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Bhutan - Compensation & Benefit Legislation

CAPITAL

Thimphu

 

CLIMATE

The climate in Bhutan varies. It is tropical in southern plains, cool winters and hot summers in central valleys, and severe winters and cool summers in the Himalayas.

 

LANGUAGES

Dzongkha (official), Bhotes speak various Tibetan dialects and Nepalese speak various Nepalese dialects.

 

LEGAL SYSTEM

Bhutan’s legal system is based on Indian law and English common law; has not accepted compulsory ICJ jurisdiction.

 

CURRENCY

Bhutan Ngultrum (1 US Dollar = 48.26560 BTN as of March 15, 2002).

 

BHUTAN - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

BHUTAN - EMBASSY/CONSULATES

Consulate-General at New York

2 United Nations Plaza, 27th Floor

New York, NY 10017

Telephone: (212) 826-1919

Fax: (212) 826-2998

 

BHUTAN - HOLIDAYS

 

Buddhist festivals are declared according to local astronomical observations.

 

BHUTAN – LEAVE

Annual Leave: Minimum 15 days paid annual leave each year.

 

BHUTAN - MINIMUM AGE

The law sets the minimum age for employment at 18 years for citizens and 20 years for noncitizens.

 

(Section 6.d. Acceptable Conditions of Work, Bhutan – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

BHUTAN - MINIMUM REMUNERATION

A circular that went into effect in 1994 established wage rates, rules and regulations for labor recruiting agencies, and the regulations for payment of workmen's compensation. Wage rates are revised periodically, and range upward from a minimum of roughly $2.50 (100 ngultrums) per day plus various allowances paid in cash or kind. This minimum wage provides a decent standard of living for a worker and family.

 

(Section 6.e. Acceptable Conditions of Work, Bhutan – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

BHUTAN - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

BHUTAN - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

Trade unions are not permitted, and there are no labor unions. Workers do not have the right to strike, and the Government is not a member of the International Labor Organization. The Government maintains that, with very little industrialization, there is little labor to be organized.

 

b. The Right to Organize and Bargain Collectively

 

There is no collective bargaining in industry. Industry accounts for approximately 25 percent of the GDP, but employs only a minute fraction of the total work force. The Government affects wages in the manufacturing sector through its control over wages in state-owned industries.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The Government prohibits forced or compulsory labor, and there were no reports that such practices occurred. There is no evidence to suggest that domestic workers are subjected to coerced or bonded labor. The law does not specifically prohibit forced and bonded labor by children, but there were no reports that such practices occur.

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The law sets the minimum age for employment at 18 years for citizens and 20 years for noncitizens. A UNICEF study suggested that children as young as 11 years sometimes are employed with road building teams, which usually are made up of non-Bhutanese guest workers. Children often do agricultural work and chores on family farms. The law specifically does not prohibit forced and bonded labor by children, but such practices are not known to occur (see Section 6.c.). The country has not ratified ILO Convention 182 on the Worst Forms of Child Labor; however, as a state party to the U.N. Convention on the Rights of the Child, the Government supports the provisions contained therein. The country lacks a large pool of ready labor; for major projects, such as road works, the Government brings in hired laborers from India.

 

e. Acceptable Conditions of Work

 

A circular that went into effect in 1994 established wage rates, rules and regulations for labor recruiting agencies, and the regulations for payment of workmen's compensation. Wage rates are revised periodically, and range upward from a minimum of roughly $2.50 (100 ngultrums) per day plus various allowances paid in cash or kind. This minimum wage provides a decent standard of living for a worker and family. The workday is defined as 8 hours with a 1-hour lunch break. Work in excess of this must be paid at one and one-half times normal rates. Workers paid on a monthly basis are entitled to 1 day's paid leave for 6 days of work and 15 days of leave annually. The largest salaried work force is the government service, which has an administered wage structure last revised in 1988 but supplemented by special allowances and increases. The last such increase was in 1999. According to the latest Census of Manufacturing Industries, only 38 industrial establishments employ more than 50 workers. Smaller industrial units include 39 plants of medium size, 345 small units, 832 cottage industry units, and 2,154 "mini" units. The Government favors family-owned farms. Land laws prohibit a farmer from selling his or her last 5 acres and require the sale of holdings in excess of 25 acres. This, along with the country's rugged geography, results in a predominantly self-employed agricultural workforce. Workers are entitled to free medical care within the country. Cases that cannot be dealt with in the country are flown to other countries (usually India) for treatment. Workers are eligible for compensation for partial or total disability, and in the event of death their families are entitled to compensation. Existing labor regulations do not grant workers the right to remove themselves from work situations that endanger health and safety without jeopardizing their continued employment.

 

f. Trafficking in Persons

 

The law does not specifically prohibit trafficking in persons; however, there were no reports that persons were trafficked to, from, or within the country.

 

BHUTAN - STANDARD WORKWEEK

The workday is defined as 8 hours with a 1-hour lunch break. Work in excess of this must be paid at one and one-half times normal rates. Workers paid on a monthly basis are entitled to 1 day's paid leave for 6 days of work and 15 days of leave annually.

 

(Section 6.e. Acceptable Conditions of Work, Bhutan – Report of Human Rights Practices, 2001, U.S. Department of State.)