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Global Expansion Guide

Brunei

Manage and pay your employees easily with BIPO in Brunei and 170+ other markets. Build your international teams today with our global Employer of Record service!
employment guide_currency

Currency

Brunei Dollar (BND)
employment guide_language

Language

Bahasa Melayu
employment guide_capital

Capital

Bandar Seri Begawan

Employer of Record Brunei

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Brunei

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Employer of Record Brunei

Embark on your business expansion in Brunei with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Bruneian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 8 May 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

  • Employment contracts in Brunei may be structured as either fixed-term or open-ended agreements. Contracts with a duration exceeding 1 month, or contracts involving work that cannot reasonably be completed within 1 month, must be made in writing and signed by both the employer and employee.

  • Employment contracts should clearly set out the rights and obligations of both parties and generally include the following information:

    1. Employer’s name, business address, and work location;
    2. Employee’s name, place of origin, work location, and other identification details;
    3. Names and addresses of the employee’s immediate family members;
    4. Nature and scope of work;
    5. Contract duration and method of calculation;
    6. Notice period for termination;
    7. Wage rate, method of calculation, payment method and schedule, as well as any wage advances and repayment arrangements;
    8. Welfare and protection provisions for employees and any accompanying family members;
    9. Repatriation arrangements for foreign employees; and
    10. Any other special terms and conditions agreed between the parties.

Statutory Contributions

Scope of Application: Applicable to employees of private enterprises.

Social Security Type Wage Ceiling Employee Contribution Employer Contribution
National Pension Scheme ≤ BND 500 8.50% BND 57.50
BND 500.01 – 1,500 10.50%
BND 1,500.01 – 2,800 9.50%
≥ BND 2,800.01 8.50%

Minimum Wage

Brunei does not have a statutory minimum wage system. Wages are generally determined through mutual agreement between the employer and employee.

Public Holidays

The public holidays listed below are national public holidays observed across Brunei. Please refer to official government announcements for the latest updates.

  • New Year’s Day
  • Israk and Mi’raj
  • Chinese New Year
  • Beginning of Ramadan
  • National Day
  • Nuzul Al-Qur’an
  • Hari Raya Aidilfitri
  • Hari Raya Aidiladha
  • Royal Brunei Armed Forces Day
  • Islamic New Year
  • Sultan’s Birthday
  • Prophet Muhammad’s Birthday
  • Christmas Day

Notes

  • The dates of Nuzul Al-Qur’an, the commencement of Ramadan, Eid al-Fitr, and Eid al-Adha are subject to adjustment based on lunar observations.
  • If a public holiday falls on an employee’s rest day, the holiday must be substituted with the next working day. Where a public holiday falls on a non-working day under the employee’s contract, the employee may be granted either 1 day’s wages or 1 day of compensatory leave.
  • By mutual agreement, one or more public holidays may be substituted with alternative dates.

Overtime Compensation for Work on Public Holidays

  • Where the employee voluntarily agrees to work on a public holiday:

    • Up to 0.5 of normal working hours: 0.5 day’s wages
    • More than 0.5 up to normal working hours: 1 day’s wages
    • Exceeding normal working hours: 1 day’s wages plus 1.5 times the hourly wage for overtime hours worked

  • Where the employer requires the employee to work on a public holiday:

    • Up to 0.5 of normal working hours: 1 day’s wages
    • More than 0.5 up to normal working hours: 2 days’ wages
    • Exceeding normal working hours: 2 days’ wages plus 1.5 times the hourly wage for overtime hours worked

Exemptions from Overtime Compensation

Overtime compensation for public holiday work may not apply where:

  • The public holiday occurs during the employee’s period of unpaid leave; or
  • The employee is absent without approval immediately before or after the public holiday.

Working Hours

Normal Working Hours

Daily Weekly
8 hours 44 hours

Work Break

Employees must not work continuously for more than 6 hours without a break.

Weekly Rest

Employees are entitled to 1 rest day per week, typically observed on Sunday.

Overtime Limits

  • Maximum of 12 working hours per day, inclusive of regular working hours, except in special circumstances;
  • Overtime work must not exceed 72 hours per month.

Overtime Compensation

  • Overtime on regular working days: Employees are entitled to 1 day’s wages plus 1.5 times the hourly wage for overtime hours worked.

  • Where the employee voluntarily agrees to work on a rest day:

    • Up to 0.5 of normal working hours: 0.5 day’s wages
    • More than 0.5 up to normal working hours: 1 day’s wages
    • Exceeding normal working hours: 1 day’s wages plus 1.5 times the hourly wage for overtime hours worked

  • Where the employer requires the employee to work on a rest day:

    • Up to 0.5 of normal working hours: 1 day’s wages
    • More than 0.5 up to normal working hours: 2 days’ wages
    • Exceeding normal working hours: 2 days’ wages plus 1.5 times the hourly wage for overtime hours worked

Exemptions from Overtime Compensation

Exemptions from working hours and overtime provisions may apply in the following circumstances:

  • Emergencies or special situations, including accidents, urgent repair work, national defence and security matters, or industries essential to public welfare or the national economy;
  • Where a government commissioner grants exemptions based on operational requirements and employee safety considerations;
  • Where a government commissioner determines, through public notification, that certain categories of employees are exempt from overtime pay regulations.

Leave

Annual Leave

  • Eligibility: Employees with at least 3 months of continuous service with a single employer

  • Entitlement:

    • First year of continuous service: 7 days of annual leave, pro-rated for employees with at least 3 months but less than 1 year of service
    • Thereafter: An additional 1 day of leave for each completed year of service, up to a maximum of 14 days
  • Pay: Full salary paid by the employer during leave
  • Encashment: Any unused annual leave must be fully compensated upon termination of employment

Sick Leave

  • Eligibility:

    • At least 6 months of continuous service;
    • Submission of a medical certificate; and
    • Notification, or an attempt to notify the employer, within 48 hours of absence

  • Entitlement:

    • Outpatient sick leave: Up to 14 days per year
    • Hospitalisation leave: Up to 60 days per year, inclusive of outpatient sick leave
  • Pay: Full salary paid by the employer during eligible sick leave

Maternity Leave

  • Foreign female employees:

    • Eligibility:

      • At least 6 months of continuous service; and
      • At least 1 week’s prior notice to the employer of the intended commencement date of maternity leave
    • Duration: 9 weeks (4 weeks before childbirth and 5 weeks after childbirth)
    • Pay: 8 weeks of full pay, funded by the employer

  • Local female employees:

    • Eligibility:

      • Bruneian citizens or permanent residents;
      • At least 6 months of continuous service;
      • Contributions to the provident fund; and
      • Legally married status
    • Duration: 15 weeks (2 weeks before childbirth and 13 weeks after childbirth)

    • Pay:

      • First 8 weeks: Full pay funded by the employer
      • Following 5 weeks: Full pay funded by the government, with payment initially advanced by the employer
      • Final 2 weeks: Unpaid

Other Leave Types

In addition to the statutory leave entitlements above, employers and employees may agree on additional leave arrangements through mutual agreement.

Termination and Compensation

Notice Period

Either party may terminate the employment relationship in accordance with the terms of the employment contract. Where the contract does not specify a notice period, the following statutory notice requirements apply based on the employee’s length of service:

  • Less than 26 weeks: 1 day’s notice
  • 26 weeks to 2 years: 1 week’s notice
  • 2 years to 5 years: 2 weeks’ notice
  • More than 5 years: 4 weeks’ notice

Immediate termination without prior notice may be permitted in the following circumstances:

  • The employee is subjected to abuse of person or property, with termination effected through the intervention of a government commissioner;
  • The employee faces risks to personal safety arising from violence, illness, or other conditions not contemplated under the employment contract;
  • The employee is found guilty of serious misconduct following a proper investigation;

  • Either party commits a material breach of the employment contract, including:

    • Failure by the employer to pay wages in accordance with legal or contractual requirements; or
    • Absence by the employee without approval for more than 2 consecutive days;
  • Either party makes payment in lieu of notice.

Compensation

Brunei law provides that employees with less than 5 years of continuous service are generally not entitled to statutory severance pay. Any additional termination compensation or severance arrangements may be agreed separately between the employer and employee through mutual agreement.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Bruneian regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with financial obligations in Brunei.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Brunei’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Brunei’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Brunei

Unlock your growth potential with BIPO’s Employer of Record service in Brunei. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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