What is the difference between gross and net salary in Myanmar?
In Myanmar, gross salary is the total pre-deduction earnings — basic + all allowances + OT + bonus. Net salary is what the employee receives after PIT, SSB (employee 2% capped at MMK 6,000/month), and any authorised deductions (advances, damages, absence). The Payment of Wages Law requires both gross and net to appear on every payslip.
What Myanmar law says
The Payment of Wages Law requires every Myanmar payslip to show both gross and net pay. The two definitions:
- Gross salary — total pre-deduction earnings: basic + all allowances + OT + bonus + commissions.
- Net salary — gross less statutory deductions (PIT, SSB) and any authorised deductions (advances, damages, absence).
Statutory deductions are PIT (Union Tax Law 2025-2026) and SSB employee contribution (2% of wages, capped at MMK 6,000/month). Authorised deductions sit within the ~50% non-statutory cap.
Worked example — MMK 1,000,000/mo gross
| Component | Amount (MMK) | Type |
|---|---|---|
| Basic | 700,000 | Earnings |
| Housing allowance | 150,000 | Earnings |
| Transport allowance | 80,000 | Earnings |
| Meal allowance | 30,000 | Earnings |
| Mobile allowance | 40,000 | Earnings |
| Gross | 1,000,000 | — |
| Less: PIT (annualised) | (31,667) | Statutory deduction |
| Less: SSB 2% (capped MMK 6,000) | (6,000) | Statutory deduction |
| Less: salary advance instalment | (50,000) | Authorised deduction |
| Net pay | 912,333 | — |
Documentation requirements
- Payslip with gross (basic + each allowance line), every deduction itemised, and net.
- Wage register entry per cycle.
- PIT working papers + IRD remittance receipt.
- Record retention: at least 7 years.
Edge cases
- Variable monthly gross — recompute net every cycle for accurate PAYE.
- Bonus / 13th-month month — gross spikes; PAYE grossed up at marginal rate.
- OT-heavy month — OT enters gross; PAYE recomputes; SSB capped at MMK 300,000 wage base.
- Allowances vs reimbursements — allowances enter gross; reimbursements (with receipts) do not.
- USD-paid roles — show USD gross + MMK equivalent gross + MMK net on payslip.
- Negative net — should not occur; defer excess deductions to next cycle.
Employer takeaway
Gross = pre-deduction earnings; net = take-home after PIT, SSB, and authorised deductions. Both must show on every Myanmar payslip under the Payment of Wages Law. Withhold PIT (gross up at marginal rate) and SSB (2% capped at MMK 6,000/mo) every cycle, pay net wages by the 7th of the following month, remit statutory deductions by the 15th, retain records 7 years.
Common payroll mistakes
- Showing only net on the payslip — Payment of Wages Law violation.
- Quoting "gross" in offer letters but paying net (or vice versa) without documentation.
- Forgetting to recompute net for variable months (OT, bonus).
- Treating reimbursements as part of gross (see allowance taxation).
- Net falling below the minimum wage equivalent on a deduction-heavy month (see deduction cap).
- Payment of Wages Law — payslip itemisation
- Union Tax Law 2025-2026 — PIT calculation
- Social Security Law 2012 — SSB contribution
Related questions
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