What Myanmar law says
The Payment of Wages Law permits pro-rated deduction for unauthorised absence. Authorised leave categories — annual leave, earned leave, sick leave, casual leave, maternity leave, public holidays — cannot be deducted when properly approved. The standard daily rate is monthly basic ÷ 26 working days.
For partial-day absence (late arrival or early leaving), employers commonly use an hourly rate (basic ÷ 26 ÷ 8) and deduct only the hours missed. Some employers tolerate up to 15 minutes' grace.
Worked example — MMK 500,000/mo basic
| Scenario | Calculation | Deduction (MMK) |
|---|---|---|
| Daily rate | 500,000 ÷ 26 | 19,231 |
| Hourly rate | 500,000 ÷ (26 × 8) | 2,404 |
| 1 day unauthorised absence | 1 × 19,231 | 19,231 |
| 3 days unauthorised absence | 3 × 19,231 | 57,693 |
| 2 hours late, 1 day | 2 × 2,404 | 4,808 |
| Approved annual leave | — | 0 (paid) |
Documentation requirements
- Attendance register or time-clock record showing the absence.
- Leave application status (approved / not approved).
- Payslip itemising "leave without pay" or "unauthorised absence" line.
- Record retention: at least 7 years.
Edge cases
- Sick absence without medical certificate — typically treated as unpaid sick leave or LWP, depending on the policy.
- Strike participation — protected if lawful (14-day notice); unauthorised wildcat absence can be deducted.
- Bereavement / personal emergency — usually granted as casual leave; deductible only if unapproved.
- Public holiday falling within absence — public holidays are paid; do not deduct.
- Cumulative late marks — many employers count 3 lates = 1 absence; must be in the policy.
- Long unauthorised absence — can also trigger disciplinary or termination process under ESDL.
Employer takeaway
Deduct only for unauthorised absence at the daily rate (monthly basic ÷ 26) or hourly rate for partial days. Authorised leave is paid. Itemise the deduction line on the payslip, attach attendance evidence, and pay net wages by the 7th of the following month. Retain attendance and leave records 7 years. Wage deductions cannot be used as discipline beyond what the law permits.
Common payroll mistakes
- Deducting authorised leave (annual, sick, maternity) — not allowed.
- Using a 30-day divisor instead of 26 — under-pays the worker.
- Treating "no certificate" sick days as unauthorised without a clear policy.
- Skipping the payslip line for the deduction.
- Using fines instead of pro-rata deduction — fines are not a permitted category (see wage deduction law).
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.