Payroll and Benefits Guide Myanmar
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
3.00%
|
Social Security, capped at a maximum monthly salary of MMK 300,000. The maximum monthly contribution for an employer is MMK 9,000.
|
| 3.00% |
Total Employment Cost
|
| Employee Payroll Contributions | |
|
2.00%
|
Social Security, capped at a maximum monthly salary of MMK 300,000. The maximum monthly contribution for an employee is MMK 6,000.
|
| 2.00% |
Total Employee Cost
|
| Employee Income Tax | Annual |
|
0.00%
|
up to 2,000,000 MMK |
|
5.00%
|
2,000,001 – 10,000,000 MMK |
|
10.00%
|
10,000,001 – 30,000,000 MMK
|
|
15.00%
|
13,000,001 – 50,000,000 MMK
|
|
20.00%
|
50,000,001 – 70,000,000 MMK
|
|
25.00%
|
70,000,001 MMK and above
|
Employer taxes
Employee taxes
Minimum Wage
General
The minimum daily wage for full-time employees in Myanmar is 6,800 MNK, based on a working day of 8 hours.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Myanmar, the payroll cycle can be daily, weekly, bi-weekly and monthly. Employers with less than 100 employees must pay their employees’ salaries no later than the end of the pay period. Employers with a workforce greater than 100 must pay their employees’ salaries no later than five days after the pay period.
13th Salary
There are no provisions in the law regarding 13th salaries. However, bonuses are common at the employers’ discretion.
Working Hours
General
A standard working week in Myanmar consists of 8 hours per day and must not exceed 48 hours per week.
Overtime
The standard working hours and overtime caps depend heavily on the employee’s workplace:
| Sector | Standard Work Week | Daily Overtime Cap | Weekly Overtime Cap |
| Shops/Establishments | 48 hours per week (8 hrs/day) | 3 hours (Mon–Fri) / 5 hours (Sat) | 12 hours (up to 16 in exceptional cases) |
| Factories (General) | 44 hours per week (8 hrs/day) | 3 hours (Mon–Fri) / 5 hours (Sat) | 12 hours (up to 20 by Directive) |
| Factories (Continuous Work) | 48 hours per week | N/A | 12 hours |
-
Total Daily Limit: The total duration of work, including overtime, should not exceed 10 hours per day.
-
Authorization: Factories must obtain prior approval for constant overtime policies from the relevant branch office of the Factories and General Labour Laws Inspection Department.
-
Exemptions: Managerial and executive roles who have significant control over their work hours may be exempt from overtime pay.
Mandatory Overtime Pay Rates
Overtime compensation is mandatory and is calculated as a minimum premium percentage of the employee’s ordinary wage rate (which typically excludes allowances, although this point has been subject to legal controversy regarding the minimum wage component).
| Day/Condition | Minimum Compensation Rate (Statutory) | Total Pay Rate | Notes |
| Standard Overtime (Working Days) | 2 times the ordinary wage rate. | 200% | This double-time rate is the minimum required for all overtime hours worked beyond the daily/weekly threshold. |
| Weekly Rest Day (e.g., Sunday) | 2 times the ordinary wage rate. | 200% | Work on the designated rest day is compensated at double time. |
| Public Holiday Work | 2 times the ordinary wage rate. | 200% | Work on an official public holiday is compensated at double time. |
Compensation Method
| Compensation Method | Statutory Requirement | Notes |
| Monetary Pay | Mandatory payment at the applicable premium rate (200%). | For daily wage workers, the calculation formula is often based on: $(\text{Daily Wage} \times 6 \text{ days}) / 44 \text{ or } 48 \text{ hours} \times 2$. |
| Time Off in Lieu (TOIL) | Equivalent paid rest time. | Compensatory time off may be given instead of money for work on a weekly rest day or public holiday (one day off within three days before or after), OR the employee is paid the double-time rate. TOIL is generally not allowed for standard overtime. |
Leave
Annual Leave (vacation)
Employees are entitled to 10 days of paid annual leave.
PTO carryover
In Myanmar, statutory annual leave does not have a clear automatic carryover right under the law. Leave is meant to be taken when due, but accrued statutory leave cannot be forfeited. If employment ends before leave is taken, unused leave must be paid out; a blanket “use-it-or-lose-it” policy is not supported.
Public Holidays
There are 16 public holidays.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 4 January 2026 | Sunday | Independence Day | Standard holiday |
| 12 February 2026 | Thursday | Union Day | Standard holiday |
| 2 March 2026 | Monday | Peasants’ Day | Standard holiday |
| 2 March 2026 | Monday | Full Moon Day of Tabaung | Standard holiday |
| 27 March 2026 | Friday | Armed Forces Day | Standard holiday |
| 13 April 2026 | Monday | Thingyan (Water Festival) | Standard holiday |
| 14 April 2026 | Tuesday | Thingyan (Water Festival) | Standard holiday |
| 15 April 2026 | Wednesday | Thingyan (Water Festival) | Standard holiday |
| 16 April 2026 | Thursday | Thingyan (Water Festival) | Standard holiday |
| 17 April 2026 | Friday | Myanmar New Year Day | Standard holiday |
| 30 April 2026 | Thursday | Full Moon Day of Kasone (Vesak) | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 19 July 2026 | Sunday | Martyrs’ Day | Standard holiday |
| 29 July 2026 | Wednesday | Full Moon Day of Waso (Start of Buddhist Lent) | Standard holiday |
| 25 October 2026 | Sunday | Full Moon Day of Thadingyut (End of Buddhist Lent) | Standard holiday |
| 26 October 2026 | Monday | Thadingyut Holidays | Standard holiday |
| 27 October 2026 | Tuesday | Thadingyut Holidays | Standard holiday |
| 23 November 2026 | Monday | Full Moon Day of Tazaungmone | Standard holiday |
| 24 November 2026 | Tuesday | Tazaungmone Holiday | Standard holiday |
| 4 December 2026 | Friday | National Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
Employees who have completed six months of service within an organization are entitled to 26 weeks of sickness per year; the first 30 days are compensated. If an employee has not completed six months of employment, sick leave may be taken but not paid. A medical certificate is required for all sicknesses.
Maternity Leave
Employees are entitled to 14 weeks of paid maternity leave compensated by Myanmar’s social security scheme. Maternity leave can begin six weeks before the expected due date and lasts for eight weeks following the birth.
If an employee has multiple or complicated births, they can take an additional four weeks of leave. In the case of a miscarriage, the employee can take six weeks of leave.
Adoptive mothers are entitled to eight weeks of paid leave to care for their child if they are below the age of one.
Paternity Leave
Fathers are entitled to 15 days of paid paternity leave for the birth of a child; however, if the child’s mother is not covered under social security, they will only be entitled to 25.00% of their average salary. If an employee fathers twins, the entitlement increases to 37.50% and 50.00% in the case of triplets.
Parental Leave
There is no parental leave apart from maternity and paternity leave.
Other Leave
An employee can be entitled to up to six days of casual leave: taken three days at a time. Unused leave cannot be carried over to the following year and is lost.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Employers can terminate a fix term contract by giving the following reasons – business, personal, or workers misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain actions.
Before the termination for misconduct, an employee must receive one written and two verbal warnings. If another violation is made within 12 months of the third warning, the employer can dismiss an employee without notice or severance pay. If the employer initiates the termination, the employer must pay wages within two working days from the last day of employment.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| For hourly, daily, weekly or other short-term work: employer must pay at end of the work or at the agreed time; wage period for such workers must not exceed one month. For monthly-paid workers: if employer has ≤100 workers, wages must be paid at end of the period; if >100 workers, wages must be paid no later than 5 days after the end of the pay period. | If the worker is terminated by the employer, the employer shall pay the due wages within 2 working days from the date of termination; if the worker resigns via notice, payment must be on the next pay-period end; if worker dies, payment to legal heir within 2 working days. | The employer must pay wages in local currency or foreign currency recognized by the Central Bank. Payments may be made in cash, cheque or by deposit into the bank account of the worker, if the worker and employer agree. (Payment of Wages Law 2016, Section 3(a)). |
Notice Period
The general notice period is Myanmar is one months’ notice.
Severance Pay
Severance pay is determined by the length of employment:
- 6 months to 1 year- half a month’s wages
- 1-2 years- 1 months’ salary
- 3-4 years- 2 months’ salary
- 4-6 years- 4 months’ salary
- 6-8 years- 5 months’ salary
- 8-10 years- 6 months’ salary
- 10-20 years- 8 months’ salary
- 20 to 25 years- 10 months’ salary
- Over 25 years- 13 months’ salary
Probation Period
Typically, the probation period lasts up to 90 days.
Immigration
Citizens of most countries need to apply for a visa before they travel to Myanmar. However, there are countries whose citizens can get a Myanmar visa through a facilitated process: online or on arrival. Additionally, citizens from a few select countries are exempt from holding a visa at all if they are traveling for short-term purposes, such as business or tourism.
If you are a citizen of the following countries and you are traveling for tourism and business purposes, you are exempt from a Myanmar visa for stays of up to 14 days:
- Brunei
- Cambodia
- Indonesia
- Laos
- Philippines
- Thailand (only if arriving by air)
- Vietnam
The exemption only applies to holders of ordinary passports.
Myanmar visas can be divided based on the application method and the purpose for which you will enter the country.
Regular Myanmar Visas are requested at the local Embassy or Consulate based on the purpose of travel; Myanmar visas are divided into:
- Myanmar Tourist Visas, issued to foreigners who will enter the country for tourism and other recreational purposes
- Myanmar Business Visas issued to foreigners who will enter the country to conduct business (attend meetings or conferences, negotiate, etc.)
- Myanmar Social Visa, issued to ex-Myanmar citizens or foreigners who have family relationships to a Myanmar citizen
- Myanmar Employment Visa, which is issued to foreigners who will come to work in Myanmar
- Myanmar Crew Visa, issued to aircrew members
- Myanmar Transit Visa is issued to foreigners who have to transit in Myanmar while on their way to a third country. This type of visa is only valid for 24 hours.
There are three ways through which visa-required foreigners can get a visa for Myanmar:
- At an Embassy or Consulate of Myanmar
- Online (Myanmar eVisa)
- On Arrival
Once it is issued, a Myanmar visa is valid for three months, during which time it can be used to enter the country; if it is not used within three months, the visa will expire.
If a foreigner wants to live and work in Myanmar for a long-term period, a Stay Permit and Multiple Journey Special Re-entry Visa is required. The Stay Permit can be issued for three months to one year and are valid for one entry.
The Myanmar Ministry of Immigration and Population handles applications for Stay Permits and Multiple Journey Special Re-entry Visas.
In November 2021, a requirement for any Myanmar residents who wish to work overseas, must first apply for an overseas Workers identification card from the Department of Labour was re-introduced.
VAT
General
There is no VAT in Myanmar. The indirect tax in Myanmar is commercial tax, with a general rate of 5.00%
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Payroll and Benefits Guide
in Myanmar
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 4 January 2026 | Sunday | Independence Day | Standard holiday |
| 12 February 2026 | Thursday | Union Day | Standard holiday |
| 2 March 2026 | Monday | Peasants’ Day | Standard holiday |
| 2 March 2026 | Monday | Full Moon Day of Tabaung | Standard holiday |
| 27 March 2026 | Friday | Armed Forces Day | Standard holiday |
| 13 April 2026 | Monday | Thingyan (Water Festival) | Standard holiday |
| 14 April 2026 | Tuesday | Thingyan (Water Festival) | Standard holiday |
| 15 April 2026 | Wednesday | Thingyan (Water Festival) | Standard holiday |
| 16 April 2026 | Thursday | Thingyan (Water Festival) | Standard holiday |
| 17 April 2026 | Friday | Myanmar New Year Day | Standard holiday |
| 30 April 2026 | Thursday | Full Moon Day of Kasone (Vesak) | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 19 July 2026 | Sunday | Martyrs’ Day | Standard holiday |
| 29 July 2026 | Wednesday | Full Moon Day of Waso (Start of Buddhist Lent) | Standard holiday |
| 25 October 2026 | Sunday | Full Moon Day of Thadingyut (End of Buddhist Lent) | Standard holiday |
| 26 October 2026 | Monday | Thadingyut Holidays | Standard holiday |
| 27 October 2026 | Tuesday | Thadingyut Holidays | Standard holiday |
| 23 November 2026 | Monday | Full Moon Day of Tazaungmone | Standard holiday |
| 24 November 2026 | Tuesday | Tazaungmone Holiday | Standard holiday |
| 4 December 2026 | Friday | National Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
How to calculate severance pay tax in Myanmar?
Severance pay is determined by length of employment and taxed according to your monthly income (ranging from 0%-25%).