Hiring from Brunei could be a fantastic strategic move for your organization. After all, the Bruneian people boast qualities like outstanding work ethic, ever-present employer loyalty, and a clear dedication to teamwork. Considering all of this, along with the low minimum wage for workers in the country, employers from all over have turned to Brunei to find their next best hire(s).

If you’re ready to jump into the Bruneian talent pool, there’s no better time than now. But rushing into the recruiting and hiring process could be bad for any international business like yours. Instead, take a moment to learn about the main employee benefits in Brunei.

In this employee benefits guide, we’ll cover Brunei employee benefits (both statutory and supplemental), Brunei labor law, and impactful tips on how to build a benefits package tailored to bring in the highest quality talent.

Brunei Labor Law

Employee benefits in Brunei are based on the country’s labor laws, each of which details one or more requirements surrounding the employer/employee arrangement. Two of the main regulations include the Employment Order 2009 and the Labor Act (Chapter 93); anyone wanting to get into the labor laws would do well to start there.

But in addition to full-text labor laws, you can also find information on Brunei employment law through sources like local government sites and international business resources. We’ll use a combination of these sources for the purposes of this article.

Mandatory Employee Benefits in Brunei

The mandatory employee benefits in Brunei run the gamut from annual leave entitlements to holiday PTO and more. We’ll touch on some non-negotiable benefits below; be sure to include these provisions in your benefit package for Bruneian workers.

Minimum Wage

According to Brunei’s labor law, the country has a statutory minimum wage. As of the time of this writing, it’s set at BND500 per month for specific groups of employees, including those who work at certain banks, telecommunication systems, and finance companies.

Read this Brunei government resource to determine whether your employees would be entitled to the minimum wage. Otherwise, there is no mandatory minimum wage to adhere to.

Working Hours and Overtime

The working hours for employees in Brunei are based on their status as shift workers or non-shift workers. If the employee is a shift worker, they should work no more than 44 hours a week over a continuous period of 3 weeks. There’s a maximum work hour limit of 12 hours per day. Non-shift workers are not able to work more than 8 hours a day or over 44 hours weekly

There are exceptions to this rule, and we recommend that you read about them in this legal resource from the government. 

Overtime should be paid at 150% of the employee’s basic salary. Failing to pay the appropriate overtime rate carries a fine of up to $3,000 and a potential prison term of up to one year.

Under the Employment Order 2009, annual leave for employees in Brunei should be decided and agreed upon by both parties in the employment contract. If there’s no agreement in place, here are the minimum annual leave entitlements:

Year of ServiceLeave Duration (Days)
17
28
39
410
511
612
713
8+14

The Employment Order 2009 states that employees should receive 14 days of outpatient sick leave in a year. Throughout the duration of the leave, the worker should receive their full regular wage. They also should receive 60 days of hospitalization leave (the 14 outpatient days are included).

Maternity Leave

Labor legislation states that employees get 15 weeks or 105 days off for maternity leave. 2 weeks can be taken prior to delivery, and the remaining 13 weeks should be taken after the birth. Only legally married citizens and permanent residents are privy to this leave entitlement. They also must have been working for an employer for more than 180 days.

The table below shows how maternity leave is paid:

Maternity Leave PeriodPayment Information
First 8 weeksFull basic salary paid by employer
Following 5 weeksGovernment pays full basic salary
Last 2 weeksUnpaid

Employers that don’t provide the above maternity benefits will have committed a crime punishable by fees of up to $1,000 and a prison sentence of up to 6 months.

Public Holidays

When the following public holidays roll around, workers in Brunei should have the day off:

  • January 1st
  • First Day of Hijrah
  • Chinese New Year 
  • February 23rd  – Brunei’s National Day
  • Maulud Prophet Muhammad’s Birthday
  • July 15th – His Majesty’s Sultan and Yang Di-Pertuan’s Birthday
  • First Day of Ramadan
  • Anniversary of the Revelation of Quran
  • Hari Raya Aidilfitri
  • Hari Raya Aidiladha
  • December 25th – Christmas Day

Just as with most other countries, public holidays may vary a bit based on the region. Be sure to double-check your employees’ local government to determine the final list of public holidays they should have off.

Social Security Benefits

Social Security is non-negotiable for employers that have hired Brunei workers. There are three programs under the Social Security umbrella in the country:

  • Old age, invalidity, and survivors
  •  Health and long-term care benefit
  •  Sickness and maternity
  •  Accidents at work and occupational diseases

This chart outlines the contributions employers are expected to make toward these social security accounts:

Branch of Social SecurityWho Pays?
Old age, invalidity, and survivors

– Old Age: No contributions

– Invalidity: 5% employee / 5% employer

– Supplemental Contributory Pension: 5% employee / 5% employer

Health and long-term care benefitsGovernment
Sickness and maternityEmployer pays the total cost
Accidents at work and occupational diseasesEmployer pays the total cost

Workplace Injury Compensation

Sometimes, no matter what safety precautions are in place, things go wrong and employees get hurt. Per the workman’s compensation law, workplace injury compensation is a required benefit for Brunei employees. It’s in place to ensure that workers can get the care and compensation they need after workplace-related injuries or illnesses.

The financial burden for this benefit falls on the employer. You can learn more about this benefit in the full law text.

Supplementary Employee Benefits in Brunei

Incorporating supplementary perks in your benefits package can help you grab candidates’ attention during the interviewing process and differentiate your company from competitors. The benefits you choose for this portion of the benefits plan can make or break the candidate search, so we urge you not to rush through this step.

Here are a few options to get you started:

  • Allowance for housing if an employee is required to relocate for the position. 
  • Transportation allowances for workers with transportation-heavy positions. 
  • Education allowances to help employees with childcare while they do their best work.  
  • Medical and dental insurance coverage (extended or premium plans are most attractive).
  • Retirement savings plans or contributions beyond law-mandated schemes.
  • On-the-job or external professional development opportunities and company-paid training programs.
  • Free or reduced-cost wellness programs (e.g., gym memberships or fitness incentives).
  • Performance-based bonuses or profit-sharing schemes to bulk up the financial appeal of working for your company. 
  • Flexible working arrangements (fully remote or hybrid).
  • Paid parental leave that extends beyond entitlements required by law. 
  • Travel or vacation subsidies, specifically for those who have to drive, bike, or fly often for work. 
  • Long-term service awards and compensation.

How to Build an Effective Benefits Plan for Bruneian Employees

When you go to build your employee benefit plan, you may quickly become aware of how difficult it can be. But if you prime yourself with a plan, it can be a lot easier. 

We recommend starting off with a close review of labor laws in Brunei to get an unadulterated look at what’s expected of you as an employer. Going through the legislation with the help of a legal professional could be exactly what you need to get clarity on certain topics. 

Focus on the mandatory benefits initially to ensure compliance. Then, brainstorm and come up with supplemental benefits to offer to workers. Try to choose benefits you believe candidates will be excited about. Consider the type of positions you want to fill, the demographics of your ideal candidate, your budget, and more. 

Then, put all of the benefits together in an easy-to-understand format without too many large, complicated words. This is to ensure that your employees are able to clearly understand the benefits they should expect if they go with you. 

Keep your benefits package up to date by reevaluating it from time to time and incorporating legislative changes. 

So, there you have it – all the basics about employee benefits in Brunei. We hope you found all the information you were looking for in this employee benefits guide, and we wish you the best in your pursuit of top-quality Brunei talent.