Brunei PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Brunei to companies willing to enter the Brunei market or hire local/expat employees in this country.

Typical approach requires establishing a subsidiary in Brunei.  However our solution allows you to start the operations in Brunei within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

Brunei fast facts

Population, million: 0.5

Land area, sq. km: 5,765 km2

Capital: Bandar Seri Begawan

Local currency: Brunei dollar (BND)

Hiring, Negotiating and Doing Business in Brunei

Necessity of written employment contract

According to Brunei’s labor laws, employment contracts are required to hire an individual. They should include vital information such as the nature of employment, how long it will last, the termination policy, and salary. There’s no federal minimum wage in the country, so pay is open for negotiation and mutual agreement between you and your employees.

An employee should be paid at least once a month and receive the money within seven days of the end of the pay period.

Brunei Employment Contract

Brunei working hours

Non-shift employees typically work eight-hour days and up to 44 hours a week. Anything over this allotted time is overtime, paid at 150% standard pay. An employee cannot work more than 12 hours a day unless the job is:

• Essential to life or security.
• Urgent for the business.
• Interrupted for an extended period.

Shift workers can work no more than an average of 44 hours in a week over three consecutive weeks, and workdays should not exceed 12 hours. A shift worker cannot work over 12 hours a day in any circumstance. All hours beyond what is stated in the employment contract are overtime hours.

Vacation leave in Brunei

Employees are entitled to one day of rest every week without pay. Typically, Sunday is a day off, but you can choose any other day of the week as your employees’ compulsory day off in the employment contract. For shift workers, this rest day is classified as 30 consecutive hours of rest.

Employees receive vacation based on the amount of time they have worked with the company. At one year of work, they must receive a minimum of seven days of paid time off. This minimum increases by one day with every additional year of service. By eight years or more, workers must receive at least 14 days of paid leave. However, you can mention terms beyond these minimums in an employment contract.

Sick leave: 

Workers must receive a minimum of 14 days of paid outpatient sick leave and 60 hospitalization days. They earn these days on the condition that they:

• Have worked for the company for at least six months.
• Obtained a medical notice from the company doctor or another approved medical professional.
• Gave you, the employer, 48 hours of notice.

Brunei Maternity Leave

International employees, or noncitizens, earn nine weeks of maternity leave, eight of which are paid. The first four weeks must occur prior to the delivery to give workers a chance to return to their home countries and make arrangements. The last five weeks of leave occur after the delivery, and four of them can happen over the six months following the birth.

Local workers receive 15 weeks of maternity leave, 13 of which are paid. Women must take two weeks off before the delivery and 13 after. While international employees only need 180 days of work to receive their leave, local workers must also be legal residents of Brunei and lawfully married.

Brunei Severance Laws

Termination can occur in a few situations, the simplest one being the end of service. If the job has a set end or completion date described in the employment contract, service will end on the date noted.

You and your employees can incite termination with the proper notice. Regardless of position, notice periods are as follows:

• One day for less than 26 weeks of service
• One week for 26 weeks to two years of work
• Two weeks for two to five years of employment
• Four weeks for five or more years with the company

You can terminate an employee without notice if the employee breaches the contract in any way. Legal reasons for dismissal include:

• Misuse of facilities.
• Dishonesty.
• Immoral or disorderly conduct.
• Willful insubordination.

Brunei Tax

There is no federal income tax for individuals, so you do not have to consider withholding it from paychecks.

There are no social security taxes in Brunei Darussalam. However, all citizens and permanent residents of Brunei Darussalam must contribute 5 percent of their salary to a State managed provident fund (Tabung Amanah Perkerja (TAP)). 

The employer will have to also contribute the same amount for its employees to the provident fund. 

In addition to the above, all citizens and permanent residents of Brunei Darussalam must also contribute 3.5 percent of their salary to a Supplemental Contributory Pension Scheme (SCP). The employer will have to also contribute the same amount for its employees to the Scheme. However, both the employer’s and employee’s monthly contributions are capped up to a salary of BND 2,800 per month.

Additional Benefits in Brunei

You may offer benefits such as housing or meals, though you can choose to deduct these expenses from employees’ paychecks.

Brunei Holidays

• January 1st
• Al-Hijra
• Chinese New Year
• Brunei’s National Day
• Mawlid
• Eid al-Fitr
• Hari Raya Aidiladha
• First day of Ramadan
• Anniversary of the revelation of the Quran
• His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam’s Birthday
• Christmas Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.