A Myanmar Employer of Record allows companies to legally hire employees in Myanmar without setting up a local entity. The EOR takes care of payroll, compliance, contracts, and more. This helps businesses expand faster, stay compliant, and focus on growth while the Myanmar EOR handles the admin.
How Does an Employer of Record in Myanmar Work?
A Myanmar EOR becomes the legal employer of your chosen candidate. It handles everything from employment contracts to payroll, taxes, and benefits in compliance with local laws. Your company directs the employee’s daily work, while the EOR manages all legal and HR responsibilities. This setup helps you hire quickly, stay compliant, and avoid complex legal setups. The EOR bills you monthly for salary plus service fees, offering a simple, efficient solution for growing your team in Myanmar without establishing a local office.
Benefits of Using an EOR in Myanmar
Partnering with a Myanmar EOR offers fast market entry, cost savings, and peace of mind. It ensures full compliance with Myanmar’s labor laws while removing the need for a local legal entity. You avoid administrative burdens and legal risks, gaining access to local HR expertise. The Employer of Record in Myanmar simplifies hiring, onboarding, and payroll, freeing your team to focus on strategy. This flexible approach supports rapid growth, protects your company, and ensures employees in Myanmar receive proper benefits and legal protections
Employment Landscape in Myanmar (Burma)
Myanmar (Burma) has a young and largely rural workforce, with agriculture still the dominant sector. However, industrial and service jobs are growing in cities. While education levels are rising, many workers still lack the skills needed for technical roles. The country also has a large informal sector and notable gender disparities in employment. These factors create both opportunities and challenges for businesses, making it essential to understand the local workforce before hiring or expanding operations.
Overview of Labor Laws in Myanmar
Myanmar’s labor laws have seen reforms aimed at protecting workers and aligning with global standards. All employees must have written contracts. The workweek is limited to 44 hours, with a national minimum wage set by the government. Workers are entitled to annual, sick, and maternity leave. Social security contributions are mandatory for both employers and employees. Safe working conditions are required by law, and dismissals must follow proper notice and severance rules. A Myanmar EOR helps ensure compliance with all of these laws.
Cultural Considerations When Hiring Employees in Myanmar
Hiring directly in Myanmar comes with several hurdles. Skill mismatches are common, especially in technical roles. Language barriers and cultural gaps can complicate onboarding. Labor laws are still evolving, and staying compliant can be difficult without local expertise. Infrastructure limitations and political uncertainty further impact hiring decisions. The presence of a large informal economy adds to the complexity. A trusted EOR can help companies overcome these barriers by managing legal, administrative, and cultural challenges on their behalf.
Does a Myanmar EOR Help with Payroll and Taxes?
A Myanmar Employer of Record simplifies payroll and tax compliance for foreign companies. The EOR calculates salaries, withholds income tax, and handles both employer and employee contributions to the Social Security Board. This includes the mandatory 3 percent employer and 2 percent employee contributions. The EOR in Myanmar ensures deadlines are met, reporting is accurate, and payments are submitted in local currency. This helps businesses avoid fines, stay compliant, and save time on complex payroll procedures.
Do Employees get Benefits When Hired Through a Myanmar EOR?
Employees hired through a Myanmar EOR receive all legally required benefits, including paid leave, public holidays, maternity and paternity leave, and enrollment in social security. An EOR also supports optional benefits like performance bonuses, housing or transport allowances, and training programs. This ensures employees are fully protected under local law, while employers can offer competitive packages without managing the details themselves. An EOR makes it easy to attract and retain talent while staying compliant.
Termination & Offboarding in Myanmar with an Employer of Record
Termination in Myanmar requires written notice and, in most cases, severance pay based on years of service. A Myanmar EOR ensures that the entire process—from issuing notices to calculating final pay and severance—is handled legally and professionally. The EOR also manages the offboarding process, including exit interviews, document issuance, and system access removal. This minimizes legal risk for employers and ensures employees are treated fairly. With an EOR, companies can offboard smoothly without missing legal steps.
Visa & Work Permits in Myanmar
To work in Myanmar, foreign nationals usually enter on a business visa, followed by a work permit sponsored by a local employer. Once approved, the worker must also apply for a Foreigner’s Registration Certificate (FRC) and, if needed, a multiple re-entry visa. These permits are typically valid for one year and must be renewed annually. Myanmar's rules can shift, so staying compliant is key. Rivermate’s visa support services in Myanmar help streamline the process, ensuring smooth, compliant onboarding for your international hires in Myanmar.
Can I Hire Independent Contractors With a Myanmar EOR?
Myanmar Employer of Record Services cannot legally hire independent contractors on your behalf. EORs are designed to employ full-time workers under local labor laws. However, if you need contractor support, Rivermate offers Contractor of Record (COR) services in Myanmar. This allows you to engage freelancers or contractors compliantly while handling onboarding, payments, and legal documentation. COR is the best alternative for companies needing flexibility without setting up a legal entity in the country.
How to Choose the Best Employer of Record Services in Myanmar
Selecting the best Employer of Record in Myanmar starts with evaluating their compliance expertise and knowledge of local labor laws. Look for providers with proven experience in payroll, benefits administration, and handling social security and tax contributions. Good EORs offer transparent pricing, responsive support, and ensure your employees receive proper documentation and benefits. Consider whether they also provide visa support, HR guidance, and a streamlined onboarding experience. A reliable EOR partner in Myanmar should make hiring easy while minimizing legal and administrative risks for your business.
Hiring Employees with Rivermate's Myanmar Employer of Record
Rivermate simplifies hiring in Myanmar by becoming the legal employer for your local staff. You choose the candidate, and we handle the rest. We draft compliant contracts, manage payroll, and ensure tax and social security obligations are met. Rivermate also administers benefits and supports you through onboarding and offboarding. Your employee works under your direction while we handle all back-end HR and legal processes. With Rivermate’s EOR in Myanmar, you can hire quickly, stay compliant, and focus on your core business without setting up a local entity.
Why Rivermate as Your Employer of Record in Myanmar
Rivermate stands out as an exceptional choice for Employer of Record (EOR) services in Myanmar, offering a unique human-centric approach that goes beyond mere platform provision. Our full-service solution ensures we're with you every step of the way, acting as your global HR department. We even offer recruitment services to further support your growth.
Here's why Rivermate is the ideal partner for your EOR needs in Myanmar:
Personal Attention
At Rivermate, you're not just a number. We understand that smaller businesses often get overlooked by larger EOR providers. That's where we shine. We're committed to helping you grow, providing the personalized attention and support you deserve.
Human Touch
In an age of automation, we believe that HR and payroll remain fundamentally human endeavors. That's why we eschew AI chatbots and automated emails in favor of real people who genuinely care about your success. Our team is available 24/7/365, ready to assist you with any questions or concerns.
Global Reach, Local Expertise
Our motto is "Think global, act local." With local experts in over 135 countries, including Myanmar, we help you navigate the complexities of local labor laws and regulations. We serve as your on-the-ground partner, ensuring compliance and smooth operations wherever you choose to expand.
Unparalleled Flexibility
We understand that every business has unique needs. Whether you require extra clauses in a contract or specific payment arrangements for your employees, we've got you covered. Our 100% flexible approach means we can adapt our services to meet your exact requirements.
By choosing Rivermate, you're not just selecting an EOR service provider; you're partnering with a team dedicated to your success in Myanmar and beyond. We combine global expertise with local knowledge, personal attention with professional service, and flexibility with reliability. Let us be your trusted partner in navigating the complexities of global employment.
Frequently Asked Questions
Frequently asked questions about EOR services in Myanmar can help clarify complex topics and address potential gaps in knowledge. Here are five common questions and answers that complement the information already provided:
1. How does Myanmar's labor law impact the termination process when using an EOR?
Myanmar's labor law requires employers to provide valid reasons for termination and follow specific procedures. When using an EOR, they will handle the termination process in compliance with local regulations. This typically involves providing proper notice, documenting the reasons for termination, and ensuring all final payments are made correctly. The EOR will guide you through the process to minimize legal risks.
2. Can an EOR help with obtaining work permits for foreign employees in Myanmar?
Yes, most EORs in Myanmar offer assistance with work permit applications for foreign employees. They can guide you through the process, which involves obtaining approval from the Directorate of Investment and Company Administration (DICA) and the Ministry of Labor, Immigration, and Population. The EOR will help prepare the necessary documents and liaise with relevant authorities to streamline the application process.
3. What are the tax implications for employees working remotely in Myanmar through an EOR?
Employees working remotely in Myanmar through an EOR are generally subject to Myanmar's personal income tax laws. The EOR will handle tax withholding and reporting obligations. However, the employee's tax residency status and any applicable double taxation agreements between Myanmar and their home country may affect their overall tax situation. It's advisable for employees to consult with a tax professional to understand their specific circumstances.
4. How does an EOR handle employee benefits and social security contributions in Myanmar?
EORs in Myanmar typically manage all mandatory employee benefits and social security contributions as required by local law. This includes enrolling employees in the Social Security Board (SSB) scheme and making the necessary contributions. The EOR can also administer additional benefits that your company chooses to offer, such as private health insurance or performance bonuses, ensuring compliance with local regulations.
5. Can an EOR in Myanmar help with payroll in multiple currencies?
Many EORs in Myanmar offer multi-currency payroll solutions. This can be particularly useful for companies employing both local and international staff. The EOR can handle currency conversions, ensure compliance with local foreign exchange regulations, and manage the complexities of international payments. However, it's important to discuss your specific currency requirements with the EOR provider to ensure they can meet your needs.