Hire in Myanmar

Myanmar PEO &

Employer of Record

Hire & manage teams remotely in Myanmar without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Burmese

Salary Currency

Burmese Kyat (MMK)

Capital city

Nypyidaw

Time zone

UTC +6:30

EOR in Myanmar

Hire Employees in Myanmar

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in Myanmar to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Myanmar

Employer of Record (EOR) services are for companies who do not have a legal entity in Myanmar, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Myanmar.

2. Employee Onboarding

We sign a local labor contract with your employees based in Myanmar.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Myanmar.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in Myanmar

Professional Employment Organization (PEO) services are for companies who have a legal entity in Myanmar, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
Myanmar PEO

Employee Income Taxes:

Individual income tax rates in Myanmar are based on progressive tax brackets.

Tax Brackets:

Sample Calculation

0%: 0 – 2,000,000 MMK
5%: 2,000,000 – 10,000,000 MMK
10%: 10,000,000 – 30,000,000 MMK
15%: 30,000,000 – 50,000,000 MMK
20%: 50,000,000 – 70,000,000 MMK
25%: Over 70,000,000
Yearly income = 35,000,000 MMK
0% * 2,000,000 = 0
5% * 8,000,000 = 400,000
10% * 20,000,000 = 2,000,000
15% * 5,000,000 = 750,000
400000+2000000+750000 = 3150000

Yearly income tax = 3,150,000 MMK

Employer Contribution

3% – Social security

Employee Contribution

2% – Social security

The Social Security Act 2012 dictates that employer having more than five workers should provide Social Security Scheme benefits to its workers, such as health and social care insurance as well as insurance against employment-related injuries.

The contribution needs to be paid in Myanmar kyats despite of the currency in which the payment is made to employee.

With effect from 1 April 2014, the maximum monthly contribution is limited to MMK 9,000 by the employer and MMK 6,000 by the employee (limiting total monthly contributions to a maximum amount of MMK 15,000).

Working Hours Per Week

The Factories Act 1951 and the Oilfields (Labour and Welfare) Act 1951 dictates that the normal working hours should not exceed more than 8 hours per day or 44 or 48 hours per week, depending upon the nature of the work with one rest day per week allowed as a paid rest day. An employee shall be granted a break of 30 mins after 4 hours of continuous work.

Overtime

Overtime can be carried out as per the mutual agreement between the employee and the employer as per the Myanmar labor law but is limited to a maximum of 12 hours per week or 16 hours in the case where there is a special need for overtime.

The employee who is required to work overtime is required to be aid double the basic wage/salary.

The overtime calculation is done as follows:

For Full-time worker

Salary x 12 months
X 2 = 1 hour overtime
52 weeks x 40 or 44 or 48 hours

For daily worker

Daily wages x 6 days
X 2 = 1 hour overtime
40 x 44 x 48 hours

As per the standard employment contract, termination is possible in the following scenario:

  • Liquidation of the factory/company
  • Winding up the employer’s business due to force majeure
  • Death of employee

Severance

Employees terminated through notice or with payment in lieu of notice is entitled to following severance payment:

  • Less than 6 months: No severance payment
  • 6 months to 1 year: 0.5 month’s salary
  • 1 – 2 years: 1 month’s salary
  • 2 – 3 years: 1.5 months’ salary
  • 3 – 4 years: 3 months’ salary
  • 4 – 6 years: 4 months’ salary
  • 6 – 8 years: 5 months’ salary
  • 8 – 10 years: 6 months’ salary
  • 10 – 20 years: 8 months’ salary
  • 20 – 25 years: 10 months’ salary
  • More than 25 years: 13 months’ salary

Notice Period

An employer and an employee both can terminate the employment of an employee with at least one (1) months’ notice in advance.

Employment Contract

The term of employment is not regulated under the applicable laws.

  • The official employment contract requires a fixed term to be stated in it. Upon the expiry of a fixed-term employment contract, provided there was no breach of the employment terms by the employee, the contract can be renewed at the end of the employment term.
  • The township labor offices administer these contracts and they stipulate a maximum period of two years for each employment contract.

The employer shall not refuse to extend the contract term without valid reasons.

Probation Period

Under Myanmar law, the probationary period is usually 3 months and is not extendable. Employees are required to be paid wages of not less than 75 percent of the basic salary during the work done in the probationary period.

Annual Leave

A minimum of 10 annual paid leave days per year is allowed to the employee who has completed 12 consecutive months of service along with a minimum of 20 working days in each month. This leave can be accumulated and carried forward to the next year.

Medical Leave

Under the Leave and Holidays Act 1951, employees who have completed 6 months of service are allowed 30 days of paid medical leave per year.

Maternity and Paternity Leave

The Leave and Holidays Act 1951 allows employees 14 weeks of paid maternity leave which can be taken 6 weeks before confinement and 8 weeks after confinement. An additional 4 weeks’ leave is allowed in case of twins. In case of a miscarriage leave of up to 6 is applicable to the employee. Male employees who are covered by the Social Security law may enjoy 15 days of paternity leave after the confinement of their wives.

Casual Leave

Each employee is allowed 6 days of annual paid casual leave which cannot be carried forward to the next year. This leave cannot be utilized for more than 3 consecutive days at a time, only exception being religious or important events such as weddings, funerals etc. and cannot be combined with any other leave type.

Public Holidays

  • New Year’s Day – January 1
  • Kayin New Year – January 2-3
  • Independence Day – January 4
  • Union Day – February 12
  • Peasants’ Day – March 2
  • Full Moon Day of Tabaung – March 16
  • Armed Forces Day – March 27
  • Thingyan Water Festival – From April 9 to April 16
  • Myanmar New Year – April 17
  • Labour Day – May 1
  • Full Moon Day of Kasong – May 14
  • Full Moon Day of Vaso – July 12
  • Martyrs’ Day – July 19
  • Full Moon Day of Thadingyut – October 8-9-10
  • Full Moon Day of Tazaungmone – November 6-7
  • National Day – November 17
  • Kayin New Year – December 22
  • Christmas Day – December 25
  • New Year’s Holiday – December 31

Resources

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