Private sector employment in Brunei Darussalam is governed mainly by the Employment Order, 2009, administered by the Department of Labour. Brunei has no personal income tax, and a minimum wage now applies in selected industries. Here is what employers need to know about leave, pay, retirement contributions and ending employment.
The Employment Order, 2009 sets minimum leave for private sector employees. Employment contracts can offer more, but never less, and many employers give 14 days or more of annual leave from the start.
Where the contract doesn’t set a higher figure: 7 days after the first year of service, rising by 1 day for each further year to a maximum of 14 days.
A year, supported by a medical certificate. Generally available once the employee has 6 months’ service.
A year when hospitalised, including the 14 days of outpatient sick leave.
15 weeks for citizens and permanent residents: 2 weeks before and 13 weeks after the birth.
For local employees, the employer pays full salary for the first 8 weeks of maternity leave. Salary for the next 5 weeks is paid by the employer in advance and then reclaimed from the government, and the final 2 weeks are unpaid. Foreign employees have a shorter statutory maternity leave entitlement. Maternity pay normally requires a minimum period of service with the employer, so check eligibility for each case.
The Employment Order does not provide statutory paternity, compassionate or marriage leave for private sector employees. Many employers offer these through their own leave policy or the employment contract.
Set up each Brunei leave type in IceHrm with its own accrual, carry forward and approval rules, so annual leave that grows with each year of service and separate outpatient and hospitalisation sick leave are tracked properly. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Brunei introduced its first minimum wage through the Employment (Minimum Wage) Order in July 2023 and is extending it industry by industry. Outside the covered industries, pay is agreed between employer and employee.
For full-time employees, or BND 2.62 an hour for part-time staff, in the covered industries (from 1 April 2025). Measured before SPK deductions and excluding allowances.
And no more than 8 hours a day. Shift workers may average 44 hours a week over 3 weeks. Never more than 12 hours a day including overtime.
Of the hourly basic rate for work beyond contractual hours. Overtime is limited to 72 hours a month.
Since 1 April 2025 the minimum wage applies to local and foreign, full-time and part-time private sector employees in: banking and finance; info-communication technology; architecture, engineering, quantity and land surveying; private medical and dental facilities; private higher education; tourism and accommodation; and security guard agencies. Apprentices, domestic workers and some short-term foreign workers are excluded.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime is paid on what was actually worked and you can keep an eye on the daily and monthly limits. Time & attendance →
Brunei does not impose personal income tax on individuals, so employers have no income tax to withhold from salaries. This applies to both locals and expatriates.
The main statutory deduction from pay is the employee’s SPK retirement contribution for citizens and permanent residents, covered below.
Since July 2023 the National Retirement Scheme (Skim Persaraan Kebangsaan, SPK), run by the Employees Trust Fund (TAP), has replaced the separate TAP and SCP contributions. It applies to citizens and permanent residents only; there is no equivalent contribution for foreign employees.
| Monthly basic salary | Employer | Employee |
|---|---|---|
| Up to BND 500 | BND 57.50 (fixed) | 8.5% |
| BND 500.01 – BND 1,500 | 10.5% (min. BND 57.50) | 8.5% |
| BND 1,500.01 – BND 2,800 | 9.5% | 8.5% |
| Over BND 2,800 | 8.5% | 8.5% |
Build Brunei pay the way you already structure it, with your own salary components, deductions and formula columns, such as SPK employee and employer contribution columns. Want to know how well IceHrm handles payroll calculations for Brunei? Contact us or see Payroll →
Either party can end a contract of service by giving notice, or by paying salary in lieu of notice. The notice period is whatever the contract states, but it cannot be shorter than the statutory minimum.
| Length of service | Notice |
|---|---|
| Less than 26 weeks | 1 day |
| 26 weeks, less than 2 years | 1 week |
| 2 years, less than 5 years | 2 weeks |
| 5 years or more | 4 weeks |
The Employment Order does not set a general severance pay scale for termination with notice. Any severance or retrenchment payment beyond notice and outstanding pay depends on the employment contract or collective agreement, so check these before ending employment.
A dismissed employee’s salary is due on the last day of employment, or within 3 working days if that is not possible. An employee who resigns without serving notice must be paid within 7 days.
Under the Employment Order, private sector employees are entitled to 11 paid public holidays a year. Several follow the Islamic or lunar calendar, so their dates move each year.
The government gazettes additional holidays each year, such as Isra’ Mi’raj, Royal Brunei Armed Forces Day (31 May) and extra Hari Raya days, which many employers also observe. Working hours for Muslim employees are commonly shortened during Ramadan.
Leave groups give each office its own public holiday calendar, so you can add Brunei’s movable Islamic and lunar holidays each year and keep staff in other countries on their own calendars. Holiday calendars →
A contract of service should be in writing and signed by both parties. Its terms can be more generous than the Employment Order, but any term that is less favourable has no effect.
The Employment Order does not fix a probation period. Probation is set by the contract, and a probation clause should state the notice either party must give during it.
Send contracts for e-signing, store them and work pass documents on the employee’s record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Brunei, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Brunei? Talk to us.
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