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Employer of Record Brunei
Hire staff and expand your business in Brunei with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Brunei designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Brunei. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Brunei takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Brunei
A Brief Guide to Brunei
Brunei, officially known as the Nation of Brunei, the Abode of Peace, nestles on the north coast of the island of Borneo in Southeast Asia. It’s a country flush with riches, both natural and cultural, distinguished by its serene atmosphere, mesmerizing landscapes, and striking Islamic architecture.
Category | Information |
Location | Southeast Asia |
Capital City | Bandar Seri Begawan |
Official Languages | Malay, English |
Area (km²) | 5,765 |
Population | Approximately 460,000 |
Currency | Brunei Dollar (BND) |
Major Cities | Bandar Seri Begawan, Kuala Belait, Seria |
GDP | $33 billion (2022 estimate) |
Major Industries | Oil and gas, Construction, Information and Communication Technology |
Business Culture
Business Culture in Brunei
In Brunei, business engagements often reflect a blend of traditional Malay customs and Islamic values. Respect and courtesy are key, especially towards individuals with seniority or of a higher status. Business relationships are often built on mutual trust and respect, rather than on contracts and deals. Meetings often commence with casual conversations as rapport building is considered crucial. Business attire is typically conservative, with men donning suits and women opting for modest clothing.
Payroll and Taxes
Payroll and Taxes in Brunei
Employee Taxation
Brunei does not levy income tax on individuals.
Employer Taxation
Employers in Brunei are required to contribute to the Tabung Amanah Pekerja (TAP, Employee Trust Fund), and Supplemental Contributory Pension Scheme (SPK). These combined contributions vary according to the employee’s salary, as follows.
Employee’s Salary (BND) | Contribution Rate |
$500 or less | $57.50 |
$500.01 – $1,500.00 | 10.5% (minus $57.50) |
$1,500.01 – $2,800.01 | 9.5% |
$2,800.01 and above | 8.5% |
Pension and Healthcare
Brunei Pensions
Pension provision in Brunei is primarily managed by the Employee Trust Fund (TAP), a compulsory savings scheme for employees. Both the employer and employee contribute a certain percentage of the salary to the fund (3.5%). Upon reaching retirement age, the employees can withdraw their savings in full. The Brunei government is responsible for funding and administering the public pensions system, with the Sultanate ensuring social security for all its citizens.
Healthcare in Brunei
Healthcare in Brunei is predominantly run by the state, under the administration of the Ministry of Health. The country provides free healthcare to its citizens and permanent residents, funded through the national revenue derived primarily from the oil and gas industry. Brunei’s healthcare system is quite comprehensive and advanced, with hospitals and clinics well equipped and medical staff well trained.
There is also a growing private sector in healthcare. The private system is commonly used by expatriates or those seeking more immediate care, as the public system may have longer wait times due to its free service to citizens and residents. The private healthcare services are paid out-of-pocket or via insurance. The quality of care in both public and private systems in Brunei is generally regarded as high, with the country consistently investing in medical technology and training.
Employment Law
Employment Law in Brunei
Relevant Legislation: The primary pieces of legislation governing employment law in Brunei are the Employment Order of 2009 and the Workmen’s Compensation Act. The Employment Order provides a comprehensive guideline on employment contracts, working hours, leave, overtime, and termination, among other things.
Employment Contracts: Employment contracts in Brunei typically detail the terms and conditions of employment such as duties and responsibilities, working hours, remuneration, and benefits. Both employers and employees are obligated to adhere to these terms.
Working Hours: The standard working week in Brunei is 44 hours, spread over a five-and-a-half-day workweek.
Leave: Employees in Brunei are entitled to 7 days of annual leave after the first year of employment, which increases incrementally with each subsequent year of service. Additionally, workers are entitled to paid sick leave and maternity leave.
Overtime: Overtime is any work performed outside the normal working hours. The Employment Order provides for payment of overtime at one-and-a-half times the hourly rate of pay. There are also regulations limiting excessive overtime to ensure employee well-being.
Termination: Employment may be terminated due to misconduct, redundancy, or poor performance. The termination process must be carried out in accordance with the provisions of the Employment Order.
Notice: Both employers and employees are required to give notice prior to termination. The notice period varies depending on the duration of service, ranging from one day during the probation period to 4 weeks after five years of employment.
Severance Pay: Upon termination of employment, workers are generally entitled to severance pay, subject to specific conditions outlined in the Employment Order. The amount typically depends on the length of service.
IMMIGRATION
Work Permits in Brunei
Immigration procedures in Brunei are administered by the Department of Immigration and National Registration, which falls under the Ministry of Home Affairs. This department manages the entire process of immigration, from visa applications to managing citizenship issues.
Brunei’s immigration policy is designed to balance the country’s socio-economic needs with its national security concerns. The system prioritizes attracting foreign professionals and workers who can contribute to Brunei’s economy and social fabric while also maintaining stringent checks to ensure the nation’s security and societal order.
There are several types of visas and work permits available for those looking to work in Brunei. Among the most commonly used are:
- Employment Pass: For foreigners in executive, managerial, or specialized jobs. These are typically granted for two years and are renewable. The employer usually applies on behalf of the prospective employee.
- Work Permit: For semi-skilled and unskilled foreign workers. These are granted for two years and can be renewed. Again, the employer usually applies for the permit.
- Work Visit Pass: For foreigners employed outside Brunei but are required to work in Brunei for short periods (typically up to three months). This pass is suitable for people who need to come to Brunei for short-term work assignments or projects.
- Professional Visit Visa: For professionals who are invited by any companies or organizations in Brunei for the purpose of engaging in short-term professional work or consultation.
All foreign workers must undergo a medical examination and have a security bond in place. The approval process can take several weeks to a few months, so it’s advised to begin the process well in advance of the planned start date.
While English is widely spoken in Brunei, all official documents must be completed in Malay, the national language.
Public Holidays
Brunei Public Holidays
Holiday | Date |
New Year’s Day | January 1 |
Chinese New Year | Variable (between January 21 and February 20) |
National Day | February 23 |
Sultan’s Birthday | July 15 |
Hari Raya Aidilfitri | Variable (based on the Islamic lunar calendar) |
Hari Raya Aidiladha | Variable (based on the Islamic lunar calendar) |
Islamic New Year | Variable (based on the Islamic lunar calendar) |
Prophet Muhammad’s Birthday | Variable (based on the Islamic lunar calendar) |
Christmas Day | December 25 |
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The Benefits
Brunei Employer of Record Benefits
When you choose Agility EOR to expand in Brunei, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Brunei so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Brunei authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Brunei payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.