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Capital City
Naypyidaw
Currency
Myanmar Kyat
(
K
)
Timezone
GMT + 6:30
Payroll Frequency
daily/ weekly/ bi-weekly/ monthly
Tax Year
1 October - 30 September
Employer Tax
3%
Languages
Burmese
Capital City
Naypyidaw
Currency
Myanmar Kyat
(
K
)
Timezone
GMT + 6:30
Payroll Frequency
daily/ weekly/ bi-weekly/ monthly
Tax Year
1 October - 30 September
Employer Tax
3%
Languages
Burmese
Myanmar has a diverse workforce with individuals possessing a range of skills and expertise.
English is widely spoken in Myanmar, especially among the younger population. This can be advantageous for companies with a global focus, as communication with international clients or partners may be smoother.
Labour costs in Myanmar may be relatively lower compared to some other countries. Employers looking to manage expenses may find Myanmar to be a cost-effective option for certain roles.
With the growth of remote work, employing individuals from Myanmar can be an option for companies looking to diversify their talent pool. This allows access to skilled workers without the need for physical relocation.
Businesses can only operate smoothly in Myanmar if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Myanmar below, to avoid any compliance issues.
In Myanmar, one of the prevalent legal frameworks governing employment is the Employment and Skills Development Law. A key requirement is that companies must formalize their employment relationships by entering into written contracts with their employees within the initial 30 days of employment. The employment contract should include:
We can help you get a new employee started in Myanmar quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.
For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
The regular workweek is 8 hours per day and should not go beyond 48 hours each week.
Any hours worked beyond the regular 48 hours per week in Myanmar are considered overtime and are compensated at a rate of 200% of the employee's usual pay rate. For shop and establishment employees, the maximum overtime allowed is 12 hours per week, while factory workers have a maximum of 20 hours per week.
Employers and employees can agree on a probation period, but it shouldn't be longer than three months. The law doesn't give many details about it, so it's important for employers to discuss and outline the terms in the employment contract.
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1 October - 30 September is the 12-month accounting period that businesses in Myanmar use for financial and tax reporting purposes.
The payroll cycle in Myanmar is usually daily/ weekly/ bi-weekly/ monthly , with employees being paid by the end of the day, week, fortnight or month.
The minimum wage for employees in Myanmar is typically 850 MMK per hour, amounting to ~176,800 MMK per month for a typical 26-day work month.
Myanmar's laws do not include provisions for 13th salaries. However, employers often provide bonuses at their discretion.
Employer payroll contributions are generally estimated at an additional 3% on top of the employee salary in Myanmar.
In Myanmar , the typical estimation for employee payroll contributions cost is around 2%.
In Myanmar, individual income tax is calculated using progressive rates ranging from 0% to 25% as follows:
Employees can qualify for a pension at age 60 after contributing for a minimum of 180 months. There are also pensions available in cases of disability, partial retirement, and for survivors.
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The annual leave entitlement in Myanmar is 10 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
On average, Myanmar observes 16 public holidays per year.
Employees in Myanmar are entitled to 10 days of paid annual leave.
Employees are entitled 14 weeks of paid maternity leave through the country's social security scheme. Maternity leave can start six weeks before the expected due date and lasts for eight weeks after childbirth.
If there are complications or multiple births, an extra four weeks can be taken. In case of a miscarriage, employees can take six weeks of leave.
Fathers are entitled to 15 days of paid paternity leave for the birth of a child. However, if the child's mother is not covered under social security, fathers will receive only 25% of their average salary during paternity leave.
If an employee becomes a father of twins, the entitlement increases to 37.50%, and for triplets, it goes up to 50%.
Employees who have completed six months of service with an organisation are entitled to 26 weeks of sickness leave per year, with compensation provided for the first 30 days. If an employee has not completed six months of employment, sick leave can be taken but is not compensated.
There is no specific parental leave distinct from maternity and paternity leave.
For the adoption of a child less than 12 months old, parents can take up to 8 weeks of paid childcare leave.
If it is a twin delivery, mothers can take four weeks of fully paid childcare leave immediately after maternity leave ends.‹
As per the Department of Labour practices in Myanmar, an employee can only be terminated for reasons outlined in the employment contract or work rules. These reasons may include:
Employers must give advance notice before terminating an employee. The usual notice period is one month.
Severance pay in Myanmar is determined based on the length of employment:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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