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Myanmar EOR & PEO

SALARY PAYMENT IN Myanmar Kyat (MMK, K)

CONTRACT LANGUAGES Burmese / English

PAYROLL TAX 3.00%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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Hire in Myanmar

Horizons ensures day-to-day guidance to help your business navigate Myanmar labor laws and regulations. We also provide mandatory monthly payroll requirements, and absorb all local employment liabilities. Partnering with our Myanmar EOR is the quickest and most cost-effective way to enter the Myanmar market.

Note, a Myanmar Employer of Record is also known as a Myanmar Professional Employer Organization (PEO).

Facts & Stats

EOR Platform

Hire in Myanmar, and pay employees through our platform or app.

EOR Cost

Our Myanmar EOR solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Myanmar, hire in as little as 24 hours.

Contracts

We draft labor contracts compliant with Myanmar labor law.

Local Benefits

We administer all mandatory benefits and contributions in Myanmar.

180+ Countries

It doesn’t stop with Myanmar — we are an international EOR

stay compliant with Myanmar labor laws

Employment Laws

Employment contracts in Myanmar

Employment contracts in Myanmar must be drafted in writing and in the local Burmese language. Contracts can have a set duration or an indefinite term.

The Myanmar government requires employment contracts to follow a specified format and include a fixed-term clause. Contracts should include provisions regarding the following:

  • Terms of compensation
  • Benefits
  • Termination clauses

Employers who do not follow Myanmar’s compensation laws can be subject to fines or delays when incorporating their business.

When your business partners with Horizons’ Myanmar EOR, we’ll help you to draft locally compliant employment contracts that meet Myanmar rules and regulations. 

Fixed-term
Probationary period3 – 6 months (standard)
Termination notice period

0 to 2 years employment: 4 weeks notice required

2 to 5 years employment: 6 weeks notice required

>5 years employment: 8 weeks notice required

Severance

0 – 1 year employment: none

1 – 2 years employment : 10 days salary

2 – 5 years employment: 15 days salary

5+ years employment: 20 days salary

Indefinite
Probationary period3 – 6 months (standard)
Termination notice period

0 to 2 years employment: 4 weeks notice required

2 to 5 years employment: 6 weeks notice required

>5 years employment: 8 weeks notice required

Severance

0 – 1 year employment: none

1 – 2 years employment : 10 days salary

2 – 5 years employment: 15 days salary

5+ years employment: 20 days salary

Work hours in Myanmar

Employees in Myanmar typically work eight hours per day and 44 hours per week. In most cases, rest periods are unpaid. Employees are entitled to a rest period of at least 30 minutes after five hour’s work. A standard work day should not exceed 10 hours, including all rest periods.

Overtime pay is provided for employees who work more than eight hours per day or 44 hours per week. Overtime is paid at 2x an employee’s normal hourly pay rate. Employees in shops and establishments should not be asked to perform more than 16 hour’s overtime per week. Additionally, these employees should not be asked to work after midnight. 

Factory workers should not be asked to perform more than 20 hour’s overtime per week. This includes up to 15 hours from Monday to Friday and five hours on Saturday. Male factory employees accrue overtime hours after working more than 48 hour’s per week. 

Hire compliantly in Myanmar without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Holidays in Myanmar

In Myanmar, public holidays that fall on a rest day or separate holiday cannot be taken on another day. For employees who are not Buddhist, religious holidays can be taken on days that the employee and employer agree to. These days do not have to be paid. 

Employees who work on a public holiday are paid at twice the rate of their normal pay, plus a cost-of-living allowance.

Because many of Myanmar’s holidays surround moon risings or religion, dates can vary from one year to the next. The government publicly announces the holiday dates ahead of time. Leave of 10 days is provided to workers to celebrate Myanmar New Year.

Myanmar has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
4 Jan, 2024Independence Day
12 Feb, 2024Union Day
2 Mar, 2024Peasants’ Day
24 Mar, 2024Full Moon Day of Tabaung
27 Mar, 2024Armed Forces’ Day
13 Apr to 21 Apr, 2024Maha Thingyan (Water Festival)
1 May, 2024Labor Day / May Day
17 Jun, 2024Eid al-Adha (Tentative Date)
19 Jul, 2024Martyrs’ Day
20 Jul, 2024Full Moon Day of Waso (Beginning of Buddhist Lent)
16 Oct, 2024Full Moon Day of Thadingyut Holiday (End of Buddhist Lent)
17 Oct, 2024Full Moon Day of Thadingyut (End of Buddhist Lent)
18 Oct, 2024Full Moon Day of Thadingyut Holiday (End of Buddhist Lent)
1 Nov, 2024Diwali/Deepavali (Tentative Date)
15 Nov, 2024Full Moon Day of Tazaungmone Holiday
25 Nov, 2024National Day
25 Dec, 2024Christmas Day

 

Myanmar tax

Individual income is taxed at the progressive rates ranging from 3% – 50% in Myanmar. Foreigners are considered tax residents who will be taxed at the progressive rates between 3% – 30%, if they have been in Myanmar for 183 days or more. Non-resident foreigners are taxed at a flat rate of 35%, or at the progressive rates mentioned above, whichever is greater.

Myanmar corporate tax rate is 30% and charged on the income derived from sources in Myanmar and foreign-sources outside Myanmar.

Myanmar's social security fund

Myanmar’s Social Security Fund provides benefits due to illness, death, workplace injury, disability, maternity, and superannuation. Under this fund, employees can claim a portion of their medical expenses. Employers pay 3% of contributions and employees contribute 2% of their earnings to the fund –  subject to some exceptions. 

Health benefits

Employees who have made 180 month’s worth of contributions to the Health and Social Care Fund are entitled to medical treatment at government hospitals. 

Vacation leave

Employees who have worked for the same employer for one or more years are entitled to 10 day’s paid annual leave. Employees accrue casual leave throughout the year and can only take three day’s leave at one time. Employers pay the base salary for six days of casual leave every year. 

After completing three year’s company service, employees are entitled to 30 day’s religious leave.

Sick leave

Employees with more than six month’s company service receive 30 day’s paid sick leave per year, so long as they provide a medical certificate to their employer.

Employees with less than six month’s company service are only eligible to take unpaid sick leave. 

hassle-free Myanmar compensation & benefits

Compensation & Benefits

Myanmar compensation laws

Myanmar’s minimum wage is 5,800 Myanmar Kyat (MMK) per day. In 2018, this figure was raised from 3,600 MMK per day. To maintain compliance with the Payment of Wages Act, employers must pay daily and part-time employees via cash, check, or bank transfer. Payment must be in-line with an employee’s fixed-wage period.

Permanent employees should be paid monthly, at the end of their payment cycle.

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Guaranteed benefits in Myanmar

To maintain compliance with employment law, employers are required to provide certain benefits to employees. And with 24 public holidays in Myanmar each year, employers must be mindful that employees are given their entitled days off. These public holidays include 10 day’s off during Myanmar’s New Year’s celebrations. For each of these days, employees are entitled to leave with pay. Additionally, employees are entitled to one paid day off per week, as a vacation entitlement. 

Employees in Myanmar are also entitled to 30 day’s sick leave per year. This is provided they present sufficient medical documents as evidence of their injury or illness.

Myanmar’s Leave and Holidays Act governs maternity leave. Female employees are entitled to 14 week’s paid maternity leave — to be taken as six weeks prior to childbirth and eight weeks post childbirth. Any employees that are actively contributing to Myanmar’s Social Security Fund should also receive additional time off.

Myanmar benefit management

Employers in Myanmar are strongly advised to provide their employees with more than the required statutory requirements. This can not only help businesses to attract talent, but also improve employee retention rates. Whilst these benefits are not compulsory, many employees will expect them as part of their compensation. 

Some common supplemental benefits include:

  • Time off for non-Buddhist religious holidays
  • Additional annual paid vacation
  • Education or housing allowances
  • Performance-based or annual bonuses
Benefits and compensation restrictions

For expanding businesses, one of the major restrictions to benefits and compensation involves setting up a local entity. Employers are generally prohibited from hiring and paying employees without first establishing a subsidiary in Myanmar. This process can take months to complete, which causes significant business delays. 

With Horizons’ Myanmar Employer of Record, businesses can begin operating in Myanmar in as little as 48 hours. Horizons acts as your employees’ Employer of Record, which means there’s no need to establish a subsidiary in Myanmar. And as the only global EOR with an in-house recruitment team, we can help you source, hire, and onboard top local and international talent. 

Hire in Myanmar in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Myanmar PEO” and “Myanmar EOR” are used interchangeably.

An EOR in Myanmar can feasibly hire both local and foreign nationals to work in Myanmar.

However, the ability of Horizons to sponsor your foreign national employee in Myanmar may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Myanmar EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Myanmar.

It is possible to get a work visa in Myanmar. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Myanmar are limited, however—get started today to secure your employees’ visa spot.

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