HRsolution » COUNTRIES » Brunei Darussalam

Population

Brunei Darussalam has a population of approximately 460,000 people (as of 2023). A large portion of the population lives in the western part of the country, and a significant number of residents are foreign workers, primarily from Malaysia, Indonesia, and the Philippines.

Capital

The capital of Brunei is Bandar Seri Begawan, which serves as the political, economic, and cultural center of the country. It is known for its stunning mosques, the royal palace Istana Nurul Iman, and modern infrastructure.

Economic Strength

Brunei’s economy is largely based on the extraction and export of oil and natural gas, which account for about 90% of the country’s GDP and export revenues. With one of the highest per capita incomes in the world, Brunei is a wealthy nation. In recent years, the government has been promoting economic diversification, particularly in the areas of financial services, tourism, and halal industries. Thanks to its oil and gas reserves, Brunei also offers generous social benefits and a high standard of living.

Culture

Brunei’s culture is strongly influenced by Islam, the official state religion. This influence is evident in the laws, customs, and daily life. At the same time, Brunei has a rich tradition within the Malay cultural sphere, reflected in its language, clothing, and festivals. Major celebrations like Eid al-Fitr (Hari Raya) are widely observed. Traditional music, dance, and crafts also play a significant role in the country’s cultural life.

Currency

The official currency of Brunei is the Brunei Dollar (BND), which is pegged to the Singapore Dollar, and the Singapore Dollar is also accepted as legal tender in the country.

Health Insurance and Social Security System

Brunei’s healthcare system is largely state-funded, providing free, high-quality medical care for all citizens. Foreign workers are typically required to have private health insurance. Brunei also has a basic social security system governed by the national pension fund. There is a mandatory contribution system for workers, covering both old-age and disability benefits.

Employer Costs

Employers in Brunei are required to contribute to social security, with contributions mandatory for both local and foreign employees. The contribution rate for the Employee Trust Fund (Tabung Amanah Pekerja) is about 5% of the employee’s gross income, with an equivalent contribution from the employer. In some cases, employers also provide additional benefits such as health insurance and housing.

Salary and Bonuses

Salaries in Brunei vary greatly depending on the industry and qualifications of the employees. The public sector often offers competitive salaries and additional benefits. Bonuses are typically paid at the end of the year or during special occasions like Hari Raya, especially in the public sector.

Payroll

Employers are required to provide employees with a monthly payslip that details the basic salary, allowances, bonuses, and deductions such as social security contributions. These payslips are important for ensuring transparency and compliance with legal requirements.

Public Holidays

Brunei observes a number of public holidays that are both religious and national. Major holidays include:

  • New Year’s Day (January 1)
  • National Day (February 23)
  • Hari Raya Aidilfitri (Eid al-Fitr)
  • Hari Raya Aidiladha (Eid al-Adha)
  • Maulidur Rasul (Prophet Muhammad’s birthday)

There are also several holidays dedicated to the royal family, such as the Sultan’s birthday.

Working Hours

The standard working hours in Brunei are 8 hours per day and 48 hours per week. Work typically takes place from Monday to Friday, with Friday being a shorter workday due to Islamic prayer times. During the fasting month of Ramadan, working hours for Muslim employees are reduced.

Vacation

Employees in Brunei are entitled to between 14 and 30 days of paid annual leave, depending on their length of service and the terms of their employment contract. Additional leave is often granted during religious holidays.

Sick Leave

Employees who are unable to work due to illness or injury are entitled to sick leave. Typically, a medical certificate is required. The first 14 days of sick leave are usually fully paid, and extended leave arrangements may apply depending on the employment contract.

Termination/Severance

In Brunei, both employees and employers must observe a notice period when terminating employment, which is typically one month. In cases of involuntary termination, the employee may be entitled to severance pay, calculated based on the length of employment. Severance usually amounts to half to a full month’s salary for each year of service, depending on the terms of the employment contract.

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