What does an employee really cost?
The wage is only part of it. Add NIB, health insurance, paid days off and equipment, and see the true cost per year and per hour actually worked, before you hire.
per person per year, all in
- Wages per year
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- Employer NIB (6.65%, capped)
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- Insurance, benefits, equipment
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- Cost per hour actually worked
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- True cost ÷ wage
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- All people, per year
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- Employee’s pay after NIB, per period
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NIB: employer 6.65%, employee 4.65%, ceiling B$830/week or B$3,597/month from 1 July 2026. Estimates only.
Want a second opinion on these numbers?
Send us the numbers. We’ll reply with what we would check before you hire, including whether part of the work can be taken off the role instead.
How the numbers are worked out
Wages per year = wage × 52 (weekly) or × 12 (monthly)
Employer NIB = min(wage, ceiling) × 6.65%, per period
Other costs = health insurance × 12 + benefits % × wages + equipment × 12
True cost = wages + employer NIB + other costs
Hours actually worked = (52 × hours per week) − (paid days off × hours per week ÷ 5)
Cost per hour = true cost ÷ hours actually worked
Not included: recruiting, training time, supervision and office space. They are real; add them to equipment if you know them.
Sources: National Insurance Board (nib-bahamas.com); The Tribune, 4 June 2026, on the ceiling rising to B$830 a week and B$3,597 a month from 1 July 2026 (tribune242.com). Checked October 2026.
Questions
What does NIB cost an employer in The Bahamas?
6.65% of the employee’s insurable wage, on top of the wage. The employee has another 4.65% deducted. From 1 July 2026, contributions stop at B$830 a week (B$3,597 a month).
Why is the cost per hour so much higher than the wage?
Because you pay for days nobody works (vacation, public holidays, sick days) and for things around the job (NIB, insurance, equipment). The cost per worked hour is the number to use when you price your work or decide whether to hire.
How many paid days off should I put?
The Employment Act gives at least two weeks’ vacation after a year of service, and there are eleven public holidays. Add the sick days you expect. Twenty days a year is a reasonable starting point.
Are there NIB exceptions?
Yes. Different rules apply to some workers, for example people over 65 drawing an NIB retirement benefit. Check with the National Insurance Board if that applies.
Is this payroll advice?
No. It is an estimate to help you decide and budget. For your payroll, check with the National Insurance Board or your accountant.
Before you hire, check what the role spends its time on.
Often a third of a role is answering the same requests. Our request-cost calculator shows what that part costs, and whether it is worth fixing.