In recent years, Myanmar (previously Burma) has attracted foreign investors for its affordable labor, economic growth, and government reforms. Concerning Myanmar’s economic growth, the agricultural, tourism, and extractive industries have significantly contributed to its GDP, which reached $66.76 billion in 2023. The Asian country is rich in natural resources such as gas, oil, and precious stones, with its 2023 oil and gas exports totaling approximately $3.15 billion. 

Interestingly, more investors are turning their attention to Myanmar’s emerging manufacturing sector. Myanmar’s manufacture of textiles and garments has contributed up to 28% of the country’s GDP. Some of the best reasons to hire in Myanmar include its untapped retail market, access to major oil and gas reserves, low-cost workforce, and its strategic location in Southeast Asia. 

To help you expand and hire in the Asia Pacific, discover why it’s important to partner with a professional Employer of Record (EOR). In this guide, we cover what an EOR does, the benefits it offers, and how Remote People can help you hire and operate compliantly in Myanmar.

What is a Myanmar Employer of Record?

An Employer of Record in Myanmar or Burma is a third-party services provider that acts as the legal employer for your labor force. The Myanmar EOR’s purpose is to manage all legal aspects of employment when you hire employees.

As the EOR assumes legal liability for the workforce, it allows foreign companies to bypass complex registration processes to expand in Myanmar without setting up a subsidiary. The EOR ensures that client companies adhere to the Myanmar Labor Law concerning benefits, payroll, and social security contributions.

What is the Difference Between a Myanmar EOR and a Myanmar PEO?

When expanding into Myanmar, companies often turn to employment solutions like an Employer of Record (EOR) or a Professional Employer Organization (PEO) to simplify hiring and HR management.

While both support compliance with local labor laws, they differ in structure and responsibility. Below, we break down the key distinctions to help you choose the right fit for your business needs.

Myanmar EOR

A Myanmar EOR assumes comprehensive legal responsibility for your workforce by ensuring that employees receive the correct benefits, salaries, and social security payments. In comparison to a Professional Employer Organization (PEO), the EOR allows you to hire a workforce in Myanmar without a legal entity. While the EOR assumes liability for your workforce concerning tax withholding and contract termination, you remain in charge of your employee’s daily tasks and performance. 

In Myanmar, all-sized businesses can benefit from an EOR; however, smaller businesses must assess monthly costs to determine affordability. The most common sectors that utilize a Myanmar EOR include technology, corporate, financial, and businesses relying on remote employees.

Myanmar PEO

A Myanmar PEO is an HR service provider that has a co-employment arrangement with a client company. The PEO is suited to businesses that have a legal entity in Myanmar and are interested in outsourcing payroll and benefits administration. 

Both an EOR and a PEO in Myanmar help businesses with compliance with labor laws; however, a PEO does not assume legal responsibility for the workforce.

Hire in Myanmar

An evolving regulatory landscape with SSB social security, Myanmar labour organization laws, and complex work permit requirements.

We handle employment contracts, payroll, social contributions, and full Myanmar compliance.

No local entity needed. Your team can start in days.

Get Started

How Does a Myanmar Employer of Record Work?

When you hire in Myanmar, an Employer of Record helps you follow the country’s labor policies and will guide you through the employment process. The Myanmar EOR service connects you to local talent, and they handle payroll, tax withholding, and drafting employment contracts by addressing gray areas to keep you compliant.

What Labor Laws Apply to Hiring in Myanmar?

Employment Contracts

Employment agreements in Myanmar must be written, and must be in English and the Myanmar language to be legally recognized. The Ministry of Labour requires employers to use its standard template for written contracts unless given express permission to do otherwise.

This template includes mandatory details, including type of employment, location, remuneration, payment, working hours, leave, probation, and termination.

Contracts in Myanmar can be permanent or for fixed terms. There are no legal limits to fixed-term contracts, so these can be made for any duration, and can be extended or renewed at the discretion of the employer.

Probation Periods

Probation periods in Myanmar are not mandatory, but employers can use them at their discretion so long as their details are included in employment contracts. Probation can last up to three months in Myanmar, and this hard limit is for all types of workers in all industries.

These periods cannot be extended or renewed. Probationary workers must be paid the same as their fully-employed counterparts and cannot be made to work longer hours or more overtime.

If the employee wishes to terminate the employment contract during the probation period, they’re required to provide their employer with one week’s notice. The employer must give one month’s notice of dismissal, even during probation.

They must also provide justifications to terminate their workers’ contracts, and they must give up to three warnings to the employee, first verbally and then in writing, before they can legally be terminated.

LEARN MORE

Social Security

The Myanmar social security system has been managed by the Social Security Board (SSB) since the enactment of the Social Security Act 1954. This is a contributory system that provides benefits for unemployment, disability, survivors, and the elderly.

Employers are required to deduct employee contributions from their paychecks and also to make their own contributions according to the following rates:

  • Employee: 2.0% of gross earnings, to a monthly maximum of 6,000 MMK
  • Employer: 3.0% of each employee’s gross earnings, to a monthly maximum of 9,000 MMK

The employer must remit the month’s contributions to the SSB within 15 days of the end of each month. Employees’ contributions are deductible from their personal income tax obligations.

Working Hours

In Myanmar, employees generally work no more than eight hours a day or six days a week. The regular workweek is 48 hours long. However, certain industries have shorter workweeks. For example, factory workers only work 44 hours per week, unless they are required to keep continuous processes going.

In mining, the regular workweek is only 40 hours long. Employees must receive a full day of rest at least once every ten days. They must also receive a 30-minute break if they work for over four hours.

Employees can work more than these regular weekly hours if they choose to, and they must be paid 200% of their normal wages for overtime hours. These hours are limited to 12 extra hours per week of overtime, but they cannot extend shifts past midnight. In addition, workers cannot work longer than 11 hours a day, inclusive of breaks, including their break time.

Work Permits/Work Visas in Myanmar

For foreign nationals who want to enter Myanmar and work in the country, several routes are possible. 

First, international workers can enter Myanmar on Business Visas, which are issued for only 70 days at a time. These are usually single-entry visas, but foreigners who’ve previously entered Myanmar three times on Business Visas and have not had any immigration violations can apply for multiple-entry visas.

Another option is to apply for a longer-term Stay Visa from the Ministry of Labour, Immigration, and Population. These visas can be issued for three, six, or twelve months, and both single-entry and multiple-entry visas are available.

If a company wishes to hire an international candidate in a managerial or supervisory capacity, they can also apply for an Investment Permit and permission to hire foreigners from the Myanmar Investment Commission. This can give them the right to apply for a work permit and stay permit for their expatriate workers. 

Finally, qualifying individuals can apply for Permanent Residence status, which allows them to live and work in Myanmar without visas or work permits for up to five years. 

With Remote People, your business can gain support for the visa application process for your international employees. With our expertise, you’ll be able to bring expatriate talent to work for your venture in Myanmar quickly and easily.

Employee Leave in Myanmar

Myanmar law provides workers with entitlements to several different kinds of leave to help them manage their family and personal lives. These leaves include:

Paid Annual Leave

After they have worked for an employer consecutively for one year, Myanmar workers become entitled to ten consecutive calendar days of paid leave each year. However, if they worked less than 24 days per month, this leave is reduced by one day. This leave can be carried over for a maximum of two years.

Paternity Leave

New fathers are entitled to 15 days of paternity leave in Myanmar. This leave is paid at 70% of the father’s normal wages by the SSB, provided the mother is covered by social security and the father has made at least six months’ contributions in the 12 months before the birth of the child.

Maternity Leave

Expecting mothers are entitled to seven paid days off for prenatal exams. They are also entitled to 14 weeks of maternity leave, six before and eight after giving birth. This leave is paid at 70% of the worker’s normal earnings through the SSB.

Other Leave

Employees can take six days of casual leave each year. This leave is normally used for bereavement or family issues. It must be taken in blocks of three days or less.

They are also entitled to up to 30 days of paid sick leave per year, as long as they’ve worked for their employer for at least six months. Otherwise, their sick days are normally not paid.

Payroll and Employment Taxes in Myanmar

Myanmar requires employers to pay their employees at the end of each pay period if they have fewer than 100 workers, or within five days of the end of the period if they employ more workers. The employer is required to deduct social security contributions and withhold income taxes from their employees’ salaries. 

Myanmar assesses personal income tax on a progressive basis, with rates that range from 1% to 25% for both resident nationals and foreigners. The fiscal year in Myanmar runs from 1 April to 31 March. Workers must file their income tax returns within three months of the end of the tax year, so by the end of June.

Minimum Wage

The minimum wage in Myanmar was last increased on 1 August 2024 and is a national minimum wage that protects all workers, regardless of their status or industry.

Workers paid hourly must receive at least 600 MMK (Myanmar kyat) per hour (around 0.30 USD). Those who are paid a monthly salary must receive at least 4,800 MMK per day with an additional allowance of 2,000 MMK.

Therefore, they must receive at least 6,800 MMK per day (around 3.25 USD). This wage is based on employees who work eight hours a day, six days a week.

LEARN MORE

13th-Month Pay

There is no mandate in Myanmar law for 13th-month bonuses or other types of bonuses. Employers may choose to offer these bonuses at their discretion. If they do, they normally pay them around April, in time for the mid-April Myanmar New Year. These bonus payments are subject to tax withholding and social security deductions.

Hiring Contractors in Myanmar

In Myanmar, as in most countries around the world, hiring contractors can be easier than hiring employees for many employers. Doing so can give them access to a wider range of skills and knowledge that they may wish to leverage for specific projects or short periods.

Hiring contractors can also keep employers from having to manage tax withholding and social security, thus reducing their administrative burden. Contractors must manage their own tax payments. While they are not required to make Social Security contributions, they can opt into this system.

Workers' Compensation in Myanmar

According to the Workmen’s Compensation Act, both public and private sector employers are required to take out workers’ compensation insurance for their employees. This insurance compensates employees who are injured, made ill, temporarily or permanently disabled, or killed on the job, and also protects employers from most liability. Premiums generally cost 2.0% of each employee’s annual salary.

Employee Termination and Severance in Myanmar

Either the employee or the employer can terminate their employment agreement by providing the other party with one month’s notice. While the employee has no other obligation, the employer must either show an instance of gross misconduct or provide warnings for lesser issues, such as unjustified absences or tardiness.

The employer must first give a verbal warning, then a formal written warning, and finally a last warning that the employee must sign in recognition. The employer may pay a dismissed worker in lieu of giving notice.

Workers who resign, or are dismissed for gross misconduct or after receiving their three warnings, are not entitled to severance pay. Those dismissed for other reasons, like redundancy, are entitled to severance pay if they’ve worked for their employers for over six months. This pay can range from 15 days’ to 13 months’ salary, depending on the length of their service to the employer.

What Are the Benefits of a Myanmar EOR?

A closer look at the benefits of a Myanmar EOR can help you understand the value such services can provide for your business.

Quick Establishment in a Frontier Market

Hiring a Myanmar EOR company will support rapid expansion into Myanmar’s frontier market, offering considerable growth due to its investment potential. An EOR in Myanmar eliminates the time and cost it takes to establish an entity so you can reach local and untapped markets quickly.

Guidance on Rapidly Shifting Regulations

A Myanmar EOR service provider with local infrastructure is familiar with the country’s labor laws while remaining informed of shifting regulations. Legal reforms or changes in labor laws are communicated to clients to maintain employment compliance.

Lower Risk Than Creating a Local Subsidiary

Hiring an EOR in Myanmar allows you to assess market viability before establishing your own entity in the country. It reduces the risk of poor market entry and the costs of setting up a local subsidiary.

What are the Downsides of a Myanmar EOR

Discover how to mitigate your EOR concerns:

Recurring EOR Costs Reduce Profitability

EORs typically charge monthly rates based on the size of your workforce. These recurring costs can gradually impact your bottom line, especially as your team grows. However, using EOR services in Myanmar remains significantly more cost-effective than setting up a legal entity.

Remote People helps you manage these costs with transparent pricing and clear fee structures—allowing you to plan your expansion without budget surprises.

Limited Direct Oversight of Employees on the Ground

Outsourcing employee management to a Myanmar EOR that fails to clearly and consistently communicate with the client company creates less direct control over the workforce. While you will always manage the daily performance of your employees, the EOR provider must offer simple communication channels, and employees must be aware of who to report to, to prevent confusion.

Reliance on EOR for up-to-date Compliance Insights

While partnering with an EOR helps you stay compliant, it’s crucial that your provider actively monitors legal reforms. If they don’t stay updated, your business could face serious risks.

At Remote People, our dedicated team keeps a close eye on labor law changes in Myanmar and ensures you’re informed every step of the way—minimizing the risk of non-compliance and helping you operate with confidence.

How to Choose a Myanmar EOR

  • Before you decide to hire a Myanmar EOR, look at the company’s fee structure. The Employer of Record should offer cost transparency, which means no hidden fees or unexpected markups. 
  • When you expand in Myanmar, the EOR you partner with must have a local presence because it ensures they are knowledgeable in Myanmar’s labor laws and business regulations, safeguarding your company against compliance issues. 
  • A Myanmar Employer of Record should be culturally sensitive to working through country-specific business practices and respect religious differences. The service provider should have Burmese and English language support to facilitate communication between the employer and employees and explain particular labor practices to the client company.

Engage a Myanmar Employer of Record with Remote People

Myanmar has a promising economy with attractive emerging sectors such as manufacturing and tourism. The Myanmar government has encouraged foreign investment by establishing special economic zones in Kyaukphyu, Thilawa, and Dawei.

Pursuing business in these regions provides investment incentives and simplified regulations to hire and operate in the country. Along with its favorable agricultural, tourism, and extractive sectors, Myanmar is in close proximity to major trade partners such as China and India, making it a strategic business location. 

The easiest way to hire and operate in Myanmar is through a trusted Employer of Record (EOR). Remote People provides direct EOR services to help you onboard employees, ensure compliance, and manage payroll and HR functions—so you can focus on growth, not red tape. Our experienced team delivers tailored support and simplifies the hiring process in Myanmar, helping you save time, stay compliant, and scale with confidence.

Ready to expand? Contact Remote People today to explore effective EOR solutions in Myanmar.