Great talent is everywhere. Strategically located in Southeast Asia, Myanmar is home to a young and dynamic talent pool. But sometimes, the problem is legally hiring the talent that you need.
An Employer Of Record (EOR) can be ideal for companies looking to hire and pay talent around the world without the legal hassle.
This article will walk you through the processes and advantages of hiring employees in Myanmar through an EOR.
Why Hire Talent in Myanmar?
A new destination for talent outsourcing, Myanmar has passed several policies to encourage foreign investment. In particular, it has cultivated close ties with Southeast Asia’s economic giant — Singapore.
Today, 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’s strategic location in close proximity to Singapore and China is a definite benefit when it comes to business expansion. Also, skilled workers in Myanmar are increasingly bilingual in Burmese (the official language) and English.
The lower-than-average cost of living is another advantage of hiring in Myanmar. It allows your business to offer competitive salaries to top talent while preserving your bottom line.
How Can I Legally Hire an Employee in Myanmar?
Things can get tricky if you want to legally hire talent in Myanmar on your own. To compliantly hire talent in Myanmar, you must set up a local legal entity. However, navigating the local laws and regulations can still be challenging.
This is where EOR services come in handy. An EOR acts as a broker for hiring talent outside of the country you legally operate in. It will already have an entity set up and the legal framework in place to do the hiring for you. You, on the other hand, will manage the relationship with your employees.
Going through an EOR is the easiest way to hire talent in Myanmar without all the legal hassle.
What Does an EOR Do?
Simply put, EORs take care of the legal procedures while you manage your employees. The legal frameworks for hiring in Myanmar can be quite different from those in the US and Canada. EORs handle worker visas and work permits, employment contracts, payroll, local compliance, termination, and many other HR and financial services.
Contracts and Documentation
An EOR will handle the tedious administration involved in preparing and collecting contracts and documentation. This includes employment offers, signed contracts, banking information, and more so you can focus on growing your business.
Employee Insurance and Benefits
When the world is your competition, it pays to incentivize new and existing hires with attractive benefits like medical, dental, vision and life insurance, and retirement savings plans. A comprehensive EOR will have those kinds of benefits built into its service offering.
Vacation and Public Holidays
In Myanmar, full-time employees are entitled to 10 working days of paid time off annually. There are also several other types of leave to consider, such as maternity leave and sick leave. An EOR can keep track of all this and the corresponding payments for you.
In addition, Myanmar has many statutory holidays that companies are obligated to provide to their employees.
- January 1: New Year’s Day
- January 4: Independence Day
- February 12: Union Day
- March 2: Peasants Day
- March 27: Armed Forces Day
- 10 days in mid-April: Water Festival
- May 1: May Day
- December 25: Christmas
- December 31: New Years Holiday
- 9 other variable holidays
Taxes
Employers in Myanmar pay a range of taxes and social security contributions, which amount to just over 3% of an employee’s salary on average. There may also be other deductions and contributions.
This can be a tedious process but is necessary to ensure you are paying employees in a compliant manner. Thankfully, an EOR can handle the logistics and ensure that payroll is processed correctly and per the regulations in whichever country you are operating.
What Are Your Responsibilities?
While an EOR handles everything related to legal and HR processes, many aspects of the company’s workings fall under your purview. So, you take care of your staff in the same way you would with your local hires.
That means search and recruitment, company onboarding, training, management, day-to-day communications, progress tracking, and so on, should be managed by you.
While the relationship with the employee won’t be all that different through an EOR, you need to be clear with your staff on the legalities of their contracts. Of course, retention is also up to you. You will need to consider how you help your staff grow and succeed in their new roles at your organization.
What Are the Advantages of Going Through an EOR in Myanmar?
Using an EOR to hire talent in Myanmar will save you time, reduce costs, and mitigate risks.
Navigating the labor laws in Myanmar can be time-consuming and complex. Since an EOR is already set up to hire employees in the country, it will be faster and easier to start hiring right away. The process won’t differ very much from hiring locally.
Set-up and HR costs associated with independently hiring abroad can be quite high, so going through an EOR can save you money.
Most importantly though, you’ll be mitigating the risks associated with non-compliance. Because EORs have extensive experience in navigating complex employment and tax laws and regulations, you won’t have to worry about any issues arising.
How Do I Choose the Right EOR for Me?
There are a few key things to consider when you are selecting an EOR in Myanmar.
- Local Experience: Does the EOR have experience hiring in Myanmar? As discussed earlier, one of the biggest advantages of hiring an EOR is the assurance of compliance. Often, this requires a lot of experience, so check the EOR’s track record in the country.
- Service Scale: Do you need someone who offers a full suite of services? If you want happy employees that you can retain in the long run, then you may need to offer them benefits like insurance and other welfare. Some EORs have systems in place for this but others may not. Also, certain EORs will offer consulting services to optimize your global hiring practices.
- Data and Systems Security: Protecting intellectual property in a remote working environment is critical. Ensure your vendor of choice has a specific agreement outlining how they plan to keep your sensitive information safe and secure.
- Collaboration: Ensure your vendor’s approach to communication and collaboration with its clients is aligned with your organization’s approach. Prefer having a quick and easy point of contact? Perhaps all you need is access to a Slack channel so you can quickly reach your vendor. Whatever your communication style, ensure your vendor can meet your needs.
Borderless: The Employer of Record Your Company Needs
Need an EOR? Look no further than Borderless. We can help you hire employees in Myanmar – giving you access to a highly-skilled talent pool without the headaches of traditional global expansion.
Book a demo today and see how we can help you quickly and easily hire, onboard, pay, and retain the Myanmar-based talent your organization needs.
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.
