How is overtime calculated in Myanmar?
Myanmar overtime is paid at 2× the basic hourly wage for weekday and weekend (rest-day) overtime, and 3× for public holiday work. Hourly wage = monthly basic salary ÷ (26 working days × 8 hours). The Factories Act 1951 governs factory workers; the Shops & Establishments Act covers offices and retail. OT must be authorised in writing.
What Myanmar law says
The Factories Act 1951 sets a 48-hour week and an 8-hour standard day for factory workers. The Shops & Establishments Act sets a 44-hour week for offices and retail. Work beyond the standard day, on rest days, or on public holidays is overtime and must be paid at premium rates. Overtime must be authorised by the employer in writing or by established practice.
OT rate multipliers: 2× basic for weekday OT, 2× for weekend (rest-day) work, 3× for public-holiday work. The premium is calculated on the basic hourly wage, not the gross including allowances.
Calculation — worked example for MMK 500,000/month
Using the standard Myanmar payroll convention: 26 working days/month × 8 hours/day.
| Step | Math | Result (MMK) |
|---|---|---|
| Monthly basic | Given | 500,000 |
| Hourly wage | 500,000 ÷ (26 × 8) | 2,404 (rounded) |
| Weekday OT, 2 hrs | 2 × 2 × 2,404 | 9,616 |
| Weekend OT, 4 hrs | 4 × 2 × 2,404 | 19,232 |
| Public holiday, 8 hrs | 8 × 3 × 2,404 | 57,696 |
| OT total | This pay period | 86,544 |
Some employers use a 30-day divisor instead — this lowers the hourly rate slightly. The 26-day convention is the more conservative (employee-favourable) choice and is widely used in Myanmar payroll practice.
Documentation requirements
- OT authorisation log signed by manager or supervisor.
- Attendance / hours register showing in-out times.
- Payslip with OT itemised separately from basic and allowances.
- Record retention: at least 7 years (Factories Act and Payment of Wages Law).
Edge cases
- Daily-wage workers — hourly wage = daily wage ÷ 8; same multipliers apply.
- OT is taxable — included in PIT assessable income (see allowance taxation).
- OT counts toward SSB wage base until the MMK 300,000/month cap is hit.
- Compensatory off — allowed in lieu of OT pay only with employee written consent.
- Women on factory night shifts — restricted between 10 PM and 5 AM (Factories Act).
- Senior managers — sometimes contractually exempted from OT, but only above a clearly senior threshold; clerical staff cannot be excluded.
Employer takeaway
Compute OT on basic hourly wage (basic ÷ 26 ÷ 8), then apply 2× weekday/weekend, 3× public holiday. Authorise OT in writing, log hours, itemise on the payslip, pay with the next monthly cycle (by the 7th of the following month), and retain records 7 years. OT is fully taxable for PIT and counts toward SSB up to the MMK 300,000 cap.
Common payroll mistakes
- Calculating OT on gross (including allowances) instead of basic — overpayment.
- Calculating OT on basic / 30 / 8 instead of 26 × 8 — under-pays employee at minimum-wage tier.
- Paying weekend work at 1.5× — the Myanmar standard is 2×.
- Skipping the OT authorisation log — inspectors can reject the OT pay claim entirely.
- Forgetting public-holiday OT is 3×, not 2× (see weekend pay).
- Factories Act 1951 — overtime rates and authorisation
- Shops and Establishments Act — overtime in non-factory establishments
- Payment of Wages Law — payslip itemisation of OT
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