What Myanmar law says
Foreign workers in Myanmar are subject to the same labour-law obligations as locals — Payment of Wages Law, Minimum Wage Law 2013, ESDL 2013, Factories Act / S&E Act, Leave and Holidays Act. They are usually paid at higher market rates for skill scarcity, often in USD or another foreign currency via CBM approval or SEZ schemes (see foreign currency wages).
Tax and SSB summary
| Item | Resident (≥183 days) | Non-resident (<183 days) |
|---|---|---|
| PIT | Bracketed 0–25% with reliefs | Flat 25% on Myanmar-source income |
| 20% basic relief | Yes (capped MMK 10M/yr) | No |
| Spouse / child / parent allowance | Yes | No |
| SSB | Yes if employer is SSB-registered | Same rule |
| Wage in USD | Per CBM / SEZ rules | Per CBM / SEZ rules |
| Work permit / Stay permit | Required | Required |
Documentation requirements
- Work permit + Stay permit on file.
- Foreign-currency payment basis (CBM approval letter or SEZ registration).
- Payslip in dual currency (USD + MMK equivalent) where applicable.
- PIT and SSB filings; record retention at least 7 years.
Edge cases
- Day-counting for residency — 183-day test in the FY (1 April – 31 March).
- Tax equalisation packages — common in expat assignments; gross-up math runs in MMK.
- Split offshore + onshore payroll — both halves taxable for residents.
- Bilateral SSB exemptions — none widely in force; check current SSB notifications.
- Local labour law applies fully — minimum wage, OT, leave — even if expat is paid in USD.
- Termination & severance — same ESDL / Notification 84/2015 rules as locals.
Employer takeaway
Foreign workers follow the same labour rules as locals (minimum wage, OT, payslip, leave). Tax differs by residency: residents on the bracket schedule with reliefs, non-residents flat 25%. USD pay needs CBM approval or SEZ basis. SSB applies if the employer is registered. File PIT by the 15th, settle final pay within 7 days of last working day, retain records 7 years.
Common payroll mistakes
- Treating expats as out-of-scope for Myanmar tax — residency triggers the bracket schedule.
- Skipping the work permit / Stay permit check before payroll onboarding.
- Paying USD without CBM approval (see salary in USD).
- Not enrolling expats in SSB when the employer is registered (see foreign worker pay).
- Forgetting that expat severance follows Notification 84/2015 the same as locals.
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.