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Employer Of Record In Myanmar

Employer Of Record In Myanmar

Skuad’s Employer of Record Myanmar (EOR) solutions make business expansion to Myanmar easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Myanmar, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances.

Talk to Skuad experts to learn more.

Myanmar At A Glance

Population: 54,409,794 (2021 estimates)

Currency: Kyat

Capital City: Naypyitaw

Language: Burmese (majority)

GDP: 76.09 billion USD (2019)

Learn more about expanding your business into Myanmar by partnering with Skuad.

Employment In Myanmar

What You Must Know Before Employing In Myanmar

Myanmar has garnered immense international attention since 2011. The government has been taking several measures to increase foreign direct investment in the country. Liberal economic policies such as the foreign investment law of 2012 got instituted in anticipation of rapid economic growth and more employment opportunities.

Every country is governed by unique employment laws. Therefore, it is daunting for companies to hire the best workers for specific roles in foreign countries. So, employers looking to hire in Myanmar must understand their employment laws.

Here are some of the employment law provisions and entitlements of employees in Myanmar:

Entitlements Explanation
Employment contract law and statutory working hours Employment comes under different sector-specific laws. For example, as per the Factories Act, 1951 and the Oilfields (Labor and Welfare) Act 1951, an employee can work 44 to 48 hours per week.
The employment contract should state working hours, meal times, and rest times.
At least one day per week gets granted as a paid rest day. Sundays are usually the designated rest days in Myanmar.
Rules for working overtime Overtime in Myanmar is entirely dependent on the type of employment, the business, and its operations. It can be decided mutually between the employer and the employee. Payment for overtime gets calculated and paid as per the law. Overtime entitles an employee to twice the basic salary.
It is usually restricted to 12 hours a week, with a possible extension to no more than 16 hours in exceptional cases. In the case of overtime, an employee gets entitled to double the basic salary.
Working on Sundays If the employer and employee mutually agree, employees can work on Sundays for double pay.
Public holidays The holidays in Myanmar are:
  • January 1 – New Year
  • January 4 – Independence Day
  • February 12 – Union Day
  • March 2 – Peasants Day
  • Variable – Full moon of Tabaung
  • March 27 – Armed Forces Day
  • April 3 to 17 – Maha Thingyan(Water Festival)
  • May 1 – May Day
  • Variable – Full moon day of Kaesong
  • Variable – Full moon day of Waso
  • Variable – Full moon of Thandigyut
  • Variable – Eid al-Adha
  • Variable – Deepavali
  • Variable – Full moon of Tazaungmone
  • Variable – National Day
  • Variable – Kayin New Year Day
  • December 25 – Christmas Day
  • December 31 – New Year Holiday
Medical leave The Leave and Holidays Act 1951 entitles employees to 30 days of paid medical leave per year, provided they have completed six months of service.
Bereavement Leave There is no statutory unpaid holiday given in Myanmar. But employers are expected to provide their employees with unpaid time off if their paid leaves are exhausted.
Maternity leave The Leave and Holidays Act 1951 states that pregnant women are entitled to six weeks prenatal and eight weeks postnatal leave. Paternity leave (for fathers) is 15 days. Employees contributing to the Social Security Fund may further receive additional leave and other benefits as stipulated in the Social Security Law of 2012.
Unless the employee contributes to the social security board scheme, it is the employer’s responsibility to pay for maternity leave.
Some employers provide nursing rooms at the office, but many workplaces lack such facilities. The government is working towards facilitating the design of nursing rooms at all offices at the policy level.
In case of adoption, female employees get entitled to eight weeks off. Such employees get paid 70% of their salary, the same as maternity leave cases.
Annual leave accrual entitlement As per the Myanmar Leave and Holidays Act, 1951, employees who have worked for over one year at a company get entitled to pay an annual leave of ten days.
If the employer agrees, employees can take ten days of continued annual leave. Annual leaves can be accumulated for up to three years.
Disclosure and confidentiality of personal information As such, there are no data protection laws in Myanmar. The privacy and security of information come under the law protecting the privacy and security of citizens (the 2017 “Privacy Law”). The benefits of the privacy law only apply to citizens of Myanmar.

Although Myanmar is a developing economy, it has strict compliance rules. Various tax regulations and legal compliances need to be taken care of before hiring an employee. Skuad’s EOR solution ensures the smooth functioning of the payroll structure, hiring, compliance, and other responsibilities on the employer’s behalf.

To ensure compliance with Burmese employment laws, Contact Skuad today.

Contractors Vs. Fixed-Term Employees

In Myanmar, all employees, whether they are contractors or full-time employees, enjoy the same rights. Fixed-term employment is generally for a minimum period of two years. Contractors get appointed for a fixed duration that is under a year. This type of employment intends to meet particular specific needs in an organization or happens in emergencies. There are no binding contracts required here, but it is still mandatory to enter into a contract in case of fixed-term employment.

Skuad helps new business entities hire both full-time and contractual employees, depending on their needs. Skuad is known for providing the best comprehensive employment solutions for all types of employers. Contact us here to learn more.

Hiring in Myanmar

Hiring in Myanmar can be done in the following ways:

  • Through in-house recruitment - Few companies have their in-house HR team who will find a suitable employee by their means. This method is handy but burdensome, as the HR team should be very well aware of the rules of hiring in Myanmar.
  • Through a local recruitment agency - Several local agencies in Myanmar can help entrepreneurs find suitable candidates according to the job requirement.
  • Partnering with a global EOR - There are companies like Skuad, who provide EOR solutions globally. The best part of getting associated with an EOR is that they give an end-to-end solution as far as hiring or termination of the employment is concerned.
  • On online job portals like Expat jobs; JobNet.com.mm, and Job Seeker - Many people hire employees with the medium of online job portals.

Generally, companies adopt any one of the ways to do the hiring of employees.

In-house recruitment usually is not the most seamless or easy process, and finding a trustworthy local agency is a challenge. Though hiring via a job portal might be more affordable, the EOR route may be the best in the long run. That is because it is the sole responsibility of the EOR to conduct all necessary research and background checks.

Skuad is one of the best global EOR solution providers for hiring employees globally. Find out how we can help you in your hiring journey.

Employment contract and non-compliance

An employer needs to enter into a written employment contract with the employee within 30 days of employment. Any failure in doing so could lead to a penalty (on the employer) of up to 6 months of imprisonment or a fine, or both.

The contract gets registered in the relevant township office of the labor department. If not, the contract is deemed null and void.

The Ministry of Labor, Immigration, and Population has issued a standard employment contract, the terms, and conditions of which must be followed and practiced by all employers. The contract states working hours, salary components, terms of termination, and leave policy, among other elements.

The employee also has to undergo a medical checkup before employment. Most employers do pre-medical checkups as a part of their selection process.

Probation And Termination

Probation period

Although the Employment and Skills Development Law 2013 stipulates that it is possible to agree upon a probation period, it does not provide any further details.

The prescribed employment contract template in Myanmar states that probation shall not exceed three months. Wherever an employer believes that a probation period is unnecessary, they can hire without one.

The contract terms applicable to employees remain the same during and after the probation period.

Termination Of The Contract

The rules terms of resignation or dismissal of the employee are available in the employment contract.

Resignation by Employee: In this case, the employee must give a notice period of at least one month. The employer must accept the resignation and disburse any outstanding salary for the employee’s tenure.

Termination of contract by the employer: The employer may terminate employment by giving one month’s written notice and the committed payment, provided the cause of termination is not misconduct or contravention of laws. The written termination needs to be given to the employee directly and signed by both parties. The employer must keep a record of the termination papers that contain a valid justification of the termination as a safeguard against future legal action against the decision by the employee.

Dismissal of the employee: It happens when an employee gets sacked because of misconduct or wrongdoing, legal or otherwise. The basis for sacking must be justified and proved against the employment contract terms. Once this requirement is satisfied, the employee gets removed with immediate effect. If the contract does not have information on misconduct or legal offenses, a summary must be provided to the employee immediately.

EOR Solution In Myanmar

When you decide to expand your business operations in Myanmar, you must choose whether you want to set up an in-house HR team or partner with a payroll outsourcing service to manage your HR needs.

Payroll outsourcing in Myanmar through an employer of record:

As already established, expanding business operations in a foreign country can be a long, tedious, and expensive process, especially if you choose to set up a separate legal entity with in-house recruitment teams. Therefore, you can expedite your plans by hiring an expert EOR service provider to manage all your staffing requirements.

Skuad’s comprehensive EOR Myanmar services ensure that all the processes relating to payroll management, taxation, drafting of legal documents, work permits, and visas are well handled smoothly and in compliance with the local laws. With our tech-enriched HR platform, you can leverage the multitude of business opportunities in Myanmar to your benefit. We offer tailor-made EOR solutions for all your expansion needs!

To avail of our services, speak to Skuad experts today.

Types Of Visas In Myanmar

Type of Visa Explanation
Business Visa Most foreign workers in Myanmar can enter and live in the country on a business visa. Foreign workers must acquire a single-entry business visa, which has a validity of 70 days. Upon exit, the single-entry visa expires and cannot be reused. For re-entry, a fresh single-entry business visa is required.
After the person has entered the country, they can take a multiple-entry business visa.
Stay permit and multiple-journey special re-entry visa Business visas are restricted to 70 days, be they single-entry or multiple-entry visas. If anyone wants to extend their stay beyond 70 days, they need to obtain a stay permit or multiple-journey special re-entry visa. A stay permit is not a separate visa; it is a special permit that removes the 70 day limit on visas and allows the foreign worker to remain in Myanmar for three months, six months, or a year, depending on their employment status.
Tourist visa This visa is required if the person is visiting Myanmar for casual or tourism purposes.

Work Permit In Myanmar

The Myanmar Foreign Investment Law of 2012 (set up under the Myanmar Special Economic Zone Law) introduced a work permit system for foreigners investing in the country. Companies or businesses investing in Myanmar under the terms of this law are eligible to acquire work permits for foreigners employed in top positions.

To obtain a work permit, employers must have an investment permit and the Myanmar Investment Commission’s endorsement to employ workers.

Foreign workers generally need the stay permit after reaching Myanmar, and to get that permit following documents are required:

  1. Filled application form
  2. A letter that has the recommendation from the employer
  3. Copy of the applicant's CV
  4. Two passport size photos
  5. Applicant must have a passport with at least six(6) months of the validity
  6. The employee must have all the company documents given from the employer's side.

As an EOR service for Myanmar, Skuad takes care of applying for and obtaining visas and work permits in Myanmar.

Get in touch with Skuad experts to learn more.

Payroll And Taxes In Myanmar

Payroll: As per the minimum wage law, an employee gets entitled to receive a salary for the work he does for an employer. An employer must pay an employee in local currency as stipulated by the central government in Myanmar.

Income Tax: An employer is responsible for deducting income tax from salaries, payable within 15 days from the date of deduction. Myanmar has a progressive income tax rate from 0 to 25%, depending upon the employee’s income.

Withholding tax: This is payable in Myanmar at the rate of 2%.

Corporate tax: The standard rate for this in Myanmar is 25%.

Incorporation: Setting Up A Subsidiary In Myanmar

Setting up a new business in Myanmar is still a complex process. Entrepreneurs who are thinking of setting up their business in Myanmar should be ready to face the bureaucratic challenges, delays in getting the licenses, and inconsistent laws and regulations. In many industries, foreign direct investment is not allowed in Myanmar. Therefore, overseas people need to form joint ventures with the stakeholders of Myanmar to set up business in Myanmar.

Skuad provides the best employment solutions to all the businesses venturing into Myanmar. They keep into consideration all the tax laws, rules, and regulations while hiring the employees.

Skuad manages all the paperwork and will help make the business more productive and successful.

Professional Employer Organization (PEO)

A professional employer organization, Myanmar manages all HR-related functions, such as compliance policies, employee benefits, payroll management, taxes, and risk management. A PEO firm acts as a co-employer, while an EOR firm acts as a legal employer.

Businesses willing to expand into another country must establish a legal presence in the country. Collaborating with a PEO firm will require the companies to set up a separate legal entity. However, when you partner with an EOR team, you can start hiring employees in the country as it is already a legal employer. An EOR allows organizations to set up legal entities in different countries and mark their presence in the global market.

Skuad’s integrated platform acts as an EOR. The expert professionals manage all HR-related functions; right from recruitment to termination, everything gets handled by the single platform of Skuad. You can build an efficient team of workers remotely while complying with the local laws. Skuad handles onboarding both full-time and contractors, managing their payroll and taxes, etc.

Connect with us and elevate your business prospects while saving your time and money with the advanced EOR solutions of Skuad.

Conclusion

With the help of an EOR, employers can easily remove all types of cultural and language barriers. EOR solutions are the best way to ensure the best global payroll technology is used to hire the right employees.

EOR solutions bridge the gap between employer expectations and employee potential. As a third-party mediator, EOR maintains peace and understanding between employer and employee. For the best EOR experience, you can get in touch with us.

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