Employer of Record Guide in Myanmar
Myanmar's emerging market presents unique opportunities for global talent acquisition, but navigating its evolving regulatory landscape requires careful planning. Our comprehensive guide helps you understand the essentials of compliant hiring and workforce management in this dynamic Southeast Asian economy.
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Myanmar's workforce offers strong capabilities in software engineering, sales, and financial services, with major business centers in Yangon and Mandalay driving economic growth. Understanding the local market dynamics, from currency considerations to in-demand skills, is crucial for successful expansion into this developing economy.
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Your EOR guide in Myanmar
From payroll cycles and tax obligations to leave entitlements and onboarding requirements, Myanmar's employment framework has specific nuances that impact your hiring strategy. This detailed breakdown covers everything you need to know about compensation structures, statutory benefits, and compliance essentials for building your team in Myanmar.
Minimum Wage
Myanmar's minimum wage is set at 3,600 MMK per day for an 8-hour workday, which translates to approximately 450 MMK per hour. This rate applies to most sectors across the country.
Note: Please verify current minimum wage rates as these may have been updated since the political changes in 2021.
Payroll Cycle
- Monthly: Most common payment frequency in Myanmar
- Bi-weekly: Less common but acceptable
- Weekly: Rare, typically used for daily wage workers
Individual Income Tax
Myanmar operates a progressive tax system for residents:
| Annual Income (MMK) | Tax Rate |
|---|---|
| Up to 2,000,000 | 0% |
| 2,000,001 to 5,000,000 | 5% |
| 5,000,001 to 10,000,000 | 10% |
| 10,000,001 to 20,000,000 | 15% |
| 20,000,001 to 30,000,000 | 20% |
| Over 30,000,000 | 25% |
Note: Tax rates and brackets should be verified with current Myanmar tax authorities due to ongoing regulatory changes.
Tax Residency Criteria
Individuals are considered Myanmar tax residents if they:
- Reside in Myanmar for 183 days or more in a tax year
- Have their permanent home in Myanmar
- Are Myanmar citizens working abroad for the government
Employer Payroll Contributions
Employers in Myanmar are required to make several statutory contributions:
| Contribution Type | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| Social Security | 3% | 2% | 5% |
| Workmen's Compensation | 0.5% - 2.5% | 0% | 0.5% - 2.5% |
| Estimated Total Employer Cost | 3.5% - 5.5% | 2% | 5.5% - 7.5% |
Note: Rates may vary by industry and risk classification.
Working Hours
The standard working schedule in Myanmar is:
- 8 hours per day
- 44 hours per week (6 days)
- Rest day: Typically Sunday
Certain senior positions and managerial roles may be exempt from standard hour restrictions.
Overtime Pay
- Overtime is paid at 1.5× the regular hourly rate for work beyond 8 hours per day
- Double time applies for work on rest days and public holidays
- Maximum overtime: 12 hours per week without special permission
Bonus Payments
- 13th month bonus: Not mandatory but commonly practiced
- Performance bonuses: At employer's discretion
- Festival bonuses: Traditional during Thingyan (New Year) period
Full-Time vs. Part-Time
- Full-time: Employees working the standard 44-hour week
- Part-time: Employees working fewer than 44 hours per week
- Casual workers: Day labourers with no fixed employment terms
Annual Leave
- Minimum entitlement: 10 working days per year after 12 months of service
- Accrual: Earned proportionally throughout the year
- Carryover: Up to 30 days may be carried forward with employer approval
- Payout: Must be paid out upon termination if unused
Sick Leave
- Paid sick leave: 30 days per year at full pay
- Extended sick leave: Additional 60 days at half pay
- Medical certification: Required for absences exceeding 3 consecutive days
- Chronic illness: Special provisions may apply
Maternity Leave
- Duration: 14 weeks total
- Pre-birth: Up to 6 weeks before expected delivery
- Post-birth: Minimum 8 weeks after delivery
- Pay: Full salary during leave period
- Job protection: Position must be held open
Paternity Leave
- Duration: 15 days
- Timing: Within 2 months of child's birth
- Pay: Full salary
- Eligibility: After 6 months of continuous employment
Casual Leave
- Duration: 10 days per year
- Purpose: Personal matters, family emergencies
- Advance notice: Typically required except for emergencies
- Pay: Full salary
Summary
| Leave Type | Duration | Paid? | Funding |
|---|---|---|---|
| Annual Leave | 10 days/year | Yes | Employer |
| Sick Leave | 30 days full + 60 days half | Yes | Employer |
| Maternity Leave | 14 weeks | Yes | Employer |
| Paternity Leave | 15 days | Yes | Employer |
| Casual Leave | 10 days/year | Yes | Employer |
Termination Types
Termination With Cause:
- Immediate dismissal without notice or compensation
- Must involve serious misconduct (theft, insubordination, breach of duty)
- Requires proper documentation and investigation
Termination Without Cause:
- Requires proper notice or payment in lieu
- Must follow due process procedures
- Cannot be discriminatory or retaliatory
Notice Period Requirements
Notice periods vary based on length of service and position:
| Length of Employment | Notice Period |
|---|---|
| Less than 1 month | 1 day |
| 1 month to 1 year | 1 month |
| 1 to 5 years | 2 months |
| Over 5 years | 3 months |
Severance Pay
- Eligibility: Employees with 1+ years of service
- Calculation: 15 days' wages for each completed year of service
- Maximum: No statutory maximum
- Payment timing: Within 30 days of termination
Probationary Periods
- Standard duration: 3 to 6 months
- Notice during probation: 1 week for termination
- Extension: Possible with mutual agreement
- Rights: Full employment rights apply during probation
Final Pay Requirements
Employers must provide final settlement within 30 days of termination, including:
- Outstanding salary
- Accrued annual leave
- Severance pay (if applicable)
- Any other earned benefits
Legal Protections
Employees are protected from termination based on:
- Pregnancy or maternity leave
- Trade union activities
- Filing complaints or grievances
- Race, religion, gender, or political beliefs
National Public Holidays
Myanmar observes both fixed and lunar calendar holidays:
| Holiday | Date | Type |
|---|---|---|
| Independence Day | January 4 | Fixed |
| Union Day | February 12 | Fixed |
| Peasants' Day | March 2 | Fixed |
| Armed Forces Day | March 27 | Fixed |
| Thingyan Water Festival | April 13-16 | Fixed |
| Myanmar New Year | April 17 | Fixed |
| Labour Day | May 1 | Fixed |
| Martyrs' Day | July 19 | Fixed |
| National Day | December 7 | Fixed |
| Full Moon of Tazaungmone | November (varies) | Lunar |
| Christmas Day | December 25 | Fixed |
Religious Holidays
Myanmar also observes various Buddhist holidays based on the lunar calendar:
- Full Moon Days: Monthly observances
- Waso Full Moon: Beginning of Buddhist Lent
- Thadingyut Festival: End of Buddhist Lent
Holiday Pay Rules
- Eligibility: All employees entitled to holiday pay
- Rate: Full day's wages for each public holiday
- Working on holidays: Double time plus substitute day off
- Falling on rest day: Substitute holiday provided
Required Documents for Employment
Employment Contract Requirements:
- Job title and description
- Salary and benefits
- Working hours and location
- Termination clauses
- Probationary period terms
Employee Documentation:
- National Registration Card (NRC)
- Educational certificates
- Previous employment records
- Medical fitness certificate
- Passport-sized photographs
Work Authorization
For Foreign Employees:
- Work permit from Ministry of Labour
- Stay permit from Immigration Department
- Tax registration with Internal Revenue Department
- Social security registration
Processing Time: 4-8 weeks for complete authorization
Language Requirements
- Official language: Myanmar (Burmese)
- Business language: English widely used in international companies
- Contract language: Must be in Myanmar language or bilingual
- Translation: Required for foreign documents
Background Checks
- Criminal background: Police clearance certificate required
- Educational verification: Certificates must be authenticated
- Employment history: Reference checks commonly conducted
- Medical examination: Required for certain industries
Registration Requirements
Employer Obligations:
- Register with Social Security Board
- Obtain employer identification number
- Register with tax authorities
- Comply with labour law notifications
Onboarding Timeline
| Step | Timeline |
|---|---|
| Job offer accepted | Day 0 |
| Document collection | Day 1-7 |
| Work permit application (foreigners) | Day 7-35 |
| Employment contract signing | Day 35-42 |
| Social security registration | Day 42-45 |
| Payroll setup | Day 45-50 |
What the EOR Handles
Borderless AI manages:
- Employment contract preparation
- Government registrations
- Work permit processing
- Tax compliance setup
- Social security enrollment
- Payroll administration
Worker Classification
Myanmar labour law distinguishes between different worker categories:
Employees:
- Permanent staff with full benefits
- Subject to all labour law protections
- Entitled to social security benefits
Contract Workers:
- Fixed-term employment
- Limited to specific project duration
- May have reduced benefits
Casual Workers:
- Day-to-day employment
- No job security guarantees
- Basic wage protections only
Trade Unions & Collective Bargaining
- Right to organize: Protected under labour law
- Union registration: Required with Ministry of Labour
- Collective agreements: Can override individual contracts
- Strike rights: Legal with proper procedures
Cultural Considerations
Business Etiquette:
- Respect for hierarchy and seniority
- Indirect communication style
- Importance of face-saving
- Buddhist values influence workplace culture
Work-Life Balance:
- Family obligations highly valued
- Religious observances respected
- Flexible scheduling during festivals
- Community involvement encouraged
Remote Work Framework
Legal Status:
- No specific remote work legislation
- Employment contracts must specify arrangements
- Full labour law protections apply
- Employer responsible for equipment and safety
Practical Considerations:
- Internet infrastructure limitations
- Power supply reliability issues
- Cultural preference for in-person interaction
- Security and confidentiality concerns
Compliance Risks
Common Issues:
- Improper worker classification
- Inadequate documentation
- Non-compliance with social security
- Failure to register with authorities
Penalties:
- Fines for non-compliance
- Criminal liability for serious violations
- Business license revocation
- Deportation for foreign workers
Note: Given the ongoing political situation in Myanmar, employment regulations and enforcement may be subject to change. Regular consultation with local legal experts is recommended.
Built-in benefits packages for Myanmar
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
Medical Insurance
Dental Insurance
Retirement Contribution
Life Insurance
Vision Insurance
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