Myanmar Standard Time UTC+06:30

Undoubtedly, payroll is a critical process for any organization. Pay cycle in Myanmar refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Pay frequency is Monthly. 

There are no provisions in the law regarding 13th salaries. However, bonuses are common at the employers’ discretion.

The National Committee for Setting Minimum Wages in Myanmar announced a new minimum wage of 6,800 kyats per day, effective from August 1, 2024. This represents an increase from the previous minimum wage of 4,800 kyats per day, which was set in May 2018.

The new minimum wage is calculated based on an 8-hour workday, with a rate of 600 kyats per hour. In addition to the base wage, workers will also receive an allowance of 2,000 kyats per day, bringing the total minimum wage to 6,800 kyats per day.

The minimum wage adjustment does not apply to small businesses with fewer than ten workers, family-run companies, and similar entities. The new wage rates supersede the previous notification issued on October 9, 2023, which had set the minimum wage at 5,800 kyats per day.

Working Hours and Definitions

• The minimum wage is based on a 6-day work week, with 8 hours per day.
• Monthly wages are calculated as 4.33 times the weekly wage if a weekly wage is defined, or 4.33 times the standard hours per week if an hourly wage is given.

Historical Minimum Wage Rates

• May 2018: 4,800 kyats per day (600 kyats per hour)
• October 2023: 5,800 kyats per day (additional 1,000 kyats allowance)
• August 1, 2024: 6,800 kyats per day (additional 1,000 kyats allowance)

Overtime is limited to up to 12 hours per week and is paid at the rate of 200% of the regular pay rate.

Effective starting Oct. 1, 2019, employers must keep tax-related records for seven years. 

Employers are required to keep a record of workers' attendance, hiring, and termination, wages paid, and contributions paid to the Social Security Fund. There is no length of time designated for record retention. 

Myanmar requires employers to keep records regarding the payment of wages and deductions from wages for absences, expenses, or fines, but does not require records to be kept for a specific period. 

The Standard Employment Contract prescribed by the Ministry of Labour, Immigration and Population (MOLIP) prohibits discrimination and unequal treatment on the basis of being a member of a union or factors relating to race, religion, gender, or age. 

In addition, the Myanmar Investment Law (MIL) and the Special Economic Zones Law (the SEZ Law) prescribe certain requirements in relation to the hiring of local workers. Section 51(b) of the MIL requires investors to implement plans for the capacity building of Myanmar citizens to be able to appoint them to management or advisory roles or as technical or operational experts. Section 51(c) of the MIL mandates that only Myanmar citizens can be appointed for unskilled work. 

The SEZ Law applies to all businesses established in any of the designated special economic zones in Myanmar. Section 74 of the SEZ Law mandates that only Myanmar citizens can be employed for work that does not require superior technology or skills. Further, Section 75 of the SEZ Law stipulates that investors must adhere to the following hiring pattern when hiring for positions that require familiarity with technology or skill: 

• years one to two: at least 25 percent of the employees for those positions should be Myanmar citizens for the first two years from the year of commencement of operation; 
• years three to four: at least 50 percent of the employees for those positions should be Myanmar citizens for the next two years; and 
• years five to six: at least 75 percent of the employees for those positions should be Myanmar citizens for the subsequent two years.  

However, Section 78 of the SEZ Law allows employers to hire more foreign employees than the number designated in the investment plan after obtaining permission from the relevant special economic zone management committee. 

The following onboarding details are required for an employee in Myanmar:

• Name 
• Residence Address 
• Email Address 
• Contact number 
• Passport number 
• Immigration document 
• Identification Id number 
• Social Security number (if applicable) 
• Taxpayer identification number (if applicable) 

While the Employment and Skills Development Law 2013 stipulates that it is possible to agree upon a probation period, the law does not provide any further details. 

According to the prescribed employment contract template, the probation period shall not exceed three months. Where an employer takes the view that a probation period is not necessary, the employee may be engaged without any probation period. 

Under the prescribed employment contract template, the contract terms applicable to employees on probation and employees who have completed their probation period are similar.

There are 16 public holidays in Myanmar.

Myanmar specifies public holidays, for which paid leave must be provided by the employer and for which the government annually specifies dates based on the Myanmar Calendar.

The public holidays in Myanmar are:

• Jan. 1: International New Year's Day
•  Jan. 4: Independence Day
• Feb. 12: Union Day
• March 2: Peasants' Day
• Full Moon Day of Tabaung
• March 27: Armed Forces Day
• The four days in April before New Year's Day of the Myanmar Era Calendar: Maha Thingyan (Water Festival); Thingyan directly translates to the English word transit, referring to the solar transit recognized by the Myanmar Era Calendar on New Year's Day
• Mid-April, typically April 17: Myanmar Era Calendar New Year's Day (The day that from the perspective of Myanmar, the sun transits into the constellation of Aries from the constellation of Pisces)
• May 1: May Day (Labor Day)
• Full Moon Day of Kason
• July 19: Martyrs' Day
• Full Moon Day of Waso (Beginning of Buddhist Lent)
• Full Moon Day of Thadingyut (End of Buddhist Lent)
• Full Moon Day of Tazaungmone
• National Day
• Dec. 25: Christmas 
• Dec. 31: International New Year's Eve

Employees are entitled to 10 days of paid annual leave. A minimum of 10 annual leave days (paid leave) per year shall be provided. The employee must complete 12 consecutive months of service with a minimum of 20 working days in each month to enjoy the annual leave days in that same year. Otherwise, the number of annual leave days can be reduced on a pro-rata basis.

Employers are required to pay a basic salary for six days per year for casual leave. Only three days may be taken at one time. Casual leave does not accrue.

Sick leave entitlement is 26 weeks per year, where the first 30 days are paid. An employee must be able to produce a medical certificate. To be entitled to this leave, the employee must have completed at least six months of employment.​

Female employees are entitled to six weeks of leave before pregnancy and a minimum of eight weeks after the birth of a child, for a minimum of 14 weeks of leave.

Male employees are entitled to 15 days of paternity leave in connection with the birth of a child.

Religious Leave: Male employees who complete three years with a company can take religious leave for up to 30 days.

Childcare Leave:​ If it is a twin delivery, mothers can take four weeks of fully paid childcare leave immediately after maternity leave ends.​

Adoption Leave: Parents can take up to 8 weeks of paid childcare leave for the adoption of a child less than 12 months old.​

Funeral Leave: Under the latest prescribed employment contract template, there is a new category of funeral leave. In the event of the death of a parent or family member, the employee shall be allowed to utilize annual leave or casual leave. Where all annual and casual leave have been exhausted, the employee shall be entitled to unpaid leave. No additional days of leave are provided as funeral leave. It is intended that funeral leave be deducted from annual leave or casual leave.

Employers are required to give prior notice to the termination. The minimum notice period is the same as the wage payment period. For example, an employee that is paid monthly must be given a month's notice. 

Employees with at least six months of employment are eligible to receive severance pay. The amount of severance pay for which they are eligible is calculated based on the employee's last monthly salary, as follows: 

• for at least six months and up to one year of employment, half of the employee's last monthly salary; 
• for at least one year and up to two years of employment, the employee's last monthly salary; 
• for at least two years and up to three years of employment, one and one-half times the employee's last monthly salary; 
• for at least three years and up to four years of employment, three times the employee's last monthly salary; 
• for at least four years and up to six years of employment, four times the employee's last monthly salary; 
• for at least six years and up to eight years of service, five times the employee's last monthly salary; 
• for at least eight years and up to 10 years of service, six times the employee's last monthly salary; 
• for at least 10 years and up to 20 years of service, eight times the employee's last monthly salary; 
• for at least 20 years and up to 25 years of service, 10 times the employee's last monthly salary; and 
• for more than 25 years of service, 13 times the employee's last monthly salary. 

Myanmar does not have a work permit program. Foreign workers may work in Myanmar on a business visa for up to 70 days. After first-time entry on a business visa, individuals may apply for a six-month multi-entry visa. 

A 28-day entry visa for meetings, workshops, and events also is available. 

Foreign workers can apply for permanent residency by submitting Amana Form 1. 

• There are currently no laws that restrict or prohibit an employer's conduct of background checks on potential employees. There are also no restrictions or prohibitions on hiring a third party to conduct background checks on potential employees. 
• However, section 8(b) of the Law Protecting Privacy and Security of Citizens (2017) (the Privacy Law) states that in the absence of an order, permission, or warrant issued under the existing law or permission from the President or a union-level government body, no citizen may be subjected to surveillance, spied upon or investigated in a manner that could disturb his or her privacy and security or affect his or her dignity. There are no reported cases of actions being taken by the Myanmar authorities against employers, contrary to section 8(b) of the Privacy Law.