Quick facts

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Brunei Darussalam is a small but affluent country in Southeast Asia, known for its robust oil and gas sector, which drives the majority of its economy. With a high standard of living and low unemployment rates, Brunei provides a structured yet flexible framework for employment practices, emphasizing worker rights and employer obligations.

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Employment Contracts

Contracts of Service establish the relationship between employers and employees. These contracts must be written, signed by both parties, and adhere to employment laws, ensuring conditions are no less favorable than those stipulated by law.

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Probation Period

The probation period in Brunei may not exceed 90 consecutive days, aligning with the qualifying period for full employee benefits.

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Working Hours

Employees cannot work more than 8 hours per day or 44 hours per week, with overtime capped at 72 hours per month unless prior approval is obtained from the Commissioner of Labour.

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Vacation Days

Annual leave entitlements depend on the employee's length of service, as follows:

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• 1st year: 7 days
• 2nd year: 8 days
• 3rd year: 9 days
• 4th year: 10 days
• 5th year: 11 days
• 6th year: 12 days
• 7th year: 13 days
• 8th year and beyond: 14 days

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Sick Leave

Employees are entitled to:

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• 14 days of outpatient sick leave per year.
• 60 days of hospitalization leave, inclusive of outpatient sick leave.

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Eligibility requires at least 6 months of service, a medical certificate, and notifying the employer within 48 hours.

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Wages and Salary Payment

• Salaries (excluding overtime) must be paid within 7 days after the salary period ends.
• Overtime payments are due within 14 days after the salary period.
• Minimum Wage: No statutory minimum wage exists in Brunei.

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Public Holidays

Employees are entitled to 11 paid public holidays annually, including:

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• New Year's Day (1 January)
• First Day of Hijrah
• Chinese New Year
• Brunei National Day (23 February)
• Maulud Prophet Muhammad’s Birthday
• Sultan's Birthday (15 July)
• First Day of Ramadan
• Anniversary of the Revelation of the Quran
• Hari Raya Aidilfitri
• Hari Raya Aidiladha
• Christmas Day (25 December)

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Employer Taxes

Employers contribute:

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• 5% to Tabung Amanah Pekerja (TAP).
• 3.5% to the Supplementary Contributory Pension (SCP).

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Contributions are capped at BND 98 per month per employee.

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Employee Taxes

Brunei imposes no social security taxes. Employees contribute:

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• 5% to TAP.
• 3.5% to SCP, also capped at BND 98 per month.

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Notice Period

If no notice period is stipulated in the employment contract, the following applies:

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• Less than 26 weeks of service: 1-day notice.
• 26 weeks to 2 years: 1-week notice.
• 2 to 5 years: 2 weeks’ notice.
• 5+ years: 4 weeks’ notice.

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Notice periods must be consistent for both employer and employee.

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Termination and Severance Pay

• Final salaries must be paid on the last working day or within 3 working days of dismissal or termination.
• Severance includes all outstanding wages and benefits owed, per the terms of the employment contract and applicable laws.