MYANMAR LABOUR LAW
OVERVIEW OF MYANMAR LABOUR LAWS
Myanmar Labour Law : important pieces of labour legislation (including applying rules) are:
Workmen’s Compensation Act (1923)
Leave and Holidays Act (1951) – last amended 2014
Factories Act (1951) – last amended 2016 Oilfields (Labour and Welfare) Act 1951
Social Security Act (1954) – to a certain extent still applied
Sections 91-108 Mining Rules (1996)
Law Relating to Overseas Employment (1999) Labour Organization Law & Rules (2011)
Social Security Law (2012) Settlement of Labour Dispute Law & Rules (2012)
Employment and Skill Development Law (2013)
Minimum Wage Law & Rules (2013)
MoL Notification No. 84/2015 on severance payments
National Minimum Wage Committee Notification No. 2/2015
MoL Notification No. 1/2015 on the signing of labour contracts; MoL labour contract template; MoL work rules template; MoL salary payment slip template
Payment of Wages Law (2016)
Shops and Establishments Law (2016)
The applicable Myanmar labour law depends, to a certain extent, on the sector in which an employee is working.
Example 1: The Leaves and Holidays Act protect regular workers, temporary hires and day labourers in all kinds of industries. Cleaners and security guards are not covered.
Example 2: The Factories Act covers workers in factories.
Example 3. The Shops and Establishments Law covers workers in a variety of establishments not used for production. It provides for one free day per week.
MINIMUM WAGE
8 hours working day= MMK 4,800
Example:
8 regular working hours: Ks. 600 x 8 = Ks. 4,800
1 hour overtime: Ks. 600 x 2 = Ks. 1200
Worker to receive at least: Ks. 6,000
REGULAR WORKING HOURS AND OVERTIME
Regular Working hours per day: 8 Hours
Maximum regular working hours per week: 44 hours (48 hours if “continuous work” for technical reasons is required)
Maximum overtime hours per week: 12 hours (16 hours if required in special cases)
MYANMAR Calculation of overtime wages…
- For salary earners: Overtime wage per hour = {(salary x 12 month) / 52 week x 44 or 48 hrs} x 2
- For daily wages worker: Overtime wage per hour = {(daily wage x 6 day) / 44 or 48 hrs} x 2
- Piece-work labourers: Overtime wage per hour = {(daily average wage x 6 day) / 44 or 48hrs} x 2
LEAVE AND HOLIDAYS
According to Myanmar Labour Law, employees are entitled to the following paid leave:
Gazetted holidays (in 2021).
Earned leave: After 12 continuous months of work, worker is entitled to 10 days of paid leave in the following year
- 1 day can be deducted from 10 earned leave days for each month with under 20 working days
- If employer and worker agree, unused leave days can be accumulated for up to 3 years
- Worker must be paid average wages or average pay for leave days before taking leave
- Worker who resigns or is terminated before taking leave must be paid for unused leave based on average daily earning over the last 30 days
- If weekly rest day or public holiday falls within earned leave days, the weekly rest day or holiday must be counted as the leave day
Casual leave: Up to 6 days during 12 months starting from the first day of work. Unused casual leave is forfeited; it is not carried forward and does not have to be bought up by the employer.
Sick leave (Medial Leave): Workers are entitled to 30 days of medical leave with full pay if 6 months service has been completed.
If 6 months service has not been completed, ‘leave without pay’ can be granted for medical needs Medical leave can be joined with Earned Leave. If not taken within a year, medical leave is void or cancelled.
Maternity leave: 6 weeks before and 8 weeks after delivery. Employees are entitled to unpaid sick leave of up to 30 days during a year if they have not continuously worked for 6 months. Male employees covered by the Social Security Law (2012) may enjoy 15 days of paternity leave after confinement of their wife.
PROBATIONARY PERIOD
Probationary period: Up to 3 months; minimum pay during probationary period: at least 70% of the basic salary.
Training period: not more than 30 months.
TERMINATION AND DISMISSAL
In Myanmar Labour Law, both employer and employee can terminate the contract fairly easily.
The employee can terminate the contract:
During the probationary period: by giving 7 days notice.
During the “regular” period: by giving 30 days notice.
The employer is not required to pay severance allowance if the employee terminates the contract.
The employer can terminate the contract:
During the probationary period: By giving “one month” notice or paying probationary salary for one month. No such payment is required if the employee is dismissed for “important reasons”.
During the “regular” period: By giving “one month” notice and paying a severance allowance (see below) of Myanmar Labour Law standard.
Ordinary Misconduct: during the “regular” period; the employer is required three warnings: (i) personal warning, (ii) written warning, (iii) warning which the employee has to sign (specified in Myanmar Labour Law standard).
Grave Misconduct: (specified in Myanmar Labour Law standard work rules; e.g.: stealing, breaking secrets) can be dismissed on the spot without payment of a severance allowance.
Severance Pay
The amount of the severance allowance is specified in Myanmar Labour Law (Notification 84/2015 dated 3 July 2015).
- If resignation of employee, no severance allowance is payable.
- In case of a termination by notice or for insufficient reason, severance allowance is payable as follows:
Term of Employment |
Severance Allowance |
| 6 months – 1 year | ½ monthly salary |
| 1 – 2 years | 1 monthly salary |
| 2 – 3 years | 1 ½ monthly salaries |
| 3 – 4 years | 3 monthly salaries |
| 4 – 6 years | 4 monthly salaries |
| 6 – 8 years | 5 monthly salaries |
| 8 – 10 years | 6 monthly salaries |
| 10 – 20 years | 8 monthly salaries |
| 20 – 25 years | 10 monthly salaries |
| More than 25 years | 13 monthly salaries |
SOCIAL SECURITY FUND (SSB)
Contribute to the social security fund (Heath, Social care and Injury) from the salary of insured workers as follows:
Total: 3% from employer, 2% from employee (total 5% contribution).
Note: The accepted maximum salary per month to qualify for participation in the social security fund is currently set at 300,000 kyats. Lear more about SSB here.
MYANMAR PERSONAL INCOME TAX
Personal Income Tax calculation is required to pay income tax if a person earns more than MMK 4.8 million per year. Learn more about Personal Income Tax here.
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