Whether you're aiming to strengthen your workforce in the rapidly growing tech industry or seeking experienced leaders to oversee operations, Myanmar presents diverse opportunities.

Navigating Myanmar's unique business landscape and fulfilling specific skill requirements can be efficiently achieved by partnering with Gloroots. Their local expertise ensures a seamless recruitment process, compliance with regulations, and successful integration into the Myanmar market.

In Myanmar, effectively navigating the challenge of "Misclassification of Workers" is paramount, as inaccuracies in categorizing employees can lead to substantial risks, such as misidentifying independent contractors or wrongly classifying individuals as exempt from specific regulations. Engaging a PEO/EOR can help you address and mitigate these risks. Partnering with Gloroots, a trusted ally, ensures a steadfast commitment to strict adherence to labor laws, precise worker classification, streamlined payroll management, and comprehensive employee benefits.

Entrusting these responsibilities to seasoned professionals guarantees a compliant and efficient experience within Myanmar's intricate labor landscape. This commitment fosters operational efficiency and instills confidence in your business endeavors within the Myanmar market, safeguarding against potential pitfalls associated with worker misclassification.

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Labor laws in Myanmar play a crucial role in preventing the potential exploitation of employees by establishing essential provisions related to the minimum working age, working hours, minimum wage, paid holidays, sick leave entitlements and overtime compensation. 

The main statutes and regulations relating to employment in Myanmar are the:

• Leave and Holidays Act (1951);
• Social Security Law (2012) (SSL) and the Social Security Rules;
• Minimum Wages Act (2013) (MWA);
• Payment of Wages Act (2016);
• Employment and Skills Development Law (2013) (ESDL);
• Shops and Establishments Law (2016);
• Labour Organisation Law (2011);
• Factories Act (1951);
• Settlement of Labour Disputes Law (2012) (SLDL) and Settlement of Labour Disputes Rules (2012); and
• Notification No. 84/2015 on severance payments (Notification 84).

Employment Contract

Employers must furnish an employment contract within 30 days of their employee’s employment. The employer is mandated to utilize the standard employment contract the Government provides.

This contract outlines key details, including the nature of employment, compensation, benefits, working hours, leave policies, probationary period, guidelines for termination and resignation, employment location, job roles and responsibilities, and overtime pay.

Typically, these contracts are established for an unspecified duration unless explicitly stated otherwise. Partnering with global PEO and EOR entities like Multiplier ensures they handle the responsibility of creating employment contracts for your staff in Myanmar while ensuring compliance with local regulations.

Working Time

In Myanmar, a typical workweek is defined as 8 hours per day, with a maximum limit of 48 hours per week.

Overtime

Any work that surpasses the regular weekly working hours is considered overtime and is governed by employment contracts or collective agreements. There are specified limits when employees are asked to work beyond standard hours or during holidays. For shop and establishment employees, the maximum is 12 hours per week, while factory workers have a maximum of 20 hours per week for overtime.

Overtime hours exceeding 48 hours a week are subject to additional compensation, calculated at a rate of 200.00% of the employees' regular pay rate. It's important to note that working overtime beyond midnight is not allowed.

Public Holidays

Myanmar has 16 public holidays throughout the year (approximately).

Minimum Wage

The minimum daily wage for full-time workers in Myanmar is 6,800 MNK, calculated on an 8-hour working day.

Annual Leave

Workers have the right to take 10 days of paid vacation annually.

Paid Sick Leaves

Employees who have worked for at least six months in a company are eligible for 26 weeks of sick leave per year, with compensation for the initial 30 days. If an employee has not completed six months of service, sick leave can be taken but without pay. A medical certificate is mandatory for all instances of sickness.

Maternity Leaves

Laws around maternity leaves are as follows:

• Employees have the right to 14 weeks of maternity leave 
• Employees are compensated through Myanmar's social security scheme. 
• Maternity leave can commence six weeks before the anticipated due date and extends for eight weeks after childbirth.
• An additional four weeks of leave are permitted in situations of multiple or complicated births. 
• In the event of a miscarriage, the employee is entitled to six weeks of leave.

For adoptive mothers caring for a child below the age of one, eight weeks of paid leave are granted.

Paternity Leaves

Fathers are eligible for 15 days of paid paternity leave upon childbirth. However, if the child's mother is not covered by social security, the father's entitlement is reduced to 25.00% of their average salary. In the case of twins, the entitlement increases to 37.50%, and for triplets, it rises to 50.00%.

Employer Payroll Contribution

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Employee Payroll Contribution

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Employee Income tax

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Employers can conclude a fixed-term contract based on business, personal, or worker misconduct reasons. The termination process necessitates providing notice and a written justification. In cases of misconduct, a prior warning is required, allowing the employee an opportunity to clarify their actions.

Prior to termination for misconduct, the employee should receive one written and two verbal warnings. If another breach occurs within 12 months after the third warning, the employer can terminate the employee without notice or severance pay. In cases where the employer initiates termination, wages must be paid within two working days from the last day of employment.

Severance Pay

Severance pay in Myanmar is determined based on the employee's length of service. For individuals with a tenure ranging from 6 months to 1 year, the severance is equivalent to half a month's wages. Those employed for 1 to 2 years are entitled to 1 month's salary, while employees with 3 to 4 years of service receive 2 months' salary. The scale increases progressively, with individuals serving 4 to 6 years entitled to 4 months' salary and those with 6 to 8 years receiving 5 months' salary. Further increments are observed for employees with 8 to 10 years (6 months' salary), 10 to 20 years (8 months' salary), 20 to 25 years (10 months' salary), and those with over 25 years of service eligible for 13 months' salary as severance pay.

Notice Period

In Myanmar, the standard notification period is one month.

Probation Period

Usually, the probationary period extends for a maximum of 90 days.