How does HR work for a foreign-invested company in Myanmar?
A foreign-invested company in Myanmar follows the same labour stack as a local employer — ESDL, SSB at 5, PIT, OSH at 50, Factories or S&E Act on hours. Differences sit in expat work permits, the MIC quota for foreign-to-local staff ratios in MIC-permitted projects, USD/MMK currency rules and bilateral SSB exemptions. Local headcount must form the majority over time per MIC rules.
What this looks like in practice
Foreign-invested companies in Myanmar operate under DICA registration (or a Myanmar Investment Commission permit for incentivised projects), with an entity 100% or majority foreign-owned. The labour stack is identical to a local employer — ESDL appointment letters from Day 1, SSB at 5, PIT under the Union Tax Law 2025-2026, OSH at 50. Differences arise in expat work permits, the MIC permit's local-staff ratio requirements, and how USD-denominated salaries flow through PAYE.
Step-by-step setup
- Choose registration path — DICA-only company, or DICA + MIC permit for tax incentives and quota benefits.
- Apply for expat work permits through MoLIP for any non-citizen on payroll; the Stay Permit and Multiple Journey Visa accompany.
- Issue ESDL contracts in dual-language (English + Myanmar) for all staff, applying probation, notice and severance per Notification 84/2015.
- Run MMK-denominated payroll — convert USD-quoted salaries at the Central Bank reference rate on the payment date for PAYE.
- Register all staff with SSB at 5, including expats unless a bilateral exemption applies.
- Track the local-to-expat ratio per MIC permit — typically rising local quota over years 1–6.
- File monthly PIT (resident bracket for residents, flat 25% for non-residents) and SSB by the 15th.
Tools, templates and costs
- Cloud HRMS with multi-currency: MMK 600,000–1,500,000/month for 30–80 staff.
- Expat compensation: USD 4,000–15,000/month base + housing + schooling + flights.
- Local manager compensation: MMK 2M–6M/month gross.
- Templates: dual-language ESDL contract, expat work-permit application checklist, USD/MMK conversion log, MIC quota register.
Resident vs non-resident PIT
Resident (≥ 183 days in the tax year) employees are taxed under the resident bracket with reliefs and allowances. Non-resident expats are taxed at a flat 25% on Myanmar-source income with no reliefs. Track each expat's calendar carefully — crossing 183 days mid-year shifts the regime and creates a year-end reconciliation. The 20% basic personal relief applies to residents only.
Employer takeaway
Foreign-invested companies follow the standard Myanmar labour stack plus expat permits, MIC quota tracking and USD-to-MMK PAYE conversion. SSB applies to expats unless a bilateral exemption exists. Run payroll in MMK at the CBM reference rate and keep dual-language contracts. The single most-failed obligation is over-stayed expat work permits.
Pitfalls to avoid
- Expat work permits expired — fines plus deportation risk.
- USD salaries paid without CBM-rate conversion for PAYE — IRD finding.
- Skipping SSB on expat staff — they're IPs absent a bilateral exemption.
- MIC local-staff ratio missed — affects permit renewal and incentive entitlement.
- English-only contracts — Myanmar version recommended for enforceability.
Related: SEZ HR, EOR in Myanmar, and multi-country HR (Myanmar + Thailand).
- Myanmar Investment Law (MIC permits and quotas)
- ESDL 2013 — appointment letters, notice and severance
- Social Security Law 2012 — coverage of foreign workers
- Income Tax Law / Union Tax Law 2025-2026 — resident vs non-resident PIT
Related questions
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