What is an EOR (Employer of Record) in Myanmar?
An Employer of Record (EOR) is a third-party DICA-registered entity that becomes the legal employer of your Myanmar staff, handling ESDL contracts, PIT, SSB and payslips while you direct the work. Multiplier, Deel, Rippling and local providers cover Myanmar at USD 200-500 per employee per month plus pass-through salary and statutory contributions. Best for pre-incorporation hires.
What this looks like in practice
An Employer of Record (EOR) is a third-party DICA-registered Myanmar entity that becomes the legal employer of staff who report day-to-day to your company. The EOR handles all statutory obligations — ESDL appointment letter, SSB registration, monthly PIT withholding, SSB contribution, payslip — under its own entity. You pay the EOR a service fee plus pass-through salary and employer contributions. Most common use: hiring 1–5 Myanmar staff before incorporating locally.
How an EOR engagement runs
- Sign Master Services Agreement with the EOR provider; agree fee structure, IP assignment, termination process.
- EOR issues the ESDL appointment letter in dual-language (Myanmar + English) within 30 days.
- EOR registers the worker with SSB within 30 days; runs monthly PIT and SSB filings.
- Client invoices monthly: salary + employer SSB + PIT (which EOR remits) + EOR service fee.
- Worker is paid through EOR's bank; payslip carries EOR's name as employer.
- IP and confidentiality flow via tri-partite agreement to the client.
- Termination is EOR's act on client instruction, with ESDL severance per Notification 84/2015.
Providers and costs
- Global EORs with Myanmar coverage: Multiplier, Deel, Rippling — USD 200–500 per employee per month plus pass-through.
- Local EORs: several Myanmar firms; pricing typically slightly lower for Myanmar-only mandates.
- Total fully-loaded cost: roughly 1.10–1.20× salary + flat fee + setup.
- Setup fee: USD 500–1,500 one-off typical.
- Templates: MSA, tri-partite IP/NDA, equipment loan, termination request form.
EOR break-even with direct-hire
The break-even between EOR and direct hire is typically: 5–10 Myanmar employees, 12 months of operation, and budget for at least one accounting/HR FTE locally. Once you cross those, the EOR's per-employee fee plus pass-through markup exceeds your local-entity overhead. A common pattern is: EOR for hires 1–4 while DICA registration completes, then transition to direct hire — the EOR usually facilitates the handover.
Employer takeaway
An EOR is the legal Myanmar employer-on-paper for staff you direct, costing USD 200–500 per employee per month plus pass-through. Best for pre-DICA hires and short-term tests. Plan to transition to direct hire by employee 5–10 and Year 2. The single most-failed move is staying on EOR past break-even for cost-saving reasons that no longer apply.
Pitfalls to avoid
- No tri-partite IP/NDA — deliverables remain with EOR/employee by default.
- Round-sum allowances paid through EOR — still PIT-taxable.
- Skipping the SSB step — EOR is responsible, but the worker is still an IP.
- Treating EOR worker as a contractor — they're a regular employee of the EOR.
- USD-only payslips from EOR — Myanmar payslip needs MMK conversion.
Related: PEO in Myanmar, EOR vs direct-hire, and foreign-invested company HR.
- ESDL 2013 — employer responsibilities under EOR
- Social Security Law 2012 — SSB through EOR's entity
- Income Tax Law / Union Tax Law 2025-2026 — PAYE through EOR
- Myanmar Investment Law — local-entity vs EOR registration paths
Related questions
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