Employment in Bhutan

According to the Labour Force Survey 2025, around 381,584 people worked in Bhutan. The employment rate was 96.6 percent, and the labour force participation rate was 64.9 percent. Agriculture accounted for 43.6 percent of employment, industry for 14.2 percent, and services for 42.2 percent. In urban areas, services accounted for 78.1 percent of employment, and in Thimphu for 81.0 percent. Entry remains more difficult for young people; in the first quarter of 2026, youth unemployment was 16.5 percent. The Bhutanese labour-market information system (Bhutan Labour Market Information System (BLMIS)) records, among other things, jobseekers, vacancies, and training opportunities. The employment service centres (Employment Service Centres (ESC)) of the Ministry of Industry, Commerce and Employment support registration, career counselling, CV preparation, interviews, documents, placement, and complaints. Public ESC locations exist in Thimphu, Phuntsholing, Gelephu, Samdrup Jongkhar, and Trashigang; the exact current number and responsibilities should be checked before a visit. Applications are submitted online or through the relevant provider, depending on the position. A typical selection procedure requires applicants to be at least 18 years old and includes deadlines of approximately nine weeks: at least two weeks for advertising, one week for shortlisting, one week for interview notification, one week for selection, two weeks until the result, and up to three weeks for reference checks. An employment contract must be in writing, and a copy must be provided to the employee. It must state at least the duration, specific duties, notice period, wages, working hours, probationary period, and leave. If no contract duration is stated, the employment relationship is generally considered indefinite. The notice period is at least 30 days for both employers and employees. For a contract lasting at least one year, the probationary period may not exceed 180 days; during probation, the notice period is seven days. Early termination may result in payment of the basic wage for the remaining notice period. The statutory working time is a maximum of eight hours per day and 48 hours per week. Overtime requires the consent of both parties, is limited to a maximum of twelve hours per week, and is paid at least at the normal rate. Night work between 22:00 and 08:00 and work on a public holiday are paid with a premium of at least 50 percent. After two hours of work, employees are entitled to a ten-minute break, and after four hours to a 30-minute meal break; during an eight-hour working period, a total break of at least 30 minutes must be possible. Daily rest is at least twelve hours, and weekly rest is at least 24 hours. After the probationary period, employees are entitled to at least 18 paid working days of annual leave per year. A written leave request should be submitted at least 14 calendar days in advance. Paid sick leave and paid special leave are each at least five days per year. After twelve months of uninterrupted employment, employees are entitled to at least two months of paid maternity leave. Bhutan has at least nine paid public holidays per year. Unused leave must be paid out when employment ends; payment for annual leave generally requires at least twelve months of employment, including the probationary period. After the probationary period, employers and employees must each contribute at least five percent of the monthly basic wage to the provident fund (Provident Fund). The contribution is made by the first week of the following month. A gratuity payment (Gratuity) is calculated after ten years of uninterrupted employment, including the probationary period, and equals the last basic wage multiplied by the completed years of service. Payment should be made within 15 working days; serious misconduct may exclude entitlement. The national minimum wage (National Minimum Wage) establishes a binding wage floor through an order issued by the responsible ministry. The specific amount may differ by zone, sector, occupation, and status and must be checked in the current order. Wages are paid directly to the employee in cash or into a designated bank account. The Youth Employment and Livelihoods Programme (YELP) offers young Bhutanese jobseekers time-limited employment, internships, and work experience. Requirements include Bhutanese citizenship, registration with the BLMIS, an age of 18 to 29 years, and not being employed or enrolled in education or training when applying. Employment periods last from one to twelve months, while internships last a maximum of three months with a possible three-month extension. The programme does not create an automatic permanent job. Monthly total amounts from the ministry and employer contribution range from Nu. 10,500 to Nu. 15,000 depending on educational qualification; for internships, the ministry pays Nu. 6,000. When terminating employment, the written form and a notice period of at least 30 days must be observed. Under the Provident Fund, employees with at least five years of service are generally entitled to both the employer and employee contributions, including interest; with shorter employment, they are generally entitled to their own contributions, including interest. Certain fixed-term projects lasting less than five years qualify for a full payout. The ESC also support returning overseas workers, dismissed employees, and people with disabilities. Foreign workers require the necessary approval before recruitment and a work permit; changing employers or occupations is permitted only with approval. Bhutanese workers going abroad register with the Department of Employment and Entrepreneurship (Department of Employment and Entrepreneurship) and use approved agents or the direct government channel.