What Myanmar law says
Both the Factories Act 1951 and the Shops & Establishments Act mandate premium rates for overtime work. The standard multipliers are:
- Weekday OT (beyond 8 hrs/day or 48 hrs/week for factories, 44 hrs/week for S&E): 2× basic
- Weekend / rest-day work: 2× basic
- Public holiday work: 3× basic
The basic hourly wage is the denominator: monthly basic salary divided by 26 working days × 8 hours per day. The premium is not applied to gross (basic + allowances).
Multiplier table — worked example
Employee earning MMK 500,000/month basic; hourly wage = 500,000 ÷ (26 × 8) = MMK 2,404.
| OT scenario | Multiplier | Hourly OT pay (MMK) | For 4 hours (MMK) |
|---|---|---|---|
| Weekday OT | 2× | 4,808 | 19,232 |
| Weekend / rest day | 2× | 4,808 | 19,232 |
| Public holiday | 3× | 7,212 | 28,848 |
If the employee works 8 hours on a public holiday, OT pay = 8 × 3 × 2,404 = MMK 57,696.
Documentation requirements
- OT authorisation log signed before or by the end of the OT shift.
- Attendance register with in/out times.
- Payslip itemising basic, OT (with multiplier), allowances, deductions, net.
- Record retention: at least 7 years.
Edge cases
- OT cap — typically 4 hours/day and 60 hours/week including OT under Factories Act.
- Daily-wage workers — same multipliers; hourly wage = daily ÷ 8.
- Compensatory off in lieu — permitted only with employee written consent.
- OT during night shift — same multiplier; night premium (if any) is separate (see night shift pay).
- OT during public holiday on a Sunday — apply 3× (the higher multiplier prevails).
- OT is fully taxable PIT income and contributes to SSB up to the MMK 300,000 cap.
Employer takeaway
Use 2× basic hourly for weekday and weekend OT, 3× basic for public-holiday work. Compute on basic hourly wage (monthly basic ÷ 26 ÷ 8), authorise in writing, itemise on the payslip, pay with the same monthly cycle (due by the 7th of the following month), and retain 7 years. The 4-hr/day cap is a hard limit under the Factories Act.
Common payroll mistakes
- Paying public-holiday OT at 2× — the rate is 3×.
- Computing OT on gross (basic + allowances) and overpaying.
- Using a 30-day or 22-day divisor when 26 × 8 is the convention.
- Missing the daily 4-hour OT cap and exposing the employer to inspection penalty.
- Treating "compensatory off" as automatic — it requires written consent (see is OT mandatory).
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.