Employer of Record in Myanmar

An Employer of Record (EOR) in Myanmar is a company that legally hires employees on your behalf. This means you can build a team in Myanmar without setting up a local entity. The EOR handles all the legal and HR tasks, letting you focus on managing your team's day to day work. For companies looking to hire in Myanmar, an EOR provider like Rivermate simplifies the process.

How an Employer of Record (EOR) Works in Myanmar

Using an EOR to hire in Myanmar is a straightforward process. The EOR acts as the legal employer, while you manage your employee's daily tasks and performance. Here is how it typically works:

• You Find the Candidate: You recruit and select the person you want to hire in Myanmar. You also decide on their salary and job duties.
• The EOR Hires Them: The EOR provider hires the candidate under a local employment contract that complies with Myanmar's labor laws.
• Onboarding is Handled: The EOR manages all the necessary paperwork for onboarding. This includes registering your employee for social security and other local requirements.
• HR and Payroll are Managed: The EOR takes care of monthly payroll, ensuring your employee is paid correctly and on time. They handle taxes, benefits, and paid time off.
• You Manage Your Team: Your employee works for your company just like any other team member. You direct their daily work and activities.

Why use an Employer of Record in Myanmar

Using an EOR in Myanmar allows you to enter the market and build a team quickly and efficiently. It removes the significant administrative and legal burdens of international expansion. You can test a new market without the major investment of setting up a local company.

Here are some key benefits:

• Hire Without a Local Entity: You avoid the complex and costly process of registering a company in Myanmar.
• Stay Compliant: An EOR understands Myanmar's labor laws and ensures you follow all rules and regulations, reducing your legal risk.
• Faster Market Entry: You can hire employees and begin operations in a matter of weeks, not months.
• Full HR Support: The EOR manages all critical HR functions, including payroll, taxes, and benefits, freeing you to focus on your business goals.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Myanmar includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Myanmar.

Hiring in Myanmar requires understanding a unique legal and cultural landscape. The workforce is young and growing, presenting exciting opportunities. However, navigating local labor laws is key to building a successful team. This guide cuts through the complexity, giving you the essential information you need to hire compliantly and effectively in Myanmar.

Employment contracts & must-have clauses

In Myanmar, a written employment contract is mandatory for companies with more than five employees. The government provides a standard template that you must use. While you can add appendices for specific job details, you cannot alter the core clauses of the template.

You need to prepare three copies of the contract: one for your company, one for the employee, and one for the local township labor office. You must register the contract with the labor office within 30 days of the employee's start date.

Contracts can be for a fixed term or an indefinite term. Fixed-term contracts are often used for temporary or project-based work and are typically limited to a maximum of two years.

Your employment contract must be in both Myanmar and English and include the following:

• Employee and Employer Details: Full names and addresses.
• Job Information: Type of employment, job description, and location.
• Compensation: Salary or wage details.
• Contract Term: The duration of the agreement.
• Working Hours: Daily and weekly work schedules.
• Leave and Holidays: Entitlements for days off, public holidays, and other leave.
• Overtime: Terms for working beyond standard hours.
• Probation Period: If applicable.
• Termination: Conditions for ending the employment relationship.

Probation periods

You can include a probation period in your employment contract to assess a new employee's suitability. The maximum duration for a probation period is three months and it cannot be extended. During this time, you can terminate the contract with a shorter notice period, typically one week, if the employee is not a good fit. Successful completion of the probation period means the employee's service time is counted from their original start date.

Working hours & overtime

The standard workweek in Myanmar is 44 hours, typically spread over six days. A standard workday is eight hours. Employees are entitled to at least one paid day off per week.

Work performed beyond these standard hours is considered overtime. Overtime pay is calculated at double the employee's regular hourly wage. There are limits on how much overtime an employee can work, generally not exceeding 12 hours per week.

Public & regional holidays

Myanmar has a number of public holidays each year, and employees are entitled to paid time off on these days. The government announces the official dates for public holidays annually.

Some of the major public holidays include:

Hiring contractors in Myanmar

Hiring independent contractors in Myanmar can be a flexible way to access specialized skills for specific projects. This arrangement can offer cost savings as you are not obligated to provide benefits like paid leave or social security contributions.

However, it is crucial to correctly classify workers. Misclassifying an employee as an independent contractor can lead to significant penalties, including fines and back payment of social security contributions. The relationship with an independent contractor is governed by the terms of your service agreement, not employment law. This means they are not covered by regulations on minimum wage, working hours, or termination procedures that apply to employees.

An Employer of Record (EOR) can help you mitigate the risks of misclassification. An EOR acts as the legal employer for your workers in Myanmar, ensuring compliance with all local labor laws. This includes managing employment contracts, payroll, taxes, and benefits. Using an EOR allows you to build a team in Myanmar without the need to establish a local legal entity, giving you a faster and more secure way to enter the market.

Navigating compensation and payroll in Myanmar requires a clear understanding of local regulations. You need to follow the rules to avoid fines and keep your business running smoothly. Paying your team correctly and on time is a key part of this. This guide breaks down what you need to know about paying your employees in Myanmar.

Payroll cycles & wage structure

In Myanmar, your permanent, monthly-salaried employees should be paid at the end of each month. For daily or part-time workers, you must pay them according to their specific wage period. You can make payments by cash, check, or bank transfer.

An employee's salary is typically made up of a few parts:

• Basic salary: This is the fixed, regular amount an employee earns.
• Incentives: You can offer performance-based pay like bonuses or commissions.
• Net pay: This is the final amount an employee receives after all deductions.

While a 13th-month bonus is not required by law, it is common for employers to provide bonuses.

Overtime & minimums

The standard workweek is typically 8 hours a day and 44 hours a week. If an employee works more than these hours, you must pay them overtime. The overtime pay rate is double their regular hourly wage.

The national minimum wage is 4,800 Myanmar Kyat (MMK) for an eight-hour workday.

Employer taxes and contributions

As an employer, you are required to contribute to social security for your employees.

Employee taxes and deductions

Employees also have deductions taken from their pay for social security and income tax.

In Myanmar, benefits and leave are a mix of government requirements and company perks. The law sets the minimums all employers must follow. This includes paid time off for holidays, sickness, and family needs. Think of these as the foundation.

Many companies choose to offer more. These extra benefits help them attract and keep good people. It's a way to stand out. Understanding both the required and optional benefits is key to managing your team in Myanmar.

Statutory leave

Myanmar law requires employers to provide several types of paid leave.

• Annual Leave: You get 10 days of paid annual leave after completing 12 months of continuous service. This is also known as earned leave. You can carry it over for up to two years.
• Casual Leave: You are entitled to 6 days of paid casual leave each year for urgent personal matters. You cannot take more than 3 of these days at a time. Unused casual leave does not carry over to the next year.
• Sick Leave: You can take up to 30 days of paid sick leave per year. To qualify, you usually need to have worked for your employer for at least 6 months and provide a doctor's certificate.
• Maternity Leave: Female employees get 14 weeks of paid maternity leave. This is typically taken as 6 weeks before the birth and 8 weeks after. The Social Security system pays for this leave if the employee has made sufficient contributions.
• Paternity Leave: Fathers receive 15 days of paid paternity leave.

Public holidays & regional holidays

Employees are entitled to paid days off for public holidays. The government announces the official dates each year.

Note: Some holidays are based on the lunar calendar, so their dates change each year. Eid al-Adha and Deepavali are also observed but dates vary.

Typical supplemental benefits

To stay competitive, many companies offer benefits beyond the legal minimums. Here’s a look at what’s required by law versus what’s often added as a perk.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in Myanmar. This means you don't have to set one up yourself to hire employees. They handle all the legal and administrative work.

Here is what an EOR does:

• Ensures Compliance: An EOR understands local labor laws. They make sure your benefits packages meet all statutory requirements. This saves you from making costly mistakes.
• Manages Administration: They take care of payroll, tax withholding, and contributions to social security. This frees up your time to focus on your business.
• Offers Competitive Packages: EORs have experience in the local market. They can advise you on what supplemental benefits are common. This helps you offer attractive packages to hire and retain top talent.

Using an EOR makes entering the Myanmar market faster and easier. You can build your team with confidence, knowing that your benefits and compensation are handled correctly from day one.

When you end an employment relationship in Myanmar, you need to follow the country's labor laws. This process, known as termination or offboarding, has specific rules to protect both you and your employee. Following these rules helps you avoid legal trouble and ensures a fair process for everyone. The main laws to know are the Employment and Skills Development Law of 2013 and the Standard Employment Contract. These laws cover everything from giving notice to paying severance.

Notice periods

You must give your employees written notice before their employment ends. The amount of notice depends on how long they have worked for you.

Your employment contract can state longer notice periods, but not shorter ones. If your contract has a longer notice period, you must follow it.

Severance pay

When you terminate an employee, you may need to provide severance pay. The amount is based on their length of service.

You do not have to pay severance if you terminate an employee for gross misconduct.

How Rivermate handles compliant exits

Navigating employee exits in a different country can be complex. We make it simple and ensure you comply with all local laws.

• We stay updated. We keep track of Myanmar's labor laws so you don't have to.
• We manage the paperwork. We handle all the necessary documentation for a compliant termination.
• We calculate final pay. We make sure all final payments, including salary, unused leave, and severance, are correct.
• We reduce your risk. Our process ensures you meet all legal requirements, minimizing the risk of disputes.

We take care of the details so you can focus on your business.

Navigating Myanmar's visa and work permit system can feel complex. The rules are still developing, and processes can change. You need to understand the different types of visas and permits to legally work in the country. For foreign employees, the journey typically starts with a business visa to enter Myanmar. Once in the country, you will need a work permit for any stay longer than 90 days.

Employment visas & sponsorship realities

To legally work in Myanmar, you need a locally registered company to sponsor you. This sponsor is responsible for providing the necessary documentation for your visa and work permit applications. An Employer of Record (EOR) can act as your legal employer in Myanmar, handling all the necessary sponsorship and paperwork. This means you can work for a company that doesn't have its own legal entity in Myanmar.

Here are the practical routes for employment visas:

• Business Visa: This is the initial visa for entering Myanmar for work purposes. It's typically valid for 70 days.
• Stay Permit: For stays longer than 90 days, you'll need a stay permit. This allows you to reside and work in Myanmar for three months to a year.
• Multi Re-entry Permit: This permit allows you to travel in and out of Myanmar while your stay permit is valid.

An EOR can sponsor these visas and permits, but there can be limitations due to visa quotas. It's important to check with your EOR provider about their capacity to sponsor foreign employees.

Business travel compliance (short-term visits)

For short-term business trips, you will need a business visa. This visa is for activities like meetings, conferences, and negotiations. It is not for full-time work.

Here’s what you need to know about business travel compliance:

• Single-Entry Business Visa: This visa is valid for a 70-day stay and must be used within 90 days of being issued. It's suitable for short business engagements.
• Multiple-Entry Business Visa: If you travel to Myanmar frequently, you can apply for a multiple-entry visa. These are available for three, six, or twelve months. You usually need to have held a single-entry visa before you can get a multiple-entry one.
• Invitation Letter: To get a business visa, you need an invitation letter from a registered company in Myanmar. This letter should state the purpose of your visit.

It is crucial that your activities in Myanmar align with the purpose stated in your visa application. Engaging in work outside of what your visa permits can lead to legal issues for both you and the inviting company.