What Myanmar law says
Yes — under the Leave and Holidays Act, employees in Myanmar are paid for the approximately 21 gazetted public holidays per year at full ordinary salary. This applies whether the employee works on the holiday or stays home. The same rule operates under both sub-statutes: the Factories Act 1951 for factory workers and the Shops and Establishments Act for office, retail, and hospitality staff.
Public holidays are not deducted from annual leave or casual leave balances — they are separately paid days off. The full list is published annually by the President's Office.
Pay treatment table
| Scenario | Pay treatment |
|---|---|
| Employee does not work on a holiday | Full ordinary daily salary (paid day off) |
| Employee works on a holiday | Holiday-rate pay (typically 3× basic) |
| Holiday falls on a weekly rest day | Substitute weekday "in lieu" granted by gazette — check annual notification |
| Employee on annual leave during a holiday | Holiday is not deducted from annual-leave balance |
| Probationary employee | Same paid treatment |
| Daily-wage worker (continuously engaged) | Paid at daily wage |
How holiday pay flows through payroll
- Monthly-paid employees. Holiday days are already included in the monthly salary; no separate calculation needed for the regular pay slip line.
- Daily-wage employees. Continuously engaged daily-wage workers receive a paid-holiday line item equal to the daily wage for each gazetted holiday they would otherwise have worked.
- Holiday work. When an employee is required to work on a public holiday, an additional holiday-rate amount is added to their pay for the hours worked. See holiday work pay rates.
- Compensatory off. Some employers grant a compensatory weekday off in lieu of public-holiday work, by employer policy.
What "ordinary salary" means for holiday pay
Holiday pay is calculated on ordinary salary — base salary plus fixed allowances treated as salary in the contract. Bonuses, commissions, and overtime earnings are typically excluded from the holiday-pay base. The same convention is used for sick pay and annual-leave pay.
Edge cases and exceptions
- Probationary employees. Public holidays are paid regardless of probation status. Eligibility is not service-year gated.
- Daily-wage workers. Continuously engaged daily-wage workers are paid the daily wage for gazetted holidays. Casual or one-day daily-wage workers may not be eligible.
- Shift workers. A shift worker whose shift falls on a holiday is paid the holiday rate for hours worked, plus the regular shift differential where applicable.
- Part-time employees. Pro-rate holiday pay according to the contracted days per week.
- Employees on unpaid leave. Public holidays during unpaid leave are not paid.
- Foreign workers. Same paid-holiday treatment when employed by a Myanmar-registered employer.
- Factory vs office. Identical paid-holiday treatment under both sub-statutes.
Employer takeaway
Pay full ordinary salary on every gazetted public holiday — the ~21-day calendar published by the President's Office each year. Do not deduct public holidays from annual or casual leave balances. When an employee works on a holiday, pay holiday-rate (typically 3× basic) for the hours worked. Maintain payroll records showing public-holiday line items separately, and retain leave records for at least 7 years.
Frequently asked questions
Does this entitlement apply to employees on fixed-term contracts?
Yes. Fixed-term contract employees in Myanmar receive the same statutory leave floor as permanent employees once they meet the relevant service-tenure thresholds. The Leave and Holidays Act, the Factories Act 1951, and the Shops and Establishments Act do not distinguish between fixed-term and indefinite contracts for leave purposes — eligibility is set by months of continuous service. Contract expiry is not termination, so unused annual-leave balance is encashed at the end of the contract using (monthly salary ÷ 30) × unused-days. See the bucket E pages on fixed-term contracts for the contract-side rules.
How does this interact with payroll and SSB?
All paid leave is treated as ordinary salary income for Myanmar payroll purposes. PIT is withheld through PAYE on every payslip that includes leave pay. SSB contributions (2% employee + 3% employer, capped on a wage base of MMK 300,000/month) continue during paid leave because the employee is still earning wages. SSB contributions pause only during unpaid leave. Encashment of accrued annual leave at exit is part of taxable salary for PIT but practitioners differ on SSB treatment of the lump sum — confirm with the township SSB office on filing.
What records does the township labour office expect?
Inspectors typically request the leave register for the past 12 months, medical certificates for sick leave over 3 days, maternity / paternity SSB filings, final settlement worksheets for recent leavers, and the public-holiday gazette for the current year. Records must be retained for at least 7 years under both the Factories Act 1951 and the Shops and Establishments Act. Keeping a clean per-employee leave file with tagged entries makes inspections quick and defensible. Digital records from a payroll system are acceptable provided they can be printed on demand.
Common leave-law mistakes
- Deducting holiday days from annual leave. Holidays are separate paid days; never deduct from leave balance.
- Refusing holiday pay to probationers. Holidays are paid regardless of service tenure.
- Underpaying holiday work. Apply the 3× holiday rate, not the 2× weekend rate.
- Skipping daily-wage workers. Continuously engaged daily-wage workers must also receive paid-holiday line items.
- Not loading the new year's gazette. Lunar dates shift; reload the calendar every January.
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