Step-by-step: handling PIT on a job change
This walk-through assumes a Myanmar tax resident who leaves Employer A on 30 September and joins Employer B on 1 October in the same tax year (1 April – 31 March). Default: single, no dependant allowances, no donations. Brackets are from the Union Tax Law 2025-2026 (Section 5). The 20% basic personal relief is annual and applies once across both jobs — not twice. The employee will file a consolidated personal return.
Step 1 — Apply the 20% basic personal relief on consolidated annual gross
For the annual return, combine income from Employer A (April–September) and Employer B (October–March). Apply the 20% relief once on the consolidated total (capped MMK 10,000,000).
| Employer A income (April – September) | (figure) |
| Employer B income (October – March) | (figure) |
| = Annual gross | (sum) |
| Less: 20% basic personal relief (once) | − up to MMK 10,000,000 |
| Less: spouse / child / parent allowances | 0 in default case |
| Annual taxable income | = residual |
Step 2 — Apply the Union Tax Law 2025-2026 brackets
| Annual taxable income | Marginal rate |
|---|---|
| 1L – 20L (MMK 0 – 2,000,000) | 0% |
| 20L – 100L (MMK 2,000,000 – 10,000,000) | 5% |
| 100L – 300L (MMK 10,000,000 – 30,000,000) | 10% |
| 300L – 500L (MMK 30,000,000 – 50,000,000) | 15% |
| 500L – 700L (MMK 50,000,000 – 70,000,000) | 20% |
| 700L & above (MMK 70,000,000+) | 25% |
Worked illustration — Employer A pays MMK 6,000,000 over April–September, Employer B pays MMK 8,000,000 over October–March = MMK 14,000,000 annual gross (taxable = MMK 11,200,000 after 20% relief):
| Band | Amount in band (MMK) | Rate | Tax (MMK) |
|---|---|---|---|
| First 2,000,000 | 2,000,000 | 0% | 0 |
| 2,000,001 – 10,000,000 | 8,000,000 | 5% | 400,000 |
| 10,000,001 – 11,200,000 | 1,200,000 | 10% | 120,000 |
| Annual PIT (consolidated) | MMK 520,000 | ||
Step 3 — Convert to monthly withholding by each employer
- Employer A (April – September): withholds based on its own annualised projection of MMK 12M/year (i.e. MMK 1M × 12). PAYE on standalone projected gross MMK 12M (taxable MMK 9.6M) → MMK 380,000 ÷ 12 = MMK 31,667/month × 6 months = MMK 190,000 withheld.
- Employer B (October – March): upon receiving the PAYE certificate from A, projects the remaining year. Reasonable practice: continue PAYE on B's own salary projection.
- Annual return (by 30 June): employee consolidates and pays top-up. Total PIT MMK 520,000 minus combined PAYE withheld = top-up due.
What about SSB and the true net salary?
SSB is administered per employer. Each employer applies 2% employee + 3% employer on its own wage base, capped at MMK 300,000/month (max MMK 6,000 employee, MMK 9,000 employer). Both employers report SSB separately to the Social Security Board for the months the employee was on their roll.
Employer takeaway
Leaving employer: finalise PAYE on actual income through the leaving date, issue the PAYE certificate, and clear SSB to the leaving date. New employer: collect the prior PAYE certificate, project the remaining year, run PAYE on its own income line. Inform the employee they will likely owe a top-up on the consolidated return by 30 June. Both employers retain records for at least 7 years.
Common variations to watch for
- Concurrent two jobs (not sequential) — see second-job tax.
- Gap month between jobs — no income that month, no PAYE; the annualised math still applies.
- Severance / gratuity from leaving employer — see severance pay and gratuity.
- Bonus paid by leaving employer after departure — assessable in the year paid; old employer does final PAYE.
- Cross-border move — residency days re-test on the calendar; may trigger non-resident status. See expat PIT.
Common PIT mistakes to avoid
- New employer ignores prior PAYE certificate — under-withholds for the rest of the year.
- Both employers apply full 20% relief — over-shelters; employee owes top-up.
- Leaving employer fails to issue PAYE certificate — employee can't file annual return on time. See filing forms.
- Forgetting SSB clean-up at leaver date — leaves contributions outstanding.
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.