What Myanmar law says
The Payment of Wages Law requires every Myanmar payslip to show both gross and net pay. The two definitions:
- Gross salary — total pre-deduction earnings: basic + all allowances + OT + bonus + commissions.
- Net salary — gross less statutory deductions (PIT, SSB) and any authorised deductions (advances, damages, absence).
Statutory deductions are PIT (Union Tax Law 2025-2026) and SSB employee contribution (2% of wages, capped at MMK 6,000/month). Authorised deductions sit within the ~50% non-statutory cap.
Worked example — MMK 1,000,000/mo gross
| Component | Amount (MMK) | Type |
|---|---|---|
| Basic | 700,000 | Earnings |
| Housing allowance | 150,000 | Earnings |
| Transport allowance | 80,000 | Earnings |
| Meal allowance | 30,000 | Earnings |
| Mobile allowance | 40,000 | Earnings |
| Gross | 1,000,000 | — |
| Less: PIT (annualised) | (31,667) | Statutory deduction |
| Less: SSB 2% (capped MMK 6,000) | (6,000) | Statutory deduction |
| Less: salary advance instalment | (50,000) | Authorised deduction |
| Net pay | 912,333 | — |
Documentation requirements
- Payslip with gross (basic + each allowance line), every deduction itemised, and net.
- Wage register entry per cycle.
- PIT working papers + IRD remittance receipt.
- Record retention: at least 7 years.
Edge cases
- Variable monthly gross — recompute net every cycle for accurate PAYE.
- Bonus / 13th-month month — gross spikes; PAYE grossed up at marginal rate.
- OT-heavy month — OT enters gross; PAYE recomputes; SSB capped at MMK 300,000 wage base.
- Allowances vs reimbursements — allowances enter gross; reimbursements (with receipts) do not.
- USD-paid roles — show USD gross + MMK equivalent gross + MMK net on payslip.
- Negative net — should not occur; defer excess deductions to next cycle.
Employer takeaway
Gross = pre-deduction earnings; net = take-home after PIT, SSB, and authorised deductions. Both must show on every Myanmar payslip under the Payment of Wages Law. Withhold PIT (gross up at marginal rate) and SSB (2% capped at MMK 6,000/mo) every cycle, pay net wages by the 7th of the following month, remit statutory deductions by the 15th, retain records 7 years.
Common payroll mistakes
- Showing only net on the payslip — Payment of Wages Law violation.
- Quoting "gross" in offer letters but paying net (or vice versa) without documentation.
- Forgetting to recompute net for variable months (OT, bonus).
- Treating reimbursements as part of gross (see allowance taxation).
- Net falling below the minimum wage equivalent on a deduction-heavy month (see deduction cap).
We publish practical, legally-grounded HR guidance for Myanmar employers. Each piece is reviewed by our compliance team against current MLIP and Labor Law requirements.