11125+
web files in a constantly updated compendium on Bermuda's business, culture,
cuisine, customs, districts, economy, education, food, geography, government,
history, internet access, laws, parishes, politics, religions, traditions,
wildlife etc. For tourists, business visitors, employers, employees, newcomers,
researchers, retirees, scholars. Funded by and linked to The
Royal Gazette, Bermuda's only daily newspaper.
By Keith Archibald Forbes (see About Us) exclusively for Bermuda Online
To refer to this webfile, please use "bermuda-online.org/newcomers" as your Subject.
Bermuda has a high-cost economy. The World Bank rates it as # 1 in the world in GNI - Gross National Income. Most of its money comes from being an International Business center or offshore jurisdiction - some would say tax haven for corporate entities (not for their employees). It is also a long-established tourism resort. It has no natural resources of its own in its 21 square miles, no oil, no gas, no heavy industry. It is one of the most isolated yet highly populated places anywhere in the world and one of the most regulated, with controls on what non-nationals cannot do that no other jurisdiction in the world imposes. Lack of citizenship to newcomers except after 10 years of continuous and living-together marriage to a Bermudian, lack of citizenship to children of non-nationals, plus their consequences of inability to vote, inability to buy property except in certain circumstances only, are merely some of them. All these mean that for most non-Bermudians including all from Britain who come to Bermuda to work in jobs Bermudians cannot or will not do or want, there can be little chance of staying beyond their Work Permit term, with no security of tenure, no prospects of citizenship, no opportunity to buy a house or condominium at the same price levels as Bermudians. But for their international business employers, it is a different story. Many were either incorporated in Bermuda or have moved their corporate headquarters to Bermuda, for international tax reasons. Why? Because Bermuda levies no taxes on their world business activities. So far, Bermuda offers them far more in assets than in liabilities. It pays them to come here, for as long as Bermuda's advantages as an offshore jurisdiction outweigh those of competing jurisdictions. It continues to do so for the international corporate entities, but not to their non-Bermudian employees for the reasons given above. Plus, it it is not true to say Bermuda has no taxes. It has no capital gains tax, true, but the other direct and indirect taxes it levies on managements, their staff, business visitors and tourists are many and they can be so very heavy that overall Bermuda's cost of living is one of the highest in the world, if not the highest, nearly three times more than in the UK and nearly four times more than in the USA. They include a direct income tax, in the form of an Employment tax, payable by employers and employees. It is based on what is earned from employment. It is currently nearly 15% with employers paying some and employees paying the balance. Bermuda Government Customs Duties averaging 35% of wholesale costs, translating into 100% or more at retail level, and Bermuda Government Annual License Fees on automobiles averaging $590 per auto. These are merely a few examples of why Bermuda has an appreciably higher cost of living than direct taxed and indirect taxed jurisdictions.
Bermuda has no double taxation treaties of any kind. This does not affect nationals of most other direct-taxed countries who live and work in Bermuda but it means that nationals of countries like the United States of America and the Philippines who live and work in Bermuda are liable to taxes on their Bermuda income over a certain amount, without any kind of tax rebate from their own country. A form of taxation treaty with the USA gives USA resident taxpayers in Bermuda a more than $80,000 discount off their US taxes payable, partly because the overall cost of living overseas - in places like Bermuda - is recognized as much higher than in the USA.
Ask yourself some very preliminary questions. Are you looking for a change of from 3-6 years only? If so, Bermuda certainly qualifies and you could well have a great time here. If you are looking for a "permanent" relocation it does not, unless you marry a Bermudian, live with your spouse for at least 10 years and more. Know ahead of time that when some employers or recruiting agencies say the "job duration is a 2-year minimum, open-ended" they do not tell you, but should, that any offer of employment and its duration are always subject to Bermuda Immigration approval when the employee is not Bermudian. If not one and not in a position to marry one, accept beforehand that you may never be able to advance with unrestricted upward mobility based on merit alone, and will never be able to own your own property at the "Bermudian-only" prices, or vote. Nor will any children born to you and your spouse - unless one is Bermudian - ever be Bermudian himself or herself or be eligible for any local scholarship or award. This is not to put you off from coming here to work, but purely to let you know what to expect.
Do you own your own home in your home or adopted country? If so, and are being offered a position locally, ask specifically whether the rented accommodation here is going to be bigger and better than in what you have now (specify it and what you seek). And what its price is likely to be to you. And compare it. If you not currently own your own home, you may be more flexible. But if you do, you will presumably expect the same standards and at no higher than the current cost to you.
Know in advance that if you do already own your own 2-4 bedroom home, with a garage, in USA or Canada or UK or Europe, it will not be realistic for you to be offered a 1 bedroom rented apartment in Bermuda. Instead, to continue your upward mobility and in recognition of your academic and professional qualifications, ask for a house of similar standard to the one you have now. See Homes.
Importing workers from developing nations is difficult or impossible because of a requirement that the UK, US or Canada must first issue a transit visa, even after they are granted work permits by Bermuda Immigration. Without transit visas they cannot come. Neither the Governor nor Deputy Governor can help as issuing transit visas did not involve Government House and that they have no influence over it. The USA is also withholding transit visas for some workers bound for Bermuda. The US Immigration Department states that in order to get a transit visa via the USA applicants must demonstrate strong social, economic and/or family ties outside the United States.
Bermuda Islands - an intro
Cameras, 35 mm SLR and similar and other expensive optical equipment. See Photography in Bermuda.
Cell phones. See www.bermuda-online.org/iddcosts.htm under "Cell Phones."
Drug stores and pharmacies. See under "Pharmacies" in Senior Citizens of Bermuda.
Electricity & Gas (cooking)
Gasoline (petrol)
Getting Around - Locals (including professional newcomers)
Senior citizens of Bermuda. They do not compare well, compared to those elsewhere, in age to qualify. benefits and services.
These collectively show the realities of working in Bermuda for potential employees who are not Bermudian. They are not shown in any other website. They need to be known and understood well in advance. There are many advantages of course - if you are paid appropriately - but also some matters about which newcomers should be well aware. One is that because Bermuda is so small - less than 22 square miles overall - and so isolated - more than 600 miles from the nearest mainland, North Carolina, USA - the cost of living in Bermuda is exceedingly high and there are many restrictions in citizenship, buying real estate and voting that are not found anywhere else in any western democracy.
If
you're professionally qualified and are offered employment on contract to a
public or private sector employer and are paid enough to more than compensate
you for the tiny size of Bermuda (less than 22 square miles), Bermuda can be a
wonderful place to live and work. A good Bermuda employer will welcome you and
treat you well. There are
some major advantages to living and working in Bermuda - especially if you like
the ocean, sun and beaches. But before you accept any employment, the first
thing you need to know are the three different main types of local employers.
Costs, cost comparisons, limitations and restrictions are important to note. They are some of the reasons why this author - who has done price comparisons between Bermuda, USA and United Kingdom - says that although there is only one direct tax on income in Bermuda (the Employment Tax on salaries split by employers and their employees), indirect taxes amount to substantially more taxation overall and make the cost of living in Bermuda 380 percent more than the USA and 280 percent more than in Canada and the United Kingdom. As a few examples to prove this point, take alcoholic drinks, annual licensing of a car, rents of an apartment or house, cost of food, cost to consumers of government, cost of electricity, cost of gasoline (petrol), cost of telephoning from Bermuda compared to the cost of telephoning from the USA to Western Europe, cost of Internet service, cost of owning and operating personal transportation and more. The average resident spends US$ 16,800 a year just in direct and indirect Bermuda Government taxes, fees and import duties.
In your own best interests, negotiate this as part of an employment package. A good employer will either provide accommodation for a newcomer or should be asked to find a suitable place and secure a lease or monthly rental beforehand. Appropriate housing is extremely expensive to rent - as much as $32,000 a month - and can be very hard to find. Basic rents for a condominium or apartment range from $3,000 a month to $32,000 a month. Some good employers avoid the frustrations to newcomers of answering advertisements for places to rent, especially in their first month or two or three of employment, by putting them up for a time at employer's expense or with the expense shared, at guest houses or small hotels or efficiency units up to 20 minutes away by road. Monthly rates for a studio or one bedroom unit at a small hotel or efficiency unit - are from $1,000 for the smallest and least well equipped to $5,900 for more amenities, without meals, drinks, utilities or other extras. Properties used for this purpose include Edgehill Manor, Rosemont Guest House and Clear View Suites and Villas. Will your employer offer you a monthly housing allowance to help pay your rent? An increasing number of international companies and some local companies do so. A local bank may offer a housing allowance up to 30 percent of an employee's salary if the job offer warrants it. There was a very good story about "A good tenant is hard to find" by Lawrence Trott on page 13 of the August 21, 2001 issue of The Royal Gazette newspaper.
Apartment or condo or house leasing. If you lease instead of own an apartment or condominium or home, note carefully that you will not rent by the month but will lease for a specific, mutually-agreed time. Leases are legal and breakage of a lease should not be attempted without risk of a severe penalty. If an employer, not a professional newcomer employee, signs a lease, great care should be taken by the employee not to put the employer at risk. The employee will still be liable to the employer for payment of utilities, conduct and care and interior maintenance of the leased property.
Note that renting an apartment or condo for $3,500 a month will require a salary of at least $110,000 a year. To get a realistic idea of what monthly rent you can afford if you rent an apartment by yourself and get no housing allowance, take no more than 28 percent of your gross annual salary pro-rated monthly.
Another factor to remember is always to ensure the telephone number, electricity and cable TV at the property are in your name when you arrive and are disconnected from your name when you leave. Expatriate employees should try not to spend more than 30 percent of their gross salary on where they rent. It should be large enough to accommodate a visiting family member from overseas.
The Bermuda Government finds unfurnished and/or furnished accommodation for its contract officers (one bedroom for a single or married person, three bedrooms for a family with two children), with rent in excess of 25% of the contract officer's salary is fully subsidized. These Bermuda Government employed contract officers are expected to remain at the accommodation provided for at least three months but thereafter may choose to move into accommodation of their own choice. Rent in excess of 25% of the employee's salary will continue to be subsidized within reason.
All accommodation for all Bermuda Government contract officers is handled by the Ministry of Works and Engineering and Housing Residential Accommodation Officer.
Discuss all these with your employer before you sign any contract.
85% of all visitors are from the USA and assume, incorrectly, that in Customs exemption of duties for visitors - from wherever they may be - and returning residents, also from wherever they may be - Bermuda has the same very generous laws as the USA. Unfortunately, this is not the case. By comparison with the USA, Britain and Europe, in this regard Bermuda treats its visitors very severely and its returning residents with laws and regulations the democratic countries would not dare impose. Bermuda, the world's wealthiest country, limits its citizens and residents to $100 per person in duty-free allowances per trip, with a 30% import duty slapped on everything in excess, including shoes, clothing, etc.
In Bermuda, the world's wealthiest country, returning residents are allowed an allowance of only US$ 100 (until 1989 it was US$400 a person, reduced in 1990/91 to US$250 a person and subsequently reduced yet again to the present US$100 per person) before they pay duty on items they bring but visitors are not entitled to such an allowance. Items brought in by visitors and residents that are not within their duty free category incur a stand import duty rate of 30% of purchase cost. Produce receipts from a retail store satisfactory to the Customs Department of actual purchase price of the items or be prepared for the Customs Department to assess items for your payment of duty at much higher Bermuda prices. This is applied vigorously. To avoid being arrested and having goods confiscated, do not try to import goods into Bermuda without paying the duty. If at a hotel and with nothing illegal and with no items to declare, visitors may be waved through. If at a private home, you may be inspected. Visitors may bring in, duty free for personal use only while they are in Bermuda, their clothes and articles like cameras, golf bags, 50 cigars or 200 cigarettes or 0.454 kilos (1 pound weight) tobacco; 1 liter of liquor or wine and a $30 gift allowance. If they bring in any more in gifts or their value, they can be charged a heavy rate of duty - 30% of value - unlike in USA, Britain and Europe, where it does not matter whether your gifts are for yourself or a member of your family or associate or a complete stranger.
It is not generally realized by newcomers, visitors and residents that one reason officials in Bermuda are so tough is because fines are revenue to the Bermuda Government and the Customs Department is the source of the biggest of all revenue departments of the Government. So, unlike many other countries where Customs procedures appear to be relaxed and tolerant, the Bermuda system is neither.
Compare the following:
Normally, in the USA, for visitors or returning residents, the duty-free allowance or exemption from Customs Duty is $400 per trip, but from November 4, 2002, it was raised from November 4, 2002 to $800 (from $400) for those who have not used the exemption in 30 days.
Note very carefully the Illegal Imports. The full list of the hundreds of banned narcotics are in the Bermuda Government's Misuse of Drugs Act 1972 and Misuse of Drugs (Controlled Drugs) Order 2001 enacted on August 1, 2001. To avoid arrest for illegal narcotics like liquid ecstasy, marijuana, cocaine, heroin, etc. don't import them. There is a zero tolerance policy.
Most employees from overseas have incoming airfare paid by employers for themselves and their spouses or children as part of a contract of employment. Employers have the right to and often hold return airline tickets for the initial life of a contract or until the tickets expire, whichever is sooner. But good employers will not ask you to refund the tickets, or expect you to sign a promissory note for them, or treat this as a form of bond and bondage. Some employers will also pay some or all of annual vacation and compassionate leave fares, not just at the beginning and end of a contract.
Arrange to be met, if on a Work Permit. You may detained at the airport for quite a while longer than other passengers and may have your suitcases were searched thoroughly by Immigration and Customs officials. See list of airlines and airport. Your first impressions will include seeing how colorful and bright the houses are, in pastels; the turquoise color of the sea and the prolific vegetation. Your first impressions of the City of Hamilton will be interesting. If you are from Britain or Ireland, you will see shops such as the "English Sports Shop" and “Irish Linen Shop” and "Marks & Spencer." Many newcomers believe, wrongly, that Bermuda, because it is less than 700 miles from the USA, has American mega stores like Wal Mart, K-Mart, Target and more. They should know in advance that Bermuda has none of these huge retail outlets. No stores are allowed in Bermuda unless they are at least 60% owned by Bermudians. To shop at such stores, you will have to visit the USA, or order goods by post or courier, and pay Bermuda Customs Duty on your return for all your purchases abroad in excess of your duty-free exemption as a resident of $100. As you walk down the street, it’s quite the norm for people to nod good morning or good afternoon, or whatever. Tell Bermudian shop assistants "Good morning" or "Good afternoon" before they assist you. Don't expect Bermudians to have a British accent. The most common local accent will sound guttural, not at all like the sing-song of the Caribbean islands 1,000 miles to the north, or northeast, Mid-Atlantic or southern states American.
In normal conditions, from North America or Europe can take more than a week to arrive and is sometimes delayed for longer. Most of the incoming mail comes from the USA but the tragic events in the USA of September 11, 2001 meant conditions that are not normal, namely that present no American passenger airline is presently carrying mails to or from Bermuda on a regular basis because of the stringent new provision that the mail must be under 16 ounces and accompanied by a statement of certification. Some mail from the USA is being imported by Federal Express by arrangement with the US Postal Service, but by no means all. The local Post Office has no control over incoming airmail, only outgoing airmail.
Always use first class air mail or courier service or secure electronic mail. There are several courier services operating to and from Bermuda. Cheaper services are not reliable.
Only car ships - no freight ships or scheduled aircraft - go between the Caribbean and Bermuda. Surface mail can take many months, especially when misdirected to places with no passenger shipping or airline connections to Bermuda. Mail problems usually occur more frequently from October to March when, in more normal circumstances, air services from the USA to Bermuda are fewer in number and with smaller aircraft. Because of this, regular air mail from the USA for Bermuda has been sent to London first, then redirected to Bermuda on British Airways on the three days a week winter service. To help avoid such problems, all Christmas airmail to Bermuda residents and visitors should be sent no later - and ideally much earlier than December 8.
Outgoing - going overseas -
Christmas mailing of cards, letters and parcels. No
information about this appears on the Bermuda General Post Office website.
Instead, details are printed annually in a printed brochure from Post Offices.
Deadlines apply, varying hugely by country. As merely a few examples, the
deadline in 2003 for Australia, New Zealand, Asia, Africa, etc was October 3;
for Europe October 17; the UK November 7 and USA November 17. The brochure will
give details of deadlines for all countries.
Packages sent to recipients from Bermuda by courier are treated in a different way to regular airmail. Recipients must always give their full physical postal addresses, postal codes and telephone numbers. Costs will include:
The overall effect is that a US$39 pair of trousers from a good US retail store like Land's End could end up costing the recipient over US$90.
Alcoholic drinks Hugely expensive. A 1-liter bottle of rum or Scotch whisky or rum or vodka or other spirits costs from US$ 23 locally, even more than in UK. Beer by the case is more than twice the US price - about $36. There is a very high Bermuda Government import duty on all liquor. Wines are substantially more than in the UK.
If you are from the USA or Canada, this is quite normal, but if you are from Britain, Ireland or rest of Europe, don't expect any vacation for at least six months, if not twelve as it is normal procedure to take your vacation only after you have earned it. North Americans who are not executives should expect vacations of two or three weeks a year for the first five years, rising to 3-4 weeks a year after 5 years. Bermuda has the American pattern of holidays or vacation, not British. Holiday laws in Britain do not apply in Bermuda. Europeans who are not executives will find this somewhat demoralizing after being used to longer annual vacations - 4-6 weeks. It will not work to ask for more and you are advised not to as it could place you in employment jeopardy.
Hugely expensive, about $650 for a mid-sized vehicle, compared to £190 per year in UK and far less in USA and Canada. About $1300 for a large one. About 200 to 500 percent more than in North America.
The average overall gross salary in Bermuda $ or US$ is $54,330.70 in the local sector. In Government, it is $59,000. In the international sector, it is $78,800. In Bermuda, the annual highest salary for a top civil servant is PS 50, or $163,012. There are only a handful in this region. See Employment Work Permits in Bermuda for a listing of many other current Government salaries for specific posts.
They are shown so that non-Bermudians can see what Bermuda Government salaries are like and can compare them to the Cost of Living Guide. Bear in mind that basic salaries mentioned in job vacancies are the same, whether for Bermudians, others resident here and non-Bermudians who have not yet arrived. All salaries are annual.
Insurance companies don't always necessarily follow the figures below but because the Bermuda Government is by far and away Bermuda's largest employer, most private-sector companies don't pay any more. The trend is usually for positions to be advertised based on what they are worth to the employer, not what individual qualifications or backgrounds or personalities are worth.
To achieve some measure of a salary comparison between what you earn now, away from Bermuda, figure on the overall cost of living being 280% more in Bermuda than in the UK or Canada and 380% more than in the USA. Then see from which jurisdiction you will be better off.
Be aware of substantial Salary Deductions (see separate heading).
All expatriates working in Bermuda will want to establish an account with one of these banks. Many larger Bermuda employers in other areas of commerce will pay salaries directly to bank accounts. Bermuda banks are often much more sophisticated in their services than banks in rural parts of Canada, Caribbean, UK and USA, etc. But they are expensive and don't give the same legal protections - such as FDIC insurance - to depositors as they do in Europe and North America.
Visitors from the USA tell this author that what costs them $25 back home will cost them, on average, over US $100 here in Bermuda. Food alone is usually double or triple the price in the USA, United Kingdom, etc. As merely one example, fresh whole milk is over US$ 3.30 for half a gallon in Bermuda but only 99 pence (US $ 1.53) for 2 liters in the United Kingdom or the USA. Duties average 30 percent at wholesale level (but are much higher for boats and cars) and are often pushed up by local (Bermudian or mostly Bermudian) retailers, making most goods much more expensive than in the USA from where most were exported.
This includes all branches plus quangos and facilities like Bermuda International Airport, Bermuda Land Development Corporation, Bermuda Ministry of Education, Bermuda Police Service, Bermuda Regiment, Bermuda Weather Service, King Edward VII Memorial Hospital, and more. Be aware of its priority Commission on Racial Equality (CURE) policies to employ qualified Bermudians first, qualified spouses of Bermudians second; qualified non-nationals third; and to limit in time the Work Permits of non-nationals in the fourth category, to, generally speaking, no longer than 6 years. In all other countries, these racial guidelines and regulations apply only in the public sector. But the Bermuda Government applies them in the private sector as well.
Bermuda restrictions and limitations
The cost to companies of bringing someone to Bermuda is very high and once here the cost to the new employees of traveling abroad is very high. It’s hard for them to make a career move because they can’t stay here forever. Spouses may not be able to get work and could be frustrated, with repercussions. Children, even when born in Bermuda of non-Bermudian parents, will never qualify for scholarships available locally, or be eligible for citizenship. Life on a very small island with limited resources and a limited-by-immigration controls labour pool tends to drive up prices.
None in Bermuda, unlike in the USA.
Expatriates (all non-Bermudians) should note that when any of their children are born in Bermuda, they are not Bermudian unless a parent is as well. See Citizenship notes. Being born in Bermuda may entitle them to British Overseas Territory Status until they are 18 if they are not British, but being British does not confer citizenship of Bermuda. Persons who are British but are not also Bermudian are regarded as foreigners in Bermuda - like any other nationality - and may not vote or own property or switch from job to job or be eligible as teenagers for educational scholarships or own local businesses in the same way Bermudians can..
See under "Boats" in Watersports.
See Photography in Bermuda. Before you come to Bermuda to live and work, confirm with manufacturers what repair facilities outside Bermuda will accept repairs from consumers in Bermuda. It has a constantly humid climate and many camera independent repair shops in the USA (the nearest overseas country) will not accept repairs from Bermuda. Cameras should be sent to agencies of camera manufacturers for complete servicing beforehand. A camera that costs $250 in the USA will be far more expensive in Bermuda.
See www.bermuda-online.org/iddcosts.htm under "Cell Phones." Most are the USA type, not European type. Their use is as common in Bermuda as it is in USA, Canada, United Kingdom and Europe. If you are from North America, bring your cell phones which should work here with a local cellular account. But if you are from a country with a GSM system, be sure to bring or buy a GSM cellphone.
There is a Christmas season surface airlift mailing system from Bermuda to most parts of the world but to take advantage of it, use the permissible latest dates provided by the Bermuda Post Office to send Christmas mail, usually by October or November depending on the distance. If you expect to receive cards or packages by Christmas, tell your friends or family overseas to send them at least a month beforehand, or face a high risk of not getting Christmas letters, cards and presents until the second or third or fourth week in January or later. To complicate matters, in 2000 Christmas mail from the USA, 650 miles away, was routed to Bermuda by the United States Post Office via the United Kingdom, 3500 miles away, then another 3,500 miles from the United Kingdom to Bermuda, on a three times a week only British Airways flight when space and load allowed. Receiving Christmas mail from Canada was also a problem.
None in Bermuda, unlike in the UK.
If you live in the easternmost parishes - St. George's or Town of St. George area - or westernmost parishes such as Sandys - both 11 miles from the City of Hamilton - and need to be at work there by 8:30 or 9 am, leave from where you live no later than 7:30 am. Traffic is often that bad. It is often even worse for western parish dwellers if traffic breaks down on Harbour Road So are the late afternoon rush hours from 4:30 to 6 pm. If you are on a scooter or moped instead of a car and value your life, do not follow the irritating and dangerous Bermuda habit of overtaking stopped or slowing car traffic and going to the front of the line. 4-wheeled vehicles, not those with 2 wheels, have the right of way.
If you want to bring a laptop with you when you first arrive, make sure you ask your new employer beforehand to check for you to see if you will be expected to pay Customs import duty on at at the airport on arrival. If so, ask for this to be reimbursed as the import duty will be be 30% of the value. Be sure to bring a receipt with you from the supplier of the equipment. Expect Bermuda Government import duties (averaging 30 percent) levied by the Government on computers, modems, peripherals, routers and all other relevant electronics make the cost of computers and peripherals about three times higher than USA and more than twice UK prices. Also note that Bermuda prices are usually without lots of extras including a printer, scanner, choice of software options and 1 year free ADSL (Broadband) Internet access.
This became law in Bermuda on December 1, 2000. A few areas covered by the Act are truth in advertising; unfair business practices; product recalls; product safety; unconscionable consumer representations and penalties for non-compliance, for regular and disabled or physically handicapped visitors and locals.
But Bermuda's consumer laws are very lax compared to those in the USA, Canada, United Kingdom, etc, where consumers have far more rights. Customers in Bermuda are often perplexed about why guarantees aren't always honored. A lot of retailers aren't buying into the manufacturers warranty because their customs duty doubles. They pay duty when they ship it in and they pay duty when they ship it out. Some companies do buy into the warranty to a point. They don't buy the full coverage. Guarantees or warranties are often far shorter in Bermuda than in North America or UK. A case in point is for automobiles where most warranties are for one year only, not three. You are not going to find a retailer with clothing is going to buy into a manufacturers warranty. Retailers often do their own repairs. A 15 percent 'restocking fee' deducted from refunds has become common in the computer industry and was now filtering down to various other retail arms. Under the Sale of Goods Act 2002 goods must of satisfactory quality, be fit for purpose, safe and free from defect. The goods must be as described and be fit for their purpose and they should work for a reasonable amount of time. Bermudians and newcomers are often shocked about the prices they pay in stores here. People with legitimate complaints should direct them to the Consumer Affairs Bureau.
Bermuda may well be the most expensive place you ever experience. Be prepared for this. The shock will be far greater for North Americans. Overall, the cost of living in Bermuda is 280% more than in most of the UK or Canada and 380% more than in most of the USA.
If you are from the USA or Canada or Europe or Australia, it is recommended you retain your current credit cards from those countries as their benefits, services and card member's coverage are far better there than Bermuda-issued credit cards. Very often, Bermuda-issued credit cards offered for purchases to be sent to Bermuda are not accepted by many American retail and wholesale stores. Also, when traveling abroad from Bermuda, only US residents - not Bermuda residents - may enroll in the American Express Premium Baggage Protection Plan. Nor will American Express give you, if you have a Bermuda-issued card - the same insurance liability coverage when renting cars overseas that you get if a resident of other countries. However, certain credit cards - for example, MasterCard with 1 800-307-7309 - have a toll-free number that works from Bermuda - an exception to the general rule of most 1-800 numbers from Bermuda.
Covers only dependents, is a mere pittance by international standards. In other countries - but not Bermuda - compensation can be significant for criminal injuries or death. In the USA, families of victims of September 11, 2001 in New York received up to US$5 million. In Bermuda, on July 3, 1996, when 17-year old Canadian tourist Rebecca Middleton - see by name in Bermuda Laws at www.bermuda-online.org/legal.htm - was tortured, raped repeatedly, sodomized, knifed 32 times and murdered, her family had to wait 10 years before being awarded in 2006 the nominal sum of US$2,300.
It is strongly recommended that repayment of customs duties you have to pay on entering Bermuda as a non-Bermudian newcomer be asked of employers, as part of an employment contract before you arrive in Bermuda. If your employment contract allows you to ship all your household goods including furniture at your employer's expense, bring as much as you can of everything you may need, but be prepared to pay the Customs Duty and landing tax yourself, which your employer may not reimburse. Persons moving to Bermuda with their personal possessions MUST pay duty and landing tax on arrival on the declared or customs assessed value of all their goods, with the sole exception of used personal clothing which is duty-free. (But shoes, etc. are not). As Bermuda Customs will probably inspect them, be sure to bring itemized store or shop receipts with you, if you can. Otherwise, Bermuda Customs will probably apply an appreciably higher estimated value applicable in Bermuda on the goods than most newcomers will have paid in your country of origin.
If you bring goods with you in excess of the US$100 per person (it was a $200 per person allowance until April 1, 1996 and $400 per person a few years earlier) incoming allowance per person for residents, you will be charged 30% (it was raised from 25% in 2006) of the Customs-assessed value or value from legitimate receipts you have. Some new employees have been charged more than $500 in Customs Duty, not a nice welcome.
Once you are a Bermuda resident, each time you travel for over 3 days, you can claim the $100 per person allowance on what you buy abroad or lump all such allowances together if you're returning to Bermuda as a family. But retain in your possession and produce if necessary the receipts for clothes, personal effects and goods you purchase abroad, in case their value declared by you is challenged by a Bermuda Customs officer. Some goods are duty free, such as books and computer business software (not games). The mere $100 per person duty free allowance you are allowed by the Bermuda Government as a returning Bermuda resident does not compare well with the present £145 per person duty free allowance applicable in the United Kingdom for purchases outside the European Union (EU); the much more generous rate for travelers within the EU; $300 for Canadians returning to Canada; and $800 in the USA for US residents visiting Bermuda; or US$600 when US visitors return from most non-USA islands in the Caribbean more than 900 miles to the south; or US$1,200 for US visitors returning from American Samoa, Guam, Puerto Rico or US Virgin Islands.
Also - unlike US citizens or registered aliens returning home to the USA after a vacation or business trip who qualify routinely for a further US Customs exemption of up to $100 per day of bone fide goods shipped from abroad, for their own personal use - Bermudians or residents do not get the same consideration from the Bermuda Government.
All duty-paid valuable articles should be taken to be registered with the Customs Department at any of its facilities prior to owner's departure if temporarily exported for personal use, on Customs Form 52a to avoid having to pay duty again on re-entry. All articles should be readily identifiable.
There is an income tax payable by employees, plus there are many indirect taxes that exceed by several times the overall effect of taxes in direct tax jurisdictions. Significant deductions made from your salary in Bermuda may exceed 25 percent of the total and will include the following. Unfortunately, head hunters and recruiters will often mislead potential new employees from overseas about this and say or imply that none of the following apply. Don't trust them, instead play safe, go directly to your proposed Bermudian or Bermuda-based international employer before you sign your employment contract and ask specifically about how much you will have to pay for:
By no means a standard inclusion in Heath Care and Major Medical Insurance. Only the better employers have it and with varying degrees of coverage and exclusions. Newcomers should ask their prospective employers whether they are covered and for what dental benefits. At the time of writing, there is such an acute shortage of dentists locally that requests for service are being refused at the rate of 25 a day, with only children covered. Locals have to wait 6-9 months for routine dental work of fillings or extractions. The Bermuda Dental Association - a very good local agency representing the 37 private dentists in Bermuda - want to see non-Bermudians brought in to help relieve the chronic shortage. The politically motivated, anti-expatriate Bermuda Dental Board do not, in defiance of Bermuda's claim to be a world class international business center. Newcomers should have their teeth checked out thoroughly in their home towns before they arrive in Bermuda and be prepared to go home to get private dental treatment when they need it.
See under "Deductions from salary" and "payroll taxes."
There are none in Bermuda, except to a few Bermudians whose complete lack of real estate and any regular income qualify them.
More business-like than you might expect. Men have the advantage here, with their Bermuda Shorts.
There are no reciprocal arrangements with the United Kingdom or Canada or USA or any Caribbean island for mutual recognition of driving licences. Many countries - but not Bermuda - have such reciprocal arrangements. It means that when Bermudians or non-Bermudian newcomers go to the UK to work or study, they are not allowed to have the same arrangements there as do those holding driving licences from Australia, Barbados, British Virgin Islands (BVI), Canada, Cyprus, European Union countries. Gibraltar, Hong Kong, Japan, Malta, New Zealand, Singapore, South Africa and Switzerland. Even with such overseas driving licences, most newcomers - unless they qualify for exemption - must take and pass the same full written and driving tests as those who have never used them before, in order to drive a car or motor cycle or scooter or auxiliary cycle in Bermuda. It is up to Bermuda to make similar reciprocal arrangements and so far this has not been done. Bermuda does not yet have the same driving license standards for international businesses based here and their employees imported from overseas as the major international business countries.
And even though Bermuda is a British Overseas Territory and Britain is part of the European Community, Bermudians in Britain cannot claim EC/EAA driving rights. However, they may drive on their Bermuda licences for up to one year.
If you have children, you have a choice of a public or private school. At a public, or Government-run, school, your child will be educated in a multi-racial environment. Unless you are from Bermuda, you may not know that Bermuda is mostly black. There may come a time when only private schools will accept children who are not local citizens. This has already happened in the Cayman Islands.
Electricity in Bermuda is provided solely by the Bermuda Electric Light Company Limited (BELCo). It is a government-approved monopoly. It does not have off-peak rates. In addition to monthly charges, it imposes a fuel surcharge tax, not mentioned on its website but charged to its customers by it, that in 2006 was as high as 44%.
Residents, new working newcomers and new retirees should note that the voltage system is 120 volts, 60 cycles - same as in North America. If from there, bring small electrical appliances (hair dryers, shavers, etc.) for your stay. Some larger appliances use 220/240 volts, smaller ones and lights use 110 volts. If from the United Kingdom, note that none of the UK-produced consumer appliances will work properly or at all in Bermuda. If returning to the UK from Bermuda after a 6 or 9 year employment contract or earlier, try to sell or give away your US-type appliances before you go.
Electrical power is NOT hydroelectric or solar or nuclear or wind generated, or offered by a choice of organizations (as in the United Kingdom or Europe). There, In Bermuda, the above alternatives are impractical or too costly and the architecture of most Bermuda homes don't allow them, so fuel oil - by far and away the most expensive way to produce electricity in the developed countries - is used exclusively. It is piped directly into the central electricity generating plant owned by the utility on Serpentine Road in Pembroke Parish, west of the City of Hamilton, via a mile underground pipe from the oil docks terminal at Ferry Reach, St. George's Parish.
Electricity is not included in the rental price of most apartments, condos or single family dwellings and is very high compared to most USA, Canadian and European cities, based on imported fuels which have a huge Bermuda Government import duty (As a comparison, in one of the New England states, the average family with children might use about 6,400 kWh on an annual basis (including room air conditioning in the summer) for approximately $63 a month). In Bermuda, the same cost could be $480 a month for a three-bedroom house with more than one air conditioner. You will need air conditioning, it will be too hot or humid for eight months a year without it. These are general estimates which vary depending upon family size, electrical appliances and overall usage. Try to get overhead fans where you live.
Recommended to all locals and newcomers are energy-efficient light bulbs and consumer electric appliances such as air conditioners, refrigerators, freezers and washing machines with an Energy Efficiency Recommended logo or North American equivalent.
There is no central heating in most Bermuda homes and apartments. Some winter days and nights can be damp and chilly for non Bermudians accustomed to seasonal central heating. Some homes have a fireplace, while others may have a ductless split heat pump system with reverse cycle heat during the winter and air conditioning in summer. If not, electric heaters and separate air conditioning units for winter and summer comfort levels are available commercially.
Certain jobs - mostly non managerial and non-professional office and retail clerical areas, secretaries and receptionists, etc. - are closed entirely to non Bermudians unless they are spouses of Bermudians and with 5 years or more of continuous residence as such. This is a Bermuda Government Immigration policy and is very strictly enforced. If your spouse has a good Business or Commerce or Economics degree or equivalent, especially a graduate degree, and is professionally qualified, his or her prospects for working in Bermuda may be better but cannot be guaranteed by the employer of the first spouse and are always dependent on (a) the employer of the second spouse; (b) Bermuda Government Immigration and (c) only if a similarly qualified and capable Bermudian is not available at the time and question and/or at any later date. If you have non Bermudian children who will be 14 years old or over while you are here, they will probably never be able to get full time or seasonal jobs as students. They can do so in larger countries with fewer restrictions. Non-Bermudian persons who are not spouses but partners or significant others or friends or are engaged to non-Bermudians should be prepared to spend a maximum of 3 weeks visit before having to leave and risk severe problems to themselves and their loved ones if they try to get employment while in Bermuda.
Partners - but not husbands or wives - should not come to live, only to visit for 3 weeks or less. Why? The following are among the reasons:
Under the Employment Act 2000, employees are entitled to legislated benefits from employers. They include two weeks holiday (vacation) after one year; no unauthorized docking of salaries or wages; a written contract after one week's employment; a 40-hour week; time and a half, or time off, after 40 hours, with possible exemptions; paid Public Holidays; a rest period of at least 24 consecutive hours each week; 8 days paid sick leave per year; unlimited time off to attend ante-natal classes for pregnant employees; 8 weeks paid and 4 weeks unpaid maternity leave after one year; statutory notice period; bereavement leave of 3 days unpaid or 5 days unpaid if traveling abroad; disciplinary procedure; time off for court duty, voting, meeting of Government Boards, Bermuda Regiment, Reserve Police, Senate or House of Assembly; notice of 1 week if weekly paid, 2 weeks if bi-weekly paid, 1 month in any other case; employers cannot sack employees for complaining about their treatment; an employees can take an employer to the Employment Tribunal for unfair or constructive dismissal.
You will probably not be exempted from your own home country's taxation policies when you work in Bermuda, as Americans, Canadians, those from the Philippines and United Kingdom citizens who still own real-estate back home have discovered.
If you're a citizen of the USA, or US resident aliens or US long-term Bermuda residents, you may be able to claim a percentage (subject to a maximum) of your Bermuda earned income if, before and so long as you file your Foreign Earned Income Exclusion - Form 2555 and tax return, as recognition by the USA of the much high cost of local living and higher rate of local taxation overall in countries beyond the USA. If you don't file properly, you get no exclusion. Also note that IRS Contribution limits are higher in 2006 and that for a US belonger and taxpayer in Bermuda who qualifies, there is a Section 529 Savings Plans for College incentive.
Quite a few, including:
Whether buying or renting, an apartment of any size or house with a garage is essential for a car or moped or scooter. Those without one should be avoided because vehicles not stored in them just do not stand up to Bermuda's salt-laden air, constant winter gales and periodic hurricanes. Do not leave your vehicle outside at night without being garaged. Even rust-proofing is only partly effective for garaged vehicles.
Bermuda, at US7 a gallon, is one of the most expensive places in the world, more than three times more expensive than in the USA, more than double what it is in Toronto, as expensive as in London, England. The web site tells why.
All visitors - including those from the UK - should note they are not covered locally, so should insure themselves adequately to cover their visit or employment locally. Costs of medical services are appreciably more expensive than in USA.
British, Canadian and other working newcomers should note there is NO coverage in Bermuda of their NHS or private health plans. American visitors and new residents should note that there is no equivalent in Bermuda now or planned of the Health Insurance Portability Act (HIPAA) 1996 which came into full force and effect in the USA and the US Virgin Islands and other US territories on April 14, 2003. Thus, no one in Bermuda is HIPAA compliant.
In 2007, health insurance premiums rose by 25%, following 18%, 13% and 11% per cent rises respectively in each of the previous years.
There is no Long Term Health Care Insurance offered at all by local insurance companies and those international insurance companies incorporated in Bermuda offering it in other countries even when their home offices are, for example, in the USA, are not allowed by law to offer it in Bermuda. Many residents, whose major medical insurance through their employers stops, if they had it at all, when they reach 65, have had to spend many thousands of dollars of their own money overseas, with no insurance. Visitors who come on vacation or to see family or friends should be aware in advance that they are not entitled to any local health insurance employer-provided employee coverage or benefits. Not covered are services like ambulance fees, x-rays, doctors' consultations and reports, etc. Check whether the hospital will recognize any insurance plans not operated in Bermuda. It may do so, up to a point, for people from the USA with Blue Cross and Blue Shield insurance.
Expect to see - and probably get harassed by - some of these.
Also see details about
April 24 2007. The Royal Gazette group reported. More than a third of families’ spending in Bermuda is now going on housing — nearly double that of the US. Mainly due to rent increases, households spent more than $740 million on housing in 2005, a rise of seven percent on the previous year’s figure of $694 million. Statistics show 34 percent of household consumption went on housing — dwarfing the amount spent on education (4 percent), clothing (3 percent), healthcare (5 percent) and food and drink (14 percent). The corresponding figure for housing in America is just 18 percent.
US companies suing or being sued for Human Rights cases will not have their cases heard under Bermuda Human Rights laws. One reason is Bermuda Human Rights laws are so poor - for Bermudian individuals only, not corporations local or international. Another is because, as a US judge ruled in Los Angeles in August 2003 in a Unocal case affecting a USA-operating corporation, a non-Bermudian corporation cannot conduct business in Bermuda even though it is based here. Bermuda Human Rights laws are very poor compared to the UK or Europe or USA. Those for the elderly and disabled are particularly bad.
Only local - Bermudian - insurers can offer this. Best bets are Argus or BF&M. Be aware that if you are not Bermudian, you may be able to qualify for a no claims bonus for cars if you can produce evidence from your former insurer overseas. But when you return to or go to say the UK, your no claims bonus in Bermuda may not qualify because Bermuda is not part of the European Economic Community. (Only with TESCO does it seem to apply).
So-called because they are exempted from having to be Bermudian. They are also based here - some are incorporated here - but do business strictly beyond Bermuda. Although they include local offices of some of the world's best-known insurance firms - those offering medical, health insurance, insurance and re-insurance - and investment firms, they are not allowed to offer their products or services in the local marketplace because they are not "local companies." Collectively they now bring in more revenue for the Bermuda Government and Bermuda generally than tourism.
Note these.
What will cost you $8 per trade in the USA, or via an overseas online investment broker, will be about US $29.95 if bought here, an accurate reflection of the differences in the cost of living.
Available island-wide but with severe limitations in ADSL or Broadband coverage and speeds.
It is often assumed, wrongly, that the UK British legal system applies in Bermuda because it is a (nominal) British colony. No UK/British laws apply, all laws are local and can sometimes have major differences between them and American British or Canadian laws. A classic case is Bermuda's Constitution. Unlike other constitutions, its Human Rights and other provisions cover Bermudians only, not those who are not even if they are born here and do not have a Bermudian parent.
In addition to the Bermuda National Library - a public library shown by name in the City of Hamilton - with its Adult, Reference, Mobile and Youth outlets, there is also the open-to-all Bermuda College Library at the Bermuda College. Phone 239-4033 or e-mail dva@bercol.bm. Persons employed at major law firms will find that they too have extensive libraries - not public, for their staff.
Employers will not be allowed to import into Bermuda any prospective employer and a spouse neither of whom were born in Bermuda or do not have Bermuda citizenship or status if they have more than two children. This is a Bermuda Government Immigration policy for all in the private sector.
Visits of up to three weeks are fine but special permission by applicants is needed from Immigration, with reasons why, for any longer.
The Waste and Litter Control Act 1987and its penalties may apply, but only if the litter from yours or another person's rented or leased or owned apartment or condominium or house is visible from a public place, for example, from a main road or estate road, park, etc. This type of litter should always be reported first to the Bermuda Government's Department of Works and Engineering for investigation.
Must be Bermudian by law - in other words at least 60% beneficially owned by Bermudians - and trade in the local marketplace, with the option of doing so overseas too, from a Bermuda corporate base. They buy goods or services or both from overseas, mostly the USA. Many have Bermuda Government contracts. In 99 percent of cases, they operate only in Bermuda. Notable exceptions are the two biggest of the three banks, with offices in various other parts of the world; and some accounting and audit companies with Bermuda-owned local offices and international affiliates. Again, be aware of the Bermuda Government's priority CURE policies now applicable to all local and international employers to employ qualified black Bermudians first, qualified other Bermudians second, qualified spouses of Bermudians third; qualified non-nationals fourth; and to limit in time the Work Permits of non-nationals employed in the fourth category to, generally speaking, no longer than 6 years.
All medical doctors in Bermuda must be licensed locally before they qualify and - with the exception of those working at the two hospitals - all are private. The author recommends Dr. Stephen Sherwin.
The European way of describing cell phones.
Not Social Security (see separately), but private pension plans. The National Pension Scheme Act 1999 became effective on 1st January 2000. All employers, whether local or international or exempted must comply, for every employee whether Bermudian or a non-Bermudian spouse of a Bermudian of from 23 years of age who works a minimum of 720 hours per calendar year. Employers may, however, offer more generous eligibility provisions to employees by allowing them to become members of their pension plan at an earlier age and with fewer numbers of hours worked. While 65 for men and women is when those eligible in Bermuda will get Social Security, private pension plans can be more generous in lesser age and certainly more generous in pensions. Note that the Act specifies private pensions only for Bermudian and international or exempted company employers employing Bermudians or non-Bermudian spouses of Bermudians. There is no requirement to establish pension plans for guest workers, which may come as a shock to the latter. Non-Bermudian employees should ask local and international companies and or the Bermuda Government employing them what, if anything, they offer as private pension plans or equivalent, so they know where they stand and what they can expect to take with them when they leave Bermuda.
For those who qualify under the Act for pension eligibility, the pension scheme (plan) can be offered only by approved local insurance companies, not the "exempted" or "international" variety registered in Bermuda but not "corporate citizens" as they are often referred to, inaccurately.
The Act removed many of the anomalies and restrictions that since the 1970s for "approved private pension plans" had existed in some with 15 or more years service but had severely restricted or totally excluded others, for example all those with say 12 years service with the same employer by retirement age. The current Act creates some portability for plans of all employers and employees. But for some people close to retirement age when it came into effect, it was far too late to ensure that once they become senior citizens and retire from working, they will have an adequate income without hardship.
Minimum contribution rates are based on pensionable earnings per year. Approved insurers under the Act are:
Review both Bermuda Transportation for Visitors and Bermuda Transportation for Residents. If you are not well paid by Bermuda's standards - below the average Bermuda Government salary of $55,000 - figure on at least US $19, 800 (compared to 7,300 pounds or US$ 11,600 in the United Kingdom) for a good Class A (least expensive to license) 4 or 5 door model. The cost is twice to three times that of the USA, United Kingdom, Canada, Europe, etc.
The import duty alone on a more expensive one than this can exceed $13,000. Second-hand ones can be acquired for as low as $6000, but for all cars above a Class C, factor in a further $60-$80 a month for annual licensing by the Bermuda Government. Light or pick-up trucks are not allowed in Bermuda to anyone who does not own and operate a local business. (Beyond Bermuda, they are allowed as alternatives to or as well as automobiles). Find out whether or not it will be economical or practical to ship your car back home at the end of your contract. Expect to pay about $2,600 for new scooter or moped in lieu of a car. Get one equipped with an electronic anti-theft device.
Bermuda strictly limits the size (length, width and horsepower); type (for example, pick ups and other vehicles are confined to local businesses); number (only one per household or family); and who can drive them (licensed local residents only, never visitors). A moped or scooter may be the most practical form of transport for singles or late teens. If married with a family, you'll need both a car for family use and a moped for commuting. If single and sharing accommodation, be aware you won't be allowed to have an automobile if someone already has such a vehicle registered at that address.
Cheap or discounted airfares between North America, Britain and Europe, at a cost to appeal to expatriate newcomers from these countries, are rare. For example, the cost of a round trip air ticket from Bermuda to London is nearly three times more than the cost of one from New York or Boston to London and return. Premium prices are charged by the airlines serving Bermuda to get you to far off destinations or your relatives here to visit you. No charter flights fly from Bermuda to North America or Europe - only to the Caribbean 1,000 miles to the south - and no airlines have direct service between Bermuda and the Caribbean.
These are internationally acceptable when valid and should never be substituted by any other lesser document. All expatriates should allow plenty of time - several months - for renewal of overseas passports from Bermuda. Children require them too.
Everyone working is required by law to be covered. You should have no problems if working for an international Bermuda-based company but if working for a majority Bermudian owned local company, you should ask if it is in arrears. And to be on the safe side, double-check in another way, by visiting the government department concerned. Make sure contributions are made by your employer, fifty percent of which you pay for from your salary earnings. Unfortunately, many local employers cheat both the government and employees by not paying up.
Bermuda does NOT have a quarantine period. You can personally import and export animals, usually from the USA but also from Canada and the UK, with sufficient notice (which can be as high as 6 months). A proviso is that they must be licensed and micro chipped. For all personal importers of pets, there is a strict import and export procedure for their documentation and certification, administered by the Bermuda Government's Department of Agriculture and Fisheries e-mail address or telephone number (441) 236-4201. This relates only to legally importing and exporting a cat or dog and licensing a dog. It does not confer permission to keep either. The ban on animals from the United Kingdom because of fears of Foot-and-Mouth disease (FMD) was lifted from July 2001 if the animals concerned are micro chipped, are from FMD-free areas and can be disinfected and certified in advance by a kennel service in London approved locally. Bermuda is one of 28 rabies-free places that have been added to the Pet Travel Scheme. For more information, visit the British/UK Ministry of Agriculture and Fisheries (MAFF). But it is the moral and possibly legal responsibility of any pet owner to go back home with any imported pets. They should never be left in Bermuda as stray orphans when you leave. The airlines serving Bermuda will give you current prices to import animals when you arrive and export animals when you leave. If you are not prepared to pay for their export too, don't import them, as Bermuda already has a problem with feral cats, wild dogs and stray chickens.
Not all pets are suitable for Bermuda because of its humidity and dampness. Dogs are covered under the Dogs Act 1978 amended September 2000. Unlawfully bred dogs can be seized. A potential breeder must apply for a Breeding License beforehand and show it to prospective buyers. Persons wishing to keep more than two dogs in any building or part of it must have a multiple Dog Permit. Many landlords will NOT allow cats or dogs. Whether or not you are allowed to keep a pet is at completely the discretion of landlords. There may be an added security deposit for pets. Dog owners need yard space to exercise as dogs may not roam, they must be leashed - and always kept inside when postal employees deliver mail. Cat owners should be aware that although there is a law that dogs be kept on a leash or in secure premises, it is not always obeyed. Penalties for non-compliance can be severe but not severe enough to deter some people with dogs to comply, to avoid injury to humans or cats. Dogs are not permitted on any public beach from April 1 to October 31 of each year.
Organizations for pet dogs are:
Organizations for cats are
It is strongly recommended that new residents rent a post office box from their parish post office, when one is available. This is because delivery to home addresses is often non-existent or unreliable. Also, when they do deliver mail, postal workers do not do so on weekends.
Do not come to Bermuda to work or on holiday (vacation) if you are anti-black. Bermuda is 70% black and race issues are taken seruiously.
How they rate locally versus in USA, Canada, UK and Europe in terms of discounts, pensions and services. For example, in the USA, age 62 is the earliest, but it will be 67 for those born in 1960 or later. In Britain and Europe, benefits start at 60, not 65 for men. In Bermuda, it is 65.
Social Insurance Department, Government Administration Building, 30 Parliament Street, Hamilton HM 12. Phone 295-5151 extension 1129 or 1131. In Bermuda, the maximum Social Security benefit obtainable is $980 a month for those who qualify, about 22% of all local pensioners.
The 2008 pension increase of 5% follows one of 4.5 percent from August 2007 saw the basic contributory pension rise from $826 to $863 per month, not for all but for those who maintained the maximum amount of employer/employee contributions since the plan began in 1972. It was the eighth rise in the PLP's 10 years in Government, compared with pension increases every two years during the 1990s. Those who retired before they achieved the maximum amount do not get this. Those who did not earn enough Social Insurance contributions to qualify for a minimum Social Insurance pension get no Social Insurance pension at all, merely a one-time refund of their contributions.
This compares badly to Social Security in the USA which averages $1,550 in USA for persons have not worked for 50 years and, for those with a more modern and sustained employment history can quite easily be US$1,844 a month, or $2,180 a month at age 67 or $2,697 a month if a pensioner is healthy enough to wait until age 70 before drawing benefits. See the USA's Social Security Administration. There is no standard rates file as pensions can vary appreciably. Over 60s men do not get a Social Security pension until they are 65, if they qualify. At Age Concern In the United Kingdom, some offices will supply immediately on request or within 24 hours by e-mail a 5-page "Benefit rates for the Over 60s" guide showing a variety of rates for which individuals will be eligible depending on if and how they qualify - including men over 60. But this is not available in Bermuda.
There is no standard "Benefit rates for the Over 60s" guide as there is in the United Kingdom, Canada and USA.
Refer to the Department of Social Insurance for current - and projected - weekly rates of required deductions from salary payable by both individuals and employers, under section 4 of the Contributory Pensions Act 1970, for:
Social Insurance Contributions will increase by 6.75 percent starting in August 2008.
When private corporate pensions are offered, they are in addition to the Government administered Contributory Pensions plan shown above.
In comparison to social security benefits for its citizens who have paid taxes all their working life and beyond, Bermuda Government pensions for its employees or Members of Parliament are for far shorter periods of time, offer much bigger pensions and get regular cost of living increases. Seniors over the age of 65 and employed no longer have to pay Social Insurance contributions but employers must do so. Many pensioners exist solely on their Social Security because they do not qualify at all for any corporate pension, or their corporate pension benefits ceased when a spouse died.
In Canada, each senior is paid an OAP/CCP by the Government. It offers overall what is probably the most humane and thoughtful system in the world. For those without any other source of income, Social Security monthly can be as high as Ca $2600. For those with a substantial income from a private or teacher's pension or other sources, the OAP/CCP can be as low as Ca $400. Canadians are so lucky with their Health plan; and in Ontario seniors get free prescription drugs for over 1500 prescribed things! Their GST tax and other taxes cover much of it. The plan gives peace of mind to Canadians.
In comparison to social security benefits for its citizens who have paid taxes all their working life and beyond, Bermuda Government pensions for its employees or Members of Parliament are for far shorter periods of time, offer much bigger pensions and get regular cost of living increases. Seniors over the age of 65 and employed no longer have to pay Social Insurance contributions but employers must do so. Many pensioners exist solely on their Social Security because they do not qualify at all for any corporate pension, or their corporate pension benefits ceased when a spouse died. The cost in Bermuda for a private Senior Citizens home for the elderly is more than 7 times the average social security pension and can easily be as high as $95,000 a year.
According to the Bermuda Olympic Association, only persons who are Bermudians in their own right can represent Bermuda at the Olympics, Pan Am Games or Central American & Caribbean Games. But this qualification is unfair to persons not born in Bermuda, or born in Bermuda but not with a Bermudian parent, or a non-Bermudian spouse of a Bermudian.
Spouses will get a friendly and practical welcome from the International American Women's Club. Despite its American name, it is not solely for newly arrived Americans. It is as active on behalf of other incoming nationalities. It will offer you useful advice, suggestions and tips to make your island life more pleasant. For further information, call (441) 236 5465 or (441) 291 0761. Those from overseas who arrive married should note that in the event their husband or wife also from overseas separates from or divorces them in Bermuda, one of them may have to leave Bermuda prematurely. If they have children while in Bermuda but later separate or divorce, the Bermudian spouse will normally get preference in child custody, under Bermuda law. A non-Bermudian married to a Bermudian will have to wait 10 years to apply for and meet certain conditions to obtain citizenship. In any other country, they can obtain citizenship rights within three years. Non-Bermudian spouses arriving with their also not-Bermudian husbands or wives must find their own form of employment (See Working in Bermuda for non-Bermudians).
Expatriates, unless they work for certain US companies, are normally paid their salaries in Bermuda Dollars. If they wish to send money to friends of family in their home countries in a foreign currency they can do so by going to one of the local banks, paying the market price for foreign exchange conversion and either buying a draft or arranging to have the money wired. The Bermuda Government charges a small fee for all personal and corporate foreign exchange transactions.
On all Bermuda-bought products, they are much lower than in North America or Europe. In the USA, some warranties on vehicles now extend as long as 10 years. Most are for 3 years. But in Bermuda, most expire in 1 year.
Expect to feel somewhat isolated initially. It is estimated expatriate men outnumber expatriate women by 2:1. Be aware that Bermuda - because of its affluence, not poverty, has one of the highest rates outside of Africa in AIDS and HIV, per capita. But this may be due to the fact that Bermuda is more honest than other countries in reporting medical and HIV/AIDS facts. If you are an expatriate male or female know that marriage to a Bermudian does not bring you any citizenship or voting rights until you have been both married and living together as man and wife for at least 10 years and have satisfied all other conditions. If you are an expatriate male or female, know that Bermudian men and women don't believe in shared custody of children after separation or divorce and will probably require their children to live in Bermuda. Also know that if you divorce or separate from a Bermudian you could lose your Work Permit and residency at the request of the aggrieved Bermudian party. There are many Bermudians who will not hesitate to complain to Immigration.
Single women who come to Bermuda to work should take due precautions. If you are female, expect lonely strangers to offer to buy you drinks. It is expensive to drink alcohol in Bermuda. Be extremely careful as drinks could be and often are spiked. Under no circumstances should any female accept a ride or lift from anyone she does not know. There have been some gruesome horror stories, such as the case of Rebecca Middleton (see under "Rebecca Middleton" in Legal).
Records - court cases and the lack of them, or their verdicts - indicate serious problems. Visitors and residents have been raped and murdered or had their jaws broken, with no long-term repercussions to the guilty. When court cases are held, jurors who are mostly men find the accused not guilty. The judicial system cannot be relied on in these respects. Single women, or those who go places alone in Bermuda, do so at their own risk. Sexual assault is the most difficult crime to prosecute in Bermuda. A man's past criminal record for this is not permitted under Bermuda law to be brought up. A woman's defence is turned into a character assassination of her. Bermuda shares with Britain the infamous developed world record of having less than 4% of rape allegations resulting in convictions. Unlike in the USA where this is routine, there are no specially trained rape prosecutors. In the USA, they have improved rape convictions by 85 to a rate now 75%. Nor is there any dedicated Rape and Abuse Support group. The British and Bermudian rate of convictions would not be tolerated in the USA. At least in the UK, the most senior prosecutors handle rape cases, but not in Bermuda.
Expect your employer to be insured locally for this.
Last Updated: May
10, 2008
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