By command of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam, the Labour Department at the Ministry of Home Affairs yesterday announced the new Employment (Minimum Wage) Order, 2023 took effect on July 12, 2023.
The minimum wage policy will be implemented in phases, with the first phase involving the banking and finance, and information and communication technology (ICT) sectors.
The minimum wage for full time employees is BND500, while for part-timers the minimum rate is BND2.62 per hour, the agency said.
The Employment (Minimum Wage) Order 2023 sets the minimum wage rate that must be paid by the employer to every employee for work performed in a certain period, which cannot be reduced in accordance with the written service contract agreement prepared by the employer and signed by the employer and employee.
It is intended to set a basic salary to meet the daily needs of employees; protect workers from excessively low wages; drive the productivity of local employees; and stimulate socio-economic growth.
The minimum wage policy will cover local employees and foreign workers in all private companies in both full-time or part-time capacity. Employees in the government sector, apprentices, and foreign workers who hold professional visit visa (PVV) or employed through special authorisation work passes are exempt from the policy.
The rate is the salary before contributions to the Employees Trust Fund (TAP) and Supplemental Contributory Pension (SCP) or the National Retirement Scheme (SPK).
Employers will be given a transitional period of six months from the effective date of the Order, to take preparatory steps such as making changes to the service contracts.
For employees receiving less than the minimum wage, employers will be required to prepare new written service contracts to include the new terms.
Employers are also required to fill in the minimum wage policy implementation verification form, which can be found on the QR code, and email to led@buruh.gov.bn.
Employers are warned that it is an offence to violate the Employment (Minimum Wage) Order 2023, under Section 148 of Employment Order 2009, and if convicted, can be fined up to BND3,000, a year’s jail term or both. – Azlan Othman
