How is overtime calculated for an MMK 500,000/month employee in Myanmar?
For a monthly-paid employee at MMK 500,000/month in Myanmar, the hourly rate is roughly MMK 2,404/hour (MMK 500,000 ÷ 208 normal hours). Overtime is paid at 2× the hourly rate for weekday OT under the Factories Act / Shops & Establishments Act, so OT = MMK 4,808/hour. OT must appear on the payslip and is taxable as wages.
Step-by-step overtime calculation for an MMK 500,000/month employee
Walk-through assumes a monthly-paid employee under the Factories Act or Shops & Establishments Act, with an 8-hour standard working day and 48-hour standard week. All amounts in MMK.
Step 1 — Convert MMK 500,000/month to an hourly rate
Standard normal hours = 8 hours/day × 26 working days/month = 208 hours/month (typical Myanmar payroll convention). Some employers use 30-day basis = 240 hours.
| Basis | Calculation | Hourly rate (MMK) |
|---|---|---|
| 26 working days × 8 hours = 208 hours | 500,000 ÷ 208 | 2,404 |
| 30 days × 8 hours = 240 hours | 500,000 ÷ 240 | 2,083 |
Step 2 — Apply the OT multiplier on the MMK 500,000/month hourly rate
Myanmar OT multipliers (typical):
| OT type | Multiplier | OT rate at MMK 500,000/month (208h) |
|---|---|---|
| Weekday OT (beyond 8 hours) | 2× hourly | MMK 4,808/hour |
| Weekly rest day work | 2× hourly | MMK 4,808/hour |
| Public holiday work | 2× hourly (per most sources) | MMK 4,808/hour |
Step 3 — Convert to monthly OT pay for the MMK 500,000/month employee
- Example: 20 hours of weekday OT in a month: 20 × MMK 4,808 = MMK 96,160.
- Total wages that month: MMK 500,000 + 96,160 = MMK 596,160.
- Recorded on payslip: separate OT line; subject to PIT and SSB on contributing months.
- OT cap: typically 12 hours/week or 60 hours/month.
OT and PIT/SSB at MMK 500,000/month
OT pay is wages — fully subject to PIT and to SSB up to the MMK 300,000/month cap. If the employee's normal monthly wage already hits the SSB cap, OT pay is SSB-free for that month. PIT applies marginally on the year's gross wage including OT.
Employer takeaway
For a monthly employee at MMK 500,000, OT is paid at 2× the hourly rate. Compute the hourly rate as MMK 500,000 ÷ 208 = MMK 2,404 (or 240 = MMK 2,083 if using 30-day basis). Show OT on the payslip as a separate line. Withhold PIT on OT; SSB applies up to the MMK 300,000 cap. Cap OT at 12 hours/week or 60 hours/month. Retain attendance + OT logs 7 years.
Variations on an MMK 500,000/month OT
- Public holiday work — typically 2× hourly; some sectors apply 3× (verify against contract).
- Rest day work — 2× hourly under most Myanmar sources.
- Daily-wage worker — see daily-wage OT.
- Allowances counted in OT base — depends on contract; basic-only is the common Myanmar approach.
Common OT mistakes at MMK 500,000/month
- Computing on 30-day basis when the contract specifies 26-day basis (or vice versa) — pick one and apply consistently.
- Paying 1.5× instead of 2× for weekday OT.
- Including reimbursements in the OT base rate.
- Failing to record OT on the payslip — see leave encashment for parallel rules.
- Factories Act / Shops and Establishments Act — overtime provisions
- Payment of Wages Law — payslip and OT recording
- QHRM Myanmar Tax Calculator — OT methodology
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