Payroll Services in Brunei

The National Retirement Scheme (Skim Persaraan Kebangsaan, SPK) replaced TAP and SCP contributions for most employees from July 2023. Employers must register every employee who is a citizen or permanent resident and under 60, including part-time, temporary and probationary staff. The employee contributes 8.5% of basic salary. The employer contributes by salary band: a flat BND 57.50 up to BND 500 a month, 10.5% from BND 500.01 to 1,500 (at least BND 57.50), 9.5% from BND 1,500.01 to 2,800 and 8.5% above that.

There is no longer a ceiling: contributions apply to the full basic salary, while overtime and allowances such as housing and medical allowances are excluded. Contributions are paid to TAP through its e-Amanah portal by the 15th of the following month, and late payment carries dividend loss and service charges. Citizens draw a lifetime annuity from age 60.

The Employment Order 2009 limits salary periods to one month. Salaries must be paid within seven days of the end of each period and overtime within 14 days, and final pay is due when the contract ends. Deductions are limited to those the Order allows, such as for absence or advances, and cannot exceed 50% of the salary for the period.

A minimum wage of BND 500 a month, or BND 2.62 an hour for part-time staff, has applied since July 2023 in banking, finance and ICT, and since April 2025 also in insurance and other financial services, private healthcare with registered doctors and dentists, private higher education, architecture and engineering consultancies, licensed travel agencies and security firms, and tourist accommodation. It covers local and foreign workers alike.

Normal hours are limited to eight a day and 44 a week, or nine a day where the week is five days or fewer. Work beyond contractual hours is overtime, paid at least 1.5 times the hourly basic rate, which for monthly-paid staff is 12 times monthly basic salary divided by 52 times 44 hours. Overtime is capped at 72 hours a month, and a working day cannot exceed 12 hours including overtime.

Employees get one rest day a week and 11 paid public holidays a year, including National Day on 23 February and the Sultan’s birthday on 15 July. A public holiday that falls on a rest day moves to the next working day, and an employee who works on a public holiday is paid an extra day’s salary.

For a citizen or permanent resident on BND 3,000 a month, the employer pays BND 255.00 a month in SPK contributions: BND 39,060 a year, 8.5% on top of salary. At BND 2,500 a month the rate is 9.5%, or BND 237.50, and at BND 1,200 it is 10.5%, or BND 126.00. The employee’s 8.5% is deducted from pay, and no income tax is withheld.

For a foreign employee no SPK contributions apply, so the statutory employer cost is the salary itself. Immigration and work pass costs for foreign staff sit outside payroll.

After three months of service employees are entitled to 7 days of paid annual leave for the first 12 months, rising by one day for each further year with the same employer to a maximum of 14. After six months they are entitled to 14 days of paid sick leave a year, or up to 60 days including those 14 when hospitalisation is needed. Female citizens and permanent residents are entitled to 105 days of maternity leave: two weeks before the birth and 13 weeks after.

Unless the contract sets a different period, the minimum notice is one day in the first 26 weeks, one week up to two years, two weeks up to five years and four weeks after that. Either side can end the contract without notice by paying salary for the notice period, and unused annual leave is paid when the employer ends the contract for reasons other than misconduct.