Do employees pay income tax in Brunei?

No. Brunei has no personal income tax, so there's no salary withholding. The main payroll deduction is the Employees Pension Scheme (SPK), which covers citizens and permanent residents only. Foreign employees on an Employment Pass are not enrolled in SPK.

Which employees does Brunei's minimum wage cover?

The BND 500 monthly minimum started in July 2023 for banking, finance, and ICT employees. A second phase extended it to more sectors from April 2025. Coverage is still being phased in, so check your role's sector before you set pay.

How does Good Balance Global hire employees in Brunei?

We act as your Employer of Record (EOR). We sign a local employment contract with your hire, register and pay SPK contributions for local staff, and support Foreign Worker Licence and Employment Pass applications for international hires. You direct the work; we handle payroll and compliance with local labor law.

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Payroll and benefits guide

Brunei

CapitalBandar Seri Begawan

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyBND (Brunei Dollar)

Payroll FrequencyMonthly

Employer Taxes8.5% – 10.5%

Employee Costs8.5%

Overview

Languages: Malay
Income tax: 0%
VAT: 0%; Brunei has no VAT, GST, or sales tax

Contributions

Employer

8.5% – 10.5%

Employees Pension Scheme (SPK)Citizens and permanent residents only. 10.5% on monthly wages of BND 500.01–1,500 (minimum BND 57.50), falling to 8.5% for higher earners; fixed BND 57.50 at BND 500 and below

8.5% – 10.5%

Total employer cost

Employee

8.5%

Employees Pension Scheme (SPK)Of basic salary; citizens and permanent residents only

8.5%

Total employee costBrunei has no personal income tax

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

Tabung Amanah Pekerja (TAP)

Paid To

SPK employer and employee contributions

Due Date

Monthly

Method

Online submission and payment through TAP

Minimum Wage & Working Hours

Minimum wage: BND 500 / Monthly; Hourly equivalent BND 2.62. Covers banking, finance, and ICT since July 2023, with more sectors added from April 2025

Benefits

SPK pension contributionsMandatory
Employer and employee contributions for citizens and permanent residents
Medical insuranceCommon
Private health cover, especially for foreign staff
Housing allowanceCommon
Common in expatriate packages

Visas & Work Permits

Foreign Worker Licence and Employment Pass
Requirements
The employer obtains a Foreign Worker Licence from the Labour Department, then applies for the employee's Employment Pass and visa
The license sets how many foreign workers the employer may hire

FAQ

Sources

Last updated: November 1, 2026

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