gov.bm/bermuda-pension))

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Payroll tax

Payroll tax overview — Payroll tax is Bermuda's principal tax on employment income, levied under the Payroll Tax Act 1995 and the Payroll Tax Rates Act 1995. It has an employer portion and an employee portion (which the employer may deduct from pay but remains liable to remit). Remuneration is capped at BMD 1,000,000 per person per year. Rates are set annually in the Budget; the values below should be confirmed against the gov.bm tables for the 1 April 2025 to 31 March 2026 year.

Governing legislation — Payroll Tax Act 1995 and Payroll Tax Rates Act 1995 (Payroll Tax Act 1995; Payroll Tax Rates Act 1995 (https://www.gov.bm/payroll-tax))

Taxable remuneration cap — BMD 1,000,000 per person per annum BMD (Payroll Tax Act 1995 (https://taxsummaries.pwc.com/bermuda/corporate/other-taxes))

Tax structure — Two portions — employer portion (on gross taxable remuneration) and employee portion (progressive across remuneration bands); employer is liable to remit the full amount (Payroll Tax Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))

Employer portion rate (standard, large employers) — Tiered by total annual remuneration of the employer; top standard band around 10.25% (approx — confirm 2025-26 employer band table) percent (approx — confirm 2025-26 employer band table) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))

Employer portion rate (small employers) — Reduced employer rates apply to smaller payrolls and exempt undertakings; lowest bands around 1.50%-5.25% (approx — confirm 2025-26 employer band table) percent (approx — confirm 2025-26 employer band table) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))

Employee portion — Band 1 (first BMD 48,000) — 0.50% on the first BMD 48,000 of annual remuneration (confirm 2025-26 band thresholds) percent (confirm 2025-26 band thresholds) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))

Employee portion — Band 2 — 9.25% on remuneration above BMD 48,000 up to the next band threshold (approx — confirm 2025-26 band table and upper threshold) percent (approx — confirm 2025-26 band table and upper threshold) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))

Employee portion — band structure — Progressive (marginal) across 5 bands, with higher marginal rates on higher remuneration up to the BMD 1,000,000 cap (confirm 5-band rates for 2025-26) (confirm 5-band rates for 2025-26) (Payroll Tax Rates Act 1995 (https://www.gov.bm/calculating-payroll-tax-2025))

Payroll tax filing & payment frequency — Quarterly returns and payment to the Office of the Tax Commissioner; due within 15 days after each quarter end (confirm current due date) (confirm current due date) (Payroll Tax Act 1995 (https://www.gov.bm/payroll-tax))

Social insurance (contributory pension) total contribution — BMD 75.30 per week (combined employer + employee) BMD/week (Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance))

Social insurance split — Employer pays 50% (BMD 37.65/week) and employee pays 50% (BMD 37.65/week) for workers aged 16-64 BMD/week (Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance))

Social insurance — employees aged 65+ — Only the employer portion is due; no employee contribution (Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance))

Social insurance remittance deadline — Employer billed monthly; payment due by the last Friday of that month (Contributory Pensions Act 1970 (https://www.gov.bm/department/social-insurance))

Occupational (private) pension contribution — Mandatory for Bermudians/spouses under the National Pension Scheme; typically 5% employer + 5% employee of pensionable earnings (approx — confirm current rate) percent (approx — confirm current rate) (National Pension Scheme (Occupational Pensions) Act 1998 (https://www.gov.bm/bermuda-pension))