Myanmar Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Myanmar Labour Law
  • Myanmar Social Security Law
  • Myanmar Minimum Wages Law
• Legal Characteristics:
  • Aims to protect employees' rights and welfare
  • Regulates aspects such as minimum wage, working hours, leave, and severance pay

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contract Provisions:
  • Must include details on job description, remuneration, working hours, leave, benefits, termination, and probation period
• Language and Currency:
  • Contracts must be written in Burmese
  • Currency used is Myanmar Kyat (MMK)

Working Hours Regulations

• Standard Working Hours:
  • 44 hours per week
  • 8 hours per day
• Rest Days and Breaks:
  • At least one rest day per week
  • Entitled to at least 30 minutes break after 5 hours of work

Leave Policy

• Annual Leave:
  • 10 days of paid annual leave per year
• Public Holidays:
  • 16 statutory public holidays
• Special Leave:
  • Sick leave: 30 days of paid sick leave per year (after 6 months of service)
  • Maternity leave: 14 weeks of paid maternity leave
  • Paternity leave: 15 days of paid paternity leave

Employee Severance and Termination

• Notice Period:
  • 30 days' notice
• Severance Pay:
  • Determined based on years of service, ranging from half a month's salary to 13 months' salary
• Unfair Dismissal Protection:
  • Employers must provide valid reasons for dismissal and written notice
  • Employees have the right to appeal against unfair dismissal

Taxation

• Personal Income Tax:

  • Salary Range (MMK)	Tax Rate
    2,000,000	0%
    2,000,001 - 5,000,000	5%
    5,000,001 - 10,000,000	10%
    10,000,001 - 20,000,000	15%
    20,000,001 - 30,000,000	20%
    30,000,001 and above	25%

• Social Security Contributions:

  • Employer: 3%
  • Employee: 2%

Health Insurance

• Insurance Policy:
  • Myanmar Social Security Scheme provides healthcare coverage for eligible employees
• Coverage:
  • Basic medical services

Compensation and Benefits

• Minimum Wage:
  • 4,800 MMK per day
• Compensation Structure:
  • Basic salary
  • Bonuses (not mandatory)
  • Allowances

Work Permits and Visas

• Permit Requirement:
  • Foreigners require a work permit to work in Myanmar
• Application Process:
  • Apply through the Myanmar Immigration Department

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Myanmar
• Common Provisions:
  • Restricting employees from disclosing confidential information after leaving employment
  • Restricting employees from working for competitors after leaving employment

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skill enhancement training to employees
• Government Support:
  • Government provides training subsidies and programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on race, religion, gender, or disability
• Enforcement:
  • Government agencies responsible for enforcing anti-discrimination laws

Remote Work Policy

• Legal Framework:
  • Myanmar does not have specific remote work laws
• Tax and Insurance Implications:
  • Remote work may impact tax and social security contributions

Authoritative Website Addresses

• Myanmar Ministry of Labour: https://www.mol.gov.mm/