What Myanmar law says
The Factories Act 1951 and the Shops & Establishments Act both require one paid rest day per week, with Sunday as the default. Work performed on the rest day is overtime and must be paid at 2× the basic hourly wage. If the rest day coincides with a public holiday, the higher (3×) rate applies.
Hourly wage uses the standard Myanmar payroll convention: monthly basic ÷ (26 working days × 8 hours). Allowances are excluded from the OT base.
Calculation — worked example
Employee earning MMK 500,000/month basic; hourly = 500,000 ÷ (26 × 8) = MMK 2,404.
| Scenario | Math | Pay (MMK) |
|---|---|---|
| 4 hrs on Sunday (rest day) | 4 × 2 × 2,404 | 19,232 |
| 8 hrs on Sunday | 8 × 2 × 2,404 | 38,464 |
| 8 hrs on Sunday + 4 hrs OT same day | (8 + 4) × 2 × 2,404 | 57,696 |
| Sunday that is also public holiday | 8 × 3 × 2,404 (higher rate) | 57,696 |
If the employee takes a substitute rest day during the week (compensatory off), the rest-day work is paid at 1× basic only — but written consent is required and the substitute day must be granted within the same week.
Documentation requirements
- Rest-day rota recorded weekly.
- OT authorisation log when rest-day work is required.
- Payslip itemising rest-day pay separately from regular OT.
- Record retention: at least 7 years.
Edge cases
- Six-day workweek — Saturday is a regular working day; only Sunday triggers rest-day rate.
- Five-day workweek — Saturday is contractually a paid off day. Saturday work pays 2× only if it is the rest day per contract.
- Compensatory off in lieu — pay rest-day work at 1× and grant a substitute day within the week, only with written consent.
- Rest day on a public holiday — the higher 3× rate applies, not 2×.
- Daily-wage workers — same multiplier; their hourly wage is daily ÷ 8.
- Tax and SSB — fully PIT assessable; counts toward SSB wage base up to MMK 300,000/month cap.
Employer takeaway
Pay rest-day work at 2× basic hourly (basic ÷ 26 ÷ 8 then ×2). If Sunday coincides with a public holiday, the 3× rate prevails. Authorise rest-day work in writing, log hours, itemise on payslip, pay by the 7th of the following month, and retain rota records 7 years. Compensatory off in lieu is allowed only with employee written consent.
Common payroll mistakes
- Paying rest-day work at 1.5× — Myanmar standard is 2×.
- Forgetting that Sunday-on-a-holiday triggers 3×, not 2×.
- Granting compensatory off without written consent and still paying only 1×.
- Treating Saturday as automatic rest day in a 6-day week — it is not under the Factories Act default.
- Computing rest-day OT on gross including allowances (see OT rate basis).
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