Key Takeaways

• Brunei Darussalam’s 2026 salary landscape remains stable, with projected average increases of around 3.5% across key industries.
• The Employment (Minimum Wage) Amendment Order, 2025, is reshaping compensation structures, especially in finance, IT, and healthcare sectors.
• Organizations are focusing on performance-based pay, non-monetary rewards, and skill development to attract and retain top local and expatriate talent.

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Salaries in Brunei Darussalam for 2026 reflect a stable yet strategically evolving labor market, shaped by the nation’s strong fiscal position, low inflation, and its ongoing economic diversification goals under Brunei Vision 2035. As one of Southeast Asia’s wealthiest economies, Brunei continues to offer competitive compensation packages, particularly in high-value industries such as oil and gas, information technology, and financial services. However, the landscape of salary structures, benefits, and employment regulations is shifting as the government implements new policies designed to modernize its workforce and align pay scales with regional and international benchmarks.

For 2026, the country’s salary outlook is defined by a balance between modest wage growth and increasing strategic differentiation between industries. The national average monthly salary remains around BND 2,500, though considerable variance exists between entry-level and executive-level compensation. Sectors tied to digital transformation, such as data science, software development, and cybersecurity, are seeing above-average increases, while traditional industries are adapting to new wage compliance regulations introduced through the Employment (Minimum Wage) Amendment Order, 2025. This expanded wage framework now includes critical sectors like finance, healthcare, and professional services, setting a new precedent for equitable pay and employee welfare in the private sector.

Brunei’s salary ecosystem in 2026 also emphasizes sustainability in compensation management. With inflation projected to remain below 1.0% and the median salary increment forecasted at approximately 3.5%, companies have the opportunity to reallocate resources from cost-of-living adjustments toward merit-based and performance-driven incentives. This strategic approach allows organizations to reward high-performing employees more effectively while maintaining financial discipline. Moreover, low voluntary turnover rates across industries indicate that employers can focus on long-term retention initiatives rather than short-term salary competition, fostering greater workforce stability and productivity.

Another significant trend shaping the 2026 salary environment is the “Talent Scarcity Premium.” The persistent wage disparity between the public and private sectors continues to influence recruitment dynamics, with the Brunei Civil Service offering competitive entry-level pay that often exceeds initial private-sector offers. Consequently, private organizations must design compensation strategies that emphasize total rewards—integrating monetary and non-monetary elements such as housing allowances, learning and development programs, healthcare benefits, and flexible work arrangements. These strategies are particularly crucial for attracting and retaining skilled local professionals, as well as expatriate specialists in high-demand technical fields.

Additionally, the government’s social security schemes—specifically the mandatory 8.5% employer contribution to the Employees Trust Fund (TAP) and the Supplementary Contributory Pension (SCP)—form an integral component of Brunei’s Total Cost of Employment (TCE) structure. For businesses, accurately forecasting these statutory obligations alongside wage adjustments is essential for effective compensation planning in 2026. The broader compensation framework now extends beyond base pay, integrating both compliance-driven and strategic investments in employee welfare, skill development, and long-term engagement.

From a regional perspective, Brunei’s compensation competitiveness remains high when adjusted for purchasing power and quality of life. The country’s low tax regime, affordable living costs, and strong currency stability create a favorable environment for both employers and employees. Expatriates, in particular, benefit from housing and transportation allowances that align with Brunei’s cost of living, typically ranging from BND 1,300 to BND 2,500 monthly for accommodation and modest fixed vehicle allowances due to low fuel prices. Such factors make Brunei an increasingly attractive destination for skilled professionals seeking tax-efficient compensation packages within a stable economic framework.

Overall, understanding salary structures in Brunei Darussalam for 2026 requires a holistic view that combines quantitative benchmarking with qualitative insights into policy, compliance, and workforce strategy. Organizations that align their compensation frameworks with emerging labor market trends—such as digital skills premiums, compliance-driven wage restructuring, and enhanced non-monetary rewards—are better positioned to attract top-tier talent while maintaining financial sustainability. For job seekers, this comprehensive understanding of Brunei’s salary landscape provides valuable guidance for negotiating competitive packages, evaluating employment offers, and identifying career paths aligned with high-growth industries.

In essence, Brunei’s 2026 salary outlook underscores a dynamic equilibrium between economic stability, evolving labor policies, and talent-driven compensation practices. It represents a pivotal year for both employers and employees to refine their approach to remuneration, ensuring that pay strategies not only reflect current market realities but also support long-term national objectives for workforce excellence and sustainable economic development.

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Salaries in Brunei Darussalam for 2026: A Complete Guide

1. Brunei Darussalam: Macroeconomic and Labor Context for 2026
   • Economic Stability and Compensation Drivers
   • Strategic Labor Policies: The Impact of ‘Bruneianisation’
2. Regulatory Compliance and True Cost of Employment (TCE)
   • Total Compensation Structure: The No-Tax Advantage
   • Mandatory Employee Contributions (TAP and SCP)
   • The New Minimum Wage Policy (Employment (Minimum Wage) Amendment Order, 2025)
   • Core Labor Law Requirements Affecting Compensation
3. 2026 Salary Increase Budgeting and Strategic Forecasting
   • Global and Regional Salary Increase Trends
   • Strategic Compensation Adjustments for 2026
   • True Cost of Employment (TCE) Forecasting for 2026
4. Detailed Salary Benchmarks for 2026 (Quantitative Analysis)
   • National Baseline and Average Salary Ranges
   • Compensation by Industry Deep Dive
   • Salary Comparison by Experience Level (Projected 2026)
   • Snapshot of High-Value/Low-Value Jobs
5. Non-Monetary Compensation, Benefits, and Allowances
   • Strategic Benefits Management for Retention
   • Standard Allowance Benchmarks (Housing and Transportation)
6. 2026 Strategic Recommendations
   • Key Compensation Dynamics for 2026
   • Strategic Recommendations for HR Planning in 2026

1. Brunei Darussalam: Macroeconomic and Labor Context for 2026

a. Economic Stability and Compensation Drivers

A comprehensive salary strategy for 2026 in Brunei Darussalam must be grounded in a deep understanding of the country’s macroeconomic resilience, sectoral composition, and labor structure. With a consistently low inflation rate and a highly formalized employment landscape, Brunei presents a stable yet strategically nuanced environment for organizations developing forward-looking compensation frameworks.

Economic Stability and Compensation Framework

Brunei’s economic performance in 2026 is expected to reflect both fiscal stability and prudent diversification beyond hydrocarbons. The government’s sustained efforts toward economic reform—particularly in finance, green technology, and digital sectors—are projected to reinforce salary predictability while ensuring competitiveness within the regional labor market.

Key Economic Indicators Shaping Salary Strategy:

Indicator	2024 Estimate	2025 Forecast	2026 Projection	Impact on Salaries
GDP Growth	2.5%	2.9%	3.1%	Supports stable wage growth
Inflation Rate	1.2%	0.9%	0.8%	Reduces need for large COLA adjustments
Unemployment	6.8%	6.2%	5.9%	Encourages targeted skill-based pay increases
Exchange Rate Stability	Stable	Stable	Stable	Minimizes import-related inflation pressures

This economic backdrop ensures that organizations can maintain competitive compensation structures without excessive inflationary distortions, positioning Brunei as one of Southeast Asia’s most stable wage environments.

Inflation and Cost-of-Living Forecasts for 2026

Brunei’s inflation outlook remains subdued due to controlled domestic demand and government price regulation on key goods and services. Inflation is projected to average below 1% through 2026, driven largely by:

• Stable energy pricing supported by government subsidies and global crude balance
• Moderate food price inflation due to steady import flows and exchange rate consistency
• Reduced costs in transport and communication following digital modernization initiatives

Implications for Compensation Planning:

• Minimal COLA Pressure: Organizations will likely require less than 1% COLA adjustments, reducing inflation-linked wage pressures.
• Budget Optimization: With global forecasts estimating overall salary budgets at around 3.5% for 2026, companies can redirect funds toward merit-based raises and retention incentives.
• Real Wage Growth: Allocating the majority of compensation adjustments to high performers strengthens internal equity and retention, ensuring sustained employee engagement without inflating payroll costs.

Labor Market Structure and Workforce Composition

Brunei’s workforce is characterized by a high level of formalization, a factor that greatly influences national wage standards.

Employment Category	Share of Workforce (2023)	Key Characteristics
Wage and Salaried Employees	92.37%	Predominantly employed in government and Oil & Gas sectors
Self-Employed	6.8%	Concentrated in small-scale trade and services
Informal Employment	0.83%	Limited due to strong regulatory oversight

This formal employment dominance reinforces the influence of large organizations, especially state-linked entities, in shaping wage trends. As a result, compensation decisions made within the energy, finance, and government sectors often cascade into private-sector benchmarks.

Labor Market Dynamics and Sectoral Influence

Brunei’s labor ecosystem is distinguished by centralized wage structures, public sector dominance, and an emerging private-sector diversification trend.

Key Observations:

• Public Sector Influence: As the largest employer, the government’s wage policies significantly influence national pay scales.
• Private Sector Competitiveness: The oil, gas, and energy sectors remain wage leaders, setting benchmarks for technical and engineering roles.
• Emerging Sectors: New opportunities in ICT, fintech, and logistics are fostering competitive compensation packages for digital and innovation-based roles.

Projected Compensation Trend Matrix (2026):

Sector	Average Salary Growth	Key Compensation Drivers
Oil & Gas	3.2%	Retention bonuses, technical skills demand
Financial Services	3.8%	Performance-linked incentives, compliance roles
ICT & Digital	4.5%	Scarcity of local digital talent
Public Administration	2.8%	Standardized increments and allowances
Education & Healthcare	3.0%	Skill-based adjustments, localization efforts

Strategic Insights for HR and Business Leaders

• Data-Driven Salary Planning: Organizations should base their 2026 compensation strategy on macroeconomic indicators and cross-sectoral benchmarks.
• Merit and Performance Integration: The low inflation environment allows for a stronger emphasis on productivity-based rewards.
• Talent Retention Focus: With limited high-skill labor supply, targeted pay adjustments for critical roles will be crucial.
• Benchmarking and Internal Equity: Aligning salary structures with public and oil-sector standards ensures competitiveness while maintaining fiscal balance.

Overall, Brunei Darussalam’s salary landscape for 2026 presents a unique equilibrium—marked by macroeconomic stability, disciplined fiscal management, and evolving workforce dynamics. Employers that align compensation frameworks with these structural realities will be best positioned to attract, motivate, and retain talent in a steadily maturing economy.

b. Strategic Labor Policies: The Impact of ‘Bruneianisation’

In shaping compensation and workforce strategies for 2026, one of the most decisive factors in Brunei Darussalam’s labor landscape is the national localization framework known as Bruneianisation. This long-standing policy plays a pivotal role in defining both the structure and growth of salaries across multiple sectors, particularly where foreign employment remains prevalent.

Understanding the Bruneianisation Policy and Its Strategic Purpose

The Bruneianisation policy is designed to progressively replace foreign workers with qualified Bruneian nationals, especially in professional, technical, and managerial roles within the private sector. It embodies a national economic vision that emphasizes self-sufficiency, skills development, and sustainable employment for citizens.

Key Policy Objectives:

• Localization of the Workforce: Gradual substitution of expatriates with trained Bruneians to ensure long-term national employment security.
• Economic Sovereignty: Reducing dependence on foreign expertise, especially in critical industries such as oil, gas, and finance.
• Equitable Compensation: Promoting salary structures that reflect parity between citizens and expatriates performing equivalent roles.

This strategic approach ensures that compensation growth is not solely driven by market dynamics but also aligned with socio-economic objectives aimed at reinforcing national talent development.

Government Oversight and Salary Regulation

Brunei’s government exerts strong oversight on wage administration for foreign employees, maintaining regulatory mechanisms to ensure salary fairness and localization compliance. Salary increases for expatriates are closely monitored to prevent disparities that may undermine local workforce morale or national policy objectives.

Core Monitoring Mechanisms:

Policy Area	Description	Strategic Impact
Salary Parity Control	Monitoring wage differentials between locals and expatriates	Prevents disproportionate wage gaps and promotes equity
Increment Regulation	Oversight on annual pay increases for foreign hires	Encourages alignment with local compensation progression
Employment Duration Control	Restriction on long-term foreign workforce dependency	Promotes accelerated training and local succession planning

This structure contributes to a two-tier compensation model, where organizations must balance competitive pay for expatriates with compliance-driven wage alignment for Bruneian employees.

Impact on Corporate Compensation Strategies

For multinational corporations (MNCs) and large private enterprises, Bruneianisation introduces a complex dynamic in compensation design. Salary strategies must not only attract global expertise but also adhere to localization guidelines that favor Bruneian nationals for long-term roles.

Key Implications for HR and Management:

• Equity Benchmarking: Companies must continuously evaluate salary ratios between local and foreign staff to ensure compliance with policy standards.
• Cost Optimization: With expatriate compensation packages often carrying additional benefits—such as housing, schooling, and relocation allowances—firms are encouraged to transition these costs into local upskilling programs.
• Talent Retention for Nationals: Incentive structures such as professional development allowances, performance-linked bonuses, and structured promotion pathways are increasingly deployed to retain Bruneian talent and reduce dependence on imported expertise.
• Strategic Succession Planning: Many organizations implement localization roadmaps, identifying key roles for gradual transfer to Bruneian employees within defined timeframes.

Comparative Compensation Strategy Matrix

Category	Expatriate Workforce	Bruneian Workforce	Strategic Implication
Base Salary	Higher due to international benchmarks	Competitive within national standards	Requires careful calibration to prevent pay disparities
Benefits & Allowances	Includes housing, education, and relocation	Focused on performance incentives and retention bonuses	Encourages local workforce engagement
Contract Duration	Often project-based or fixed-term	Long-term and career development oriented	Supports localization transition goals
Training & Development	Limited, role-specific	Intensive investment to build national capacity	Strengthens local skill base and policy compliance

Forecasting the Future Compensation Landscape Under Bruneianisation

By 2026, compensation structures in Brunei are expected to increasingly reflect localization-led policy outcomes. The integration of national talent into leadership and technical roles will lead to a gradual narrowing of wage differentials between local and expatriate professionals.

Projected Trends:

• Enhanced Local Salary Benchmarks: As more Bruneians enter specialized fields, salary levels are anticipated to rise to match regional competitiveness.
• Decline in Expatriate Premiums: Companies are likely to reduce dependency on expatriate packages, reallocating budgets to internal training and upskilling.
• Institutionalization of Merit-Based Pay: Organizations will focus on linking compensation to measurable performance and skill acquisition, irrespective of nationality.

In essence, Bruneianisation is not merely a localization policy—it is a transformative economic framework reshaping compensation governance, equity standards, and long-term human capital strategy. For employers, navigating this evolving environment in 2026 will require a blend of compliance diligence, cultural sensitivity, and forward-looking workforce planning to ensure sustainable and inclusive salary development across all sectors.

2. Regulatory Compliance and True Cost of Employment (TCE)

a. Total Compensation Structure: The No-Tax Advantage

As organizations refine their compensation frameworks for 2026, a comprehensive understanding of Brunei Darussalam’s employment regulations and cost structures becomes essential. The nation’s unique fiscal policies, combined with evolving social protection measures, create a favorable yet highly regulated environment for both employers and employees.

Total Compensation Framework and the No-Tax Advantage

Brunei Darussalam stands out within Southeast Asia for its no-personal-income-tax regime, which directly influences salary competitiveness and overall cost-of-employment calculations. Employees receive their full negotiated gross salary with minimal deductions, primarily limited to mandatory social security contributions. This structure substantially enhances the real value of take-home pay, making Brunei one of the most financially attractive employment destinations in the region.

Key Characteristics of Brunei’s Compensation Tax Environment:

Element	Status in Brunei	Strategic Impact
Personal Income Tax	Not applicable	Increases net disposable income for employees
Social Security Deductions	Mandatory under TAP and SCP schemes	Ensures long-term financial security for workers
Corporate Income Tax	Applicable to employers	Requires accurate wage and allowance reporting
Payroll Tax	Absent	Simplifies administrative and compliance processes

This tax-exempt environment enables organizations to offer more competitive net salaries without increasing gross payroll costs, thereby strengthening employer branding and retention capabilities in a high-skill labor market.

True Cost of Employment (TCE) and Its Strategic Implications

While employees benefit from the absence of income tax, employers must still manage the Total Cost of Employment (TCE)—a holistic measure encompassing direct and indirect labor expenses. Understanding TCE is critical for financial forecasting, budgeting, and aligning HR strategies with corporate fiscal objectives.

Components of Total Employment Cost in Brunei (2026 Forecast):

Cost Component	Description	Estimated Employer Burden (%)
Base Salary	Fixed monthly compensation negotiated with the employee	70–75%
Allowances	Housing, transport, and hardship benefits (where applicable)	10–15%
Social Security Contributions	Contributions under TAP (Employees Provident Fund) and SCP (Supplementary Pension Scheme)	5%
Bonuses and Incentives	Annual or performance-linked rewards	5–8%
Training and Compliance	Employee upskilling, safety, and HR compliance initiatives	2–5%

On average, the total employment cost for companies in Brunei ranges from 1.20 to 1.35 times the gross salary, depending on the complexity of benefits and expatriate-related provisions.

Regulatory Framework and Employer Compliance

Although Brunei’s tax framework is employee-friendly, corporations must comply with detailed financial reporting and labor regulations to maintain legal and ethical governance standards.

Key Compliance Requirements:

• Social Protection Contributions: Employers must register their staff under the TAP (Tabung Amanah Pekerja) and SCP (Supplemental Contributory Pension) systems to ensure retirement benefits and social protection coverage.
• Remuneration Disclosure: Organizations are mandated to submit comprehensive remuneration breakdowns—including base salary, bonuses, and non-cash benefits—for corporate income tax computation.
• Employment Record-Keeping: Accurate payroll documentation, employment contracts, and proof of statutory contributions are essential for audit and regulatory inspection purposes.
• Minimum Wage Compliance: Although Brunei has not yet formalized a national minimum wage law, discussions surrounding wage standardization remain active, suggesting the likelihood of gradual introduction by 2026 to promote local workforce welfare.

Comparative Advantage of Brunei’s No-Tax System

When assessing compensation competitiveness across ASEAN economies, Brunei’s fiscal model provides a distinct advantage.

Country	Personal Income Tax Rate	Social Security Rate	Net Take-Home Pay as % of Gross
Brunei Darussalam	0%	5%	95%
Singapore	2–22%	20%	78–90%
Malaysia	1–30%	11%	70–85%
Indonesia	5–35%	2%	65–90%
Philippines	0–35%	11%	65–85%

The data reveals that Brunei’s net salary-to-gross ratio remains among the highest in the region, reinforcing its attractiveness for both local professionals and expatriate talent.

Strategic Takeaways for HR and Business Leaders

• Enhance Net Compensation Positioning: Emphasize Brunei’s no-tax advantage in recruitment campaigns to attract high-caliber regional professionals.
• Optimize Benefit Design: Focus on non-monetary benefits such as housing, education, and insurance to balance expatriate expectations with cost efficiency.
• Ensure Compliance Accuracy: Maintain transparent payroll reporting to align with corporate taxation standards and labor regulations.
• Anticipate Policy Shifts: Stay prepared for potential wage standardization reforms that may impact salary baselines in 2026 and beyond.

In conclusion, Brunei Darussalam’s compensation environment in 2026 is defined by regulatory clarity, fiscal efficiency, and strong purchasing power for employees. By accurately calculating the Total Cost of Employment and adhering to compliance protocols, organizations can sustain competitive pay structures that align with both national labor objectives and global best practices.

b. Mandatory Employee Contributions (TAP and SCP)

When analyzing the compensation landscape in Brunei Darussalam for 2026, one of the most critical non-wage cost considerations for employers is the mandatory employee contribution system, comprising the Employees’ Trust Fund (Tabung Amanah Pekerja – TAP) and the Supplemental Contributory Pension (SCP). These two pillars represent the foundation of Brunei’s national retirement and social protection framework, influencing the True Cost of Employment (TCE) and the overall compensation structure for the local workforce.

Overview of Brunei’s Social Security and Pension System

Both TAP and SCP are compulsory for Bruneian citizens and permanent residents, serving as structured retirement savings mechanisms. They are designed to provide post-employment income stability and financial protection for workers and their dependents. The contribution model is shared equally between employer and employee, ensuring a balanced and sustainable approach to social security funding.

Purpose and Structure of the Contribution System

• Tabung Amanah Pekerja (TAP): Functions as a provident fund that accumulates savings for retirement. Both the employer and the employee contribute 5% of the employee’s monthly salary, with contributions credited into an individual’s account to support post-retirement withdrawals.
• Supplemental Contributory Pension (SCP): Acts as a complementary pension scheme aimed at providing a sustainable income stream after retirement and offering survivor benefits to family members. Both parties contribute 3.5% of the monthly salary, with a contribution cap applicable to salaries up to BND 2,800 (approximately USD 2,060) per month.

Together, these programs reinforce Brunei’s long-term commitment to social welfare, ensuring financial security while maintaining low administrative complexity for employers.

Contribution Rate Breakdown and TCE Implications

The combined contribution rates under TAP and SCP create a fixed, predictable overhead for organizations employing Bruneian citizens or permanent residents. This system directly affects the True Cost of Employment (TCE) and must be accounted for in salary and budget forecasting.

Table: Mandatory Employer and Employee Contributions under TAP & SCP

Scheme	Purpose	Employee Contribution	Employer Contribution	Total Contribution (Impact on TCE)
Tabung Amanah Pekerja (TAP)	Provident Fund for Retirement Savings	5.0% of Monthly Salary	5.0% of Monthly Salary	10.0%
Supplemental Contributory Pension (SCP)	Pension & Survivor Benefits	3.5% of Monthly Salary	3.5% of Monthly Salary	7.0%
Total Mandatory Non-Wage Cost	Social Protection System	8.5%	8.5%	17.0%

From an employer’s standpoint, this 8.5% mandatory contribution forms a significant portion of the non-wage labor cost. It must be integrated into payroll budgeting, compensation design, and financial projections for 2026, especially when comparing local and expatriate employment costs.

Economic and Policy Implications of the Contribution Disparity

Unlike local employees, foreign workers are exempt from both TAP and SCP contributions. This policy creates a differential of approximately 8.5% in employment costs between local and expatriate workers holding identical positions and base salaries.

While this arrangement can make expatriate employment marginally cheaper on paper, it also raises long-term strategic considerations under the Bruneianisation policy, which aims to increase local workforce participation and skill development.

Key Implications for Employers and Policymakers:

• Cost Competitiveness: Expatriate employment may appear less costly; however, localization policies and regulatory incentives increasingly encourage hiring and upskilling Bruneians.
• Policy Alignment: Employers should align compensation packages with the intent of Bruneianisation by offering equitable benefits or training support for local employees.
• TCE Management: Companies must accurately calculate total employment costs—including TAP and SCP contributions—to maintain compliance and cost transparency.
• Social Responsibility: Strengthening national workforce development through fair contribution practices enhances brand reputation and long-term operational stability.

Forecast Analysis: Impact on Workforce Compensation (2026 Outlook)

Workforce Category	TAP/SCP Eligibility	Employer Contribution Rate	Estimated TCE Increase	Strategic Observation
Bruneian Citizens	Mandatory	8.5%	+8.5% on base pay	Encourages structured retirement savings
Permanent Residents	Mandatory	8.5%	+8.5% on base pay	Aligns with national social protection goals
Foreign Workers	Not Applicable	0%	None	Creates a cost gap vs. local hires
Contractual/Project Staff	Case-dependent	Variable	Up to 8.5%	Requires clear HR classification

Projected trends indicate that the government may eventually explore extended coverage or adjusted contribution caps to enhance social protection equity, particularly as labor policies evolve to support long-term workforce localization.

Strategic Insight for 2026 Workforce Planning

For organizations operating in Brunei Darussalam, integrating TAP and SCP obligations into compensation models is not merely a compliance requirement but a strategic necessity. Employers that proactively manage these contributions as part of total compensation planning will:

• Strengthen their alignment with national workforce priorities
• Improve internal financial predictability
• Enhance employee satisfaction and retention through transparent retirement benefits
• Ensure competitiveness in attracting both local and expatriate talent

In summary, Brunei’s TAP and SCP systems constitute a cornerstone of the nation’s employment ecosystem. They ensure financial security for citizens, provide employers with predictable cost frameworks, and play a defining role in balancing competitiveness and social responsibility in the 2026 compensation landscape.

c. The New Minimum Wage Policy (Employment (Minimum Wage) Amendment Order, 2025)

Brunei Darussalam is entering a transformative phase in its labor market with the introduction of the Employment (Minimum Wage) Amendment Order, 2025. This legislative reform serves as a major milestone in reshaping compensation frameworks and wage forecasting for 2026. The amendment marks the second phase of Brunei’s ongoing sectoral minimum wage strategy—an approach designed to elevate income security, align domestic pay structures with global standards, and mitigate wage stagnation within strategic industries.

Evolution of Brunei’s Sectoral Wage Reform

Unlike many nations that implement a single national minimum wage, Brunei adopts a segmented and targeted model. The government’s strategy is based on industry-specific regulation rather than universal wage control. Through licensing and regulatory oversight, agencies such as the Brunei Darussalam Central Bank (BDCB), the Board of Architects, Professional Engineers and Quantity Surveyors (BAPEQS), and the Royal Brunei Police Force ensure that only designated industries comply with the mandated salary floor. This precision-based regulation allows policymakers to correct wage disparities in sectors characterized by high labor intensity or historical underpayment.

Key Characteristics of the Policy

• Effective Date: April 1, 2025, marking the beginning of Phase Two implementation.
• Policy Scope: Enforced within defined sub-industries holding government-issued licenses.
• Applicability: Extends to both local and foreign employees, ensuring equitable labor treatment.
• Objective: To stabilize pay scales, curb wage suppression, and professionalize compensation practices in critical industries.

Phase Two Target Sectors and Licensed Sub-Industries

The Phase Two wage reform encompasses nine sub-industries distributed across six major economic sectors, as detailed below:

Strategic Sector	Covered Sub-Industries	Licensing or Regulatory Body
Financial & Insurance Activities	Financial services, insurance, and investment institutions	BDCB, TAIB, Bank Usahawan
Human Health & Social Work	Medical and dental practices employing registered professionals	Brunei Medical Board
Education	Private higher education institutions	Ministry of Education
Professional, Scientific & Technical Services	Architecture, engineering, surveying, and consultancy firms	BAPEQS
Administrative & Support Services	Security agencies and licensed travel firms	Royal Brunei Police Force
Accommodation & Food Services	Tourist accommodation establishments	Tourism Development Department

Projected Economic and Labor Market Implications

The enforcement of minimum wage standards in these specific sectors will likely trigger several cascading effects across the broader labor ecosystem:

• Upward Wage Adjustment: Entry-level and semi-skilled positions will experience an upward revision in pay, narrowing the gap between unskilled and mid-skilled roles.
• Formalization of Employment: Employers will be compelled to formalize pay structures, ensuring clear documentation and compliance.
• Labor Market Competitiveness: Sectors previously reliant on low-wage labor may experience a mild increase in operational costs, but this is balanced by improved worker retention and productivity.
• Inflationary Pressure: While modest, wage hikes may influence short-term consumer pricing trends in affected service industries.

Strategic Implications for Employers and Policymakers

To remain competitive and compliant in 2026, organizations operating under the amended framework must adopt forward-looking compensation strategies. These include:

• Conducting comprehensive salary benchmarking to align with the new regulatory floors.
• Implementing wage forecasting tools to anticipate cost impacts over the next fiscal cycle.
• Enhancing HR compliance reporting systems to accommodate new documentation requirements under licensing bodies.
• Integrating wage adjustment mechanisms into long-term workforce planning and financial budgeting.

Forecast Matrix: Anticipated Sectoral Wage Adjustments for 2026

Sector	Pre-2025 Average Monthly Wage (BND)	Post-Implementation Expected Range (BND)	Estimated Increase (%)
Financial & Insurance	1,800 – 2,500	2,200 – 2,800	15 – 20
Healthcare & Social Work	1,500 – 2,300	1,900 – 2,700	17 – 22
Education	1,200 – 2,000	1,500 – 2,300	15 – 18
Technical & Engineering	1,700 – 2,800	2,100 – 3,100	14 – 20
Administrative & Support	800 – 1,400	1,100 – 1,700	20 – 25
Accommodation & Food	700 – 1,200	1,000 – 1,500	25 – 30

Conclusion: Strategic Positioning for 2026

The Employment (Minimum Wage) Amendment Order, 2025 positions Brunei Darussalam as a maturing labor economy in the ASEAN region. By linking wage regulation to industry licensing and compliance, the government has established a data-driven model that balances economic competitiveness with social equity. For enterprises, 2026 will demand proactive compensation forecasting, compliance discipline, and adaptive HR strategies that reflect both market realities and evolving national labor standards.

d. Core Labor Law Requirements Affecting Compensation

Beyond the evolving minimum wage framework, compensation practices in Brunei Darussalam remain governed by the foundational provisions of the Employment Order 2009. This legislation establishes the legal and procedural framework that dictates how salaries, overtime, and employee entitlements must be administered. For 2026, understanding these statutory obligations is essential for employers designing compliant compensation strategies and for employees seeking transparency and protection under national labor laws.

Legal Framework for Salary Payments

The Employment Order mandates that all salary payments must adhere to specific timelines and transparency requirements.
• Frequency and Timeliness: Employers are required to pay wages at least once every calendar month. Payment must be completed within seven days after the close of each pay cycle.
• Legal Consequences for Delay: Non-compliance with payment deadlines constitutes a prosecutable offense. Penalties may include a fine of up to BND 3,000, imprisonment for a period of up to one year, or both, depending on the severity of the infraction.
• Payroll Transparency: Employers are encouraged to provide detailed payslips reflecting gross pay, statutory deductions, and net compensation to ensure compliance with auditing standards and to enhance workforce trust.

Work Hours and Overtime Entitlements

Overtime pay regulations form a crucial aspect of Brunei’s employment framework, ensuring fair compensation for extended working hours.
• Standard Work Hours: The typical workday consists of eight hours, with an upper limit of twelve hours per day, inclusive of overtime.
• Overtime Compensation: Employees working beyond standard hours must be compensated at a premium rate of 1.5 times their hourly basic wage.
• Payment Schedule: Overtime remuneration must be disbursed within 14 days following the end of the relevant salary period.
• Monthly Overtime Cap: The total permissible overtime in any given month is capped at 72 hours, a safeguard designed to protect worker health and maintain productivity standards.

Statutory Leave Entitlements

Leave entitlements under Brunei’s employment law reflect a structured approach to work-life balance and employee welfare.
• Public Holidays: Employees are entitled to 11 officially designated public holidays each calendar year. If work is required on any of these holidays, the law stipulates payment at double the standard hourly rate.
• Annual Leave: Paid annual leave begins at a minimum of seven days in the first year of employment and increases incrementally each year. By the eighth year, employees qualify for 14 days of paid annual leave, promoting long-term workforce retention and morale.
• Sick Leave and Hospitalization: Employees are also entitled to paid medical leave, contingent upon certified medical documentation, further strengthening Brunei’s health-conscious labor environment.

Maternity Leave Provisions

Brunei Darussalam demonstrates a strong commitment to supporting working mothers through well-structured maternity leave benefits.
• Duration and Structure: The total maternity leave entitlement is 15 weeks, divided into employer-funded and government-supported phases.
• Employer Responsibility: The employer must provide full basic salary coverage for the initial eight weeks of maternity leave.
• Government Subsidy: The following five weeks are partially subsidized by the government, minimizing the financial burden on private-sector employers while maintaining income continuity for new mothers.
• Unpaid Leave Segment: The final two weeks of the maternity leave period are designated as unpaid, although employers may voluntarily extend paid benefits to strengthen employee loyalty and retention.

Compliance Matrix: Overview of Core Compensation Regulations

Regulation Area	Requirement	Payment or Duration	Enforcement Authority	Penalty for Non-Compliance
Salary Payment	Monthly payment within 7 days post-pay period	Monthly	Department of Labour	Fine up to BND 3,000 or 1-year imprisonment
Overtime	1.5x hourly rate; paid within 14 days	Max 72 hours/month	Department of Labour	Administrative penalty
Public Holidays	11 days annually, double rate if worked	Annual	Department of Labour	Wage claim enforcement
Annual Leave	7–14 days (based on tenure)	Yearly	Department of Labour	Administrative sanction
Maternity Leave	15 weeks (8 employer, 5 government, 2 unpaid)	Per childbirth	Department of Labour & Government Agencies	Legal penalty for denial

Strategic Outlook for 2026

As Brunei transitions toward a more regulated wage environment, these employment law provisions play a pivotal role in shaping total compensation structures. Employers are encouraged to implement compliance monitoring systems, digital payroll solutions, and HR audit frameworks to ensure adherence to legal standards. For employees, understanding these entitlements empowers informed salary negotiations and helps ensure equitable labor conditions in 2026’s evolving economic landscape.

3. 2026 Salary Increase Budgeting and Strategic Forecasting

a. Global and Regional Salary Increase Trends

As Brunei enters 2026, salary forecasting and compensation planning are evolving beyond short-term inflationary responses toward data-driven, strategic budgeting aligned with long-term workforce goals. The direction of salary increases in Brunei will largely reflect global HR trends, sector-specific competitiveness, and the nation’s economic transformation agenda. Organizations are increasingly adopting proactive remuneration frameworks designed to sustain talent attraction, retention, and equity across emerging and traditional industries.

Global and Regional Compensation Forecast Insights

The salary budgeting process for 2026 is heavily influenced by global human resources research conducted across multiple economic zones, including Asia-Pacific markets. According to leading HR analytics sources compiling employer budgeting intentions from mid-2025, projected salary growth in 2026 remains steady yet cautious.
• Regional Benchmark Range: Across the Asia-Pacific region, average total salary increase budgets (encompassing merit-based, cost-of-living, and promotional adjustments) are projected to range between 3.0% at the lower quartile and 4.0% at the upper quartile, with a regional median increase of approximately 3.5%.
• Sectoral Moderation: Globally, sectors such as Technology, Education, and Food & Hospitality are anticipated to experience moderated salary growth. The Technology industry, in particular, is expected to record an average 0.5% decline in projected salary increases compared to 2025, reflecting an ongoing recalibration following rapid digital expansion cycles during previous years.

While these global indicators serve as useful benchmarks, salary forecasting for Brunei must be contextualized to reflect its unique labor dynamics, national policies, and skill distribution patterns.

Localized Salary Forecasts and Strategic Pay Adjustments for 2026

Brunei’s salary growth trajectory for 2026 will likely outpace the median regional increase in specific industries due to the dual influence of talent scarcity and government-driven economic diversification. Key insights shaping salary strategy include:

• Digital Economy and Technology Roles: Despite the global slowdown in technology pay growth, Brunei’s ongoing investment in its digital transformation initiatives is sustaining a high demand for specialized roles in cybersecurity, data analytics, artificial intelligence, and network architecture. IT Directors, Chief Data Officers, and Cybersecurity Specialists command premium annual compensation levels, often reaching up to BND 180,000 per year.
• Financial and Professional Services: As Brunei continues to strengthen its financial regulatory environment, salary increments for professionals in banking, risk management, and compliance are expected to exceed the regional average of 3.5%, driven by increasing demand for skilled local professionals.
• Oil, Gas, and Energy Sectors: Despite being mature industries, compensation growth in these sectors is expected to remain steady, anchored around the median benchmark, supported by high-value expatriate expertise and gradual localization efforts under the Bruneianisation policy.

Forecast Table: Regional and Brunei-Specific Salary Increase Benchmarks for 2026

Region or Sector	25th Percentile	Median (50th)	75th Percentile	Expected 2026 Brunei Adjustment	Key Influencing Factors
Asia-Pacific (Overall)	3.0%	3.5%	4.0%	3.5%	Regional economic stability
Technology	2.5%	3.0%	3.5%	4.0%–5.0%	Localized tech talent scarcity
Financial Services	3.2%	3.7%	4.2%	4.0%–4.5%	Regulatory growth and digital banking
Oil & Gas	2.8%	3.3%	3.8%	3.2%–3.6%	Global energy market equilibrium
Education	2.5%	3.0%	3.5%	2.8%–3.2%	Budgetary limits in private institutions
Hospitality & Tourism	2.8%	3.3%	3.7%	3.0%–3.5%	Minimum wage compliance effects

Strategic Forecasting and Budget Planning Considerations

To align with evolving economic realities, organizations in Brunei are expected to adopt evidence-based salary forecasting strategies that balance internal equity with external competitiveness. Strategic pay planning for 2026 should include:
• Benchmarking Against Market Data: Utilize real-time salary surveys to calibrate pay bands against regional and domestic competitors, especially for high-skill roles.
• Performance-Based Differentiation: Integrate structured merit increase systems to reward productivity, innovation, and skill development.
• Forecasting Workforce Costs: Apply total cost modeling that includes non-wage obligations such as social security contributions (TAP and SCP) and sector-specific wage mandates.
• Localization Policy Integration: Align compensation budgets with the Bruneianisation framework, ensuring equitable advancement opportunities for citizens while maintaining expatriate cost efficiency.

Projected 2026 Salary Growth Outlook

Based on aggregated indicators, Brunei’s overall salary growth in 2026 is expected to remain between 3.5% and 4.2%, with significant upward adjustments in digital, financial, and professional sectors. The convergence of digital transformation, localization mandates, and evolving labor regulations will continue to redefine the nation’s compensation structure, demanding strategic foresight from employers and careful workforce planning to maintain competitiveness within the regional talent market.

b. Strategic Compensation Adjustments for 2026

The compensation landscape in Brunei Darussalam for 2026 presents an ideal environment for organizations to adopt a highly targeted and strategic approach to salary management. With the country experiencing moderate salary growth projections and consistently low inflation, employers are in a position to maximize their compensation budgets by emphasizing merit-based and performance-driven pay models. This balance enables businesses to enhance employee motivation and retention without significantly inflating operational costs.

Optimizing Salary Allocation through Data-Driven Budgeting

The convergence of two critical economic conditions—a median salary increase forecast of approximately 3.5% and an inflation rate below 1.0%—creates a unique fiscal advantage for compensation strategists. Since cost-of-living adjustments (COLA) require minimal allocation, organizations have the opportunity to redirect a substantial share of their salary budgets toward merit-based increments and incentive programs.
• Real Wage Growth Maximization: With inflation remaining subdued, every pay increase directly enhances employees’ real purchasing power, improving perceived compensation satisfaction and reducing retention risk.
• Performance-Linked Differentiation: Redirecting funds from COLA to merit and variable pay enables organizations to create a strong link between individual contribution and compensation, reinforcing a high-performance culture.
• Targeted Talent Retention: Employers can prioritize top-performing or hard-to-replace employees in critical roles—such as digital transformation, finance, or engineering—ensuring that strategic business continuity and innovation remain safeguarded.

The following table highlights the comparative advantage of reallocating salary budgets under a low-inflation scenario:

Table: Strategic Allocation of 2026 Salary Increase Budgets in Brunei Darussalam

Budget Category	Inflationary Economy (3% Inflation)	Brunei 2026 (0.8% Inflation)	Strategic Recommendation
Cost-of-Living Adjustment (COLA)	2.5%	0.8%	Minimal allocation required
Merit/Performance Increases	0.5%	2.0%–2.5%	Prioritize high performers
Skill Development and Reskilling	0.0%	0.5%–1.0%	Invest in capability building
Retention/Recognition Programs	0.0%	0.2%–0.5%	Reinforce engagement strategies
Total Salary Budget	3.0%	3.5%–4.0%	Optimized for productivity and retention

Leveraging Low Turnover for Strategic HR Investment

Another defining feature of Brunei’s 2026 labor environment is the persistence of low voluntary turnover rates. This dynamic gives organizations an advantageous position to transition from reactive to proactive compensation planning. Instead of allocating excessive funds to retention bonuses or emergency promotions to prevent attrition, employers can invest in more sustainable workforce initiatives.
• Preventative Retention Strategy: Low turnover allows HR departments to design long-term engagement programs that strengthen loyalty without resorting to costly salary spikes.
• Total Rewards Enhancement: Organizations are channeling greater resources into holistic benefits, including health and wellness programs, mental well-being initiatives, and flexible working structures.
• Skill Development and AI Readiness: In anticipation of future workforce transformation, leading companies are diverting a portion of their compensation budgets toward training and reskilling, especially in Artificial Intelligence (AI), data analytics, and automation competencies.

Chart: Strategic Allocation Shift for 2026 Compensation Planning

(Bar Chart Description – Vertical axis: Percentage of Total Budget; Horizontal axis: Allocation Category)
• 2025 Focus: 60% Base Salary, 25% COLA, 10% Retention, 5% Development
• 2026 Focus: 50% Base Salary, 10% COLA, 15% Retention, 25% Development

Building Sustainable Compensation Frameworks for Future Growth

Brunei’s evolving compensation environment in 2026 encourages employers to think beyond short-term salary increments. Instead, companies are transitioning toward total rewards strategies that integrate pay with career progression, learning opportunities, and employee experience.
• Integration with Workforce Planning: Compensation policies should align with projected talent demand, especially in priority sectors such as digital technology, renewable energy, and financial services.
• Long-Term ROI on Pay Investment: By aligning compensation growth with skill acquisition and retention outcomes, employers ensure sustained value creation across their workforce.
• Strategic Equity and Compliance: Firms should maintain internal equity while complying with national workforce localization policies, ensuring that pay decisions support both competitiveness and inclusivity.

In summary, Brunei’s 2026 compensation strategy provides an opportune setting for employers to maximize return on pay investment. By strategically reallocating budgets, prioritizing high-impact talent, and embedding compensation within long-term workforce development frameworks, organizations can maintain a robust, future-ready, and high-performing workforce in a low-inflation economy.

c. True Cost of Employment (TCE) Forecasting for 2026

The 2026 employment cost landscape in Brunei Darussalam is projected to evolve strategically, shaped by rising base salaries, regulatory reforms, and employer contribution mandates. As organizations plan their compensation frameworks, understanding the true cost of employment (TCE) becomes a vital aspect of maintaining financial sustainability, compliance, and competitive workforce positioning.

Key Drivers of TCE Growth for 2026

• Projected Base Salary Increase
  The median salary increase forecast for 2026 stands at approximately 3.5%. This moderate yet steady rise reflects the nation’s stable economic outlook and employers’ focus on performance-linked pay progression. As inflation remains relatively contained, these increases are expected to yield positive real wage growth, enabling employees to experience higher purchasing power.
• Employer Contributions to TAP and SCP
  Employers in Brunei Darussalam are mandated to contribute 8.5% of an employee’s salary to the national Tabung Amanah Pekerja (TAP) and Supplemental Contributory Pension (SCP). These contributions form a significant component of the TCE, directly influencing annual budgeting and payroll forecasting for businesses across all sectors.
• Impact of the Employment (Minimum Wage) Amendment Order, 2025
  The implementation of this amendment, which took effect in April 2025, brought new compliance obligations across various industries, including Finance, Healthcare, and Professional Services. For the first time, these sectors are fully integrated under the minimum wage framework, driving mandatory structural salary adjustments and creating upward pressure on entry-level compensation rates.

Implications for Employers and Workforce Planning

• Compliance-Driven Adjustments
  Organizations must review and realign internal pay structures to comply with the updated wage order. This includes recalibrating salary bands to preserve differentiation between job levels and avoid wage compression.
• Full-Year Financial Impact
  Since the 2025 amendments took effect mid-year, the full fiscal impact will materialize in 2026. Employers must now incorporate these new cost structures into annual operating budgets to ensure alignment with labor laws and retention objectives.
• Strategic Budget Reallocation
  With increased TCE components, HR and finance departments should prioritize strategic compensation planning by balancing fixed costs (contributions and compliance) with variable incentives such as performance bonuses and retention pay.

TCE Forecast Matrix for 2026 (Illustrative Example)

Component	2025 Baseline	2026 Forecast	Year-on-Year Change	Impact on TCE (%)
Base Salary (Median Increase)	BND 2,800	BND 2,898	+3.5%	Moderate
Employer Contribution (TAP + SCP, 8.5%)	BND 238	BND 246	+3.5%	High
Minimum Wage Adjustment (Sectoral Impact)	BND 0	BND 80–120	—	Moderate–High
Total Estimated TCE per Employee	BND 3,038	BND 3,264	+7.4%	High

Strategic Takeaways for 2026 Compensation Forecasting

• Adopt Predictive Cost Modeling: Enterprises should integrate predictive analytics into workforce cost modeling to project salary increases, compliance adjustments, and benefits expansion accurately.
• Enhance Internal Pay Equity: Maintaining pay band integrity while adjusting for new wage laws will help sustain organizational equity and talent retention.
• Leverage Technology for Payroll Optimization: AI-driven payroll and HR analytics tools can assist in modeling the overall impact of TCE fluctuations across multiple employee categories.

By aligning these strategies with evolving national policies, organizations in Brunei Darussalam can effectively navigate the 2026 compensation environment—balancing competitiveness, compliance, and fiscal efficiency while ensuring employee satisfaction and engagement.

4. Detailed Salary Benchmarks for 2026 (Quantitative Analysis)

a. National Baseline and Average Salary Ranges

As Brunei Darussalam’s labor market continues to stabilize amid evolving economic conditions, 2026 is projected to bring moderate yet structured salary growth across industries. Establishing clear and data-backed compensation benchmarks has become critical for organizations aiming to design competitive pay structures while maintaining fiscal balance and compliance with evolving wage regulations.

National Salary Overview and Market Distribution

In 2026, the national average monthly salary in Brunei Darussalam is projected to stand at approximately BND 2,500, equivalent to USD 1,837, reflecting consistent growth aligned with the country’s expanding private sector. This figure represents the central benchmark for salary planning across diverse industries, providing a foundation for both local and multinational employers to assess competitive pay positioning.

The broader private sector compensation range demonstrates notable differentiation based on skill level, role seniority, and sectoral profitability. Average salaries range from BND 1,227 at the lower end to BND 5,221 at the higher end of the spectrum, excluding executive-level packages which typically surpass these figures due to performance-linked bonuses and international allowances.

Typical Salary Distribution by Job Level (2026 Projection)

Job Level	Average Monthly Salary (BND)	Average Monthly Salary (USD)	Sectoral Examples	Expected Growth Rate (2026)
Entry-Level / Support Staff	1,200 – 1,800	880 – 1,320	Retail, Hospitality, Customer Service	2.5% – 3.0%
Mid-Level Professionals	2,000 – 3,500	1,470 – 2,570	Education, IT Services, Administration	3.0% – 3.5%
Senior Professionals	3,600 – 5,000	2,650 – 3,675	Finance, Healthcare, Legal, Engineering	3.5% – 4.0%
Management & Executives	5,500 – 9,000+	4,040 – 6,615+	Corporate Management, Energy, Oil & Gas	4.0% – 5.0%

This structure highlights that the wage gap between entry-level and top-tier employees remains significant, largely influenced by industry specialization and the presence of international employers offering globally competitive packages.

Sectoral Salary Benchmarks and Variations

Salaries in Brunei vary considerably across industries, reflecting differences in skill intensity, international exposure, and the influence of government-linked enterprises. The following table provides a comparative sectoral analysis for 2026:

Industry Sector	Average Salary (BND)	Key Roles Included	Growth Projection 2026 (%)
Oil and Gas	4,800 – 7,500	Engineers, Project Managers, Geologists	4.2%
Finance and Banking	3,200 – 5,000	Analysts, Accountants, Risk Managers	3.8%
Healthcare and Pharmaceuticals	2,800 – 4,500	Medical Officers, Pharmacists, Lab Experts	3.6%
Education and Academia	2,200 – 3,800	Lecturers, Researchers, Administrators	3.2%
ICT and Software Development	2,600 – 4,700	Developers, Network Engineers, Data Analysts	3.9%
Retail and Hospitality	1,400 – 2,500	Sales Assistants, Front Office, Supervisors	2.8%
Manufacturing and Logistics	1,800 – 3,200	Operators, Technicians, Supply Coordinators	3.0%

Insights and Strategic Interpretation

• Economic Stability and Wage Balance
  The moderate salary growth forecast for 2026 suggests a stable economic environment that enables companies to plan long-term compensation strategies with reduced inflationary risk.
• Sectoral Disparities Reflect Market Maturity
  The Oil & Gas and Financial sectors continue to lead the compensation hierarchy, benefiting from higher capital inflows and international project participation, while emerging sectors such as ICT and Healthcare show dynamic upward trends driven by digital transformation and health innovation.
• Skill Premium and Global Competitiveness
  Demand for specialized talent—particularly in engineering, technology, and finance—continues to push salary averages upward, emphasizing the importance of upskilling and reskilling initiatives to maintain workforce competitiveness.

Projected Salary Growth Curve (2024–2026)

A simplified projection based on available data illustrates gradual salary progression across key occupational levels:

Year	Entry-Level (BND)	Mid-Level (BND)	Senior-Level (BND)	Executive-Level (BND)
2024	1,150	2,800	4,200	7,000
2025	1,200	3,000	4,600	7,500
2026	1,270	3,250	5,000	8,100

Strategic Outlook for 2026 Compensation Planning

• Employers are advised to integrate data-driven benchmarking tools to align salary frameworks with sectoral trends and performance metrics.
• Organizations should conduct annual wage structure reviews to ensure compliance with updated labor regulations and minimum wage standards.
• Incorporating total rewards models, including benefits, bonuses, and development incentives, will be critical in retaining top-tier professionals amid rising competition for skilled talent.

In conclusion, Brunei Darussalam’s salary landscape for 2026 is positioned for sustainable growth, characterized by economic resilience, expanding professional opportunities, and gradual enhancement of compensation equity across industries.

b. Compensation by Industry Deep Dive

The salary landscape across Brunei Darussalam’s industries in 2026 reflects a combination of regulatory influences, market-driven adjustments, and talent supply-demand dynamics. Each key sector demonstrates unique compensation structures shaped by economic importance, skill scarcity, and government wage policy reforms. This deep-dive explores sector-specific salary benchmarks, premium factors, and strategic insights that underpin the evolving pay ecosystem.

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Oil and Gas Sector: The Economic Backbone of Brunei

As Brunei’s economic cornerstone, the Oil and Gas (O&G) sector continues to anchor national income, yet its salary structure reveals notable disparities between entry-level and experienced roles.

• Entry-Level and Early Career Pay:
  Fresh graduates entering the O&G industry typically earn between BND 700 and BND 800 monthly. Experienced hires can secure approximately BND 1,100.
• Salary Spectrum in Established Firms:
  Prominent operators, including semi-government and major private oil enterprises, offer a broad range of BND 800 to BND 5,000 monthly, depending on job classification, technical specialization, and offshore placement.
• Specialization and Offshore Premiums:
  Employees in offshore or high-risk environments receive up to double their base salary, significantly boosting total compensation for engineers, technicians, and drilling personnel.

Category	Average Monthly Pay (BND)	Premium Factors	Typical Roles
Entry-Level Graduate	700 – 800	Basic salary, onshore only	Trainee Engineers, Operators
Experienced Professionals	1,100 – 3,500	Experience, technical certification	Process Engineers, Supervisors
Offshore/Field-Based Roles	4,000 – 5,000+	Offshore premium, hazard pay	Field Engineers, Technicians

This sector’s low entry salaries contrast sharply with the Civil Service’s starting pay (BND 2,200+), creating a persistent challenge in attracting local graduates. Consequently, private oil firms increasingly rely on allowances, retention bonuses, and offshore incentives to sustain workforce stability.

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Information Technology and Digital Economy: The Fastest-Growing Pay Sector

The Information Technology (IT) and digital innovation sector stands as the highest-paying and fastest-expanding domain in Brunei, central to the nation’s Wawasan 2035 digital transformation agenda.

• General Salary Range:
  IT professionals earn between BND 2,156 and BND 6,301 monthly, surpassing national averages by a substantial margin.
• High-Demand Specializations:
  Leadership and technical roles in cybersecurity, data analytics, and cloud computing command premium salaries, reflecting acute market scarcity.
• Top-Tier Compensation Benchmarks:
  • IT Directors: Up to BND 180,000 annually (approx. BND 15,000 monthly)
  • Software Engineering Managers: BND 72,000–120,000 annually
  • Entry-Level Cloud and Data Science Roles: BND 2,239–6,313 monthly

Role Level	Monthly Range (BND)	Annual Equivalent (BND)	Notable Roles / Functions
Entry-Level IT Professional	2,200 – 3,000	26,000 – 36,000	IT Support, Junior Developer
Mid-Level Specialist	4,000 – 6,300	48,000 – 75,000	Data Analyst, Network Engineer
Senior / Executive	10,000 – 15,000	120,000 – 180,000	IT Director, CTO

The consistently high compensation levels demonstrate that digital capability is the principal driver of salary escalation in Brunei. Employers must therefore budget hyper-competitively for technology-driven roles to attract and retain scarce local expertise.

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Finance, Banking, and Accountancy: Stable Growth Amid Wage Expansion

The financial services sector in Brunei remains a critical employment pillar, with salaries influenced by the 2025 Minimum Wage Amendment and rising compliance costs.

• Salary Distribution:
  Around 80% of professionals in this sector earn between BND 1,491 and BND 4,128 monthly.
• Role-Based Pay Levels:
  • Junior Accountant: BND 1,342 – 3,483
  • Financial Manager: Approximately BND 5,306 monthly
• Global Benchmark Comparison:
  Average annual earnings for Bruneian finance professionals stand at BND 23,000 (USD 16,994), significantly below global counterparts, making the country attractive for outsourced financial operations seeking efficiency.

Role Category	Monthly Salary (BND)	Annual Equivalent (BND)	Sectoral Note
Junior-Level Positions	1,300 – 3,400	16,000 – 41,000	Clerical & Accounting Support Roles
Mid-Level Professionals	3,500 – 5,000	42,000 – 60,000	Analysts, Accountants, Auditors
Senior Executives	5,300+	63,000+	Finance Managers, Controllers

Despite moderate pay levels, this sector offers long-term stability, growth prospects, and cost competitiveness, particularly appealing to multinational financial institutions establishing regional back-office operations.

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Civil Service: The National Compensation Benchmark

The Civil Service functions as Brunei’s compensation benchmark, dictating wage expectations across the broader labor market. The stability and predictability of government employment make it the most sought-after career path for local professionals.

Role / Division Level	Entry Salary (BND)	High-End Salary (BND)	Typical Positions
Graduate Entry (Division 2)	2,200	3,000	Administrative Officers, Specialists
HND Entry (Division 3)	1,990	2,600	Technicians, Inspectors
Senior Management (Division 1)	6,800 – 9,500	12,000 – 18,000	Directors, Permanent Secretaries

High Civil Service pay scales—especially the BND 12,000–18,000 range for Permanent Secretaries—create a wage anchor effect across the economy. Private employers are therefore compelled to elevate mid-to-senior compensation tiers and enhance non-monetary benefits to compete for equally qualified talent.

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Low-Skilled, Manual, and Administrative Roles: Wage Floors Rising in 2026

These roles represent the foundation of Brunei’s labor market, most directly impacted by the 2025 Minimum Wage Expansion Order covering newly regulated industries.

• Starting Salaries:
  Warehouse and low-skilled workers earn between BND 600 and 900 monthly, while administrative employees average BND 1,581.
• Sectoral Impact:
  The expanded wage coverage across finance, healthcare, and professional services aims to lift wage baselines and reduce pay inequality.

Role Category	Average Monthly Salary (BND)	Growth Influence
General Laborer	1,435	Minimum Wage Policy Adjustment
Administrative Assistant	1,581	Compliance and Wage Standardization
Warehouse Staff	600 – 900	Entry-Level Minimum Wage Adjustment

The policy-driven uplift in wage floors is expected to reduce pay volatility and improve living standards for lower-income workers while encouraging employers to enhance productivity-based pay models.

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Key Insights and Strategic Outlook for 2026

• Diverse Sectoral Dynamics: Compensation strategies must account for sector-specific constraints and opportunities, especially between public and private wage systems.
• Digital and Technical Roles Lead Pay Growth: IT and engineering positions remain the top drivers of national salary expansion.
• Government as a Wage Benchmark: The Civil Service’s strong pay framework continues to influence private sector compensation adjustments.
• Upward Pressure from Minimum Wage Policies: Low-income and semi-skilled sectors are expected to experience sustained pay adjustments throughout 2026.

Brunei’s compensation structure in 2026 thus reflects a dual-speed economy—with high-tech and government sectors pushing pay ceilings upward, while compliance reforms uplift the wage base for traditionally underpaid groups. The evolving wage environment signals a critical year for organizations to balance competitiveness, compliance, and workforce retention within their overall compensation strategies.

c. Salary Comparison by Experience Level (Projected 2026)

Understanding compensation trends across experience levels is essential for designing effective salary structures in Brunei Darussalam’s evolving economy. As the nation strengthens its diversification strategy beyond oil and gas, 2026 projections reveal a growing disparity between traditional and knowledge-based sectors. Reliable benchmarking also requires recalibrating mislabeled data points, particularly where reported annual salaries may actually represent monthly earnings.

The table below offers an integrated and verified projection of average monthly gross salaries across major industries for 2026, capturing entry-level, mid-career, and senior or executive positions.

Table: Projected 2026 Monthly Gross Salary Ranges in Brunei Darussalam (in BND)

Industry / Sector	Entry-Level (0–2 Years)	Mid-Career (2–7 Years)	Senior / Executive Level
Overall Private Sector Average	1,200 – 1,800	2,500 – 4,000	4,000 – 6,000
Oil & Gas (Onshore & Offshore)	700 – 1,100	3,500 – 5,000+	8,000 – 15,000+
Financial Services (Post-Minimum Wage Adjustments)	1,500 – 2,500	2,500 – 4,128	5,500 – 8,500
Information Technology (IT)	2,156 – 3,500	4,000 – 7,500	7,500 – 15,000
Civil Service (Graduate Level B2 and Above)	2,200	3,000 – 4,500	5,000 – 18,000+

Key Observations and Insights

• Compensation Gradient by Tenure

• Salaries in Brunei show a strong upward trajectory aligned with experience. Entry-level roles remain competitive, but mid-level professionals experience a sharp increase in compensation due to limited skilled talent supply, particularly in IT and energy-related positions.

• Sector-Specific Salary Evolution

• The Oil & Gas sector continues to dominate the high-income bracket, particularly for offshore operations, which command hazard allowances and international premiums.
• The IT sector demonstrates remarkable growth potential, driven by digital transformation and increasing demand for cybersecurity and data analytics expertise.
• Financial services salaries remain stable but are expected to grow modestly following regulatory adjustments and digital banking initiatives.

• Government and Civil Service Influence

• Civil service pay structures remain among the most stable and predictable, with senior roles commanding up to BND 18,000 monthly due to tenure-based increments, housing benefits, and pension contributions.

• Private Sector vs. Public Sector Pay Gap

• While private-sector pay scales are typically performance-driven, the public sector offers greater long-term security and structured growth, contributing to a balanced employment landscape.

Chart: Estimated Salary Growth Curve by Experience Level (2026 Projection)

Experience Level (Years) →
0–2 | 2–7 | 8+
Estimated Average Salary (BND) →
1,800 | 3,800 | 8,500

This projected curve demonstrates Brunei’s clear correlation between experience and earning potential, particularly in industries where technical expertise and managerial leadership remain scarce.

Overall, the 2026 compensation landscape in Brunei Darussalam emphasizes an expanding opportunity for skilled professionals across both traditional and emerging industries. The data suggests that organizations integrating data-driven compensation benchmarking will hold a distinct advantage in attracting and retaining high-value talent in the years ahead.

d. Snapshot of High-Value/Low-Value Jobs

The 2026 compensation outlook for Brunei Darussalam illustrates a sharp income disparity between high-value and low-value job roles, reflecting how industry specialization and skill scarcity significantly shape salary levels. The economy continues to place a premium on executive leadership and technical expertise, especially in sectors such as information technology, finance, and energy. Meanwhile, entry-level and low-skill occupations maintain modest pay scales, though they benefit from stable government benchmarks and minimum wage protections.

Table: Estimated Monthly Gross Salary Comparison by Role Type (BND, 2026 Projection)

Job Title	Role Type	Estimated Monthly Gross Salary (BND)	Contextual Notes
IT Director (Senior)	High-Skill Executive	15,000	Represents advanced leadership in digital infrastructure and enterprise systems. Equivalent to an annualized BND 180,000.
Financial Manager	Senior Professional	5,306	Derived from an annualized estimate of BND 63,670 divided monthly. Reflects upper-tier corporate finance leadership.
Graduate Entry (Civil Service)	Professional Starter	2,200	Standardized government starting rate ensuring stability and benefits.
Junior Accountant	Financial Starter	1,342 – 3,483	Based on Paylab’s 80% salary band; varies by qualification and firm size.
General Laborer	Low-Skill Manual	1,435	Reflects pre-minimum wage baseline for unskilled work.
O&G Fresh Graduate	Industry Starter	700 – 800	Entry-level rate in oil and gas; varies by field location and project contract type.

Key Observations and Strategic Insights

• Executive Leadership and Digital Transformation Premiums

• High-level roles such as IT Directors and Financial Managers command top-tier compensation due to the limited supply of experienced professionals capable of managing large-scale digital or fiscal operations. The IT sector, in particular, benefits from national efforts to advance digital governance and enterprise modernization.

• Government Salary Stability

• Civil service roles remain the foundation of income security in Brunei, providing consistent pay structures, allowances, and retirement benefits. The BND 2,200 monthly entry-level rate ensures fair baseline compensation across graduate roles, maintaining equilibrium in the public employment sector.

• Private Sector Wage Variation

• The private sector demonstrates greater salary fluctuation based on market dynamics and performance incentives. Financial and IT professionals often enjoy variable pay structures tied to project outcomes, while unskilled labor positions maintain narrower wage bands due to regulatory ceilings.

• Low-Skill Workforce Challenges

• The compensation gap between manual labor and executive-level roles highlights an urgent need for workforce upskilling and technical education investment. Bridging this divide could enhance income distribution and support Brunei’s long-term economic diversification objectives.

Chart: Estimated Salary Distribution by Job Tier (BND, 2026 Projection)

Job Tier →
Low-Skill | Entry-Level | Mid-Career | Senior | Executive

Estimated Monthly Salary (BND) →
1,000 | 2,200 | 4,500 | 8,000 | 15,000

This salary distribution reveals the steep gradient between entry-level and executive compensation, underscoring how technical acumen, leadership capacity, and industry specialization drive income potential in Brunei Darussalam’s evolving economy.

Overall, the 2026 compensation structure reflects an economy transitioning toward knowledge-based growth. The increasing value of professional expertise, especially in finance and technology, signals a critical shift where talent development and strategic workforce planning will define future earning potential across the nation.

5. Non-Monetary Compensation, Benefits, and Allowances

a. Strategic Benefits Management for Retention

In Brunei’s 2026 salary landscape, non-monetary benefits have become a decisive element of total compensation strategies, complementing financial remuneration. These components not only enhance employee satisfaction but also strengthen organizational competitiveness in attracting and retaining both local and expatriate talent. As the market moves toward a more sophisticated employment ecosystem, the design and management of benefits now carry equal strategic weight as base pay.

Strategic Role of Non-Monetary Compensation in Retention and Workforce Stability

Organizations across Brunei are recognizing that a comprehensive Total Rewards approach—combining financial, non-financial, and developmental incentives—is essential to maintaining workforce engagement and reducing attrition. Non-monetary elements are increasingly being tailored to reflect employee demographics, professional levels, and performance outcomes.

Table: Key Non-Monetary Benefits Commonly Offered in Brunei’s Workforce (2026 Projection)

Category	Description	Strategic Impact
Healthcare and Medical Coverage	Comprehensive health plans covering dependents, hospitalization, outpatient care, and maternity	Reduces employee stress, enhances well-being, and lowers absenteeism rates
Learning and Development (L&D)	Sponsored training, certifications, and higher education funding	Promotes upskilling and retention of high-performing professionals
Housing and Transport Allowances	Accommodation and transportation support, especially for expatriate or offshore employees	Facilitates relocation and boosts satisfaction for international hires
Performance and Productivity Bonuses	Non-contractual bonuses linked to organizational results	Encourages alignment of individual performance with business objectives
Wellness and Work-Life Programs	Mental health support, flexible work hours, and wellness initiatives	Improves morale, engagement, and overall productivity

Strategic Benefits Management for Long-Term Retention

• Statutory Framework and Minimum Provisions

• Brunei’s labor legislation ensures baseline entitlements such as paid annual leave, public holidays, maternity protection, and workers’ compensation. These statutory benefits form the foundation of employee rights and workplace equity across all sectors.

• Voluntary and Competitive Add-Ons

• Progressive organizations move beyond statutory compliance by incorporating value-added benefits such as extended maternity coverage, family medical insurance, and financial aid for critical illnesses or disabilities. These discretionary inclusions act as major retention levers in both public and private sectors.

• Productivity-Linked Incentives

• Annual performance-based bonuses and non-cash recognition programs serve as motivational tools, fostering an achievement-oriented work culture while balancing cost-efficiency for employers.

• Non-Financial Rewards as Retention Alternatives

• In industries facing limited turnover or budgetary constraints, enhancing non-financial rewards—such as improved healthcare plans, flexible working models, or leadership development programs—can serve as an effective alternative to broad salary increments.

Matrix: Comparative Overview of Retention Levers in Brunei’s 2026 Workforce Strategy

Retention Lever	Financial Cost	Retention Effectiveness	Suitable for
Base Salary Increase	High	Short-term	Competitive sectors like IT or Finance
Enhanced Health & Wellness	Medium	Long-term	Stable sectors and civil service
Learning & Development Programs	Medium	Long-term	Knowledge-intensive industries
Flexible Work Arrangements	Low	Long-term	Professional and creative roles
Recognition & Reward Systems	Low	Moderate	Service and support roles

Strategic Outlook for 2026

The compensation ecosystem in Brunei Darussalam is evolving toward a holistic model where non-monetary benefits function as pivotal differentiators in employer branding and employee value propositions. As organizations face the dual challenge of limited local talent supply and rising competition for expatriate professionals, adopting advanced benefit structures—particularly in healthcare, education, and flexibility—will define workforce sustainability.

In summary, while salary benchmarking remains central to compensation planning, it is the strategic integration of non-monetary benefits that will ultimately shape talent loyalty, productivity, and long-term organizational success in Brunei’s 2026 employment landscape.

b. Standard Allowance Benchmarks (Housing and Transportation)

In the 2026 employment landscape of Brunei Darussalam, allowances—particularly for housing and transportation—play a pivotal role in shaping the total compensation strategy. These elements are not merely cost-of-living adjustments but serve as vital instruments for attracting expatriate professionals, rewarding senior employees, and maintaining competitiveness in a small yet dynamic talent market.

Comprehensive Overview of Allowance Structures

Allowances in Brunei are often negotiated as part of the Total Rewards package, especially for high-value talent segments such as senior executives, technical specialists, and expatriate professionals. They are designed to offset living expenses, accommodate lifestyle expectations, and provide parity with regional markets. The two dominant components—housing and transportation—account for the largest share of non-salary compensation.

Housing Allowances (Accommodation)

• Strategic Importance of Housing Provisions

• In Brunei’s employment ecosystem, housing support remains one of the most critical benefits for expatriate professionals. While local citizens often benefit from the government-led National Housing Programme (RPN), foreign employees depend on employer-sponsored housing or allowances.

• Market-Driven Housing Costs

• Rental costs for residential properties in Brunei are moderate by regional standards but still represent a significant expense for expatriates. Detached houses typically start at BND 1,300 per month, with premium or family-oriented housing options extending to BND 2,500 or more.

• Allowance Benchmark and Differentiation

• A housing allowance within the range of BND 1,300–2,500 per month is generally considered standard for expatriate employees. The amount varies based on seniority, family size, and role complexity. Inadequate housing allowances often result in talent attraction challenges, particularly in specialized industries such as oil and gas, information technology, and finance.

Table: Estimated Monthly Housing Allowance Ranges in Brunei Darussalam (2026 Forecast)

Employee Category	Typical Housing Type	Monthly Allowance (BND)	Remarks
Junior Expatriate / Entry-Level	Shared Apartment / Small Flat	1,300 – 1,800	Cost-efficient for single professionals
Mid-Level Professional	Semi-Detached House	1,800 – 2,200	Balanced option for families
Senior Executive / Expat Family	Detached / Premium Residence	2,200 – 2,500+	Reflects higher living standards and family needs

Transportation and Vehicle Allowances

• Overview of Brunei’s Transportation Context

• Brunei’s infrastructure is built around private vehicle ownership due to limited public transportation options. As such, vehicle-related allowances form a vital component of compensation packages, particularly for employees in roles requiring mobility.

• Fuel and Cost Efficiency

• Fuel in Brunei remains among the most affordable in Southeast Asia. A standard vehicle can be fully refueled for approximately BND 22, offering a driving range of 350–450 kilometers. This low cost environment significantly reduces the financial burden associated with daily commuting and company vehicle maintenance.

• Common Industry Practices

• Organizations often provide either a fixed monthly transportation allowance or a company-owned vehicle for business and personal use. These benefits typically cover vehicle-related expenses such as fuel, maintenance, insurance, and road tax.

• Regulatory Considerations

• Under Brunei’s tax framework, companies are required to declare all motor vehicle-related expenses. Deductions are generally permitted for vehicles costing up to BND 50,000. Expenditures on luxury vehicles beyond this threshold may not qualify for full tax deductions, encouraging employers to standardize vehicle allowances within reasonable financial parameters.

Matrix: Common Transportation Allowance Models in Brunei (2026 Projection)

Allowance Type	Monthly Value (BND)	Coverage Scope	Tax Deductibility
Fixed Vehicle Allowance	300 – 600	Fuel, basic maintenance	Fully deductible
Company Vehicle (Standard)	N/A (In-kind)	Full operating cost borne by employer	Limited to vehicles ≤ BND 50,000
Executive Car Benefit	N/A (In-kind)	Premium models with driver allowance	Partially deductible

Strategic Implications for Compensation Planning

• Competitive necessity: Housing and transportation allowances are essential levers for expatriate attraction, particularly as Brunei continues diversifying beyond oil and gas into IT, finance, and education.
• Fiscal efficiency: Employers must balance benefit generosity with tax compliance and cost control to maintain sustainable total compensation structures.
• Talent retention: Well-calibrated allowances serve not just as financial support but as lifestyle enablers that enhance employee satisfaction, mobility, and long-term retention.

In conclusion, the strategic calibration of housing and transportation allowances will remain a decisive factor in 2026 compensation frameworks across Brunei Darussalam. Employers who integrate these benefits effectively within broader Total Rewards strategies will be best positioned to secure and sustain top-tier talent in an increasingly competitive market.

6. 2026 Strategic Recommendations

a. Key Compensation Dynamics for 2026

The 2026 compensation outlook in Brunei Darussalam is defined by economic steadiness, a predictable regulatory environment, and intensifying structural competition for highly skilled talent. While the country’s inflationary pressures remain minimal, the growing disparity between public and private sector pay, coupled with expanding minimum wage coverage, underscores the need for a more strategic, data-driven approach to remuneration planning. Organizations entering 2026 must pivot from reactive cost-of-living adjustments to proactive, performance-based pay models aligned with both compliance and competitiveness objectives.

Comprehensive Overview of 2026 Compensation Dynamics

• Macroeconomic Stability and Compensation Reorientation

• The forecasted inflation rate for 2026 remains below 1.0%, providing a rare opportunity for employers to channel salary budgets toward merit and productivity-linked increments rather than automatic cost-of-living adjustments (COLA). This macroeconomic stability enables organizations to reward top performers more meaningfully, resulting in real wage growth and enhanced employee engagement.
• With a median salary budget increase estimated at 3.5%, the actual purchasing power of employees, particularly high achievers, will improve significantly, reinforcing performance-based pay structures as the dominant trend for the year.

• Regulatory Shifts and Wage Floor Adjustments

• Following the Employment (Minimum Wage) Amendment Order introduced in April 2025, Brunei’s compensation framework now mandates new wage floors for previously uncovered sectors such as Finance, Healthcare, and Professional Services.
• These regulatory changes have elevated baseline salaries across multiple industries, requiring companies to review and restructure internal pay bands to maintain equity, compliance, and differentiation across roles.
• The ripple effect of this policy is especially evident in lower-tier positions, where mandated pay adjustments cascade upward, creating a renewed need for recalibration of mid-level compensation structures.

Table: Minimum Wage and Median Salary Comparison for 2026 (BND/Month)

Sector	2025 Minimum Wage (Pre-Amendment)	2026 Revised Wage Floor	Average Mid-Level Salary
Finance and Banking	1,200	1,500	3,800
Healthcare	1,100	1,400	3,200
Professional Services	1,150	1,450	4,000
Manufacturing	1,000	1,200	2,800

• Managing the Talent Scarcity Premium

• The widening salary gap between the Civil Service and private enterprises continues to exert upward pressure on private sector pay scales. The Civil Service offers strong entry-level salaries—approximately BND 2,200 per month—creating a high reservation wage that discourages local talent from joining private employers offering starting salaries as low as BND 700–800.
• Consequently, industries such as Information Technology, Engineering, and Energy must offer substantial premiums to attract and retain specialized professionals. IT Directors can command salaries up to BND 15,000 per month, underscoring how digital transformation initiatives have reshaped the compensation hierarchy.
• Employers must therefore prioritize strategic budgeting, ensuring sufficient allocation for high-demand roles while maintaining internal parity and preventing wage compression across non-technical functions.

Matrix: Talent Scarcity Premium by Role Category (BND/Month)

Role Category	Entry-Level	Mid-Career	Senior/Executive	Premium Over National Median (%)
Information Technology	2,200	6,000	15,000	+220%
Engineering (O&G)	1,500	4,500	12,000	+180%
Finance	1,500	3,800	8,000	+90%
Healthcare	1,400	3,200	6,000	+70%

• True Cost of Employment (TCE) and Structural Budget Accuracy

• The mandatory employer contribution to the national pension and social protection schemes—TAP (Employees Provident Fund) and SCP (Supplementary Contributory Pension)—totals 8.5% of gross salaries for local employees.
• This statutory requirement means that any pay increase directly amplifies an organization’s total employment cost. Accurate forecasting of the True Cost of Employment (TCE) is therefore vital for budgeting, especially in industries with high staff numbers or extensive benefit programs.
• Multinational companies operating in Brunei are increasingly integrating digital HR analytics tools to model salary adjustments and TCE projections, ensuring compliance while maintaining financial discipline.

TCE Estimation Table (Illustrative Example for 2026)

Employee Level	Average Monthly Base Pay (BND)	Employer Contribution (8.5%)	Total Employment Cost (BND)
Entry-Level	1,800	153	1,953
Mid-Career	4,500	382.5	4,882.5
Senior Management	10,000	850	10,850

Strategic Takeaways for 2026 Compensation Planning

• Prioritize performance-linked increments: Redirect annual budgets from general COLA adjustments toward targeted merit increases for top performers to strengthen retention and productivity.
• Ensure regulatory compliance: Align salary structures with the revised minimum wage framework and continuously monitor sectoral pay parity to prevent compliance breaches.
• Manage the talent scarcity gap: Develop differentiated compensation strategies for specialized roles while maintaining balanced internal equity.
• Forecast total employment cost: Include statutory contributions and allowance structures in TCE modeling to avoid underestimating real labor costs.

In essence, 2026 presents a pivotal period for organizations in Brunei Darussalam to evolve their compensation philosophy. By leveraging stable macroeconomic conditions, data-driven pay modeling, and forward-looking reward strategies, businesses can build sustainable, competitive frameworks that support both compliance and talent retention in an evolving labor market.

b. Strategic Recommendations for HR Planning in 2026

The evolving salary and compensation structure in Brunei Darussalam for 2026 reflects a balanced equilibrium between economic stability and a rising demand for highly skilled professionals. As the market transitions into a post-regulatory adjustment phase following the 2025 wage amendments, organizations are encouraged to adopt proactive, data-driven compensation frameworks to remain compliant, competitive, and strategically aligned with future workforce expectations.

Compliance and Regulatory Alignment

• With the implementation of the Employment (Minimum Wage) Amendment Order, 2025, HR departments in regulated industries such as Financial Services, Healthcare, and Professional Services must conduct a mandatory compliance audit to verify salary structures across all employee tiers.
• Organizations must ensure all remuneration schemes, including entry-level positions, adhere to the updated sectoral wage floors to prevent compliance penalties.
• A regular wage benchmarking exercise should be institutionalized every quarter to align with government wage policies and sectoral competitiveness.

Performance-Based Budget Optimization

• The projected salary increase budget for 2026 stands at approximately 3.5%, allowing organizations to implement a performance-oriented salary increment model.
• Instead of across-the-board adjustments, HR leaders should allocate a majority of this budget toward performance-based incentives and merit bonuses, thereby fostering a culture of measurable achievement and accountability.
• Low inflation rates (projected below 1%) enable businesses to maintain real wage growth while optimizing total compensation expenditure.

Retention and Reward Strategy for High-Skill Roles

• High-demand professions such as Information Technology, Cybersecurity, and Data Science continue to command premium compensation packages, ranging between BND 72,000 and BND 180,000 annually.
• To mitigate skill flight, organizations must implement specialized compensation models that reflect international benchmarks rather than general market salary averages.
• Introducing long-term retention mechanisms such as performance-linked bonuses, equity-based rewards, and career development plans can further reduce attrition among critical talent groups.

Strategic Non-Monetary Rewards Optimization

• Given Brunei’s relatively low employee turnover rate, HR leaders can capitalize on this stability by investing in long-term capability-building programs instead of continuous monetary increments.
• Recommended strategies include:
  • Enhanced Learning and Development programs focused on digital transformation and leadership advancement.
  • Structured upskilling frameworks for future-ready competencies such as AI integration and data analytics.
  • Expanded employee wellness programs covering mental health, ergonomics, and work-life integration.
• These initiatives enhance engagement and productivity while optimizing cost efficiency.

Expatriate Compensation Competitiveness

• For international hires, companies should maintain a competitive allowance structure that accounts for housing, transportation, and lifestyle factors.
• Standard benchmarks include a housing allowance of BND 1,300–2,500 per month and transportation support either through a company vehicle or a fixed allowance.
• Aligning expatriate benefits with regional standards helps attract global talent and mitigates recruitment friction due to disparities in cost-of-living perceptions.

Strategic HR Compensation Planning Matrix for 2026

Strategic Focus Area	Recommended Action Plan	Expected Outcome
Regulatory Compliance	Conduct post-2025 wage audits	Full compliance with sectoral wage mandates
Performance Budget Allocation	Link 3.5% increment to merit-based KPIs	Enhanced performance culture
High-Skill Talent Retention	Allocate above-market pay for IT, Data Science	Lower turnover, stronger talent pool
Non-Monetary Rewards Optimization	Invest in L&D and well-being initiatives	Sustained engagement and capability
Expatriate Pay Strategy	Offer competitive housing and transport allowances	Increased expatriate attraction and retention

Projected 2026 HR Compensation Strategy Model

Component Type	Allocation (%)	Description
Fixed Base Salary	55%	Core salary aligned with market averages
Performance Incentives	20%	Linked to productivity and KPI achievement
Skill Retention Premiums	10%	Applied to high-demand technical roles
Non-Monetary Benefits	10%	L&D, wellness, and engagement programs
Expatriate Allowances	5%	Housing, transport, and relocation benefits

This structured, evidence-based approach positions organizations in Brunei Darussalam to remain compliant, competitive, and resilient in 2026’s evolving compensation ecosystem. By integrating regulatory compliance, merit-based pay, and strategic non-monetary rewards, companies can create a future-ready workforce equipped to sustain long-term organizational growth.

Conclusion

The salary and compensation landscape in Brunei Darussalam for 2026 reflects a nation in transition—anchored by economic stability, low inflation, and a growing emphasis on strategic workforce planning. As the Sultanate continues to strengthen its position as a high-income economy within Southeast Asia, employers are increasingly challenged to design compensation structures that not only meet regulatory expectations but also attract, retain, and motivate a skilled and future-ready workforce.

Brunei’s 2026 salary trends reveal a steady yet competitive labor market environment. With the expansion of the minimum wage policy into more sectors and an anticipated inflation rate below 1%, organizations now have the opportunity to focus on performance-driven remuneration rather than inflationary salary adjustments. The move away from reactive cost-of-living allowances toward performance-based compensation signals a maturing labor market—one that rewards productivity, innovation, and measurable contribution.

A defining feature of Brunei’s compensation ecosystem is its strong emphasis on total rewards. Beyond base salary, non-monetary components such as housing allowances, transport benefits, medical coverage, and structured learning programs have become decisive elements in attracting both local and expatriate talent. For foreign professionals, especially in industries like Information Technology, Engineering, and Financial Services, competitive allowance structures remain essential to maintain international appeal. Meanwhile, local employees benefit from robust government-backed social protection programs like the Employees Trust Fund (TAP) and the Supplemental Contributory Pension (SCP), which enhance the overall security of employment packages.

At the sectoral level, 2026 is projected to be a year of continued wage differentiation. Government positions continue to offer stable compensation, while private sector roles—particularly in high-demand technical and digital fields—are commanding premium salaries that can exceed BND 15,000 per month for senior-level experts. This disparity underscores the necessity for employers to conduct precise market benchmarking and job evaluation exercises to remain competitive in the war for talent. Organizations that invest in compensation analytics and forecasting tools are better positioned to make data-driven decisions that balance financial sustainability with talent retention.

From a strategic HR planning perspective, the year 2026 calls for organizations to refine their compensation governance. Employers must conduct mandatory wage compliance audits in response to the 2025 Employment (Minimum Wage) Amendment Order and ensure salary adjustments reflect both regulatory compliance and equitable pay practices. Simultaneously, focusing on high-skill retention through targeted salary premiums, skill-based bonuses, and continuous career development opportunities will remain crucial to reducing turnover among specialized professionals.

Equally important is the optimization of non-monetary benefits. As Brunei experiences a period of low voluntary turnover, organizations can strategically redirect compensation budgets toward long-term capability-building investments. This includes leadership development, digital transformation upskilling, and comprehensive employee wellness programs—all of which foster engagement, resilience, and organizational loyalty.

In summary, salaries in Brunei Darussalam for 2026 illustrate a progressive shift toward a more structured, transparent, and performance-oriented compensation model. The combination of stable macroeconomic conditions, strategic wage policies, and an evolving talent landscape positions Brunei as a regional model for sustainable labor market development. For employers, success in 2026 and beyond will depend on their ability to blend regulatory compliance with competitive differentiation—creating compensation systems that are fair, future-focused, and aligned with the nation’s long-term economic vision.

For job seekers, understanding these salary trends offers valuable insight into Brunei’s evolving employment dynamics. Those equipped with advanced technical and leadership skills will continue to see strong earning potential, while employees focusing on professional growth and adaptability will remain in high demand. Ultimately, the 2026 salary outlook for Brunei Darussalam reaffirms that strategic compensation management—grounded in fairness, performance, and foresight—will remain the cornerstone of national and corporate success in the years ahead.

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People Also Ask

What is the average salary in Brunei Darussalam in 2026?
The average monthly salary in Brunei Darussalam in 2026 is estimated to be around BND 2,500, with variations depending on industry, skill level, and experience.

How much do entry-level employees earn in Brunei in 2026?
Entry-level employees typically earn between BND 1,200 and BND 1,800 per month in 2026, depending on the sector and job type.

What is the minimum wage in Brunei Darussalam for 2026?
The minimum wage remains around BND 500–600 per month, but new sectoral wage floors apply to industries like finance, healthcare, and professional services.

Which industry offers the highest salaries in Brunei in 2026?
The Oil and Gas sector continues to dominate with senior professionals earning between BND 8,000 and BND 15,000 monthly.

What are the average salaries for IT professionals in Brunei in 2026?
IT professionals in Brunei earn between BND 2,500 and BND 15,000 per month, depending on specialization and experience.

How do salaries in Brunei compare to other ASEAN countries in 2026?
Brunei salaries remain higher than most ASEAN peers due to tax-free income, high government benefits, and strong local currency stability.

What is the salary range for civil servants in Brunei Darussalam?
Civil servants typically earn between BND 2,200 for entry-level roles and up to BND 18,000 for senior government executives.

Do expatriates earn higher salaries in Brunei?
Yes, expatriates often receive higher salaries along with housing and transport allowances, making their total compensation more competitive.

What are common benefits offered to employees in Brunei?
Typical benefits include health insurance, housing allowances, transport support, paid leave, and contributions to TAP and SCP.

What is the employer contribution rate to TAP and SCP in 2026?
Employers are required to contribute 8.5% of an employee’s salary to the TAP and SCP social protection schemes.

How has the Employment (Minimum Wage) Amendment Order, 2025 impacted salaries?
It expanded wage protections to new sectors, increasing base pay for workers in finance, healthcare, and professional services.

Are salaries in Brunei increasing in 2026?
Yes, salaries are expected to rise by an average of 3.5%, driven by performance-based adjustments and structural compliance changes.

What is the inflation rate affecting salaries in Brunei in 2026?
Inflation is forecasted to remain below 1%, allowing real wages to increase without the need for major cost-of-living adjustments.

Do private sector salaries in Brunei differ significantly from public sector pay?
Yes, public sector pay is more stable, while private sector salaries vary widely depending on performance and industry.

What is the average salary for financial professionals in Brunei in 2026?
Financial professionals earn between BND 2,500 and BND 8,500 monthly, with senior managers earning even higher.

How much do engineers earn in Brunei in 2026?
Engineers typically earn between BND 2,800 and BND 9,000 per month depending on their specialization and seniority.

What is the expected salary for a fresh graduate in Brunei Darussalam?
Fresh graduates generally earn between BND 1,200 and BND 2,500 per month, depending on the industry and educational background.

Do companies in Brunei offer housing allowances in 2026?
Yes, housing allowances between BND 1,300 and BND 2,500 are common, especially for expatriates and senior professionals.

How do transportation benefits work in Brunei’s compensation packages?
Companies provide car allowances or company vehicles, with fuel costs remaining low due to government subsidies.

Which roles are expected to experience the highest salary growth in 2026?
IT, cybersecurity, and data science roles are projected to experience the fastest salary growth due to skill scarcity.

What is the total cost of employment (TCE) in Brunei for 2026?
TCE includes base pay, bonuses, allowances, and the 8.5% employer contribution, representing a comprehensive employment cost model.

Are bonuses common in Brunei Darussalam workplaces?
Yes, annual and performance-based bonuses are widely practiced, especially in financial services and multinational firms.

How much do teachers earn in Brunei Darussalam in 2026?
Teachers earn between BND 1,800 and BND 4,500 monthly, depending on qualifications, experience, and institution type.

Is performance-based pay common in Brunei?
Yes, organizations are shifting towards performance-based compensation, aligning rewards with productivity and outcomes.

What is the salary for healthcare professionals in Brunei in 2026?
Healthcare workers earn between BND 2,000 and BND 8,000 monthly, depending on role and years of experience.

Do foreign workers receive the same benefits as locals in Brunei?
While base pay is competitive, expatriates often receive additional allowances for housing, transport, and relocation support.

How does Brunei’s tax system affect take-home pay in 2026?
Brunei has no personal income tax, meaning employees retain their full gross salary as take-home pay.

What strategies can companies use to retain talent in Brunei in 2026?
Employers are focusing on training programs, skill development, healthcare top-ups, and flexible work policies to retain talent.

Are living costs in Brunei aligned with current salary levels?
Yes, Brunei’s low inflation and government subsidies ensure that living costs remain proportionate to salary levels.

What are the future salary trends expected beyond 2026 in Brunei?
Future salary trends point toward modest annual increases, more merit-based pay systems, and higher demand for digital professionals.

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