Although a small nation in Southeast Asia, Brunei Darussalam’s prosperous economy and supportive government present an attractive case for your business expansion. The country has witnessed continuous growth in the last two decades despite the steep dip due to the Asian financial crisis in 1997 and the collapse of Amedeo Development Corporation, Brunei’s largest construction firm, in 1998. 

With a projected GDP per capita of around USD 35,700 in 2025, Brunei is the second among high-income countries in Southeast Asia, with Singapore the only country ahead. This growth is largely due to its abundant oil and gas reserves, which contribute to nearly 60% of its GDP and more than 90% of its exports. 

In addition, Brunei has seen a positive trend in Foreign Direct Investment (FDI). In the third quarter of 2024, FDI flows recorded a net inflow of BND 295.4 million or USD 216 million. The consistent influx of investment, along with high per capita income, clearly shows Brunei’s positive image as a favorable environment for foreign investors.

Brunei is also a lucrative country for investors because of its low tax regime. There are no personal income taxes. This helps maximize investors’ earnings. Besides, the country generously offers 100% foreign ownership in most sectors, such as manufacturing and tourism, leading to the simplification of business registration processes. 

The government’s Wawasan Brunei 2035 vision is another motivator for investors. The program continues to focus on innovation and digitalization to help create multiple opportunities for foreign companies in sectors like information technology.

Considering the above facts, expanding into Brunei seems like a good move for your company. But if you don’t want to deal with the extensive recruitment, onboarding, payroll management, and training processes for your workforce in Brunei, you can get in touch with a PEO. A reliable platform can automate these procedures for you while complying with Brunei’s labor laws. 

But how does a PEO in Brunei work, and which one should you choose? To know that, read this discourse.

What is a PEO in Brunei?

A PEO or a Professional Employer Organization helps provide complete HR solutions for both small and medium-sized businesses. PEOs work like third-party service providers responsible for all types of staff and employee-related matters.

These usually include:

A partnership with a PEO works as a co-employment model. This means that your company and the PEO share all the responsibilities of managing a workforce in Brunei. This is different from an EOR model. The latter allows the EOR or Employer of Records to become the legal owner of the workforce on paper, leaving your company completely out of the picture. 

PEO platforms serve many benefits. For instance, with a solid partnership, you can improve your workforce efficiency and save costs. Additionally, you can also get access to the top-tier talent in Brunei with no effort on your part. 

What’s more, PEOs understand the market dynamics as well. This knowledge helps your company enter the local market and make a mark with ease. PEOs know the local labor laws in detail, saving your company from hefty fines and damage to its reputation. 

As per a source available, companies that partner with PEOs grow 7% to 9% quicker than companies that don’t. Therefore, if you want to expand your business in Brunei while enjoying success, take a PEO on board.

Start hiring with an Brunei PEO

Let us handle the complexities of hiring, compliance, and payroll in Brunei while you focus on growing your team.

  • Hire employees in Brunei with a Brunei EOR
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  • Remote People can also help you find the best talent in Brunei
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Benefits of Partnering With a PEO in Brunei

A PEO in Brunei can benefit you in several ways.

Ensure Compliance With the Local Labor Laws

The local labor law of Brunei Darussalam is the Labour Act. It is also known as Act No. 11 of 1954. This act covers multiple laws and regulations to support the workers of the country. If you aren’t aware of these rules, you may see yourself paying hefty fines.

However, since a PEO is well-versed in the laws, it saves you from damaging your reputation. It complies with the laws, so every employee gets its deserving wages and rights.

Efficient Payroll and Tax Management

A PEO makes sure to automate the payroll and tax regulations management of your team in Brunei. These laws fluctuate. It may be hard for you to cope with them yourself. However, a PEO stays updated on all the regulations to ensure fair payment to all employees.

Builds You a Strong Team of Employees

If you haven’t explored the markets of Brunei, you may not know about the skill levels of labor available to you. Brunei Darussalam in 2025 population is estimated at 466,330 people in mid-year. Finding the right people from such a large pool can be challenging.

However, with a PEO, you don’t have to worry about that. The organization curates well-managed recruitment processes with thorough screenings and interviews to welcome only the best employees on board for you.

Saves You Ample Money and Time

When you partner with a PEO, you save ample time and money in managing your business. You don’t need an in-house HR department to manage the workforce in Brunei. The PEO does it on your behalf.

Outsourcing of human resources matters to a PEO also saves you ample time and energy for the daily operations of the business.

Gets You Easy Access to Local Legal Support as Required

The best PEOs in Brunei have quick access to various accomplished teams of legal experts. In addition, the most reliable PEOs are themselves always familiar with local laws. This allows your business an opportunity to enjoy the benefits of global expansion while following all the laws automatically.

How Does a PEO in Brunei Work?

A PEO can be beneficial for your company’s expansion in Brunei. That’s because it looks after all the crucial components of the labor law in the country.

Recruitment and Onboarding of Workforce

A PEO in Brunei ensures that the best local talent is recruited for your company. It is responsible for conducting thorough screenings and interviews of the workforce, followed by seamless onboarding. In some cases, the PEO is also responsible for training employees to help them kickstart their roles with ease.

Management of Employment Contract

It is mandatory and legal to provide formal employment contracts to all employees in Brunei. These contracts must feature relevant details of the employment, including: 

  • Termination and severance agreements
  • Salary/wage
  • Details of the employee, such as name, address, and similar information

A trial period in Brunei usually ranges from 1 to 90 days. This should also be mentioned in the contract. A PEO should make sure that all contracts should be written in Malay.

Plus, there must be a reference to the local currency of the Brunei dollar.

Benefits and Rights of Employees

Working Hours and Wages 

In Brunei, the maximum number of hours in a week is 44 hours. No employee should be made to work more than eight hours in a day at a normal wage rate. 

No employee can work more than 12 hours a day. However, if a job is important for their security or life and there is a mutual working agreement between you and the employee, the extra work may be permitted. 

Employees who work overtime are paid at 150% of the employee’s standard pay. It isn’t permissible to make an employee work more than 72 hours of overtime in a month.

Minimum Wage Rate

A PEO is responsible for knowing that there is no national minimum wage in Brunei. However, the Labor Department in Brunei has issued a phased rollout of minimum wage under the Employment (Minimum Wage) Order 2023. So, as of July 2023, the minimum wage for full-time employees is BND500 or US $365.

Paid Leaves

As per the labor law, employees in Brunei receive almost 12 days of paid leave after a year of service. Similarly, those who have worked for the company for five years receive 14 days of paid leave. Pregnant women get two weeks of unpaid leave before giving birth and around 13 weeks of paid leave after giving birth.

Termination of Employees

According to the Labour Act Chapter 93, termination can easily happen when the employment contract is completed or expires. It can also occur when both parties agree to terminate or when there is a breach of contract.

It is important to mention the notice period in the employment contracts. However, if there isn’t any sign of that, the statutory minimum notice period applies. 

The statutory minimum notice period available for employees who have worked for less than 26 weeks is one day only. However, if your employee has worked for  26 weeks to two years of work, they will get a notice period of one week. 

According to the law, the maximum notice period is one month, which applies to employees who may have worked for more than five years in a company.

Payroll and Tax Compliance

The most attractive thing about investors like you is that Brunei does not impose income tax on individuals. Plus, there is no VAT in Brunei Darussalam. This makes tax calculations quite simple. 

However, the corporation tax rate is 18.5%. This is for all sectors except for companies working in the oil and gas industry. There, a special rate of 55% applies. 

All employees should be made to pay 5% of their gross salary into the TAP Employees’ Trust Fund. Additionally, every employee and employer must contribute  3.5% of their pay to the SCP (Supplemental Contributory Pension).

If you partner with a PEO, you won’t have to prepare yourself to learn all the complicated elements of labor law. The organization will take care of these matters so you can put your energies into other aspects of the business.

How to Choose the Best PEO in Brunei

Your partnership with a PEO in Brunei can change the way you run your venture in the country. So, consider a few factors when choosing an organization wisely.

  • Your Business Requirements

    Do you know all about your HR challenges? Before you partner with a PEO, make sure you prepare a list of these so you can select a PEO accordingly.

    For instance, if you want the PEO to simply manage your payroll, you must choose a platform that can offer you just that. But if you want comprehensive HR support with training, select a PEO that offers various additional services with the basic ones.

  • Do Your Research and  Homework

    Many PEOs will sell them as perfect entities for your business. However, that’s not always true. So, make sure that you do your research properly. Shortlist organizations with positive track records in Brunei. 

    It is also wise to go for PEOs who have previously worked extensively in the same industry as yours.

  • PEO’s Compliance Expertise
    If you want to comply with all the laws to save yourself from hefty fines, go for a PEO with extensive experience in the regulations of Brunei’s tax and labor laws. 
  • Analyze the PEO’s Pricing Model

    PEOs usually charge a flat fee per employee or a percentage of the total payroll. There are also some platforms that offer a complete package of different services for a fixed monthly fee.

    Before you sign a contract with a PEO, ensure that you have understood the pricing methods they use and whether their quotes meet your budget constraints.

  • Customer Support Available 
    Before you partner with a PEO, you must make sure that the organization is able to answer your concerns and offer you guidance as required. It is important for the platform to have an excellent customer support team that is available for guidance 24/7.
  • Global Reputation
    A trustworthy PEO with an excellent global reputation is safe to approach. Make sure that you go through customer testimonials and reviews in detail to know how the PEO has served other companies expanding in Brunei and whether the platform is reliable or not.

Grow With the Best PEOs in Brunei

Brunei is one of the most promising countries that offers great potential for growth. However, expansion can be hard with so many things to evaluate at a time. Plus, entering a new country comes with its fair share of challenges. 

So, instead of getting yourself into any trouble, partner with a PEO in Brunei.

Unsure which PEO to pick in Brunei? Contact Remote People, your trusted PEO, to be the best solution for your business. We provide top-rated PEO services that help unlock your business potential in Brunei. Reach out today to get started!

Frequently Asked Questions

Yes, PEOs run legally in Brunei. They offer services to both small and medium enterprises planning to go global.

A PEO is responsible for hiring and managing locals in Brunei on your behalf so you can spend more time building your business. This is a cost-effective method to manage HR-related tasks, saving you the requirement to create a separate in-house HR department. In addition, the PEO can help manage your workforce in Brunei according to the local laws.

Always select a PEO that is both reliable and experienced. You must also evaluate their pricing models with the services available on offer. You should look into client reviews in detail and evaluate different PEOs before selecting one.