Myanmar Country Facts

We provide comprehensive information regarding, Culture, Work life, Taxation, Visa’s & immigration, Labour Law, recruiting in your country of choice and employment contracts.

Global Expansion Made Easy for You

Expanding into Myanmar generally comes with challenges, however, partnering with us and using Employer of Record (EOR) eliminates the frustrations you could encounter.

What Types of Work Visas or Permits for Myanmar are there?

To visit Myanmar for tourism purposes an e-Visa is available online, an A Visa on Arrival, or Tourist Visas from embassies and consulates in countries of residence. Which visa is applied for depends on nationality, duration and the entry point as there are restrictions. There are also 10 countries’ nationals who are visa exempt for a 14-day period.

However, when it comes to living and working in Myanmar, available information is confusing and complex. It is difficult to know exactly which visa may apply to applicants, so the best advice is to contact the relevant government departments for up-to-date guidance.  Experts such as Bradford Jacobs and its Professional Employer Organisation are here for those expanding into this country who may be outsourcing, transferring, or seconding staff from abroad. We can deal with the relevant authorities for you. Those contravening immigration law and visa policies can be imprisoned for up to two years.

Main Visa Types

  • E-Visa is for single-entry and applied for online for Tourism, valid for up to three months, it takes a minimum of three days or up to two weeks and is for a 28-day stay. Not extendable. Applicants require a passport (not travel documents) which should have six months validity. Non-refundable.
  • Visa on Arrival for Tourism. 30-day visa. Collect an application form or the airline and apply either at the Yangon, Nay Pyi Taw or Mandalay airport Visa on Arrival desk. Travellers need passport with six-months’ validity and two coloured photographs 4cms x 6cms taken in the last six months.
  • E-Business a single 70-day visa requiring the same documents and same process as for tourism PLUS a registered letter and letter of invitation from a company that has been registered in Myanmar for a minimum three years
  • Visa on Arrival for Business; Workshop/Meetings/Conferences or Seminars; Transit; Crew Visa. Applicants need documents regarding reason for travel e.g., Business Visa – information regarding the hosting company. Also, any letters of invitation, recommendations from ministries, company registration or business licence, attending workshops or similar. Duration of stay: Transit (24 hours) Crew (28 days) Seminar/Workshop (28 days) Business (70 days) Single Entry Visas
  • Business Visa Multi-Entry Visa for individuals investing in Myanmar. To be able to apply for a three, six- or 12-month visa, applicants may need to have been in Myanmar previously on a Business Visa … with no immigration infringements. The multi-visa holders still need to leave Myanmar every 70 days. The Stay Permit / eBusiness Extension extends the 70 days rule. Also, there is a Multi Journey Special Re-Entry Visa (MJSRV) so holders do not need to reapply for the Stay Permit each time they leave.

Note: Employees who have a job offer and invitation from an eligible employer in Myanmar, can apply for the Business Visa. This is mostly used by employees to enter, live and work in Myanmar but other paperwork is required to stay longer than the 70-day limit. This also includes transferees and staff seconded from parent companies

  • Employment Visa is in theory available from embassies and consulates abroad, for a 70-day period and is extendable depending on the nature of the employment.

NOTE: With this visa, employees also require a Foreign workers registration card (Labour Card). However, in practice, these are restricted depending on the eligibility of the sponsoring employer, and as such individuals many enter the country on the Business Visa

  • Social Visa – Single Entry available for spouses of Myanmar citizens, ex-citizens, and their dependents. Available as a single re-entry visa for 70 days, and thereafter, applicants can apply for a Multi Entry visa for three, six, or 12 months .
  • There are also visas for religious visits, for students and educational purposes, and official visas.

Applying for Work Visas and Work Permits in Myanmar

Trying to collate information on the correct processes, required documentation, visas and permits and where to obtain them is complicated. It is recommended that up-to-date information is sought from embassies or consulates in country of residence or through specialists on the ground in Myanmar such as Bradford Jacobs and its Professional Employer Organisation networks.

A number of authorities are involved when people want to live and work in the country. Typical work authorisations are as follows:

  • Entry Visa for Work
  • Work Permit for MIC approved or MIC Permit companies
  • Stay Permit or Business Visa extension
  • Multiple Journey Special Re-entry VISA (MJSRV)
  • Foreign Registration Certificate (FRC)
  • Foreign Workers Registration Card (Labour Card) for MIC and SEZ company employees

November 2021 saw applications for employment permits/work permits and visas for MIC company’ employees completed online at

Entry Visa – Business

Although an Employment Visa is available from diplomatic missions abroad, this can be problematic for foreigners who also require a Labour Card which is only given to qualifying foreigners; so most people arrive using the Business Visa which seems to be generally accepted.

Valid for 90 days for a stay of 70 days with extensions available.

Business Visa documentation, for which we will give the government link, includes:

  • Completed and signed application form (two copies) with details of employment history and present employment
  • Passport valid for six months
  • Copy of passport’s bio page
  • Two photographs on passport guidelines taken within the previous six months
  • Details of flight and hotel booking
  • Invitation letter from employer or company, which must be registered in Myanmar and on MyCO, or a registered Chamber of Commerce Association inviting employee. It should include purpose and duration of visit. Sample letter:
  • Company registration certificate
  • Proof of vaccination against COVID 19 (14 days before travelling) and foreign nationals require COVID insurance.
  • Health Declaration Form completed for submission to health authorities at the airport upon arrival; there may be thermal screening

Foreign Registration Certificate (FRC)

  • Cover letter with application
  • Completed and signed application form
  • Recommendation letter from Ministry e.g., MIC
  • Approval from the Nay Pyi Taw immigration office
  • Five colour photos taken within previous six months on passport guidelines

Business Visa Extension plus the MJSRV

To extend the 70-day Business Visa validity.  Submitted to the Ministry of Immigration and Population on behalf of the employee by the employing/sponsoring company (investor), which must be incorporated and registered with DICA and listed on MyCO. The employee has to be in Myanmar when the application is both started and completed, with the stickers included in the passport

  • Request for extension on company letterheaded paper signed by a company director and attached to the completed application forms
  • A recommendation from the relevant ministry (if applicable), or from State or Regional Officers
  • Copy of the latest visa, which must be the eVisa for Business
  • Valid passport. Stay extension cannot be for more than the passport’s validity, which must be for a minimum six months
  • Fees for both the Extension and Re-Entry Visa are collected online
  • Attach a valid FRC

Overview of Taxes in Myanmar

Tax rates are subject to frequent revisions. Figures are given in Myanmar kyat (MMK) with equivalents in euros and US dollars.

Personal Income Tax (PIT): Progressive rates apply from 5% on income from MMK 2,000,000 (€880, US$950) up to 25% on income above MMK 30 million (€13,245, US$14,270)

Corporate Income Tax (CIT): The standard rate is 22% on income sourced in Myanmar and on worldwide income. The rate applies to companies incorporated under the Companies Act and the Special Companies Act, or operating under the Special Economic Zones Law or the Myanmar Investments Commission. Branches pay tax at 35%

Withholding Tax (WHT): 10% applies on royalties for resident citizens or foreigners; 15% on interest and royalties for non-resident companies or individuals, unless treaties apply other rates

Capital Gains Tax (CGT): Generally taxed at 10% on resident and non-resident companies, with different rates applying to operations in the oil and gas sector. Companies transferring shares in upstream oil and gas activities are subject to tax between 40% and 50%

Commercial Tax (CT): The equivalent of VAT in Myanmar. Rates range from 0% to 8% on goods and services, although it is generally applied at 5%. Zero applies to exports, except crude oil (5%) and electricity supplies (8%). Tax is not due if proceeds in a fiscal year do not exceed MMK 50 million (€22,075, US$23,800). The Central Bank of Myanmar adjudicates on exempt sectors

Specific Goods Tax: Includes tobacco products and alcoholic drinks; certain types of vehicles; petrol, diesel and aviation jet fuel. Rates vary between 5% and 60% and additional Commercial Tax will be applied

Gems Tax: Under the Union Tax Law (2023) tax applies at rates between 5% and 11% on the item’s value

Customs and Excise Duties: Excise duties apply to alcohol

Other Taxes: Stamp duty applies between 0.5% and 2% on such as transferred shares, bonds, rentals and lease income. There are no local taxes

Personal Income Tax in Myanmar

Tax rates for individual residents and non-residents.

Income | Percentage Tax on Excess
Up to MMK 2,000,000 (€884, US$953) | 0%
Excess up to MMK 5,000,000 (€2,210, US$2,382) | 5%
Excess up to MMK 10,000,000 (€4,420, US$4,765) | 10%
Excess up to MMK 20,000,000 (€8,837, US$9,528) | 15%
Excess up to MMK 30,000,000 (€13,245, US$14,270) | 20%
Excess above MMK 30,000,000 | 25%

Note: No tax is due if annual total income from salaries is under MMK 4.8 million (€2,120, US$2,290)

Individual Tax Rules in Myanmar

  • The tax year runs from April 1 until March 31, and reverted to this schedule in October 2021
  • Individual taxpayers whose entire salary is not on payroll must file returns within three months of the end of the financial year
  • Advanced quarterly payments are paid, based on estimated total income for the year
  • Employers must remit individuals’ payroll tax to the Internal Revenue Department (IRD) within 15 days of making the deduction. Employers must file the individuals’ annual returns within three months of the end of the tax year, or face a fine equating to 10% of tax due on annual salaries
  • Tax residents are individuals domiciled in Myanmar or who have their main residence there. Foreigners who reside in Myanmar for 183 days in a tax year are considered tax residents
  • Resident foreigners and citizens are taxed on their worldwide income; non-resident foreigners taxed only on income sourced in Myanmar
  • Foreign individuals working for companies operating under the Myanmar Foreign Investment Law (MFIL) or the Myanmar Investment Law (MIL) may be taxed the same as residents, regardless of the time they have been in the country, and will be considered to be resident foreigners

Employers’ and Employees’ Social Security and Statutory Contributions in Myanmar

Contributions are deducted from payroll by the employer for remittance to the Social Security Board (SSB) by all companies with five or more employees. The social security programme funds such as health and social care and insurance for work-related illness or injury. Employees’ contributions are tax deductible and capped at a maximum monthly amount of MMK 6,000 (€2.70, US$2.00). Employers’ contributions are capped at MMK 9,000 (€4.00, US$4.30).

International companies expanding operations into Myanmar’s difficult economic, social and political environment need to establish a subsidiary in the country before they can legally operate. It is required before they can hire staff and operate their payroll and handle every other aspect of the employment relationship.

Geographically, Myanmar is ideally placed to benefit from its immediate neighbours China, India and Bangladesh, three of Asia’s most formidable economies. Foreign investors traditionally look at the sectors of oil and natural gas, mining and rare-earth mineral extraction, chemicals, construction and pharmaceuticals. Infrastructure and logistics are other key areas for expansion, especially in the sprawling rural areas that stretch from river deltas in the south to the Himalayan foothills in the north

Tax concessions and exemptions in Special Economic Zones are another illustration of the need to attract Foreign Direct Investment (FDI), to set against international sanctions that came into play after the military junta seized power in February 2021 and established a state of emergency that was still in force in 2023.

Companies attracted by this mix of potential and challenges, typically take the option of opening a private limited company as their subsidiary. Companies operate under the Companies Law (2017) and Myanmar Companies Regulations (2018). Additional registration may apply under the Myanmar Investment Law (MIL) and the Special Economic Zone Law (SEZL), where required.

Incoming companies can make a better choice. The fastest, simplest and most practical route into the Myanmar economy avoids the complexities of opening a subsidiary. Bradford Jacobs has the expertise to relieve any potential headaches and unravel the red tape. Our Professional Employer Organisation (PEO) experts and Employer of Record (EOR) consultants will be alongside you every step of the way – from recruiting staff to managing every legal aspect of compliance. Instead of waiting weeks or months, you and your staff can be up-and-running in days … and your employees always remain under your daily operational control.

How to set up a Myanmar Subsidiary

Initially, all companies incorporating with foreign investment must have approval from the Myanmar Investment Commission (MIC) and obtain a permit in compliance with the Foreign Investment Law (FIL), before undergoing a stringent review process. This will consider the business plan, paid up capital and the number of jobs to be created in Myanmar.

Incorporation and registration procedures to set up a limited liability company in Myanmar are set out in the Companies Law and generally include the following:

  • Firstly, the application to form a company goes to the Directorate of Investment and Companies Administration (DICA) through the electronic registry system, Myanmar Companies Online (MyCO). Gaining access can be problematic however
  • A registration fee of MMK 150,000 (€66, US$70) is paid to DICA
  • Provide Form A1, the application for incorporation a private limited company with its name including the suffix ‘Ltd’ or ‘Limited’
  • Provide copies of the National Registration Card (NRC) of Myanmar citizens and passport title page of foreigners’ passports
  • In the case of corporate shareholders, provide extract from the home country’s business register and Certificate of Incorporation
  • Provide proposed Memorandum and Articles of Association of the new company and letters of consent from the directors and company secretary to operate on the company’s behalf
  • All documents must be submitted in English and under the Companies Law do not need to be notarised, unless in the case of a translation into English from another language, such as Burmese
  • Establish a registered office in Myanmar and open an in-country bank account
  • There must be a minimum of two shareholders, corporate or individuals, and two directors. The constitution must state the type and monetary value of each share
  • There is generally no minimum share capital, but minimum requirements may be set by the relevant ministry, depending on the type of business. Limits may also be set by the Central Bank of Myanmar or the Ministry of Planning, Finance and Industry for operating in certain designated sectors
  • Any changes to share ownership or the company securities must be registered with DICA within 21 days
  • Obtain relevant business licence
  • Register business with the Internal Revenue Department (IRD) and the Social Security Board (SSB)

What are the Benefits of setting up a Subsidiary in Myanmar?

The subsidiary operates in Myanmar as a legal entity formed under the Companies Law, and is totally independent from the parent company and its shareholders and owners.  The parent company generally has no responsibility for the subsidiary’s debts, liabilities or legal issues. The subsidiary’s shareholders, partners and members are similarly liable only to the value of their contribution to the equity. The subsidiary can operate independently, pursue different business opportunities and draw up contracts.

Opening a subsidiary in Myanmar offers the parent company the opportunity to explore new markets outside its regular economic sphere. The subsidiary opens the potential to enter into agreements with other registered companies in Myanmar, while placing it on the doorstep of China, India and Bangladesh. Also, the permanency of a subsidiary has greater credibility with clients and suppliers compared with branches, whose operations in Myanmar are restricted. Parent companies are also responsible for the liabilities and debts of a branch, which will have to pay corporate income tax a 35% instead of 22%.

But … setting up a subsidiary in Myanmar is still a difficult journey compared with taking the most efficient and financially prudent route to starting operations.

Here is the best solution … let Bradford Jacobs locate top-rated talent for your company in Myanmar through our in-country Professional Employer Organisation (PEO) specialists. Employees can be working at their desks and screens in days … not weeks, or even longer. We remove all concerns regarding employment laws and compliance. Our Employer of Record (EOR) teams handle the hassle … while you have day-to-day operational control over your workforce.

Subsidiary Regulations in Myanmar

As a first step, the application to form a company is made to the Directorate of Investment and Companies Administration (DICA) through the electronic registry system, Myanmar Companies Online (MyCO). However, companies have noted that on occasion access can be difficult.

Procedures applying to a limited liability company typically include:

Registration and Documentation:

  • Pay a registration fee of MMK 150,000 (€66, US$70) to DICA
  • The proposed company name must include the suffix ‘Ltd’ or ‘Limited’ and provide Form A1, the application for incorporation as a private limited company
  • Register copies of the National Registration Card (NRC) of Myanmar citizens and passport title page of foreigners’ passports
  • In the case of corporate shareholders, file the extract from the home country’s business register and Certificate of Incorporation
  • Provide letters of consent from the directors and company secretary to operate on the company’s behalf
  • All documents must be submitted in English, but under the Companies Law do not need to be notarised, unless in the case of a translation into English from another language, such as Burmese

Accounts and Taxation:

  • Register with the Internal Revenue Department (IRD) to obtain the company’s tax ID number
  • There is generally no minimum share capital, but minimum requirements may be set by the relevant ministry, depending on the type of business. Limits may also be set by the Central Bank of Myanmar or the Ministry of Planning, Finance and Industry
  • File annual tax returns, but no statutory audit is required

Management:

  • There must be a minimum of two shareholders, corporate or individuals, and two directors. The constitution must state the type and monetary value of each share
  • Any changes to share ownership or the company securities must be registered with DICA within 21 days

International companies planning expansion into the Republic of the Union of Myanmar will be entering a nation where civil unrest, protests and violence have severely changed the economic landscape, since a military junta ousted the elected government in February 2021 and enforced a ‘state of emergency’ that extended into 2023.

A United Nations report in March 2023, linked below, cited ‘intensified violence … ‘rural militia armed by the military to confront rebel fighters’ … ‘civilian lives at risk and more than 1.6 million of the population internally displaced’. The military takeover has attracted international sanctions and disrupted an economy that derives huge potential from lying alongside the powerful economies of China, India and Bangladesh.

Since the 13th century the nation had been known as Myanma or Mranma Prañ. It took its official English colonial name of ‘Burma’ in 1885 until a previous military regime changed it to Myanmar in 1989 and also changed the name of the then capital from Rangoon to Yangon. In 2006 the government declared newly-built and vastly underused Nay Pyi Taw, as the capital.

Myanmar stretches nearly 1,300 miles north to south, from Himalayan foothills to lush river deltas, and almost 600 miles from east to west. Through the centuries, Myanmar has been a hub for trade with its coastlines on the Andaman Sea and Bay of Bengal and borders that also include Laos and Thailand. Consequently, Myanmar’s culture and heritage displays huge diversity. Ethnic groups feature the majority Burman, as well Karen, Kayah, Kachin and Shan being among the most populous.

Buddhism has been a major part of the culture since the first century CE, reflected in the sculpture and architecture of monasteries and temples, most notably in Yangon, Mandalay and Pagan, but also throughout the countryside. Buddhism has blended with non-Buddhist beliefs, but remains revered among the masses even after the monarchy was removed in the 19th century. It is reflected in art, oral tradition, music, dance and extravagant theatre performed by people and puppets.

https://news.un.org/en/story/2023/03/1134682?fbclid=IwAR1nMWLLc4U7ZxygzBna49kfzwu1Fn9JYcWcr2wWSKKHQOGFeWVO3HDZzDc

Starting your business in Myanmar

Foreign companies or individuals are not allowed to carry out operations in Myanmar without first registering a subsidiary, and in order to be able to legally hire employees and operate their payroll. Companies operate under the Companies Law (2017) and Myanmar Companies Regulations (2018). Additional registration may apply under the Myanmar Investment Law (MIL) and the Special Economic Zone Law (SEZL), where relevant.

All companies being established with foreign investment need approval from the Myanmar Investment Commission (MIC) and must obtain a permit under the Foreign Investment Law (FIL). An extended review process looks into such as the business plan and area of operations, paid-up capital and the number of jobs that will be created in Myanmar.

Procedures for a foreign investor registering a wholly foreign-owned private limited liability company as a subsidiary are set by the Companies Law. They generally include the following:

  • Initially, the application to form a company is made to the Directorate of Investment and Companies Administration (DICA) through the electronic registry system, Myanmar Companies Online (MyCO). However, companies have noted that on occasion access can be difficult
  • A registration fee of MMK 150,000 (€66, US$70) is paid to DICA
  • The proposed company name must include the suffix ‘Ltd’ or ‘Limited’
  • Provide Form A1, the application for incorporation as a private limited company
  • Provide copies of the National Registration Card (NRC) of Myanmar citizens and passport title page of foreigners’ passports
  • In the case of corporate shareholders, provide extract from the home country’s business register and Certificate of Incorporation
  • Provide proposed Memorandum and Articles of Association of the new company
  • Provide letters of consent from the directors and company secretary to operate on the company’s behalf
  • All documents must be submitted in English and under the Companies Law do not need to be notarised, unless in the case of a translation into English from another language, such as Burmese
  • Establish a registered office in Myanmar and open an in-country bank account
  • There must be a minimum of two shareholders, corporate or individuals. The constitution must state the type and monetary value of each share
  • There is generally no minimum share capital, but minimum requirements may be set by the relevant ministry, depending on the type of business. Limits may also be set by the Central Bank of Myanmar or the Ministry of Planning, Finance and Industry
  • Any changes to share ownership or the company securities must be registered with DICA within 21 days
  • Obtain relevant business licence
  • Register business with the Internal Revenue Department (IRD) and the Social Security Board (SSB)

This incorporation process, which can take up to 12 weeks, underlines the importance of taking the best possible advice and exploring the alternatives to opening a subsidiary. By making the right choice now, you can steer a course around these obstacles by working alongside Bradford Jacobs. Our Professional Employer Organisation (PEO) specialists and Employer of Record (EOR) experts will recruit the staff you need in Myanmar and undertake every step of compliance to have them up-and-running in the shortest possible time. Instead of waiting weeks to complete the process for opening a subsidiary, you can be operational in days.

Expanding your business into Myanmar

The Republic of the Union of Myanmar holds a prime strategic economic location, bordering India, China and Bangladesh. Myanmar also has ports on the Andaman Sea and Bay of Bengal, opening sea routes to the Indian Ocean and into the Far East. But, developing this potential has been set back since the military coup ousted the democratically-elected government in February 2021.

The military junta has sought to offset this with Special Economic Zones. These offer tax incentives and concessions to attract foreign companies wanting to expand their business into Myanmar, despite the interim government’s ongoing ‘state of emergency’ extending into 2023. Petroleum, natural gas and mining precious metals, including gold, and rare-earth minerals are among sectors attracting foreign investment. The government claimed overseas investment of US$3.8 billion in 2022, mainly from China, Japan and South Korea.

Investment is also needed to upgrade manufacturing processes and to encourage the slow-starting techno-ecosystem and start-up sector. The country’s general infrastructure and logistics networks also need investment, particularly in rural areas, although these have been the most affected by civil unrest.

Expanding business in Myanmar offers considerable potential mixed with hazards to investment, plus opaque and frequently changing rules surrounding regulatory procedures. For companies aiming to establish their own entity in the country, expansion comes with issues of incorporation, recruitment and contracts, employment legislation and much more. By working with Bradford Jacobs as your Professional Employer Organisation (PEO) and Employer of Record (EOR), we deal with everything on that list, without the need to establish a legal entity in the country. We can ensure that the only item on your list is … ‘global expansion’.

Advantages and Challenges when entering the Myanmar Market

Some Advantages:

  • Strong economic strategic location with neighbouring India, China and Bangladesh
  • Coastlines give access to Indian Ocean and into the Far East
  • Low cost labour pool, with half between the ages 15 and 29

Some Challenges:

  • Severe urban and rural civil unrest, bombings, shootings and frequent protests since military junta overthrew democratically elected government in February 2021
  • Currency devalued since takeover
  • Severe talent deficiency in working population, heightened by workforce exodus to neighbouring countries
  • Black-listed by international Financial Action Task Force which identifies and investigates money laundering and financing terrorism
  • Sanctions applied by various nations, with companies postponing or cancelling investment projects

https://dkiapcss.edu/myanmar-economy-in-tailspin-2-years-after-the-military-coup/

Employers must provide a written contract within 30 days of the start of employment, to be signed by both employer and employee. The contract should generally follow the standard form established under the Employment Skills Development Law (ESDL), and supplied by the Ministry of Labour, Immigration and Population (MOLIP). This need not necessarily apply to foreigners, but must be used for locals. Prior approval from the relevant Township Labour Office (TLO) is required, and this should be factored into the 30-day limit before the contact is executed. If the contract includes workplace rules and regulations, these must also be approved by the TLO.

The contract should be in a language understood by all parties, although there is no legal requirement for this; dual language agreements are the norm, in English and Burmese.

Under the ESDL, the contract should include the following: Job title, role and work location; type of contract and any probation period; working hours, rest breaks, holidays and other leaves; overtime pay; salary and payment schedule; company employment rules, employees’ responsibilities and any training programme; procedures for termination and notice periods.

Different types of Employment Contracts in Myanmar

Regular employment contracts:  The usual contract form with a start date and, usually, no end date, although the Township Labour Office (TLO) can restrict the term to two years after which they may require it to be renewed. Different TLOs may apply different limits.

Fixed-term employment contracts:  Similarly, although there are no statutory regulations, TLOs generally restrict them to two years. There are no clear indications as to how many renewals are allowed. Policy changes may also be enforced by MOLIP.

Casual employment, temporary staffing and part-time contracts: No legislation in force, although in theory individuals on these arrangements are entitled to the same entitlements and benefits as full-time employees.

Probation periods:  The standard MOLIP contract provides for a three-month period, but this can be extended by the employer with permission from the TLO.

Collective Bargaining Agreements (CBAs): Labour organisations established in the workplace have the right to undertake collective bargaining agreements on behalf of the workers. A Workplace Coordinating Committee must be formed when there are more than 30 employees. Employers must recognise the rights of labour organisations relevant to their industry. Employers cannot discriminate against union organisers or committee members.

Laws that regulate the labour relationship in Myanmar

The leading pieces of legislation, supervised by the Ministry of Labour, Immigration and Population, are:

  • The Amended Leave and Holiday Act (2014)
  • The Labour Organisation Act and Labour Organisation Rules (2011)
  • The Settlement of Labour Disputes and Rules (2012)
  • The Social Security Act and Rules (2012)
  • The Union Tax Act (2023)
  • The Minimum Wages Act and Rules (2013)
  • Payment of Wages Act (2016)
  • The Employment and Skills Development Act (2013)
  • The Amended Factory Act (2016)
  • The Payment of Wages Act (2016)
  • The Amended Shop and Workplace Act (2016)
  • Notification No. 84 on Severance Payments (2015)

General requirements for Contracts

A written contract must be provided by the employer within 30 days of employment beginning. For local employees the contract must follow the format supplied by the Ministry of Labour, Immigration and Population (MOLIP). This need not necessarily apply to foreigners. Prior approval from the relevant Township Labour Office (TLO) is required, and this should be allowed for in the 30-day limit before the contract is activated. The contract should be in a language understood by all parties, although there is no legal requirement for this; dual language agreements are usual, in English and Burmese.

Employee benefits, entitlements and compensation in Myanmar are based on various pieces of legislation. All employees, full-time, part-time or casual are entitled to employment rights.

What are the Compensation Laws?

National Minimum Wage (NMW): The minimum daily wage for a basic worker is MMK 4,800 (€2.10 US$2.30), which is set by the national committee responsible under the Minimum Wages Law and Minimum Wages Rules. The rate in 2023 was unchanged since 2018.

Working Hours and Breaks: Under the Amended Factory Law, factory workers cannot exceed eight hours in a day or 44 in a week, or if continuous working is essential a male employee can work up to 48 hours a week. Workers must have at least a 30-minute break after working for five hours, and combined periods of work and rest cannot exceed 10 hours. The Amended Shops and Workplace Law stipulates a limit of 48 hours worked in a week in that sector, and no more than four consecutive hours with at least a 30-minute break.  Combined work and rest cannot exceed 11 hours in a day.

Overtime: Any work undertaken with the employer’s permission that exceeds the limits is overtime. The general overtime limit is 12 hours a week, up to 16 hours in certain cases. Overtime pay should be twice the employee’s normal hourly rate. Overtime in factories must be approved by the Factories and General Labour Laws Inspection Department.

Sick Leave and Benefits: Employees can receive 30 days of paid sickness leave on full salary once they have worked for at least six months, under the Leave and Holiday Act (LHA). Service less than six months means sick leave is without pay, and for service between six and 12 months the benefit is adjusted accordingly. Employees are entitled to six days paid casual leave, taken separately, but there is no specific guideline on the qualifying criteria or what payment is due.

Paid Vacations: Employees earn 10 days of paid leave per year if they have completed 12 months of continuous service in the previous year, with a minimum 24 days’ work each month. Workers forfeit one day of leave for each month where they did not complete 24 days of work.

Public Holidays: Under the LHA, public holidays are taken as paid holidays and are announced in the government’s Official Gazette. Eid-al-Fitr and Deepavali dates vary according to the relevant religious calendars.

Probation Periods: These are usually for three months, although this is not a statutory requirement, and they should be written into the contact and probationers paid at least 75% of the basic salary for the work. They can be extended with permission from the relevant Township Labour Office.

Notice Periods: Either employer or employee can terminate with one month’s notice, but the employer must have a justifiable reason for termination.

Termination, Severance and Redundancies: The standard MOLIP contract allows for termination on the grounds of liquidation, force majeure or death of the employee. The contract must include a list of misconduct offences that could justify termination, including such as stealing; destroying company property; corruption; alcohol or drug use at work; gambling; criminal convictions; missing three days’ work in a row or five days in a month without permission. The employee must have three written warnings. Severance pay is based on the employee’s last month’s basic salary. Payments range from half a month’s salary for service between six months and a year, through eight levels up to 10 months’ pay for service between 20 and 25 years. For more than 25 years’ service, severance is capped at 13 months’ pay. Terminations or redundancies as a result of closure or business reorganisation must be reported to the Township Labour Office and effected by cooperating with the workplace union or the Workplace Coordinating Committee.

Maternity / Paternity Leave and Benefit: Paid maternity leave is for six weeks before confinement and eight weeks after the birth, under the social security framework. Multiple or complicated births entitle the mother to an additional four weeks’ leave. Fathers are entitled to 15 days of paid paternity leave, but where the mother is not covered by the Social Security Law, the father’s benefit is reduced to 25% of average salary or pay, which increases to 37.5% or 50% in the case of twins or multiple births. There is no legal provision for parental leave.

13th Month Bonus: There is no statutory requirement to pay these; bonuses are at the discretion of employers.

Pensions: There are no statutory pension requirements, except for civil servants, who have their own system. A full pension is available at 60 years provided there have been a minimum of 180 months of contributions, otherwise partial benefits apply. The old age pension is based on 15 times the individual’s monthly earnings during the contribution period and paid monthly or as a lump sum, with amounts adjusted for contributions over less than 180 months.

Healthcare and Insurance:  The Social Security Law and the accompanying Rules prescribe benefits under these categories: Health and social care; family assistance; invalidity benefit, superannuation (old age) pension and survivors’ pension benefit; unemployment insurance.

Foreign companies recruiting staff in the Republic of the Union of Myanmar as part of expansion plans need a combination of global experience and local knowledge to steer a path around the barriers.  Incoming companies need to be operational from day one, but recruiting in Myanmar poses many issues for foreign companies.

Since February 2021, Myanmar has been under a state of emergency following a military takeover. Inevitably this adds other issues. Myanmar’s education system already struggled to supply workers with the skills needed to fuel the necessary upgrade of manufacturing, infrastructure and its development as a knowledge-based economy. The system has degraded further since 2021.

Myanmar offers the potential of a young labour pool, with half of a 22 million workforce aged between 15 and 24. Relevant skills and experience are the issue, caused by a lack of technical and vocational training which leaves many companies having to train new staff ‘on the job’.

More issues follow. Myanmar labour regulations come from a wide spread of laws based on the Constitution, rather than from a single piece of employment legislation.

These demands add up to a heavy burden. You can make a simpler choice … a straightforward, speedy and economical alternative that will put your new staff in place within days, removing the obstacles surrounding recruitment and other aspects of employment.

Bradford Jacobs has the experience and contacts on the ground you need to provide a direct route for your journey into Myanmar’s economy. The global reach of our Professional Employer Organisation (PEO) networks will locate the perfect recruits for your plans. Then, through our Employer of Record (EOR) platforms we have your new employees promptly sitting at their desks and screens. This guide highlights the essentials of recruitment and onboarding in Myanmar. You can trust Bradford Jacobs to put the brightest talent in position for your company – today!

Recruiting in Myanmar

Myanmar has a potentially large and predominantly young workforce for foreign companies to recruit from, but when they intend to sidestep the local talent gap by importing their own staff into the country other factors come into play. Apart from having to negotiate the issue of work permits and visas, the Ministry of Labour, Immigration and Population (MOLIP), the Myanmar Investment Law (MIL) and the Special Economic Zones Law (SEZL) apply requirements for hiring locals.

The MIL dictates that only locals can be hired for unskilled work. The SEZ Law dictates that only Myanmar citizens can be employed in roles that do not require high-level technological skills. In the first two years of operation 25% of those positions must be filled by locals; 50% for the next two years and 75% for the following two years. These parameters must be covered in the company’s investment plan and it is only possible to recruit more foreigners with permission from the relevant economic zone management committee.

Complicated? Yes! This highlights where the global experience and local know-how of Bradford Jacobs is essential. Our Professional Employer Organisation (PEO) platforms will bridge the gap between the skills you need and finding the best-qualified talent for your company. We locate the best available talent … and you are quickly operational in Myanmar.

https://www.lexology.com/library/detail.aspx?g=9bfdb430-0c28-4912-aa0f-8a2289eaef6a

https://toolsfortransformation.net/wp-content/uploads/2021/02/Myanmar-Recruitment-Agencies-Directory.pdf

Employees’ pre-hire checks in Myanmar

General:  Employers can ask a prospective employee to supply all details relevant to drawing up a contract, their occupational skills and educational qualifications and their general health. They may also request a letter of recommendation from a local administrative office or previous employer, and request a criminal record check from the relevant police station.

Discrimination:  The standard formatted employment contract for locals and provided by MOLIP prohibits discrimination on grounds of race, religion, gender, age or membership of a trade union.

Basic requirements when recruiting in Myanmar

The Employment and Skills Development Law (ESDL) requires employers to provide a written contract within 30 days of the start of employment for all local Myanmar employees, and it must be filed with the local township labour office. Any subsequent changes to the contract’s terms must be pre-approved by the labour office. Employers who fail to comply risks fines and six months’ imprisonment. There is no requirement for foreign employees to follow the standard contract form of the ESDL.

Under the ESDL, contracts should cover the following essential terms:

  • Job title, role and place of work
  • Contract type and any probation period
  • Wages and payment schedule
  • Working hours, overtime, rest breaks, holidays and other leaves
  • Company employment rules, employees’ responsibilities and any training programme
  • Procedures for termination and notice periods

The Basics of Myanmar Culture

Myanmar, the nation’s official name since 1989 but still known and recognised by many as Burma, is a mosaic of many cultures and ethnic groups. This cultural mix reflects borders with China, India, Bangladesh, Laos and Thailand in addition to coastlines that allowed access to travellers arriving from across the Indian Ocean and from the Pacific across the South China Sea and Bay of Bengal.

The first civilisation to arrive in the region is believed to be the Pyu from China, who may have brought Theravada Buddhism, which remains Myanmar’s dominant religion. Enduring aspects of Burmese culture were established during the rule of the Kingdom of Pagan between the 11th and 13th centuries. Six centuries later, there was 124 years of British colonial rule that ended in 1948 but established an administrative system.

The Burmese national identity centres on family; in the rural areas men and women share tasks in the home as well as in the fields and extended families stay close for support. Visiting shrines and temples to pay homage to Buddha is a common feature of social life and religious festivals are a major factor. Portuguese missionaries took Christianity to Burma in the 18th century.

Characteristics of the Burmese personality include generosity and friendliness, dignity, patience and informality, individuality and – in normal times – a carefree attitude to life.

Myanmar Work Culture

Hierarchy:  Myanmar is a hierarchical society and this generally applies in business, with decisions coming from the most senior and experienced members, who also derive the most respect from their staff.

Punctuality: Being on time is not considered an essential element of business practice.

Introductions/Greetings: Use the honorific titles of Mr and Mrs, or their equivalents of ‘U’ and ‘Daw’, and educational titles such as Dr or Professor. Handshakes between men go with the introductions, but when women are on the other team a man should wait for them to first offer their hand. If they don’t, men should just smile and exchange pleasantries. Take note if the other team remove their shoes before entering the meeting room, and do likewise. There will usually be shoe racks outside offices.

Language:  business meetings are often conducted in English, the de facto second language, but outside of Yangon or major cities an interpreter is advised.

Gift Giving: Offered and received with the right hand and are often a part of the first meeting’s ‘getting to know you’ ritual. Thoughtful and modest gifts are best and if you are taken by surprise with a gift at the initial meeting be sure to reciprocate later.

Business Cards: Exchanged at the start of the first meeting – take time to read the card before placing it on the table for the duration of the discussions. Recipients will be pleased if the reverse is printed in Burmese.

Dress Code: Locals, men and women, may dress traditionally with the ‘longyi’, Men may wear it with a shirt and women with a dress or blouse. Due to the heat and humidity smart/business casual is acceptable for visitors. A conservative environment means Western women should dress the same, with skirts below the knees and shoulders covered.

Negotiations and Meetings:  Taking time to build relationships is essential, and this may take up the first meetings. In common with many Asian nations, businesspeople in Myanmar are reluctant to directly say ‘no’… while ‘yes’ may not always be taken at face value either. This may lead to ambiguity, which will require a number of meetings to redress. Be patient … the ‘hard sell’ rarely works. Verbal agreement must be confirmed with a written contract. When booking appointments, be aware of the large number of public holidays, during which most private businesses will shut down.

Out of Hours:  Business meals will generally be in hotels or restaurants, using forks, spoons or chop sticks, but not knives. If handling food, use only the right hand.

Avoid:  Offering opinions on military regimes, ethnic differences and religion.

Contact Us

Join Our Newsletter

Stay up to date with latest service offerings while receiving tips and strategies for making your next remote hire.

JOIN US