What this looks like in practice
An Employer of Record (EOR) is a third-party DICA-registered Myanmar entity that becomes the legal employer of staff who report day-to-day to your company. The EOR handles all statutory obligations — ESDL appointment letter, SSB registration, monthly PIT withholding, SSB contribution, payslip — under its own entity. You pay the EOR a service fee plus pass-through salary and employer contributions. Most common use: hiring 1–5 Myanmar staff before incorporating locally.
How an EOR engagement runs
- Sign Master Services Agreement with the EOR provider; agree fee structure, IP assignment, termination process.
- EOR issues the ESDL appointment letter in dual-language (Myanmar + English) within 30 days.
- EOR registers the worker with SSB within 30 days; runs monthly PIT and SSB filings.
- Client invoices monthly: salary + employer SSB + PIT (which EOR remits) + EOR service fee.
- Worker is paid through EOR's bank; payslip carries EOR's name as employer.
- IP and confidentiality flow via tri-partite agreement to the client.
- Termination is EOR's act on client instruction, with ESDL severance per Notification 84/2015.
Providers and costs
- Global EORs with Myanmar coverage: Multiplier, Deel, Rippling — USD 200–500 per employee per month plus pass-through.
- Local EORs: several Myanmar firms; pricing typically slightly lower for Myanmar-only mandates.
- Total fully-loaded cost: roughly 1.10–1.20× salary + flat fee + setup.
- Setup fee: USD 500–1,500 one-off typical.
- Templates: MSA, tri-partite IP/NDA, equipment loan, termination request form.
EOR break-even with direct-hire
The break-even between EOR and direct hire is typically: 5–10 Myanmar employees, 12 months of operation, and budget for at least one accounting/HR FTE locally. Once you cross those, the EOR's per-employee fee plus pass-through markup exceeds your local-entity overhead. A common pattern is: EOR for hires 1–4 while DICA registration completes, then transition to direct hire — the EOR usually facilitates the handover.
Employer takeaway
An EOR is the legal Myanmar employer-on-paper for staff you direct, costing USD 200–500 per employee per month plus pass-through. Best for pre-DICA hires and short-term tests. Plan to transition to direct hire by employee 5–10 and Year 2. The single most-failed move is staying on EOR past break-even for cost-saving reasons that no longer apply.
Pitfalls to avoid
- No tri-partite IP/NDA — deliverables remain with EOR/employee by default.
- Round-sum allowances paid through EOR — still PIT-taxable.
- Skipping the SSB step — EOR is responsible, but the worker is still an IP.
- Treating EOR worker as a contractor — they're a regular employee of the EOR.
- USD-only payslips from EOR — Myanmar payslip needs MMK conversion.
Related: PEO in Myanmar, EOR vs direct-hire, and foreign-invested company HR.
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