What this looks like in practice
A Myanmar software company is typically 5–80 engineers, often servicing overseas clients (Singapore, Japan, Australia). The Shops & Establishments Act applies — 44-hour week, 1-day weekly rest. Most engineers are salaried with hybrid or fully-remote arrangements. SSB triggers at 5, ESDL applies from Day 1, IP assignment and NDA clauses are non-negotiable for client work. PIT brackets and the SSB MMK 300,000 cap are the same as for any other sector.
Step-by-step setup
- Register the company with DICA on MyCO; consider Yangon Tech Park for tax incentives if eligible.
- Issue ESDL appointment letters with mandatory IP-assignment, NDA, non-solicit and (carefully drafted) non-compete clauses.
- Adopt remote-friendly policies — equipment provision, internet allowance, working hours expectations, async communication norms.
- Run cloud payroll with PIT and SSB; remit by the 15th.
- Track time/attendance pragmatically — most software employers use project-time logs rather than biometric clock-in, but maintain a basic attendance register for inspections.
- Set up performance reviews twice a year and a separate compensation review annually.
- Document equity/options — Myanmar has no formal ESOP statute, so foreign-parent options need careful drafting and PIT treatment at exercise.
Tools, templates and costs
- Cloud HRMS: MMK 300,000–700,000/month for 30–60 engineers.
- Per-engineer cost: MMK 1M–4M/month gross depending on seniority (Yangon).
- Equipment: laptop budget MMK 1.5M–3M one-off per engineer; internet allowance MMK 30,000–50,000/month.
- EOR option: USD 200–500 per engineer per month (Multiplier, Deel, Rippling have Myanmar coverage).
- Templates: ESDL contract with IP-assignment, NDA, remote-work policy, ESOP letter template.
EOR vs direct hire
For pre-DICA foreign founders or for the first 1–3 Myanmar engineers, EOR services (Multiplier, Deel, Rippling) provide compliant employment without local entity overhead — typically USD 200–500 per engineer per month. The break-even versus direct hire is around 5–10 engineers and 12 months of operation. Once you incorporate locally, EOR is rarely cost-justified.
Employer takeaway
Software companies run under S&E Act 44-hour weeks with salaried, mostly-remote engineers. Issue ESDL contracts with IP assignment and NDA from Day 1, run cloud payroll, and remit PIT and SSB by the 15th. EOR works pre-incorporation and for the first few hires; direct hire is cheaper at scale. The single most-failed obligation is contractor misclassification of full-time engineers.
Pitfalls to avoid
- Engineers paid via foreign-currency invoices as "contractors" — full-time work, full-time tax exposure.
- No IP assignment clause — client deliverables remain personal IP by default.
- Skipping SSB at 5+ — engineers are still IPs.
- USD-denominated salaries without Central Bank approval — convert at CBM reference rate for PAYE.
- No payslips — even fully-remote engineers need them under the Payment of Wages Law.
Related: onboarding a remote-first team, what is an EOR in Myanmar, and BPO/IT challenges.
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