Employment Law

Employment Contracts in Myanmar

Employment contracts in Myanmar must be in writing and drafted in the local Burmese language. Contracts can be for a fixed term or for an indefinite period.

The Myanmar government requires employment contracts to follow a specific format and contain a fixed-term clause. The contract should include the following terms:

• Indemnity clause
• benefit
• Termination clause

Employers who do not comply with Myanmar’s compensation laws may be subject to fines or delays in registering their business.

When you do business with Remoly's Myanmar PEO, we will help you draft an employment contract that complies with local regulations and complies with Myanmar regulations.

Fixed Term

Indefinite

Myanmar Working Hours

Employees in Myanmar typically work 8 hours a day and 44 hours a week. In most cases, breaks are unpaid. Employees are entitled to a break of at least 30 minutes after working 5 hours. A standard working day should not exceed 10 hours, including all breaks.

Employees who work more than 8 hours a day or 44 hours a week are entitled to overtime pay. Overtime pay is paid at twice the employee's regular hourly wage. Employees in stores and premises should not be required to work more than 16 hours of overtime per week. Additionally, these employees should not be required to work after midnight.

Factory workers should not work more than 20 hours of overtime per week. This includes a maximum of 15 hours Monday to Friday and a maximum of 5 hours on Saturdays. Male factory workers can accrue overtime if they work more than 48 hours per week.

Myanmar Tax

Personal income in Myanmar is taxed at progressive rates ranging from 3% to 50%. If a foreigner resides in Myanmar for 183 days or more, he is considered a tax resident and will be taxed at progressive rates from 3% to 30%. Nonresident aliens are taxed at a flat rate of 35% or the graduated rates noted above, whichever is higher.

Myanmar's corporate tax rate is 30% and is levied on income from foreign sources both within Myanmar and outside Myanmar.

Myanmar Social Security Fund

Myanmar’s social security fund provides benefits arising from illness, death, work-related injury, disability, maternity and retirement pension. Under this fund, employees can claim a portion of their medical expenses. Employers pay a 3% contribution and employees pay 2% of earnings into the fund - with some exceptions.

Health Benefits

Employees who have contributed to the Health and Social Care Fund for 180 months are entitled to medical services in government hospitals.

Holiday Policy

Take a Vacation

Employees who have worked for the same employer for more than one year are entitled to 10 days of paid annual leave. Employees can take personal leave throughout the year and can only take three days at a time. The employer pays basic salary for six days of casual leave per year.

After completing three years of service with the company, employees are entitled to 30 days of religious leave.

Sick Leave

Employees who have worked for the company for more than six months can enjoy 30 days of paid sick leave per year as long as they provide a medical certificate to their employer.

Employees who have been with the company for less than six months are only eligible for unpaid sick leave.

Salary and Benefits

Myanmar Compensation Law

The minimum wage in Myanmar is 4,800 kyat (MMK) per day. In 2018, this figure rose from 3,600 MMK per day. To comply with the Payment of Wages Act, employers must pay wages to daily wage and part-time employees by cash, check or bank transfer. Payments must be made within the employee's regular pay period.

Permanent employees shall receive their monthly salary at the end of their pay period.

Myanmar Welfare Protection

To comply with employment laws, employers must provide certain benefits to employees. Myanmar has 24 public holidays every year, and employers must take care to allow employees to take well-earned rest days. These public holidays include a 10-day holiday during the Myanmar New Year celebrations. On these days, employees are entitled to paid time off. In addition, employees are entitled to one paid day off per week as a vacation entitlement.

Myanmar employees are also entitled to 30 days of sick leave per year. This is provided they provide adequate medical documentation as evidence of their injury or illness.

Myanmar’s Leave and Holidays Act governs maternity leave. Female employees are entitled to 14 weeks of paid maternity leave - six weeks before and eight weeks after childbirth. Any employees who actively contribute to the Myanmar Social Security Fund should also receive additional leave.