Below listed are the key points an employer must keep in mind while seeking employees in Myanmar.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
Generally, a particular language is not required in the LOA (letter of appointment); however, the Ministry of Labour requires that the Employment Contract be bilingual (both Burmese and English) upon registration.
Probation Period
The probationary period for employees in Myanmar is as per the employer’s discretion, however, it should be in accordance with the local labor laws.
13th Month Pay
There is no legal provision for 13th-month pay in Myanmar. However, the employers can provide the bonus on their discretion.
Employee Benefits
Employers in Myanmar may provide the following benefits to their employees:
- Maternity Leave.
- Paternity Leave.
- Social Security.
- Medical Insurance.
Employees in Myanmar can be paid daily, weekly, bi-weekly, or monthly.
As of 2022, the minimum wage followed in Myanmar is 4800 MMK per Day.
Maximum overtime permitted in Myanmar is 12 hours a week, paid at 200% of the standard hourly wage.
Employer Payroll Cost:
| Type of Tax |
Rate |
| Social Security |
3% |
Employee Payroll Cost:
| Type of Tax |
Rate |
| Social Security |
2% |
Employee Income Tax
| Employee Type |
Tax Rate |
| For Resident foreigners |
Progressive rates from 1% to 25% |
| For Non-resident foreigners |
Progressive rates from 1% to 25% |
VAT
There is no VAT in Myanmar; however, commercial tax is generally rated at 5%.
To terminate an employee for misconduct, the employer must state a list of misconduct offenses in the employment contract and ensure that the employee has had 3 written prior warnings and had the time to improve their performance before the termination.
The notice period in Myanmar is dependent on a mutual discussion between the employer and the employee, and should be in accordance with the labor laws of Myanmar.
Severance pay
Severance pay in Myanmar is calculated based on the number of years the employee has worked, and the longer the work, the higher the severance pay, up to 13 months' salary.
The Stay Permit allows a foreigner to work for three months or one year without re-entry to Myanmar. A Stay Permit and a valid Multiple Journey Special re-entry Visa will enable a foreigner to work while traveling in and out of Myanmar.