Payroll Compliance in Brunei Made Simple

Ultimate Payroll Guide for Businesses in Brunei (2025 Edition)

Managing payroll in Brunei isn’t just about disbursing salaries—it’s about staying legally compliant, safeguarding employee rights, and ensuring seamless operations. Whether you’re a startup, SME, or an established enterprise, this guide will walk you through everything you need to know about payroll management in Brunei, with a focus on the latest TAP and SCP contribution requirements.

📌 Why Payroll Management Matters in Brunei

In Brunei, payroll is tightly regulated under the Employment Order 2009. A proper payroll system ensures:

Timely and accurate salary disbursement
TAP & SCP compliance
Transparent deductions and benefits
Legal adherence and audit readiness

A well-structured payroll process not only saves time but also builds trust with your employees.

📋 Core Components of Payroll in Brunei

1. Employment Contracts

All employees must be given written contracts stating job roles, wages, working hours, and leave entitlements. This ensures both clarity and legal compliance.

2. Salary Structure

Your payroll must cover:

Basic Salary
Overtime Compensation
Bonuses & Allowances
Approved Deductions (e.g., absences, loans)

3. Payroll Frequency

Salaries are usually paid monthly and must be disbursed within 7 days after month-end. Employers are advised to issue itemized payslips to all employees.

🧾 TAP and SCP Contributions – What Employers Need to Know

Under Brunei law, employers must contribute to two retirement schemes:

TAP (Tabung Amanah Pekerja)
SCP (Supplementary Contributory Pension)

These ensure financial security for employees post-retirement.

🔐 Employer Contribution Rates

Salary Range (BND)	Employer Contribution Rate (TAP + SCP)
$500.00 and below	Fixed at $57.50
$500.01 – $1,500.00	10.5% of wages (minimum $57.50)
$1,500.01 – $2,800.00	9.5%
$2,800.01 and above	8.5%

💡 There is no maximum cap anymore—contributions are calculated on the full salary.

👨‍💼 Employee Contribution

Fixed at 8.5% of their basic wage
Automatically deducted and submitted by the employer

📅 Contribution Deadline

Employers must submit contributions by the 15th of the following month to avoid penalties.

💻 Use the e-Amanah portal to:

Register as an employer
Register new employees
Update employee details
Submit and track monthly contributions

💼 Defining “Wages” for Contribution

Included in contributions:

Basic salary
Commissions (if no fixed salary)
Allowances considered part of fixed pay

Excluded from contributions:

Overtime pay
Bonuses
Special or acting allowances
Travelling and housing allowances
Gratuity, retrenchment benefits, and service charges

🛠 Tools & Services to Simplify Payroll

Managing payroll manually increases the risk of errors. Many businesses in Brunei now use professional payroll services or software for:

Monthly salary automation
TAP/SCP calculations
Payslip generation
Compliance reporting

💼 Want full payroll support in Brunei? Contact us for:

Payroll Outsourcing
Employee Contract Management
Tax & Contribution Reports
HR Documentation & Compliance

For more information:

Contact us at : +673 8243820 | +673 8306820
6738243820
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Email: info@merciumbn.com
Visit Our Website: www.merciumbn.com
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Visit us: No. 7, First Floor, Bng Hj Abd Rahman Spg 7, Kg Menglait, Jln Gadong, Brunei Darussalam