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Overview
Brunei dollar (BND)
CURRENCY
Bandar Seri Begawan
CAPITAL
monthly
PAYROLL FRECUENCY
13
PUBLIC HOLIDAYS
0 to 8.5
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Brunei
Employer
Company Payroll Contributions
0% - 3.5%
Supplemental Contributory Pension Scheme (SCP)
0% - 5%
Employees Trust Fund (TAP)
0% - 8.5%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 3.5%
Supplemental Contributory Pension Scheme (SCP)
0%- 5%
Employees Trust Fund (TAP)
0% - 8.5%
Total Employee Cost
Employee Income Tax in Brunei
There is no income tax on individuals in Brunei.
Minimum Wage in Brunei
General
There is no statutory minimum wage in Brunei. Therefore, no established amount has to be paid to workers.
Thus, the employer has to agree with the employee through collective bargaining or any other to negotiate a fair wage.
Since this issue may be challenging, you can always rely on an Employer of record in Brunei.
Minimum Wage per month
Payroll Contributions in Brunei
Payroll Cycle
Employees in Brunei receive their payments once a month.
13th Salary
There are no requirements to pay a 13th-month salary in Brunei.
Nonetheless, if you would like to provide a bonus, you can look for advice with Payroll outsourcing.
Employee Benefit in Brunei
Employees in Brunei can receive the following benefits
- Annual leave.
- Sick leave.
- Public holidays.
- Maternity leave.
- Social security benefits.
- Overtime pay.
Therefore, if you want to have outstanding management of employee benefits, you need a Professional employment organization.
Visa and work permit in Brunei
If a foreign employee wants to work in Brunei, he or she must obtain a Foreign Worker License (LPA). This license has a validity of 1-2 years depending on the application and it can be renewed.
So, to obtain this document, the processing time is approximately 2 months. Also, the employee has to obtain endorsement from several government bodies, pay a security deposit, undergo a medical examination and sign the employment contract.
Nonetheless, if the foreign professional is travelling to Brunei for a short-term stay, he or she may apply for a Special Authorisation Work Pass (SAWP). It has a validity of 12 months and it is non-renewable.
Also, if the foreign professional is attending a meeting, conference or other similar in Brunei, he or she has to apply for a Special Authorisation Work Pass (SAWP) but one that is valid for a maximum of 3 months.
Lastly, some nationalities are eligible for a visa-free or visa on arrival. Thus, this grants them a 90-day, 30-day or 14-day entry. During this period, they can land a job and obtain a license.
So, if you want to get the proper visas for your employees, you may contact an EOR to help you.
VAT in Brunei
There is no VAT rate in Brunei. So, if you want to take your business to a whole new level, you need to look for an Employer of record in Brunei.
Working Hours in Brunei
General
In Brunei, employees typically cannot work over 8 hours per day. Also, the general working hours are 44 per week.
So, if you need help with the working schedule, you can look for PEO services.
Overtime
As per overtime work, employees cannot work more than 12 hours per day, including standard hours and overtime.
Also, the overtime limit per month is 72 hours total for each employee. Since calculating overtime rates may be challenging, you can delegate this task to payroll services.
Working Week
Since there is a limit of 44 working hours per week, employees generally work 5 days and a half.
Also, government offices work from Monday to Thursday and Saturday. Lastly, during Ramadan, working hours get reduced to 6 hours per day.
Employee Termination in Brunei
Termination Process
Any of the parties may decide to terminate the employment contract as long as they comply with the notice period outlined in the contract.
Nonetheless, it may occur the termination without notice in case any of the parties willfully breaches a condition established in the contract.
Since termination is complicated to handle, you can search for an Employer of record in Brunei to receive additional support.
Notice Period
In Brunei, both parties must agree on the contract regarding the notice period. But generally, it can be between one to four weeks. So, with a PEO you can understand better the notice period.
Severance Pay
In the case of a resigned employee, the employer has to pay all salary due on the last day of employment, if he or she has complied with the notice period.
But, if the employee has not complied with the notice period, the employer may pay all salary due within 7 days of the last day of employment.
In case you need assistance with severance pay, an Employer of record is a great solution.
Probation Period
The probation period in Brunei is generally 90 days. However, the company can extend it for 90 more days if the position of the employee is not confirmed. So, it is only allowed to extend the period once.
Subsequently, by opting for EOR services you can ensure great employee management.
Employee Leaves in Brunei
Paid Time Offs
Workers in Brunei can take an annual leave once they have completed a year of service. So, they can request a 7-day paid leave for each year.
Also, they can add one extra leave day for every year of continuous service. Consequently, the maximum paid time off is 14 days.
Public Holidays
There are 13 national holidays throughout the year.
Vacation Holidays
There are 14 vacation holidays throughout the year.
Sick Days
Employees can request sick leave once they have completed 6 months of service. So, the leave is as the following:
- 14 days of sick leave each year, if the employee does not require hospitalization.
- 60 days of sick leave, if the employee requires hospitalization.
Paternity Leave
There are no provisions in Brunei regarding paternity leave.
Paternal Leave
Maternity Leave in Brunei
According to Employment Laws, the maternity leave in Brunei is of 9 weeks for non-citizen employees. The female employee may take 4 weeks before confinement and then 5 weeks after childbirth.
However, the female employee can only take this leave if she has completed 180 days of employment.
But if the female employee is a Brunei citizen lawfully married, and she has completed 180 days of service, she can take a maternity leave of 15 weeks. Thus, in this case, the employee can take 2 weeks before confinement and then 13 weeks after childbirth.
Also, in both cases, the employer is responsible for paying for the first 8 weeks of leave, and the government authority has to pay for the remaining weeks of leave.
There are 105 leave throughout the year.