The Ultimate Guide to Hiring in Brunei

Brunei Darussalam sits on the northern edge of Borneo in Southeast Asia. It's tiny as far as countries go, and most global companies overlook it when mapping out their hiring strategies. But while talent wars rage in Singapore and Malaysia, Brunei has quietly built one of the region's most educated workforces with a youth literacy rate of 99.77%.

The country's Digital Economy Masterplan 2025 has turbocharged demand for tech skills. Right now, 43% of businesses in Brunei are actively integrating technology into their operations. It's created a whole pool of professionals who aren't just "good with computers" but are trained specifically for cloud architecture, cybersecurity, AI, and data science. The government launched upskilling programs like TechInspire and TADSEED that are producing work-ready talent in emerging technologies.

And then there's something else, something most people don't expect: the culture around remote work. Brunei embraced digital transformation post-pandemic and never really looked back. You get English-speaking professionals (it's widely used in business and education) who understand global workflows. Plus, Brunei sits in a strategic time zone that bridges Asia-Pacific and can overlap with both Australian and Indian working hours.

For companies expanding across Southeast Asia without the appetite for Singapore-level price tags, hiring in Brunei offers something rare: high education levels, digital readiness, and an emerging tech ecosystem that's still flying under most recruiters' radar. The talent is there. It's just that almost no one's looking.

What's behind Brunei's labor market?

The economy still runs on oil and gas. That industry has shaped Brunei for decades and continues to employ a significant portion of the workforce in hubs like Seria and Kuala Belait. But something shifted after the government launched its diversification push. Now you see growth in downstream manufacturing, financial services, IT, food processing (especially halal), and education.

For tech companies, the interesting story is happening in Bandar Seri Begawan. The capital has become the center for digital transformation efforts. You'll find a growing pool of software engineers, cloud architects, data scientists, and cybersecurity specialists there. These professionals earn salaries between BND 2,150 to BND 6,300 monthly (roughly US$1,600 to US$4,800) for mid-level roles, with senior positions like cybersecurity managers reaching BND 10,000 to BND 12,000 per month. That's where the cost advantage becomes real. Compare those figures to a higher cost-of-living country like Singapore, and you're looking at 30-40% savings while still accessing quality talent.

The education system deserves attention here. Brunei operates a bilingual model where English is taught alongside Malay from primary school onward. This produces professionals who can communicate seamlessly with Western teams without the language barriers common in other Southeast Asian markets. Technical skills are being actively developed through government initiatives, and the Digital Economy Masterplan is pouring funds into upskilling employees in AI, cloud computing, IoT, and cybersecurity.

What makes the market particularly compelling right now is the unemployment rate hovering around 4.7%. There's talent available. The workforce is educated and increasingly tech-focused as traditional oil and gas careers become less dominant. For distributed teams looking beyond the usual suspects in ASEAN, hiring in Brunei offers an educated, English-speaking workforce at a fraction of the cost but with better infrastructure and stability than many emerging markets.

How to hire employees in Brunei

When you're ready to bring on talent in Brunei, you have two main paths forward.

Establishing a legal entity in Brunei

When setting up a local entity, you must register a company with Brunei's Registry of Companies and Businesses, establish a physical presence, and become a fully recognized employer under local law. The process typically involves selecting your business structure (a private company limited by shares is most common), meeting minimum capital requirements, appointing local directors if required, and obtaining the necessary licenses for your industry.

This path to hiring employees in Brunei gives you complete control over operations and direct employment relationships. But the timeline stretches anywhere from several weeks to a few months. You'll need legal counsel, accounting support, office space, and someone who understands Brunei's Employment Order 2009 inside and out. For companies planning a substantial, long-term presence with multiple hires, this investment makes sense.

Partnering with an employer of record (EOR) in Brunei

Instead of creating your own entity, you can partner with an EOR provider that already has legal standing in Brunei. They become the official employer on paper while you maintain day-to-day management of your team. An EOR in Brunei handles employment contracts, payroll processing, tax withholdings, contributions to SPK (Skim Persaraan Kebangsaan), benefits administration, and compliance with the Employment Order 2009.

You can have someone onboarded in as little as two weeks without setting up infrastructure or navigating Brunei's regulatory environment. This model works exceptionally well for companies testing the market, hiring one or two specialists, or building distributed teams without committing to a full entity setup.

Employment contracts in Brunei

Every employment relationship in Brunei requires a written contract. The Employment Order 2009 sets the baseline, and your agreement cannot offer terms less favorable than what the law guarantees. Contracts should be written in Malay (though English contracts are common practice for international hires) and must include specific details: names and addresses of both parties, job title, start date, salary structure, working hours, leave entitlements, and termination procedures.

You have two contract types to work with: indefinite term for permanent roles and fixed-term for project-based work. Fixed-term contracts need clearly stated end dates and cannot be used as a workaround to avoid obligations that come with permanent employment. Most companies include a probationary period of one to three months, where either party can terminate with shorter notice. After probation ends successfully, the employee moves into confirmed status with full contractual protections.

Working hours, holidays, and leave

Standard work hours in Brunei run 44 hours spread across five or six days. Overtime kicks in after eight hours in a day, and employees must be compensated at 1.5 times their regular rate. Friday holds special significance as the weekly day of rest for Muslim employees, though some businesses operate Saturday-Sunday weekends depending on their industry.

Brunei observes several public holidays throughout the year, including National Day, the Sultan's birthday, and major Islamic celebrations like Hari Raya. Employees are entitled to at least seven days of paid annual leave after the first year of service, increasing to 14 days after five years. Sick leave is provided at 14 days for outpatient treatment and 60 days for hospitalization annually. Female employees receive eight weeks of maternity leave at full pay, while male employees are entitled to three days of paternity leave.

Employee benefits and social contributions

Brunei operates the SPK mandatory retirement scheme, which launched in July 2023 and replaced the previous Tabung Amanah Pekerja (TAP) and Supplemental Contributory Pension (SCP) systems. The SPK program consists of two accounts: one being the SPK Member Account and the other the SPK Retirement Account.

In the SPK Member Account, employees are required to make contributions of 8.5% of their basic salary. Employers, in turn, will also be making contributions based upon a defined contribution formula that varies by salary group to the SPK Retirement Account. Beyond these statutory contributions, many employers offer additional benefits to remain competitive:

• Private health insurance (particularly important as the minimum wage implementation in 2025 requires BND 100,000 (approximately US$77,000) medical coverage for certain foreign workers)
• Annual bonuses (capped at 1.5 months of basic salary under employment regulations)
• Housing or transport allowances for expatriate hires
• Professional development and training budgets

Payroll and taxation in Brunei

The Employment (Minimum Wage) Order 2025 set Brunei's first minimum wage at BND 500 (about US$385) per month or BND 2.62 per hour. Wages must be paid at least once monthly and within seven days of the pay period ending. The currency is the Brunei dollar, and all salary documentation should reflect this.

What makes Brunei particularly attractive from a tax perspective is the absence of personal income tax for employees. There is no payroll tax either. Your team members take home their full salary minus their SPK contributions. Corporate income tax exists for businesses, but the personal tax burden that typically complicates international hiring simply does not apply here. This creates a straightforward payroll structure where gross salary minus social contributions equals net pay.

Employee vs. contractor classification

Brunei's Employment Order 2009 only covers employees, not independent contractors. That means contractors operate outside the protections and obligations that come with traditional employment relationships. They handle their own taxes, manage their own business operations, and receive no statutory benefits, such as paid leave or health insurance.

The line between employee and contractor comes down to control and independence. If you dictate when and how work gets done, provide training, set the schedule, and integrate someone into your core operations, you're describing an employee. Contractors should have autonomy over their methods, work with multiple clients, use their own tools, and operate as separate business entities. Misclassification brings penalties and potential legal action from Brunei's Labor Department. Document everything clearly in your contractor agreements: scope of work, payment terms, deliverables, and the independent nature of the relationship.

Termination and severance in Brunei

Notice periods depend on how long someone has been with your company and what their contract specifies. The Employment Order 2009 sets minimum standards: employees with less than two years of service (but more than 26 weeks) require one week's notice, while those with two to five years need two weeks and employees beyond five years get four weeks. During probation, notice periods shrink to one day or whatever the contract states.

Severance pay applies when you terminate employment without cause. The calculation follows a formula based on length of service. Employees who resign typically do not receive severance unless their contract explicitly includes it. Termination for misconduct (after proper warning procedures) also exempts the employer from severance obligations. Whatever the circumstances, document everything. Keep records of performance issues, warnings given, and the reasoning behind termination decisions to protect against potential disputes.

Work permits and immigration

Foreign nationals need proper work authorization before they can legally work in Brunei. The Department of Immigration and National Registration handles this through a multi-step process that requires employer sponsorship. Your company (or your EOR partner) must initiate the application and demonstrate that the role cannot be filled by a local candidate.

The work permit application requires several key documents:

• Valid passport with at least six months validity
• Educational certificates and professional qualifications
• Employment contract or offer letter
• Company registration documents
• Medical examination results from approved clinics
• Security clearance documentation

Processing times vary but typically range from four to eight weeks. Work visas in Brunei are usually issued for one to two years and can be renewed before expiration. Dependent passes exist for spouses and children of work permit holders. The government prioritizes certain skilled positions, particularly in technology, engineering, and specialized professional services that align with Brunei's economic diversification goals.

Why hire in Brunei with Pebl

As a global Employer of Record (EOR) operating in more than 185 countries, including Brunei, Pebl handles everything. Employment contracts. Payroll. Social contributions. All of it. You? You just focus on finding the right talent. No entity setup required. You get the local compliance expertise and the infrastructure already in place, which means you can focus on building your team instead of decoding Brunei's labor laws. Contact us to learn more.

FAQs: Hiring in Brunei

You've read the guide. Here are the answers to questions employers are asking when considering hiring in Brunei.

What is the work culture in Brunei?

Brunei's professional environment blends Malay traditions with Islamic values and modern business practices. Respect for hierarchy matters, punctuality is expected, and Friday prayers hold cultural significance (many offices close early on Fridays). English is widely used in business settings, which makes communication with international teams smoother than in many Southeast Asian markets.

What is a good salary in Brunei?

A good salary in Brunei ranges from around BND 3,000 to BND 5,000 (around US$2,300 to US$3,800) per month, depending on the role and location. The median salary across all industries is BND 2,600 per month, with entry-level positions starting around BND 1,200 and experienced professionals reaching BND 5,000 or higher. Context matters here: the cost of living in Brunei runs about BND 1,100 per month for a single person with rent. There's no personal income tax, so what you negotiate is largely what employees take home (minus SPK contributions).

Can I hire in Brunei without a local business entity?

Yes, you can bypass entity setup and hire in Brunei by partnering with an EOR that already has legal standing in Brunei. They handle employment agreements, payroll compliance, and statutory contributions while you manage the employee's work. You can onboard someone in as little as two weeks without navigating entity registration or local regulatory requirements.

What jobs are in high demand in Brunei?

Tech roles are currently in high demand, specifically cloud architects, cybersecurity specialists, data scientists, and software engineers. The government's Digital Economy Masterplan 2025 has created demand for professionals skilled in AI, IoT, and digital transformation. Beyond tech, you'll find opportunities in financial services, downstream manufacturing, halal food processing, and healthcare as Brunei diversifies away from its oil and gas dependency.

Disclaimer: This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.

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