This information is derived from the State Department's Office of Investment Affairs' Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov
Last Published: 8/12/2016

The Bahamian labor force is generally considered to be well-educated by international standards, although foreign nationals may be sought after for specialized skills.  Wage rates, while lower than in the United States, are higher than elsewhere in the region.  Well-qualified accountants and secretaries, and others with skills appropriate to the financial services industry, command a premium wage while wages for low-skilled labor, mostly found in hotels and restaurants, hover around the minimum rate.  The minimum wage for private sector employees is USD 5.25 per hour ($210 per week).

Unemployment continues to be a significant problem.  The Central Bank reported an unemployment rate of 15.0% for March 2016.

The Fair Labor Standards Act requires at least one 24-hour rest period per week, paid annual vacations, and employer contributions to National Insurance (Social Security).  The Act also requires overtime pay (time and a half) for hours in excess of 40 or on public holidays.  A 1988 law provides for maternity leave and the right to re-employment after childbirth.  The Minimum Labor Standards Act, including the Employment Act, Health and Safety at Work Act, Industrial Tribunal and Trade Disputes Act, and the Trade Union and Labor Relations Act were passed in 2001 and in early 2002.

The Bahamian Constitution specifically grants labor unions the right to free assembly and association.  These rights are exercised extensively, particularly in state-owned industries and in the hotel industry (where 80 percent of the employees are unionized).  The right to strike is governed under the Industrial Relations Act, which requires a simple majority of union members to vote in favor of a strike before it can commence.  The Ministry of Labor oversees strike votes.  Although prolonged strikes are still rare, work slow-downs and protests occur, and workers often use labor actions to force management to act on issues of concern to them.  Labor unions and others involved in disputes with foreign-owned enterprises sometimes use the fact of foreign ownership as a lever to gain popular support for their demands. 

The Immigration Act requires foreigners to obtain work permits before they can legitimately be employed in The Bahamas.  The GCOB permits foreign employees to work in a technical, supervisory or managerial capacity, provided no similarly qualified Bahamians are available for the job.  Foreign business owners are expected to train as many of their Bahamian employees as possible to eventually fill technical and managerial positions.  Work permit fees range from USD 500 to USD 12,500 per year.

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