How is notice-period pay calculated in Myanmar?
Notice-period pay in Myanmar is the salary that would have been earned during the notice the employee has not served. The duration is set under ESDL 2013 / Notification 84/2015 — typically 1 month for under 5 years service and 3 months for 5+ years. Pay = notice months × monthly gross (or basic per contract). Fully taxable PIT income.
What Myanmar law says
The Employment & Skills Development Law (ESDL) 2013 and Notification 84/2015 set the notice schedule:
| Tenure | Notice (employer or employee) |
|---|---|
| Probation (under 6 months) | 2 weeks (or pay in lieu) |
| 6 months – 1 year | 1 month |
| 1 – 5 years | 1 month |
| 5+ years | 3 months |
If the party leaving short-serves notice, the other party can claim pay in lieu of notice. The amount equals the unserved notice multiplied by the monthly gross or basic, depending on contract wording.
Worked example
Employee on MMK 800,000/mo basic + MMK 200,000 fixed allowances = MMK 1,000,000 monthly gross.
| Scenario | Calculation | Notice pay (MMK) |
|---|---|---|
| Resigns at 3-yr tenure, gives no notice (1 mo owed) | 1 × 800,000 | 800,000 (basic basis) |
| Same case, contract says gross | 1 × 1,000,000 | 1,000,000 |
| Resigns at 7-yr tenure, gives 1 mo of 3 mo | 2 × 800,000 | 1,600,000 |
| Probationer terminated, 0 weeks served | 0.5 × 800,000 | 400,000 |
Notice pay is fully taxable PIT income in the month paid; gross up at the marginal rate.
Documentation requirements
- Termination / resignation letter with last working day.
- Calculation showing notice months and basis (basic vs gross).
- Final settlement statement with notice line.
- Record retention: at least 7 years.
Edge cases
- Garden leave — employee continues on payroll during notice; no pay-in-lieu computation.
- Mutual waiver of notice — both parties can agree to waive in writing; no notice pay due.
- Gross misconduct — employer can dismiss without notice; no notice pay.
- Fixed-term contract early exit — notice rules generally do not apply; contract governs.
- Death-in-service — no notice pay; pay severance and contractual death benefits.
- Foreign-currency-paid roles — convert at CBM rate on the settlement date.
Employer takeaway
Notice pay = unserved notice months × monthly salary. Notice duration: 2 weeks probation, 1 month for 6mo–5yr service, 3 months for 5+yr. Use basic or gross per contract. Add to final settlement, gross up PAYE at marginal rate, pay within 7 days of last working day, remit PIT by the 15th, retain records 7 years. Mutual written waiver is permitted.
Common payroll mistakes
- Using "1 month for everyone" — the schedule jumps to 3 months at 5 years.
- Computing on basic when the contract says "gross".
- Skipping PAYE gross-up on notice pay.
- Forgetting to add notice pay to the final settlement (see final settlement).
- Treating short-served notice as automatic forfeiture (see salary in lieu of notice).
- ESDL 2013 — notice period and pay in lieu
- Notification 84/2015 — notice schedule
- Payment of Wages Law — final settlement
Related questions
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