Work and Wages

This page was last updated on: 2021-11-26

Minimum Wage

Statutory minimum remuneration means the remuneration (including holiday remuneration) fixed by a minimum wages order. National Minimum wage is set for all the employees regardless of age, industry, experience and region. There is no salary cap system. The Minimum Wage Law (2013) defines wage as the basic salary excluding pension and gratuity payments, social security cash benefits, allowances (for travel, accommodation, meals, electricity charges, water service charges and duties, taxes, medical treatment and recreational purposes) and severance payments.

The Minimum Wage Law recommends creation of a national minimum wage committee comprised of relevant persons in government departments, representatives of employers and employees, to conduct research on the prevalent minimum wages across various industries for employees. The union, region and state committees are also formed in the similar manner. There exists a separate minimum wage committee for special economic zones. These committees submit their proposals to the National Minimum Wage Committee, which after considering these suggestions, recommends publishing of such notification 60 days prior to its formal approval and after taking into account any objection by the public. Minimum wage rates are prescribed after taking approval from the government and where there is no objection by public in this regard.

The categories of business (for which minimum wage rates are prescribed) are determined by the National Committee. Minimum wage is calculated on the basis of this research. The committee takes into consideration the needs of workers and their families; existing salaries; social security benefits; living cost and changes of such living costs; compatible living standard; employment opportunities in conformity with the needs for State's economy and development of production; gross domestic production value of the State and per capita income; hazardous to health and harmful to work, nature of the work; and other facts stipulated by the Ministry with the approval of the Union Government.

The employer is required to pay at least the prevailing minimum wage as dictated by the government committee and is also required to inform employees of the prevailing minimum wages and have it be prominently posted for employees. The employer can pay more than the prevailing minimum wage, also has to look after the wellbeing of his employees.

Violation of the law leads to the penalty. If an employer is unable to pay the minimum wage, he/she is punished with imprisonment for a term not exceeding one year or with fine not exceeding 500,000 kyats or with both. The wage payable during the three-month training period is 50% of the applicable minimum wage. During the three-month probation period, the payable wage is 75% of the applicable minimum wage.

Source: Minimum Wage Law (No. 7 of 2013); Minimum Wage Rule (Notification No. 64 of 2013)

Regular Pay

The Minimum Wage Law and Payment of Wages Law defines wage as the fee, wage or salary entitled to be obtained by the worker for carrying out hourly work, daily work, weekly work, monthly work or any other part‐time work of the employer. This expression includes overtime fee or bonus given by the employer for the good work or character, or other remunerations or benefits which may be determined as income. However, it does not include, among others the following: the travelling allowances, allowances for accommodation and meal, electricity charges, water service charges and duties and taxes, and medical treatment allowances and recreation allowances.

Wages are paid in local currency or foreign currencies stipulated by the Central Bank of Myanmar. Such payment may be paid in cash or cheque or deposited into the bank account of the worker with the agreement between the employer and the worker.

The employer must pay wages on working day at the end of the work or at the time agreed to pay to the worker for hourly, daily, weekly or other part time work, or temporary or piece work. The maximum wage period is one month. Wages must be paid at the end of the wage period if there are less than 100 workers. If there are 100 or more workers, wages must be paid within 5 days at the end of the wage payment period.

In the event of termination of contract or death of the worker, all dues must be cleared within two working days. In the case of resignation by the employee, all dues must be cleared at the end of wage payment period.

An employer is not allowed to deduct wages of an employee except for the conditions provided under the law. All the deductions made by the employer may not exceed 50% of the wages of a worker except deduction from wages for the failure of a worker to perform his duty.

The Shops and Establishments Act states that wages must be paid to workers within seven days of the end of end of the wage payment period.

The Payment of Wages Act allows for in-kind payment of wages up to 50% of the total applicable wage provided that it is for the sake of the employees and their families and it is valued fairly and reasonably.

Employers are required to provide pay slips to the workers with following details: worker identification details, basic hours, overtime hours, overtime rate, details of bonuses and deductions, signatures of both worker and employer. The format for the pay slip is provided under a Ministerial Notification.

Source: §16 of the Shops and Establishments Act 2016; §2(e) of the Minimum Wage Law (No. 7 of 2013); §01-10 of the Payment of Wages Law 2016


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