Employment in Myanmar is governed by a set of separate labour laws, including the Leave and Holidays Act 1951, the Minimum Wages Law 2013, the Employment and Skill Development Law 2013 and the Social Security Law 2012. Here is what employers need to know about pay, tax, payroll costs and hiring.
Statutory leave and public holidays are set by the Leave and Holidays Act 1951, as amended in 2014. Cash benefits for some types of leave, such as maternity leave, come from the Social Security Board for workers covered by the social security scheme.
The daily minimum wage allowance described below must also be paid for leave days and public holidays taken under the 1951 Act. Check your employees’ contracts and any workplace rules, which often set out entitlements in more detail.
Set up earned, casual, medical and maternity leave in IceHrm with their own accrual, carry forward and approval rules. Employees see their live balance before they apply, and managers see who is away on a shared calendar that follows your office’s public holidays. Leave management →
The national minimum wage is set by the National Committee for Minimum Wages under the Minimum Wages Law 2013. The government has since added a separate daily allowance on top of it for private-sector workers, regardless of region or industry.
For an 8 hour working day, set by Notification No. 2/2018.
An additional allowance per day for private-sector workers: MMK 2,000 from earlier increases plus MMK 1,000 from October 2025. Payable for working days, leave and holidays.
Working hours, rest days and overtime rules are set by the Factories Act and the Shops and Establishments Law, and overtime needs the employee’s consent. The Ministry of Labour’s inspectors enforce these rules and investigate complaints about unpaid allowances or excessive hours.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so daily wages, allowances and overtime reflect the days actually worked. Time & attendance →
The income tax year runs from 1 April to 31 March. Employers deduct tax from salaries when they pay them (PAYE), pay it to the Internal Revenue Department within 15 days, and file an annual salary statement within 3 months of the year end.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| MMK 0 – 2,000,000 | 0% | Nil |
| MMK 2,000,001 – 10,000,000 | 5% | 5% of the amount over 2,000,000 |
| MMK 10,000,001 – 30,000,000 | 10% | MMK 400,000 plus 10% over 10,000,000 |
| MMK 30,000,001 – 50,000,000 | 15% | MMK 2,400,000 plus 15% over 30,000,000 |
| MMK 50,000,001 – 70,000,000 | 20% | MMK 5,400,000 plus 20% over 50,000,000 |
| Over MMK 70,000,000 | 25% | MMK 9,400,000 plus 25% over 70,000,000 |
Non-resident foreigners pay the same rates without personal reliefs. Since 1 April 2024, tax must be paid in the same currency as the income was earned.
Employers with more than 5 workers must register them with the Social Security Board. Contributions cover health and social care and insurance against employment injury, and must be paid in kyats whatever currency the employee is paid in.
| Contribution | Rate | Maximum per month |
|---|---|---|
| Employer | 3% | MMK 9,000 |
| Employee | 2% | MMK 6,000 |
Build Myanmar pay the way you already structure it, with your own salary components, deductions and formula columns, such as the daily allowance or a capped social security column. Want to know how well IceHrm handles payroll calculations for Myanmar? Contact us or see Payroll →
Employers must sign a written employment contract with each employee in line with the labour laws and rules. Employees in a pre-hiring training or probation period are an exception.
Foreign workers need a work permit from the Ministry of Labour and a visa through the Myanmar Investment Commission. Companies with Myanmar Investment Commission or Special Economic Zone approval register foreign employees through its labour desk, and must not pay local and foreign staff differently for the same level of work.
Send contracts for e-signing, store them with work permits and ID documents on the employee’s record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Myanmar, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Myanmar? Talk to us.
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