A large, diverse nation in the heart of southeast Asia
Myanmar (formerly Burma) is a large, diverse nation in the heart of southeast Asia. Myanmar has a young and growing demographic and is notable for its key industries such as agriculture, mining, and construction materials.
As many of the markets in Myanmar are underdeveloped, there is a plethora of opportunity for established foreign businesses to grow markets and make an impact in the country. Advanced processes and systems are uncommon in Myanmar, so foreign businesses looking to introduce these can expect a wealth of opportunity.
Fortunately, expanding into this country can be expedited and simplified with the use of a Myanmar PEO provider such as Procorre Global.
Working in Myanmar
Myanmar is a safe country for expats to explore, and relevant working permits and visas must be acquired to facilitate this movement. Living costs in the country are low and tax rates are low for residents.
Employment Information
- The Labour Law in Myanmar is very employee-centric, so foreign businesses need to be aware of all the nuances when hiring in-country.
- Companies must use a single employment contract which is provided by the Labour Office.
- There is no such thing as a contractor in Myanmar. All workers are considered full-time and must receive benefits such as statutory leaves and severance pay.
- Probation periods in Myanmar must never exceed 3 months.
- Employers must provide a minimum notice period of 1 month when terminating an employment contract.
- Myanmar usually has 23-26 public holidays every year, and employers must grant these as paid leave for employees.
- Employees are entitled to casual leave of 6 days, medical leave of 30 days, and 10 days of earned leave (per year of employment).
- 14 weeks of maternity leave is standard, with 6 weeks before the birth and 8 weeks after. Fathers can also enjoy 15 days of paid paternity leave.
- Employment contracts in Myanmar last for 2 years and must be renewed accordingly. Employee contracts cannot be terminated after this 2-year period without any severance pay or notice.
Contributions
- 5% of wages must be contributed towards the Social Security Board (SSB). This includes 2% from the employee’s wage, and 3% from the employer. The maximum contribution is 6,000 MMK from employers and 3,000 MMK from employees.
- Myanmar has a Commercial Tax of 5%.
- Income taxes in Myanmar are progressive and vary from 0-25%. Any annual earnings below 4,800,000 MMK are exempt from taxation.
- Employers must withhold and pay the employees income tax contributions on their behalf. This should happen within 10 days of the employee’s pay date.
- Most contributions must be paid in cash or cheque. The Myanmar Government is actively working on digital processes to replace this.
Cultural Information
Myanmar is a predominantly Theravada Buddhist country, and Buddhism was introduced around the 1st, 2nd, and 3rd centuries. This nation has a population of around 55 million, and the official language is Burmese.
The general business population has a high level of English language, this is generally higher than in other southeast Asian countries.
Impacts from COVID-19
Myanmar managed to maintain relatively low cases of COVID-19 during the pandemic and has now achieved a highly vaccinated population in the city centres. As a result of this, many businesses have started going back to normal, and office / on-site working is common.
The Myanmar Market – Did you know?
- The Schwedagon Pagoda in Yangon is Myanmar’s oldest Buddhist temple and was built around 2,500 years ago. The temple is 110 metres high and towers above the city’s skyline. The temple is also encrusted with diamonds.
- Yangon is no longer the capital of Myanmar. In 2005, the country changed its capital city to Naypyidaw.
- With agriculture serving as a key industry in Myanmar, it’s no surprise that the country has a fantastic and broad range of natural resources.
- Myanmar is extremely ecologically diverse, and its tropical jungles are home to countless unique types of species including tigers, elephants, and leopards.
Myanmar PEO Services
Myanmar PEO Services
Myanmar (formerly Burma) is a large, diverse nation in the heart of southeast Asia. Myanmar has a young and growing demographic and is notable for its key industries such as agriculture, mining, and construction materials.
As many of the markets in Myanmar are underdeveloped, there is a plethora of opportunity for established foreign businesses to grow markets and make an impact in the country. Advanced processes and systems are uncommon in Myanmar, so foreign businesses looking to introduce these can expect a wealth of opportunity.
Fortunately, expanding into this country can be expedited and simplified with the use of a Myanmar PEO provider such as Procorre Global.
Working in Myanmar
Myanmar is a safe country for expats to explore, and relevant working permits and visas must be acquired to facilitate this movement. Living costs in the country are low and tax rates are low for residents.
Employment Information
- The Labour Law in Myanmar is very employee-centric, so foreign businesses need to be aware of all the nuances when hiring in-country.
- Companies must use a single employment contract which is provided by the Labour Office.
- There is no such thing as a contractor in Myanmar. All workers are considered full-time and must receive benefits such as statutory leaves and severance pay.
- Probation periods in Myanmar must never exceed 3 months.
- Employers must provide a minimum notice period of 1 month when terminating an employment contract.
- Myanmar usually has 23-26 public holidays every year, and employers must grant these as paid leave for employees.
- Employees are entitled to casual leave of 6 days, medical leave of 30 days, and 10 days of earned leave (per year of employment).
- 14 weeks of maternity leave is standard, with 6 weeks before the birth and 8 weeks after. Fathers can also enjoy 15 days of paid paternity leave.
- Employment contracts in Myanmar last for 2 years and must be renewed accordingly. Employee contracts cannot be terminated after this 2-year period without any severance pay or notice.
Contributions
- 5% of wages must be contributed towards the Social Security Board (SSB). This includes 2% from the employee’s wage, and 3% from the employer. The maximum contribution is 6,000 MMK from employers and 3,000 MMK from employees.
- Myanmar has a Commercial Tax of 5%.
- Income taxes in Myanmar are progressive and vary from 0-25%. Any annual earnings below 4,800,000 MMK are exempt from taxation.
- Employers must withhold and pay the employees income tax contributions on their behalf. This should happen within 10 days of the employee’s pay date.
- Most contributions must be paid in cash or cheque. The Myanmar Government is actively working on digital processes to replace this.
Cultural Information
Myanmar is a predominantly Theravada Buddhist country, and Buddhism was introduced around the 1st, 2nd, and 3rd centuries. This nation has a population of around 55 million, and the official language is Burmese.
The general business population has a high level of English language, this is generally higher than in other southeast Asian countries.
Impacts from COVID-19
Myanmar managed to maintain relatively low cases of COVID-19 during the pandemic and has now achieved a highly vaccinated population in the city centres. As a result of this, many businesses have started going back to normal, and office / on-site working is common.
The Myanmar Market - Did you know?
- The Schwedagon Pagoda in Yangon is Myanmar’s oldest Buddhist temple and was built around 2,500 years ago. The temple is 110 metres high and towers above the city’s skyline. The temple is also encrusted with diamonds.
- Yangon is no longer the capital of Myanmar. In 2005, the country changed its capital city to Naypyidaw.
- With agriculture serving as a key industry in Myanmar, it’s no surprise that the country has a fantastic and broad range of natural resources.
- Myanmar is extremely ecologically diverse, and its tropical jungles are home to countless unique types of species including tigers, elephants, and leopards.
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