Compensation and benefits play large roles in any business. When you start expanding globally, you have to consider the various labor laws worldwide and how you’ll stay compliant no matter where you are.
At G-P, we offer legal expertise and sliding benefits packages to compensate your employees in the way they deserve. With our benefits and compensation outsourcing services in Brunei, we can ensure you stay compliant while you run your business.
Brunei Compensation Laws
There is no national minimum wage in the country, so you and your workers must negotiate and agree on a salary upon hiring. Then, record this number in the employment contract. Employees must earn compensation at least once a month and should receive their paycheck within seven days of the end of a pay period.
Compensation laws classify any hours over an employee’s predetermined limit as overtime. You can set this limit, but anything over eight hours a day is considered overtime. An employee should not work more than 12 hours in a day, and they make 150% their standard rate during overtime hours.
While the country doesn’t have an income tax for individuals, you can make authorized deductions to your employees’ paychecks for various reasons, including:
- Absence from work.
- Cost of meals, accommodation, amenities, or services provided.
- Repayment of loans, recovery of advances, or corrections of overpayments.
- Contributions to a pension fund.
- Payments to a registered cooperative.
- Employee trust fund contributions.
If you would like to make any other deductions, you can request approval from the minister.
Guaranteed Benefits in Brunei
Brunei workers get certain entitlements upon employment. For example, every individual is entitled to one unpaid rest day a week. Within the first year of service, they must receive a minimum of seven days of paid leave, which increases by one day annually. By eight years of employment and beyond, workers accrue 14 days of paid leave.
After six months of service, employees earn 14 days of paid sick leave with an additional 60 days for hospitalization, should the need arise. Women who are legal citizens gain 15 weeks for maternity leave, 13 of which are fully paid. International employees receive nine weeks of maternity leave, with eight weeks paid.
All employees must receive 11 public holidays off. If you request that employees work on any of these days, they earn double their standard earnings. The Tabung Amanah Pekerja (TAP) Act also grants employees a pension scheme matched by employers. Your employees can contribute a minimum of 5% of their paycheck every month.
The only other benefit guaranteed beyond leave is workers’ compensation. If an employee sustains incapacitating injuries on the job, you must pay according to the loss of earning capacity. As the employer, you can provide any other benefits at your discretion.
Brunei Benefits Management
While many benefits are not guaranteed under employment law, giving your employees perks will help them feel appreciated in the workplace and incentivize them to work harder. They may enjoy benefits such as:
- Coverage of extra maternity expenses.
- Financial support for critical illnesses.
- Disability support.
- Specialized medical expenses.
- Yearly bonuses for holidays or productivity.
As an international employer, you can distribute benefits yourself or outsource. At G-P, we’ll support your compensation and benefits distribution by providing:
- Scaled benefits packages based on what you can afford.
- Resources that shift the liability from your shoulders to ours.
- Expertise in country-specific employment laws.
- More time for you to focus on growing your business.
Restrictions for Benefits and Compensation
The Employment Order 2009 outlines all required minimums and restrictions on benefits and compensation. While the government does not release updates regularly, it’s vital to stay aware of any new orders or amendments.
Choose G-P Today
G-P will keep your business compliant and your team members happy. Contact us today to learn more about our global PEO services.