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)
Payroll tax
3.00%
Payroll Cycle
Monthly
Time zone
UTC +6:30
Capital city
Nypyidaw
Hire Employees in Myanmar
The NNRoad Advantage ☺
Pay as you go
Global account manager
Compliance
Fast Onboarding
Foreigner Visas
Platform
Employer of Record in Myanmar
01.
Candidate Selection
02.
Employee Onboarding
03.
Compliance & Payroll
04.
Payroll Reporting
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Myanmar
01.
Compliance & Payroll
02.
Payroll Reporting
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Myanmar
Employee Income Taxes:
Tax Brackets
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
Sample Calculation
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 Costs in Myanmar
Employer Contribution
3% – Social security
Employee Contribution
2% – Social security
Benefits & Insurance in Myanmar
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 in Myanmar
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
Termination Laws in Myanmar
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 in Myanmar
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.
Types of Leaves in Myanmar
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 in Myanmar
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