Guide to employment, payroll and benefits in

Myanmar

Rivermate offers complete payroll, benefits and compliance services for

Myanmar

01. Overview

Last updated: 

August 19, 2021

Currency
Myanmar Kyat
Capital
Pyinmana
Ease of doing business
46.8
Language
Burmese
Population
54409800
GDP growth
6.76%

02. Grow your team in

Myanmar

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Myanmar

, particularly if you don't have established local relationships. You can hire employees in

Myanmar

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Myanmar, also known as Burma, is a Southeast Asian nation whose official name is the Republic of the Union of Myanmar. Myanmar is bordered on the northwest by Bangladesh and India, on the northeast by China, on the east and southeast by Laos and Thailand, and on the south and southwest by the Andaman Sea and the Bay of Bengal. Myanmar is the most populous country in Mainland Southeast Asia and the tenth most populous country in Asia. In 2017, the population was estimated to be about 54 million people. Its capital is Naypyidaw, and its largest city is Yangon. The Tibeto-Burman-speaking Pyu city-states in Upper Myanmar and the Mon kingdoms in Lower Myanmar were among the earliest civilisations in the region. The Bamar people arrived in the upper Irrawaddy valley in the 9th century, and after the establishment of the Pagan Kingdom in the 1050s, the Burmese language, culture, and Theravada Buddhism gradually took hold of the region. The Pagan Kingdom was conquered by the Mongols, and many warring states arose. For a brief time in the 16th century, when the Taungoo dynasty reunified the nation, it became the largest empire in Southeast Asia's history. The Konbaung dynasty ruled over a region that included modern-day Myanmar, as well as Manipur and Assam for a brief period. After three Anglo-Burmese Wars in the 19th century, the British East India Company took control of Myanmar's government, and the nation became a British colony. Myanmar was recaptured by the Allies and given independence in 1948 after a brief Japanese occupation. It became a military dictatorship under the Burma Socialist Programme Party after a coup d'état in 1962. The nation has been engulfed in rampant ethnic violence for most of its independent years, and its diverse ethnic groups have been embroiled in one of the world's longest-running civil wars. During this time, the United Nations and a number of other organizations have documented widespread and systemic violations of human rights in the region. Following a 2010 general election, the military junta was formally disbanded in 2011, and a nominally civilian government was established. Along with the release of Aung San Suu Kyi and other political prisoners, the country's human rights and international relations have strengthened, and trade and other economic sanctions have been eased. However, the government's handling of ethnic minorities, reaction to the ethnic uprising, and religious clashes continue to be criticized. Aung San Suu Kyi's party gained a majority in both houses of parliament in the 2015 election. The Burmese military, however, remained a strong political force, seizing power in a coup d'état on 1 February 2021. Myanmar is a member of the East Asia Summit, the Non-Aligned Movement, ASEAN, and BIMSTEC, but not the Commonwealth of Nations. It is a nation abundant in jade and diamonds, as well as gold, natural gas, and other minerals.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to ten paid days off each year.

Public holidays

Myanmar recognizes sixteen public holidays.

Sick days

The employee is entitled to 26 weeks of sick leave each year, with the first 30 days reimbursed. A medical certificate must be shown by an employee. To be eligible for this leave, the employee must have worked for at least 6 months.

Maternity leave

Maternity leave is compensated for 14 weeks for mothers. The leave can begin six weeks before and eight weeks beyond the projected due date.

Paternity leave

For the birth of a child, fathers are entitled to 15 days of paid paternity leave.

Parental leave

There are no provisions in the legislation that address this.

Other leave

Mothers can take 4 weeks of paid childcare leave after their maternity leave expires if they have several children.Adoption Leave: Parents who adopt a child under the age of 12 months can take up to 8 weeks of paid childcare leave.Up to 6 days of casual leave each year. Three days at a time is the greatest amount of time that may be taken. Unused vacation time cannot be carried over to the next year.

06. Employment termination

Termination process

The employer must offer a written notice of termination.


An employee must get one written and two spoken warnings prior to being terminated for misconduct. If an employee commits another infraction within 12 months of receiving the third warning, he or she may be terminated without notice or severance pay.


If the employer initiates the dismissal, wages must be paid within two business days of the employee's termination.

Notice period

One month's notice will be required.

Severance pay

Severance pay is calculated based on the duration of employment. Severance pay is equivalent to half a month's wages for employment lasting six months to one year. Severance pay is equivalent to one month's salary for an employment period of 1-2 years. Severance pay is equivalent to two months' salary for a three- to four-year employment period. Severance pay is equivalent to four months' salary for employees who have worked for the company for 4-6 years. Severance pay is equivalent to five months' salary for an employee who has worked for the company for six to eight years. Severance pay is equivalent to six months' salary for an employee who has worked for the company for eight to ten years. Severance pay is equivalent to eight months' salary for an employee who has worked for the company for ten to twenty years. Severance pay is equivalent to ten months' salary for employees who have worked for the company for 20 to 25 years. Severance pay is equivalent to 13 months' salary for employment lasting more than 25 years.

Probation period

In Myanmar, probationary periods typically last up to 90 days.

07. Working hours

General

Working hours restrictions vary by industry. Employees in factories typically work 44 hours per week and eight hours per day. Adult males employed in continuous work environments may work up to 48 hours per week. Employees in a store or establishment can work up to 48 hours per week and eight hours per day on average. Employees in oil fields or mines are permitted to work up to 44 hours a week.


Each week, employees are entitled to one day of rest. Sunday is a day of rest for industry workers. Employers can select which days are rest days outside of factories. Employees are not permitted to work more than ten consecutive days without taking a day off.

Overtime

Factory workers are not permitted to work more than 20 hours per week of overtime, which is normally three hours each day Monday through Friday and five hours on Saturday. Overtime for employees of shops and establishments is limited to 12 hours per week, or 16 hours in exceptional circumstances. Overtime cannot be extended past 12:00 a.m. Overtime compensation is double the regular salary.

08. Minimum wage

General

Myanmar's minimum wage is 4,800 MMK per day, an increase from 3,600 MMK per day in 2018. Employers are required by the Payment of Wages Act to pay daily and part-time workers in cash, cheque, or bank transfer according to their fixed-wage period. All permanent workers and other monthly fee earners should be paid on a monthly basis at the conclusion of their pay cycle.

09. Employee benefits

General

Myanmar has 24 public holidays, including ten days off for the country's New Year's festivities. Employees should be entitled to those paid days off, as well as one paid day off each week as a vacation entitlement.

If an employee becomes ill, they are entitled to 30 days of sick leave for medical treatment as long as they have the proper documentation. Maternity leave is governed by the Leave and Holidays Act of 1951. Female workers should be entitled to 14 weeks of paid maternity leave, divided into six weeks before and eight weeks after the delivery. Those who contribute to the Social Security Fund should be given more time off.

Myanmar's social security system offers healthcare to qualified workers.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Myanmar

to hire a team takes time, money, and effort. The labor law in

Myanmar

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Myanmar

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Myanmar

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Myanmar

via our Employer of Record / PEO solution.

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