Employer of Record & PEO in Myanmar
Hire & manage teams remotely in Myanmar without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Myanmar. Registering a legal entity in Myanmar as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Myanmar in full accordance with local labor laws in under a week.
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 in Myanmar. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Myanmar.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Myanmar in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Myanmar while NNRoad manages payroll & HR liabilities.
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.
➊ You interviews & select the candidates you want to hire in Myanmar.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Myanmar while NNRoad manages payroll & HR compliance.
Advantages of NNRoad's Myanmar Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Myanmar.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Myanmar.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Myanmar
Taxes & Payroll in Myanmar
Employee Income Taxes:
Individual Income tax is based on a progressive rate of income as below .
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 Costs in Myanmar
3% – Social security
2% – Social security
Working Hours and Overtime in Myanmar
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 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 overtim
40 x 44 x 48 hours
Mandatory Contributions 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).
Termination Laws and Severance Pay in Myanmar
- Employee Termination by notice:
An employer and an employee both can terminate the employment of an employee with at least one (1) months’ notice in advance.
- Termination for reason (with payment of severance, as applicable):
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
Employees terminated through notice or with payment in lieu of notice is entitled to following severance payment:
Term of Employment
Severance Amount (Monthly Salary)
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
Holidays in Myanmar
Public Holidays in Myanmar
- 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
Paid Leave in Myanmar
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.
Employment Contract in Myanmar
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.
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
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.
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.
Immigration Laws in Myanmar
A business visa can be used by foreign personnel to enter Myanmar. They will, however, need to seek a work permit if they plan to stay for more than 90 days.
In Myanmar, there are two types of work permits available to foreign employees:
- Stay permit: On its own, this permit is valid for a single trip to Myanmar. It allows the holder to stay and work in Myanmar for either three months or one year.
- Multi re-entry permit: This permit allows foreign nationals to work in Myanmar for a year, during which they can travel internationally. Applicants should note that holding a valid stay permit is a prerequisite for the multi re-entry permit.