Hiring international employees can be an attractive option for growing companies. Countries like Myanmar offer more cost-effective skilled talent than the US and Canada along with other benefits.
While salaries are important, there are many other costs to keep in mind when it comes to global hiring. For example, employers are typically required to make mandatory social security contributions. They may also provide staff with additional benefits like health insurance when competing for top talent.
This article will walk you through the fixed and variable costs of hiring in Myanmar.
Costs to Consider When Hiring Around the World
The basic hiring costs in Myanmar include:
- Employee’s gross salary
- Taxes and benefits
- Vacation pay and other leaves
- Overtime pay
- Severance pay
Plus, you may want to add certain optional costs like benefits, bonuses, and extras.
Mandatory Costs of Hiring an Employee in Myanmar
Salary
Myanmar is home to a growing economy and a young and vibrant workforce that’s eager to discover the world of global employment. The country has cultivated close ties with Southeast Asia’s economic giant — Singapore, along with passing several policies to encourage foreign investment.
The minimum wage in Myanmar is MMK 4,800 per day (about USD 2.30).
However, salaries for skilled workers and sophisticated IT talent will vary greatly. You can get an idea of average salaries by doing some market research or partnering with a local staffing agency.
Mandatory Taxes and Benefits
Payroll costs in Myanmar add up to 3% of the employee's gross salary. These include:
- 2%: Health and Social Care Fund
- 1%: Work Injury
Employers and employees both contribute to taxes and funds. So, employers must also withhold:
- 0 - 30%: Personal Income Tax
- 2%: Health and Social Care Fund
Mandatory Bonuses
There are no mandatory bonuses in Myanmar but performance bonuses are customary.
Paid Leave
There are several types of paid leave entitlements in Myanmar.
- Public holidays: There are around 15 public holidays in Myanmar, although the actual number varies each year.
- Paid time off: Full-time employees are entitled to 10 days of annual leave after one year of service. Workers can also take six days of casual leave.
- Sick leave: Burmese employees can take up to 30 days of sick leave after six months of tenure.
- Parental leave: New mothers are entitled to 14 weeks of maternity leave. New fathers can take 15 paid days off.
Overtime Pay
The standard work week in Myanmar is between 44 and 48 hours per week, averaging six working days. Employment laws in Myanmar dictate that employees can work for up to 12 additional hours per week. There are different formulas applied to calculating overtime pay beyond standard hours.
Severance Pay
Severance pay in Myanmar depends on the employee’s tenure. Workers who have been continuously employed for six months to a year receive half a month’s salary in severance. This number increases up to 13 months for a tenure of 25 years and above.
Additional Costs of Hiring Burmese Talent
Today’s talent market is extremely competitive. To hire top Burmese talent, employers may also want to offer a benefits package, which can help both search and retention. Here are some benefits you might consider offering Burmese employees along with other possible costs.
Benefits
Offering the right benefits package can help you stand out from the competition.
In Myanmar, many employers offer private health insurance for employees and their families. Prices for this vary greatly, depending on the type and extent of coverage. However, you can expect to pay anywhere from USD 500 to USD 2000 per year.
For highly competitive roles, you may also want to consider added vacation time, flexible schedules, extra pension benefits, and so on.
Bonuses and Extras
Finally, you’ll want to think about smaller expenses like gifts for special occasions, comped meals, or coffee for meetings.
If you hire one or two employees in Myanmar, they’ll likely do remote work. Even so, you may want to pay for a coworking space or provide funding to set up a home office. Daily rates for coworking spaces in Myanmar start at about USD 7.
However, you might be hiring an entire team to work on larger projects such as software development. If so, you might rent an office space to facilitate collaboration among your staff in Myanmar.
Average Cost of Hiring One Employee in Myanmar (Annual in USD)
Below is an estimate based on a salary of $100,000 for an employee in Myanmar. This salary is for ease of calculation only. It will change depending on your hiring goals, the employment contract, the candidate’s experience, and the type of position.
- Salary: $100,000
- Employer Taxes: $3,000
- 2%: Health and Social Care Fund
- 1%: Work Injury
- TOTAL: $103,000 + Benefits (discretionary)
Note that these totals do not include other standard costs like soft benefits commonly offered in Myanmar.
A Global EOR Can Help You Manage International Payroll
With so many costs, it may feel overwhelming to start hiring globally. An Employer of Record (EOR) can help. An EOR like Borderless can help you compliantly hire and pay employees in Myanmar.
If you’d like to begin global hiring but aren’t sure where to start, book a demo with Borderless. We’ll walk you through every step, so you can reap all the benefits without the added headaches.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
