​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 Department of Labour, Ministry of Home Affairs announced that His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam has consented for the Employment (Minimum Wage) Order, 2023 under the Employment Order, 2009 took effect on the 12th of July 2023.

The Employment (Minimum Wage) Order, 2023 sets the minimum wage rate that must be paid by the employer to each employee for the work carried out in a certain period, which cannot be reduced according to the written service contract agreement prepared by the employer and signed by the employer and the employee. It aims to set a reasonable basic wage to meet the subsistence needs of workers; protect workers from excessively low wages; drive the motivation and productivity of local workers as well as and to stimulate socio-economic growth. The minimum wage policy will be implemented in phases. The first phase will involve two sectors namely the Banking and Finance Sector and the Infocommunications Technology Sector.

The details of the minimum wage rate set for the two identified sectors is as follows. While the next phase will be announced later. For Banking and Finance as well as Infocommuncations Technology Sectors, the minimum wage rate for full-time employees is $500 per month. Whereas, Part-time Workers, the minimum wage per hour is $2.62. Employers will be given a transition period of 6 months from the effective date of the Order, in order to take appropriate preparatory steps such as making changes to service contracts and so on.

The minimum wage policy will cover local workers and foreign workers working in all private companies either full-time or part-time. This minimum wage policy will be exempted for employees in the Government sector, apprentices, and foreign workers who hold a Professional Visit Visa (PVV) or who are employed by employers through a Special Authorization Work Pass (SAWP).

The minimum wage rate set is the total salary before contributions to the Employee Trust Fund, TAP and Supplemental Contributory Pension, SCP or the National Retirement Scheme. Employers are required to take the appropriate steps during the 6-month transition period as follows:

- The employer is required to provide a written service contract for re-signing by the employer and employee whether foreign or local workers towards the new terms which include the minimum wage rate. However, for wages that exceed the minimum wage rate it is not necessary to re-sign the agreement;

- The employer is required to store the re-signed service contract and provide a copy to the employee; and

- The employer is required to fill in the information in the minimum wage policy implementation verification form provided and which can be obtained in the QR Code on the last page and email to '[email protected]'.

Every employer is reminded that it is an offence if found to be in violation of the Employment (Minimum Wage) Order, 2023. Under Employment Order 2009, Chapter 148, if found guilty the employer may be fined not more than $3,000, sentenced to imprisonment for a period no more than a year or both. Cooperation from employers towards supporting the Employment (Minimum Wage) Order, 2023 is expected to assist the Government's efforts in improving the welfare of workers and socioeconomics.

For more information, contact the Law Enforcement Division, Department of Labour at 238 1848, during working hours or 729 8989, outside working hours, and  the Prosecution and Legal Division, Department of Labour at 238 0256 ext 4210, during working hours or visit the Department of Labour's website, 'www.labour.gov.bn' or the Manpower Planning and Employment Council's website, 'www.mpec.gov.bn'.

Source:
RTB NEWS

by RTB NEWS

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