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HRsolution » COUNTRIES »
Population
Bhutan has a population of approximately 780,000 people (as of 2023). The country is relatively sparsely populated, with many people living in rural areas. The population is ethnically diverse, with the main groups being Ngalop, Sharchops, and Lhotshampa (of Nepali descent).
Capital
The capital of Bhutan is Thimphu, which serves as the political, economic, and cultural center of the country. Located in a picturesque valley in the Himalayan mountains, Thimphu is also home to the government and many national institutions.
Economic Strength
Bhutan’s economy is primarily based on agriculture, forestry, and hydropower production. The export of hydropower to India is a major source of revenue for the country. Bhutan’s approach to economic development is unique, with Gross National Happiness (GNH) taking center stage. This concept aims to promote economic progress in harmony with environmental conservation and cultural preservation. Bhutan’s economy remains relatively small and heavily dependent on India.
Culture
Bhutan’s culture is deeply rooted in Buddhist traditions. Vajrayana Buddhism influences daily life and customs. Monasteries, temples, and religious festivals play a central role in the country’s cultural identity. Festivals like Tsechus, colorful religious festivals featuring masked dances, are significant cultural events. Traditional clothing, such as the Gho for men and Kira for women, is commonly worn by many Bhutanese in daily life.
Currency
The currency of Bhutan is the Ngultrum (BTN), which is pegged to the Indian Rupee. The Indian Rupee is also accepted as legal tender within the country.
Health Insurance and Social Security System
Bhutan offers its citizens free healthcare through a state-run healthcare system. However, there is no comprehensive social security system like in Western countries. The government provides basic medical services, and many Bhutanese rely on family support for old age or unemployment assistance.
Employer Costs
Employers in Bhutan must comply with legal regulations regarding wages, paid leave, and working hours, but there are no extensive mandatory contributions for social security. The largest costs for employers typically include wages, bonuses, and other benefits such as housing and transportation if provided.
Salary and Bonuses
Salaries in Bhutan are relatively low compared to Western countries, but the cost of living is also lower. Government employees and workers in larger companies often receive bonuses, usually paid at the end of the year or on special occasions like the Buddhist New Year (Losar).
Payroll
Employers are required to provide employees with monthly payslips detailing the base salary, allowances, and any deductions. Payroll records must be clearly structured to ensure transparency.
Public Holidays
Bhutan observes many religious and national holidays. Key public holidays include:
- National Day (December 17)
- Losar (Buddhist New Year)
- Tsechu festivals, which are held in different regions of the country
- Buddha Parinirvana (a holiday honoring Buddha’s death and enlightenment)
These holidays play an important role in the religious and cultural life of the Bhutanese people.
Working Hours
Regular working hours in Bhutan are typically 8 hours per day and 48 hours per week. There are regulations limiting the workday, but in certain sectors, such as agriculture or construction, overtime may be more common.
Vacation
Employees are entitled to 18 days of paid annual leave, depending on the length of their employment. There are also paid public holidays during which employees are given time off. Both public and private employers adhere to these regulations.
Sick Leave
In cases of illness or injury, employees are entitled to sick leave. The length and pay for this leave vary depending on the employer and the nature of the employment contract. The state provides basic medical care, but employees rely on voluntary agreements with their employers for specific terms regarding sick leave.
Termination/Severance
Bhutanese labor law includes provisions for notice periods, typically one month. Severance payments are not explicitly regulated by law but may be negotiated through collective agreements or on a voluntary basis between employer and employee. Workers are protected by labor courts in cases of unjust dismissal.