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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:
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.
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.
As of August 1, 2024, the minimum wage in Myanmar is set at MMK 6,800 per day for an 8-hour workday, which translates to an hourly wage of MMK 850. This wage increase includes additional allowances and applies to private-sector employees working for companies with more than 10 employees. The monthly minimum wage, based on a standard 26-day work month, would be approximately MMK 176,800.
Myanmar's laws do not include provisions for 13th salaries. However, employers often provide bonuses at their discretion.
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.
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:
On average, Myanmar observes 16 public holidays per year.
In Myanmar, the Social Security plan, outlined in the 2012 Social Security Law, gives employees benefits like leave and specific money for different needs. Employers with up to five workers can choose to join, but many companies do so from the start. Benefits include:
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It's important to note, visa support can be complicated and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.