Three Things: HR Managers Must Know in Myanmar


To provide standard benefits and legal requirements for employees in your office, it is important to know and understand certain knowledge about Myanmar Labour laws, related Tax and Social Security Board (SSB) laws.

Today we would like to share three things that every HR professional must understand for operating a HR functions, hiring, employment, payroll, and offboarding employee.

The very first thing is, for companies that have more than 5 employees they need to sign an employment contract between employee and employer name or company, and register ut at the related labour office within 30 days of employment for being officially recruited by law.

Each employment contract needs to be renewed every two years by law, the employer and employee may discuss changes for the renewal contract one month ahead of officially being renewed at labour office.

The most important point about an employment contract is if the employer does not sign the employment contract and hired employees unofficially, the employer is sentenced to less than six months or a fine or sentenced to both by law.

The second thing is to provide the basic health benefits and insurance for sickness, paternity, and injury at work. Employers and employees must register at Social Security Board (SSB) office.

Monthly SSB contribution is calculated based on the employee’s salary, 3 percent from employee and 2 percent from the employer making a total of 5 percent of employee salary is contributed to SSB office each month. There is an exception that the employee salary calculated for SSB contribution is set to the maximum of 300,000MMK by law, which means salary more than the maximum amount is calculated as the same.

For SSB benefits, the business must register at the SSB Office within 30 days after establishment and employees have to register within 10 days after hiring. But the employer doesn’t have to register at the SSB office if the business hired less than 5 employees.

The final, and the most important thing is possessing certain knowledge and experience for processing tax calculations and payment along with the existing tax law. As local tax laws and regulations change occasionally, it is important to keep up with compliance changes to avoid mistakes and penalties.

That is why companies choose to use outsourcing services to make sure that everything associated with the HR department follows local labour law rules and regulations.

MP&O is one of Myanmar’s largest staffing agencies and we provide Payroll and Professional Employer Organisation (PEO) services. We cover all HR-related operations, recruitment, payroll calculation, tax fulfillment, Social Security Benefits, and salary distribution in compliance with local rules and regulations allowing us to meet all your human resource management needs in one place.

Speak to our team of experts today about how we can help your business.

Thant Zin

Leave a Reply

About Us

MP&O® was founded by the leaders of Myanmar’s best recruitment and corporate secretarial service firms to minimize legal exposure and maximize operational success for their existing clients, who consist of some of the most prominent local and multinational companies.


Recent Posts

Follow Us