Labor Law

Employment in Brunei

Employment is highly concentrated in the service industry, mainly wholesale and retail trade.

Employee Contract

In Brunei, employment contracts are mandatory and written in English.

Probation

Typical trial periods in Brunei range from 1 to 90 days.

Employee Vacation

Leave type	period	mandatory
Annual leave/paid leave	7 days	Yes
sick leave	60 days	Yes
maternity leave	9 weeks	Yes

Bonus
13 salary
is not mandatory in Brunei.

Employee Benefits
Maternity Benefits
Pension Plan
TAP (Brunei Provident Fund Plan)

Tax

Employer Payroll Taxes:

tax type	tax contribution
Supplementary Contribution Pension Plan (SCP)	3.5%
Employee Trust Fund (TAP) (for local employees)	5%
total cost to employer	8.5%

Employee Payroll Taxes:

tax type	Tax contribution%
Supplementary Contribution Pension Plan (SCP)	3.5%
State-managed Provident Fund (Tabung Amanah Perkerja (TAP))	5%
total employee costs	8.5%

Employee Income Tax

Brunei does not impose income tax on individuals.

VAT

There is no VAT in Brunei Darussalam.

Resignation and Termination

Terminate Process

The contract may be terminated in the following circumstances:

When the employment contract is completed or expires
Both parties have reached an agreement to terminate
A breach of contract has occurred

Notice Period

The notice period for probationary and permanent employees is one to four weeks.

Severance Pay

If an employer fires an employee, he is entitled to the full amount of wages due him.

If an employee resigns, there are two situations:

Persons who have completed their notice period – must pay all wages due on the last day of employment.
The person has not given notice and is within the notice period - all wages due must be paid within 7 days of the employee's last day.

Need Help Navigating Brunei Employment Laws?

Remoly provides Employer of Record (EOR) and global payroll services across 100+ countries. Our in-country experts understand Brunei's labor regulations inside out, helping you achieve compliant expansion with confidence.

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Disclaimer: This content is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney for legal matters. Remoly assumes no liability for actions taken based on this information.

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