Payroll Cycle
Minumum Wage
Overtime Pay

Working on Sunday/rest day at employer’s request:

If an employee works up to half-day work - payment: basic salary of 1 full working day

In case an employee works more than half a day - payment: basic salary of 2 full working day

  • ~Working on Sunday/rest day at own request - Payment: Half-day basic salary for work up to half the normal working hours of one day.
  • ~Employee working beyond normal daily working day hours on a rest day - Payment: 1.5 times the basic hourly pay.
  • ~In the case of a person employed on a monthly rate pay:

Hourly rate of overtime pay = (12 x the employee’s monthly basic rate of salary) divided by (52 weeks x 44 hours)

  • ~In the case of a person employed on a daily rate pay:  Hourly rate of overtime pay = (Daily pay at the basic salary) Divided By (Working hours per day)
  • ~In the case of a person employed on a piece rate pay: Hourly rate of overtime pay = (Hourly basic rate of pay * 1.5* no. of hours overtime worked)

Salary for overtime must be paid within 14 days after the end of the salary period.

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Talent Wiki - Brunei

Your quick guide on talent and labor compliance norms in Brunei
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Capital
Bandar Seri Begawan
Currency
Brunei Dollar (BND)
Languages
Arabic, Brunei Malay, Chinese, English, Standard Malay (Official), Indian and Nepali
Payroll Frequency
Monthly
GDP per Capita
$32,500
Employer Tax
8.5%

Supplementary Guide for Employment and Expansion in Brunei

Talent Overview

Brunei is a developed industrialized nation with wealth generated from petroleum and natural gas fields. The country ranks second in the human development index among Southeast Asian countries, after Singapore.

Major economic hubs:

Bandar Seri Begawan, Kuala Belait, Seria, Tutong

Skills in demand:

Oil and gas industry skills, digital technology skills

Local Universities

The top local universities in the Brunei are as follows:

Universiti Brunei Darussalam

RANKING

Italy : 1

World : 2466

Universiti Teknologi Brunei

RANKING

Italy : 2

World : 8354

Politeknik Brunei

RANKING

Italy : 3

World : 8838

Salary Data

Job Title Average monthly Salary (BND) Average monthly Salary (USD)
Customer Service Representative 2200 $1648
Software Engineer 3760 $2817
Software Developer 3305 $2476
Data Scientist 5290 $3964
UX Designer 2780 $2083
Product Manager 4250 $3185
Sales Representative 2010 $1506

Talent Sourcing Tips

Employing in Brunei

Employments are highly concentrated in the service sector, focusing on wholesale and retail trade. Get to know more about employment in Brunei.

Employee Contract

Employment contracts are mandatory in Brunei and are written in English. 

Probation Period

The usual probationary period followed in Brunei is from 1 - 90 days.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day Public Holiday
1 Feb Lunar New Year Public Holiday
23 Feb National Day Public Holiday
28 Feb Isra and Mi'raj Public Holiday
3 Apr Ramadan Start Public Holiday
4 Apr Ramadan Start observed Public Holiday
19 Apr Nuzul Al-Qur'an (Tentative Date) Public Holiday
2 May Eid ul Fitr Public Holiday
3 May Eid Al Fitr Holiday Public Holiday
4 May Eid Al Fitr Holiday Public Holiday
31 May Royal Brunei Armed Forces Day Public Holiday
9 Jul Eid al-Adha (Tentative Date) Public Holiday
15 Jul Sultan's Birthday Public Holiday
16 Jul Sultan's Birthday observed Public Holiday
30 Jul Muharram/Islamic New Year Public Holiday
8 Oct Milad un Nabi (Mawlid) (Tentative Date) Public Holiday
25 Dec Christmas Day Public Holiday
26 Dec Christmas Day observed Public Holiday

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave 7 days Yes
Sick Leave 60 days Yes
Maternity Leave 9 weeks Yes

Payroll

Payroll Cycle

An employee must be paid at least once a month. All salaries other than overtime payment must be paid within 7 days after the end of the salary period.

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Minimum Wage

No minimum wage is followed in Brunei.

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Overtime pay

Click on the link below to get more details about the various instances of overtime work and their respective pays.

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Health Examination Clause

Bonus

13th month salary

It is not mandatory to provide 13th month pay in Brunei.

Employee Benefits

The following benefits are available to the employees in Brunei:

  • ~Maternity Benefits
  • ~Pension Scheme
  • ~TAP
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Taxes

Employer Payroll Tax

Type of Tax Tax contribution
Supplemental Contributory Pension Scheme (SCP) 3.5%
Employees Trust Fund (TAP) ( for local employees) 5%
Total cost on Employer 8.5%

Employee Payroll Tax

Type of Tax Tax contribution%
Supplemental Contributory Pension Scheme (SCP) 3.5%
State managed provident fund (Tabung Amanah Perkerja (TAP)) 5%
Total cost on employee 8.5%

Employee Income Tax

Brunei does not impose income tax on individual persons. 

VAT

Currently, there is no VAT in Brunei Darussalam.

Offboarding & Termination

Termination Process

Termination of contract may occur when:

  • ~Upon completion or expiry of the employment contract
  • ~There is a mutual agreement to terminate
  • ~There has been a breach of contract

Notice Period

 The notice period for employees on probation and permanent employees is between one to four weeks.

Severance Pay

If the employer terminates the employee, he is entitled to receive his total salary due.

If the employee resigns, there are two instances:

  • ~The person who has served the notice period – must be paid all salary due on the last day of employment.
  • ~The person has not given notice and is serving the notice period – all salary due must be paid within 7 days after the employee's last day.

Visa and Immigration

Foreign worker license, or Lesen Pekeria Asing (LPA) is needed to employ foreign workers.

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