What Are the Group Insurance Scheme (GIS) and GPF Payroll Deduction Guidelines in Bhutan?

The Group Insurance Scheme (GIS) and General Provident Fund (GPF) are important payroll-related deductions associated with Bhutan's government employee compensation and benefits framework. For payroll teams, correctly identifying these deductions is important because they affect an employee's take-home salary and, under the applicable tax framework, can also affect the calculation of taxable salary income.

What Are the Mandatory Deductions for Bhutanese Employees under DRC Guidelines?

Managing payroll in Bhutan requires employers to correctly identify the deductions that must be made from an employee’s salary and the amounts that must be remitted to the relevant authorities or funds. For 2026, the Department of Revenue and Customs (DRC) administers personal income tax and employer withholding requirements under the Income Tax Act of Bhutan 2025, which came into effect on 1 January 2026.

Salary advance policies for construction companies. It outlines approval workflows, site-level delegation, emergency advances, and payroll recovery schedules to maintain proper financial controls while supporting site workers.