The Ministry of Labour and Human Resources would like to notify all the Enterprises/Firms in the private sector that as per Section 99 of the Labour and Employment Act of Bhutan, 2007 and its Regulations, an employee is entitled to the Provident Fund (PF) and Gratuity upon retirement from the service.
It has been observed that many firms in the private sector have not yet participated in the PF scheme. The PF scheme for the private sector is being operated by the Royal Insurance Corporation of Bhutan Limited (RICBL) and Bhutan Insurance Limited (BIL). Therefore, all the employers in the private sector are requested to start the PF scheme for their employees latest by 31st May 2018 either with RICBL or BIL. MoLHR shall start monitoring the implementation of the PF scheme in the private sector from June 2018 onwards.
MoLHR requests all the stakeholders to take this matter seriously and extend full cooperation. Kindly note that those firms who do not comply with the above shall be penalized as per the provisions of the Labour and Employment Act of Bhutan, 2007 from June 2018.
Copies of the Labour and Employment Act of Bhutan, 2007 and its Regulations are available at www.molhr.gov.bt and for further queries please contact the Department of Labour at 333867.