Employer of Record in Myanmar

An employer of record in Myanmar acts as the legal employer on your behalf, managing employment contracts, Social Security Board registration, and income tax withholding under Myanmar law.

Foreign companies face a specific compliance challenge: registering employees with the Social Security Board, meeting IRD income tax withholding obligations, and satisfying Myanmar Companies Law 2017 entity requirements without holding a DICA-registered subsidiary.

• EOR hiring takes 7 to 14 days; setting up a DICA-registered entity takes 3 to 6 months.
• Employer SSB contribution is 3%, capped at MMK 300,000 per month.
• The standard notice period for employment termination is one month.
• The minimum wage is MMK 7,800 per day, effective 1 October 2025.

This page covers hiring options, employment law, payroll obligations, visa requirements, and termination rules in Myanmar.

Gloroots is an employer of record provider operating in Myanmar. This guide is written to help readers evaluate all available hiring paths, not only Gloroots.

What Is an Employer of Record in Myanmar?

An employer of record holds the employment contract under Myanmar law, registers each employee with the Social Security Board and the Internal Revenue Department, and withholds income tax on every payroll run. To understand how does EOR work in practice, the key point is that the EOR is the legal employer of record while the client company directs the employee's day-to-day work.

Foreign companies without a DICA-registered entity use an EOR to hire Myanmar nationals quickly and without setting up a local legal structure.

In practice, the client selects the candidate, the EOR drafts a compliant employment contract, registers the employee with the SSB and IRD, runs monthly payroll, manages statutory leave and benefits entitlements, and handles routine HR queries. The client retains full operational direction over the employee's work. No DICA registration is required on the client's side when using an EOR.

Your Hiring Options in Myanmar: EOR vs. Entity vs. PEO vs. Contractor

Companies hiring in Myanmar can choose from four paths: an employer of record, a DICA-registered own entity, a PEO arrangement, or an independent contractor engagement. Each path suits a different team size, budget, and risk tolerance. Reviewing a guide on the best employer of record providers can help narrow the choice when EOR is the right fit.

EOR is the right path for teams of 1 to 15 employees where no Myanmar entity exists and speed to hire is a priority.

A DICA-registered own entity makes sense for sustained operations of 15 or more employees, long-term market presence, and situations requiring full operational control.

Path	Setup Time	Compliance Ownership	Cost Structure	Best For
EOR	Days	EOR owns	$300 to $600 per employee per month	1 to 15 hires
DICA Entity	3 to 6 months	Client owns	$3,000 to $15,000 setup plus ongoing costs	15+ hires
PEO	Requires existing entity	Shared	HR admin fee	Companies with Myanmar subsidiary
Contractor	Immediate	Client risk	Project fee	Discrete scoped work

Myanmar has no formal statutory PEO framework. A PEO arrangement suits companies that already hold a DICA-registered entity and want to outsource HR administration. An EOR suits companies with no Myanmar entity at all.

How to Hire in Myanmar Through an EOR: Step by Step

Hiring through an EOR in Myanmar follows six practical steps, from the initial hiring decision through to the first payroll run.

Step 1: Decide Between EOR and Direct Entity

Assess team size, budget, and timeline. If you plan to hire fewer than 15 people and hold no existing DICA entity, an EOR is the faster and lower-cost path to employment in Myanmar.

Step 2: Select and Vet an EOR Provider

Confirm the EOR holds an in-country Myanmar entity or a verified local partner. Check that the provider can handle SSB and IRD registration, and review contract templates for compliance with Myanmar Companies Law 2017 and the Social Security Law 2012.

Step 3: Draft a Compliant Employment Contract

The EOR drafts the contract using Myanmar's government-mandated standard template. It covers role, compensation, working hours, leave, probation (maximum 90 days), and termination grounds.

Step 4: Register Employee with SSB and IRD

The EOR registers the employee with the Social Security Board (SSB) and Internal Revenue Department (IRD) within 3 to 5 business days of contract signing.

Step 5: Run Compliant Monthly Payroll

The EOR processes monthly payroll, withholds employee income tax and the 2% SSB contribution, remits the 3% employer SSB capped at MMK 9,000 per month, and files monthly IRD returns.

Step 6: Manage Offboarding and Exit

The EOR manages the minimum one-month notice period, calculates severance under Notification 84/2015, settles final wages within two working days, and deregisters the employee from SSB and IRD.

How to Choose the Right EOR in Myanmar

Choosing an EOR in Myanmar requires evaluating six practical factors before signing any agreement.

The right provider gives you control over employment contracts, payroll filings, and statutory registrations. A weak one creates compliance gaps that are difficult to correct after the fact.

Start by reviewing the provider's employer of record software to confirm it supports Myanmar-specific payroll rules, SSB filings, and IRD returns. Platform capability is one of six criteria worth checking before you commit.

The remaining criteria cover in-country legal structure, data handling, pricing transparency, support ownership, and offboarding processes. Each one affects how reliably the EOR can execute employment obligations on your behalf.

Local Legal Knowledge and In-Country Entity

Confirm whether the EOR operates through its own DICA-registered Myanmar entity or relies on a third-party partner network. That distinction affects both liability and response time.

Support Model and Response Time

Confirm the EOR provides dedicated in-country HR support in both Burmese and English. Limited English proficiency across Myanmar's local workforce makes bilingual support a practical requirement, not a preference.

Pricing Transparency

Request an all-in cost breakdown covering the EOR service fee (typically $300 to $600 per employee per month for Myanmar), any one-time onboarding fee, and the employer Social Security Board contribution. See employer of record cost for a full breakdown of what to expect.

Security and Data Compliance

Verify the EOR's data security policies and access controls before signing. Myanmar has limited data protection legislation and weak IP enforcement, so the EOR's own governance standards carry more weight than local law.

Integration Capability

Check whether the EOR platform integrates with your existing HRIS or finance tools. Without integration, payroll reconciliation between Myanmar Kyat and your home currency becomes a manual process that introduces errors and delays.

Workforce and Talent Pool in Myanmar

Myanmar has approximately 22 million active workers from a population of around 54 million. The median age is roughly 29 years, making it a young, cost-competitive labor pool concentrated in Yangon and Mandalay.

Key talent hubs are Yangon for finance, tech, and garments; Mandalay for manufacturing and trade; and Naypyidaw for government-adjacent roles.

Work culture is hierarchical with strong deference to seniority. Burmese is the primary language, and English proficiency is limited outside Yangon's multinational sector. Labor costs are among the lowest in Southeast Asia, with the minimum wage set at MMK 7,800 per day. Post-2021 political instability has reduced talent availability in skilled sectors and accelerated brain drain, particularly in technology and finance.

Indicator	Detail
Workforce size	~22 million
Median age	~29 years
English proficiency	Limited outside Yangon
Top talent hubs	Yangon, Mandalay, Naypyidaw
Key industries	Garments, Agriculture, Manufacturing, Finance, Tech

Companies hiring across Southeast Asia often compare Myanmar with neighboring markets. See the employer of record Vietnam page for a comparable regional profile.

Employment Law Essentials in Myanmar

Myanmar's employment framework draws from multiple statutes rather than a single consolidated labor code. Each law governs a distinct area of the employment relationship.

The core statutes are the Leave and Holidays Act 1951, Social Security Law 2012, Minimum Wages Act 2013, Payment of Wages Act 2016, Employment and Skills Development Law 2013, Shops and Establishments Law 2016, Factories Act 1951, and Notification 84/2015 on severance payments.

• Leave and Holidays Act 1951: Sets minimum paid leave entitlements and public holiday obligations for all employers.
• Social Security Law 2012: Governs employer and employee SSB contributions and administers maternity and sickness benefits.
• Minimum Wages Act 2013: Establishes the legal floor for daily wages, currently MMK 7,800 per eight-hour day.
• Payment of Wages Act 2016: Regulates wage payment timing, deductions, and employer obligations on termination.
• Employment and Skills Development Law 2013: Covers employment contracts, worker registration, and skills training requirements.
• Shops and Establishments Law 2016: Applies to commercial workplaces and sets overtime limits at 12 hours per week for shop employees.
• Factories Act 1951: Governs factory working conditions, safety standards, and overtime limits of 20 hours per week for factory workers.
• Notification 84/2015: Specifies the severance pay scale based on length of service, ranging from half a month's wages for six months to one year of service up to 13 months' wages for over 25 years.

An EOR operating in Myanmar must track obligations across all eight instruments. Gloroots maps each statute to the relevant payroll, contract, and benefits workflow so your employment records stay current with each applicable law.

Employment Contracts

Myanmar law requires employers to use the government-mandated standard employment contract template, issued within 30 days of the employee's start date. The contract covers role, pay, hours, leave, probation, and termination grounds. Gloroots prepares compliant contracts using the government template for every Myanmar hire.

Working Hours and Overtime

Standard working hours are 44 hours per week (8 hours per day) under the Factories Act 1951 and Shops and Establishments Act 1951. Overtime is paid at 200% of the regular pay rate. No overtime work is permitted beyond midnight.

Minimum Wage

Myanmar's minimum wage is MMK 7,800 per 8-hour working day, effective 1 October 2025, as set by the National Committee for Setting the Minimum Wage. This rate applies to employers with 10 or more employees.

Probationary employees are entitled to at least 75% of the minimum wage. The previous base rate was MMK 4,800 per day (2018), with subsequent allowance additions raising the effective floor before the 2025 revision.

Leave and Statutory Benefits in Myanmar

Myanmar law sets specific entitlements for each leave type. The rules differ by length of service, so employers must track tenure carefully from the first day of employment.

Leave Type	Entitlement	Pay Rate	Key Conditions
Annual (Earned) Leave	10 working days per year	Full pay	Accrues only after 12 months of continuous service with at least 20 working days per month. Unused leave may be carried forward up to 3 years by agreement. Paid out on termination.
Casual Leave	6 working days per year	Full pay	Available from day one. Maximum 3 consecutive days. No carryover.
Sick Leave	26 weeks per year	Full pay for first 30 days; social security covers remainder	Requires medical certificate. Employees with less than 6 months of service may take sick leave without pay.
Maternity Leave	14 weeks	Paid via social security scheme	May begin 6 weeks before due date. Extended by 4 weeks for multiple or complicated births. 6 weeks for miscarriage. 8 weeks for adoptive mothers of children under one year.
Paternity Leave	15 days	Full pay (25% of average salary if mother not covered by social security)	Increases to 37.5% for twins and 50% for triplets.
Public Holidays	Approximately 16 days per year	Full pay	Includes Independence Day, Union Day, Peasants Day, Armed Forces Day, Thingyan (Water Festival), Myanmar New Year, Workers Day, Buddha Day, Martyrs Day, National Day, Christmas Day, and others as gazetted.

Employees in their first year of service rely on casual leave, as earned leave does not accrue until 12 months of continuous employment are completed.

Annual Leave

Earned leave accrues only after 12 months of continuous service. New hires in their first year rely on casual leave instead. Unused earned leave may be carried forward up to 3 years by agreement and must be paid out on termination.

Sick Leave

Employees who have completed at least 6 months of service are eligible for 26 weeks of sick leave per year, with the first 30 days paid at full pay. Employees who have not completed 6 months of service may take sick leave but without pay. A medical certificate is required in all cases.

Maternity and Paternity Leave

Fathers receive 15 days of paid paternity leave. If the mother is not covered by the Social Security Board, the father receives 25% of average salary for a single birth, 37.5% for twins, and 50% for triplets.

Public Holidays

Myanmar observes the following public holidays: New Year's Day, Independence Day, Union Day, Peasants' Day, Armed Forces Day, Thingyan (4-5 days), Myanmar New Year, Labour Day, Full Moon of Kason, Martyrs' Day, Full Moon of Waso, Thadingyut (3 days), Tazaungdaing (2 days), National Day, and Christmas Day. Lunar-calendar holidays shift annually; the Ministry of Home Affairs publishes the official list each year.

Payroll, Tax and Statutory Contributions in Myanmar

Payroll in Myanmar runs monthly, paid on the last working day. Employers must withhold income tax and SSB contributions and file monthly returns with the Internal Revenue Department.

The SSB insurable salary cap is MMK 300,000 per month. This means the maximum employer SSB contribution is MMK 9,000 per month regardless of actual salary. Misapplying this cap is a common compliance error that triggers retroactive liability.

Myanmar does not legally mandate a 13th-month salary. A voluntary Thingyan bonus of approximately one month's base salary is common in multinationals and is taxed as salary income.

Income tax brackets (Union Taxation Law 2025, effective 1 April 2025)

Annual basic relief is MMK 4,800,000. Rates apply to income after relief.

Rate	Annual income band
0%	Up to MMK 2,000,000
5%	MMK 2,000,001 to MMK 10,000,000
10%	MMK 10,000,001 to MMK 30,000,000
15%	MMK 30,000,001 to MMK 50,000,000
20%	MMK 50,000,001 to MMK 70,000,000
25%	Above MMK 70,000,000

Statutory contributions

Contribution	Employer rate	Employee rate	Insurable salary cap	Monthly maximum
Health and social care (SSB)	2%	2%	MMK 300,000	Employer MMK 6,000 / Employee MMK 6,000
Employment injury (SSB)	1%	0%	MMK 300,000	Employer MMK 3,000
Total SSB	3%	2%	MMK 300,000	Employer MMK 9,000 / Employee MMK 6,000

Work Visas and Permits in Myanmar

Foreign nationals working in Myanmar require a business visa, employment stay permit, or multi-journey re-entry visa depending on role and duration.

A Gloroots EOR acts as the legal sponsor for foreign hires, applying for the employment stay permit and Foreigner Registration Certificate on the employee's behalf. This removes the need for a client-owned DICA entity. Companies already managing regional mobility through an employer of record Singapore entity can extend the same model to Myanmar without additional entity setup.

Visa type	Purpose	Validity
Business visa	Short-term business activities	70 days, extendable
Employment stay permit	Working under a Myanmar employer	1 year, renewable
Multi-journey re-entry visa	Multiple entries during stay permit validity	Duration of stay permit
Foreigner Registration Certificate (FRC)	Mandatory registration for stays of 90 days or more	Tied to stay permit

Processing times: eVisa approval takes 3 to 5 days. Employment stay permit processing takes 2 to 4 weeks.

Misclassification Risk in Myanmar

Myanmar's Employment and Training Act treats individuals working under direction and control as statutory employees regardless of the contract label used.

Regulators assess the following criteria when determining employment status:

• The worker follows the employer's instructions on how, when, and where to perform work.
• The employer provides tools, equipment, or workspace used to carry out the work.
• The work is integral to the employer's core business operations.
• The engagement is ongoing rather than limited to a defined project.

Misclassification carries significant financial exposure. Penalties include:

• Retroactive SSB contributions for the full period of misclassified engagement.
• Back-payment of all statutory paid leave entitlements owed from the original start date.
• Severance calculated under Notification 84/2015 from the original engagement date, not the reclassification date.
• IRD income tax penalties and interest on underpaid withholding tax.

Using a Gloroots EOR transfers legal employer status to Gloroots, removing misclassification exposure for the client company entirely.

Hiring, Onboarding, Termination and Offboarding in Myanmar

Onboarding

• Before day one: EOR drafts the government-mandated employment contract and sends it for signature before the start date. EOR registers the employee with SSB and IRD, which takes three to five business days. Client confirms role scope, reporting line, and equipment provision. EOR configures the payroll profile including MMK salary, SSB deductions, and income tax withholding.
• Day one: Employee receives a signed contract copy and SSB registration confirmation. EOR provides a statutory rights summary covering leave entitlements, minimum wage, and overtime rules. Client conducts role-specific orientation and sets up system access.
• First week: EOR confirms payroll is live and communicates the first pay date. Foreign nationals complete FRC registration if required. Client assigns probation objectives within the 90-day maximum probation period.
• Beyond: EOR manages monthly payroll, SSB remittance, and IRD filing on an ongoing basis. Client monitors probation performance and confirms permanent status before day 90.

Termination

Termination in Myanmar requires one month's written notice and a written justification. Misconduct terminations require one written and two verbal warnings before the final notice, with a 12-month repeat-breach window.

Offboarding

• Settlement: EOR calculates severance per Notification 84/2015 based on last monthly salary including allowances, excluding overtime. EOR settles final wages within two working days of the last employment day. Accrued unused earned leave is paid out in full on termination.
• Documents: EOR issues the employment termination letter and SSB deregistration confirmation. Employee receives an income tax clearance certificate from IRD. Foreign nationals must surrender their FRC and apply for an exit visa if required.
• Exit: EOR deregisters the employee from SSB and IRD payroll records. Client revokes system access and retrieves company equipment. EOR provides a final payroll summary for client records.

What's New: Recent Regulatory Changes in Myanmar

The Union Taxation Law 2025, effective 1 April 2025, updated personal income tax brackets, raising the top-rate threshold to MMK 70,000,000 and maintaining the annual basic relief at MMK 4,800,000.

• Union Taxation Law 2025 (effective 1 April 2025): Six income tax bands apply, with a top rate of 25% on income above MMK 70,000,000 per year.
• Minimum wage increase: The National Committee for Setting the Minimum Wage raised the daily minimum wage to MMK 7,800, effective 1 October 2025.
• SSB insurable salary cap: The cap remains at MMK 300,000 per month, with the employer contribution capped at MMK 9,000 per month.
• DICA registration timelines: The post-2021 political environment continues to affect business registration timelines and foreign investment approvals at DICA.
• Sanctions compliance: UK, US, and EU sanctions on Myanmar military-linked entities require compliance screening before hiring any individual or entity.

Employers should review payroll tax configurations each April when the Union Taxation Law takes effect.

Costs and Financial Planning for Hiring in Myanmar

The true cost of hiring in Myanmar extends beyond salary to include SSB contributions, income tax administration, and employer of record cost considerations when using an EOR.

Hidden costs include the Thingyan bonus (one month's base salary, common in multinationals though not mandated), private health insurance supplements above SSB coverage, and transport or meal allowances standard in Yangon's competitive talent market. Budgeting for these items prevents surprises at year-end.

Cost element	Direct DICA entity	Gloroots EOR
Setup cost	$3,000–$15,000	$0
Time to first hire	3–6 months	7–10 days
Employer SSB	3%, capped at MMK 9,000/month	3%, capped at MMK 9,000/month
EOR service fee	N/A	$300–$600/month per employee
Annual compliance filing	DICA annual return plus IRD	EOR-managed
Thingyan bonus	Voluntary, approx. 1 month salary	Voluntary, approx. 1 month salary

Common Challenges and How Gloroots Solves Them in Myanmar

Hiring in Myanmar presents practical challenges around political risk, language barriers, SSB compliance, and sanctions screening that require local expertise.

Challenge	How Gloroots solves it
Post-2021 political instability affecting DICA timelines	Gloroots monitors regulatory changes and maintains an in-country entity to absorb delays.
Language barrier: Burmese primary, limited English	Gloroots provides bilingual HR support and Burmese-language contract templates.
SSB insurable salary cap misapplication	Gloroots payroll engine applies the MMK 300,000 cap automatically, preventing over- or under-remittance.
Sanctions compliance screening for military-linked entities	Gloroots conducts pre-hire sanctions screening against UK, US, and EU lists.
Outdated income tax bracket application	Gloroots updates tax tables each April per the Union Taxation Law.
Severance calculation errors under Notification 84/2015	Gloroots applies the correct bracket schedule, including the 2–3 year tier at 1.5 months.

Why Gloroots Is a Strong EOR Partner in Myanmar

Gloroots is best suited for companies hiring 1 to 15 employees in Myanmar without a DICA-registered entity, particularly those needing fast onboarding and ongoing SSB and IRD compliance management.

Country-specific strengths include bilingual HR support in Burmese and English, automated SSB cap enforcement, Union Taxation Law 2025 tax table updates, and pre-hire sanctions screening against UK, US, and EU Myanmar lists.

• Local Myanmar hires onboarded in 7 to 10 business days
• DICA entity formation takes 3 to 6 months and costs $3,000 to $15,000
• Automated SSB cap at MMK 9,000/month employer contribution
• Sanctions screening against current UK, US, and EU Myanmar designations

Gloroots is a practical fit for technology, garment, and manufacturing companies entering Myanmar for the first time without a local subsidiary.

Buyers should confirm whether Myanmar headcount is expected to exceed 15 employees within 12 months. That threshold may justify evaluating a direct DICA entity rather than continuing with an EOR services arrangement.

Conclusion

Myanmar's employer SSB contribution is capped at MMK 9,000 per month, one of the lowest statutory employer costs in Southeast Asia.

Companies evaluating Myanmar should verify their sanctions exposure, confirm the applicable Union Taxation Law 2025 income tax brackets, and assess whether their planned headcount justifies an EOR versus a direct DICA entity before committing to either path. For companies also considering adjacent markets, the employer of record Bangladesh page covers a comparable low-cost hiring environment in the region.

Frequently Asked Questions About Employer of Record in Myanmar

The questions below address the most common compliance, cost, and process issues companies face when hiring in Myanmar through a Global Employer of Record.

Can I hire employees in Myanmar without setting up a local company?

Yes. An EOR acts as the legal employer under Myanmar law, holding the employment contract and registering the employee with the Social Security Board and IRD on your behalf.

You retain operational direction of the employee without needing a DICA-registered entity. Establishing one typically takes 3 to 6 months and costs $3,000 to $15,000.

How long does it take to onboard an employee in Myanmar through an EOR?

Local Myanmar hires can be onboarded in 7 to 10 business days, covering contract preparation (1 to 2 days), SSB and IRD registration (3 to 5 days), and payroll configuration (2 to 3 days).

Foreign nationals requiring an employment stay permit and Foreigner Registration Certificate need an additional 4 to 8 weeks for immigration processing.

What are the mandatory payroll contributions for employers in Myanmar?

Employers must contribute 3% of the employee's insurable salary to the Social Security Board, comprising 2% for health and social care and 1% for employment injury insurance, capped at an insurable salary of MMK 300,000 per month. The maximum employer SSB contribution is MMK 9,000 per month.

Employers must also withhold employee income tax monthly and file returns with the IRD under the Union Taxation Law 2025 income tax brackets.

What is the correct severance pay schedule in Myanmar?

Severance in Myanmar is governed by Notification 84/2015. It is calculated on the employee's last monthly salary including allowances, but excluding overtime.

The schedule runs from 0.5 months for 6 to 12 months of service up to 13 months for 25 or more years. One commonly miscalculated bracket is 2 to 3 years of service, which entitles the employee to 1.5 months' salary, not 2 months.

Does Myanmar require a 13th month salary?

Myanmar law does not mandate a 13th month salary or statutory annual bonus. No legal obligation exists for employers to pay one.

A voluntary Thingyan (Myanmar New Year) bonus of approximately one month's base salary is common practice among multinationals and larger employers. This bonus is paid in April and taxed as ordinary salary income under the Union Taxation Law 2025.

Can an EOR sponsor work visas for foreign employees in Myanmar?

Yes. An EOR can act as the legal sponsor for foreign nationals, applying for the employment stay permit and Foreigner Registration Certificate on the employee's behalf.

The employment stay permit takes 2 to 4 weeks to process and is valid for one year, with renewal available. The client company does not need its own DICA-registered entity to sponsor the visa.

What is the difference between an EOR and a PEO in Myanmar?

Under a Global Employer of Record (EOR) arrangement, the EOR is the legal employer under Myanmar law. The client company does not need a DICA-registered entity.

Under a PEO arrangement, the client remains the legal employer and must already have its own DICA-registered Myanmar subsidiary. The PEO provides HR administration services only. Myanmar has no formal statutory PEO framework, so PEO is a contractual arrangement rather than a regulated model.