Pay transparency legislation coming soon to Bermuda?

While the proposal is still at the consultation stage, it gives a clear indication that employers will soon be required to adopt a more proactive approach to achieving pay equity in the workplace. Employers are therefore advised to begin considering how such measures could affect their pay practices, recruitment processes and internal governance.

Why are pay transparency laws on the agenda in Bermuda?

The Government's proposal is stated to be aimed at reducing wage gaps linked to gender, race and ethnicity by ensuring greater openness around how pay is determined. 

Although employment law in Bermuda already prohibits discriminatory pay for substantially similar work, the Government believes that the existing framework is largely reactive and complaint-driven whereas, it says, the proposed pay transparency legislation is intended to prevent problems before they occur. 

It should be said that Bermuda is far from alone in moving in this direction. Similar pay transparency measures have been or are being introduced in Canada and other jurisdictions, including across the EU with the EU Pay Transparency Directive coming into effect in June 2026, with requirements ranging from salary disclosures to gender pay gap reporting and equal pay certification via independent audits.

While Bermuda’s proposal is more tailored to a small jurisdiction, it reflects the same international trend – employers will need to adopt documented, explainable and defensible pay systems.

Bermuda pay transparency – What is being proposed?

Although draft legislation has not yet been published, a number of proposed measures are outlined in the Bermuda Government's policy proposal, which include:

• Employers to be required to develop and maintain a mandatory pay transparency and equity policy, which would confirm the employer's commitment to fair and non discriminatory pay practices.

• Employers to be required to explain how pay is determined within the organisation by reference to clear, objective criteria which is applied consistently across the workforce.

• Employees to have a right to request information about the salary range applicable to their role. 

• Employers would be prohibited from asking job applicants about their salary history during the recruitment process.

• Job advertisements would be required to include salary ranges.

• Enforcement is expected to follow the same approach currently used in respect of existing minimum wage legislation, namely that labour inspectors will have powers to review records, investigate complaints, and escalate serious or repeated non compliance to the Employment and Labour Relations Tribunal.

It is not known at this stage whether any measures that get brought into law will be enacted by way of new legislation or as amendments to Bermuda's existing Employment Act 2000.

Practical steps Bermuda employers should start considering

It will likely be a number of months before any legislation is enacted. However, the direction of travel is clear – employers in Bermuda should prepare to adopt more transparent pay practices. Some businesses will inevitably find this more challenging than others, but there are some preliminary steps that employers can start to take. 

A sensible first step is for employers to carry out a high level review of their existing pay structures. Are there clear salary bands for roles, or have pay differences developed over time? Can current pay levels, for employees performing similar work, be objectively explained if challenged? How easy will it be for the organisation to actually analyse its pay data?

Job descriptions could also be reviewed as clear, up to date descriptions that accurately reflect the responsibilities and requirements of each role are likely to underpin defensible pay decisions and make transparency far easier to manage.

Recruitment practices will also likely warrant attention. Employers should consider whether they are ready to include salary ranges in job advertisements and whether interview processes rely, formally or informally, on an applicant’s salary history.

Finally, employers will need to consider how pay information is documented and communicated. If pay decisions are challenged, employers will need to demonstrate how and why particular decisions were made.

What are the next steps for the proposed Bermuda pay transparency legislation?

The Government is currently seeking feedback on its policy proposal from the public, employees, employers and industry stakeholders. The window for submitting feedback closes on 31 May 2026, following which we can expect to learn more detail on the pay transparency requirements facing employers in Bermuda.