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Bhutan is a lower-middle-income country with a GDP per capita of about $3,839. Agriculture and hydropower used to dominate the economy, with most energy exports going to India. Now, new hydropower projects, a rebound in tourism, and diversification efforts are driving growth. Poverty has also dropped sharply from 28% in 2017 to 11.6% in 2022.Â
Through the 13th Five-Year Plan (2024–2029), Bhutan aims to create better jobs, reduce youth unemployment, and attract more foreign investment. The plan pushes new industries like mining, wellness tourism, and high-value agriculture. Recent reforms are also breaking down barriers that kept foreign investors on the sidelines. In 2025, Bhutan introduced new Foreign Direct Investment (FDI) rules that cut red tape, simplify approvals, and remove restrictions that once limited investor flexibility.
Bhutan’s big economic plans only work if the country can grow and keep a skilled workforce. For companies hiring globally, this means looking closely at the talent market; its strengths, its gaps, and how the government is working to close them.
The biggest challenges right now are skills shortages and the outmigration of young talent. Many skilled Bhutanese leave for better-paying jobs abroad, creating gaps that hurt the local economy. A 2023 report on Critical Occupational Shortages flagged construction, mechanical, and electrical work as areas with the most urgent need.
To tackle this, the government uses a Critical Skills Shortage List (CSSL) instead of strict limits on foreign workers. The CSSL helps shape education programs, guides training priorities, and makes it easier for international companies to bring in experts where they’re needed most. Current shortages cover a wide range of roles, including engineers in software, AI, and mechanical fields, along with doctors, geologists, and architects.
Several initiatives also aim to build up the local talent pool. The Build Bhutan Project (BBP) trains and reskills workers, especially in construction, while also welcoming overseas returnees. The National Reintegration Program offers another path, encouraging Bhutanese professionals abroad to come back home. Hundreds have already registered, showing growing interest in reconnecting with the local economy.
Bhutan is betting big on the future with Gelephu Mindfulness City, a bold 2,500-square-kilometer project on the Indian border. The city blends cutting-edge infrastructure with Bhutan’s philosophy of mindfulness, creating a blueprint for what a truly sustainable city can look like.
To pull this off, Gelephu gets its own legal and regulatory system. The Application of Laws Act 2024 pulls smart ideas from places like Singapore, giving businesses the predictability and flexibility they need to thrive. The plan centers on eight future-focused industries: spirituality, health and wellness, education, green energy, finance and digital assets, agri-tech, aviation, and tourism. By 2030, the city aims to run entirely on renewable energy, hit zero waste, and create 100,000 new jobs.
If you want to hire in Bhutan, you need to look past generic salary benchmarks. Pay has to make sense in the context of local living costs and how the labor market actually works. Housing eats up a big slice of people’s income, especially in Thimphu. Rent is often the single biggest expense, and it puts real pressure on workers.
The bigger challenge for private employers is competing with the government. Public jobs are the most desirable because they pay more and offer stability. In 2023, the government raised civil servant salaries by 50% to 74%. A new graduate in the civil service might earn around Nu 40,600 a month. Compare that to entry-level roles in large private companies, which often start between Nu 11,000 and Nu 15,000.Â
This gap skews the labor market. Most quality jobs sit in the public sector, while private-sector opportunities are fewer and usually pay less. Women, rural workers, and those with less education have an even harder time. High youth unemployment and better pay abroad are the factors that have pushed many skilled workers to leave the country altogether. As a private employer, you need to know that if you want to attract and keep talent, you need to offer competitive pay along with benefits and clear growth opportunities.Â
Understanding the right compensation packages, though, is only half the battle. The bigger challenge is putting that knowledge into practice in a way that attracts the right talent without tripping over the country’s labor laws.Â
That’s why an Employer of Record is so important. An EOR makes it possible to hire quickly, stay compliant, and offer competitive packages that stand out in a market where government jobs often pay more than private roles. Instead of wrestling with payroll, taxes, or contracts written in dense legal jargon, you can focus on building a strong team and scaling your business.
The choice of EOR provider matters, though. Each one brings different strengths. Let’s take a closer look at four leading EOR providers and how they stack up for companies expanding into Bhutan.
Choosing the right EOR is a critical decision for any company expanding into Bhutan. An EOR acts as the legal employer, handling all administrative and compliance burdens related to remote work and local employment. This allows your business to focus on growth and managing your team’s day-to-day responsibilities. Below is an analysis of four leading EOR providers for Bhutan. Â
RemotePeople keeps things simple and affordable, which is why it’s a favorite for startups and fast-growing companies. Beyond handling payroll and compliance, they also help you find talent, thanks to their large database of vetted candidates. You can go from needing a role filled to interviewing strong candidates within days.Â
Pricing starts at $199 per employee per month, making it one of the most budget-friendly options on the market. With coverage in over 150 countries and SOC 2 compliance, RemotePeople balances reach, cost, and security.
Best for: Companies that want an all-in-one, affordable package for sourcing, hiring, and managing talent in Bhutan.
Deel has become the go-to name in EOR because of its speed and tech-first approach. You can manage both employees and contractors in more than 150 countries, all on a single dashboard.Â
The company backs its technology with over 200 in-house legal experts, so every contract and compliance detail stays airtight. It’s a smooth, self-serve experience that appeals especially to fast-growing tech firms.
Best for: Businesses that value speed, automation, and a unified platform for managing global teams.
Globalization Partners (G-P), offers one of the widest service networks, covering 180+ countries, and layers in enterprise-grade compliance supported by AI.Â
Their AI tool, G-P Gia, gives real-time compliance insights and automatically generates employment documents tailored to local laws. For multinationals with complex HR needs and zero tolerance for compliance slip-ups, G-P provides peace of mind along with scale.
Best for: Large enterprises that want maximum global coverage and advanced compliance tools.
Safeguard Global stands out by combining tech with a high-touch, consultative approach. Instead of just giving you a platform, they pair it with in-country experts who know the local market inside and out.Â
They cover 187 countries and can support you from your very first hire all the way through setting up a full legal entity. Beyond EOR, they help with recruitment, benefits, and even tax support, so they function more like a strategic growth partner than just a service provider.Â
Best for: Companies that want a personalized, expert-driven partnership for long-term international growth.
Bhutan is stepping onto the global stage with a clear vision of growth that balances economic ambition with cultural values and sustainability. This creates both opportunities and unknowns for international companies, which makes partnering with an Employer of Record the most practical way to set up confidently.
Each EOR provider we’ve highlighted brings a different advantage. RemotePeople focuses on cost-efficiency and flexibility. Deel offers speed and automation. G-P provides one of the most robust global infrastructures. Safeguard Global has a great blend of technology and in-country expertise.
Whichever you choose, the right partner lets you focus on building something meaningful in Bhutan while they handle the administrative grunt work.
For more information on the best providers in Bhutan, get in touch with our experts at RemotePad.
