How do I run a performance review in Myanmar?
A Myanmar performance review pairs a written rubric (objectives, behaviours, ratings) with a 1:1 conversation between manager and employee, signed by both. Best cadence: half-yearly mid-cycle plus annual at FY-end (alongside compensation review). Performance documentation is critical for any future disciplinary or termination action under ESDL — verbal feedback alone is not defensible at the township labour office.
What this looks like in practice
Performance reviews in Myanmar SMEs swing between "we don't do them formally" and "annual ratings tied to bonus". The right answer for ESDL-defensible HR is a written rubric, half-yearly cadence, signed by employee and manager. Reviews are not just career-development tools — they are the evidentiary base for any future disciplinary action, performance-based termination or refusal of promotion under ESDL.
Step-by-step setup
- Publish the rubric — 4–6 objectives + 4–6 behaviours, with a 3- or 5-point rating scale.
- Run mid-year review — 30-minute 1:1, written form signed by both, file in personnel record.
- Run year-end review alongside compensation review — same rubric, same signature, plus salary recommendation.
- Issue a Performance Improvement Plan (PIP) for under-performance — written, time-bound (typically 30–90 days), specific targets, signed.
- Document any termination linked to performance — final review + PIP + improvement evidence + ESDL severance per Notification 84/2015.
- Tie bonus to ratings if applicable — bonus is wages for PIT (apply PAYE in the month of payment).
- Retain personnel files for 7 years post-exit.
Tools, templates and costs
- Cloud HRMS performance module: typically included in mid-tier; MMK 100,000–400,000/month incremental.
- HR officer time: 1–2 days per cycle for a 30-employee SME; longer for larger.
- Manager training: 1–2 hours per cycle, especially on rating consistency and PIP language.
- Templates: review rubric, half-yearly form, year-end form, PIP template, performance-related termination letter.
Performance terminations under ESDL
Terminating for under-performance is permissible under ESDL but the township labour office will want evidence: written reviews, PIP issuance, improvement opportunity, monitoring records. Without this trail, the termination is challenged as wrongful and severance is awarded above the Notification 84/2015 schedule. With the trail, the standard severance schedule applies.
Employer takeaway
Run Myanmar performance reviews half-yearly with written rubric, signed by manager and employee. Documentation is the ESDL defence for any future action. Issue PIPs for under-performance with time-bound targets. Retain personnel files 7 years. The single most-failed move is verbal feedback only — undefensible at the township labour office.
Pitfalls to avoid
- Verbal-only feedback — undefensible at township labour office.
- Annual review as a single touch — half-yearly is the minimum cadence.
- PIP without time-bound targets — toothless and unenforceable.
- Bonus paid without PAYE — bonus is wages for PIT.
- Personnel files destroyed before 7 years — retention violation.
Related: compensation reviews, HR KPIs, and mandatory HR policies.
- ESDL 2013 — termination grounds and disciplinary documentation
- Settlement of Labour Disputes Law — township labour office grievance
- Income Tax Law / Union Tax Law 2025-2026 — bonus and incentive PIT treatment
- Payment of Wages Law — pay components on payslip
Related questions
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