Can a Myanmar company hire on commission-only basis?

What Myanmar law and practice say

The Employment & Skills Development Law (ESDL) 2013 requires the appointment letter to state wages and pay schedule. The Payment of Wages Law expects regular wage payment, and Myanmar's minimum-wage notification sets a floor on the daily wage that an employer can lawfully pay an employee. Pure commission-only employment, where the employee earns nothing in months without a sale, sits awkwardly against all three.

Two compliant patterns work. First, "base + commission" — the employee gets a fixed monthly base at or above the minimum-wage floor, plus a commission tied to sales. Second, a genuine independent-contractor arrangement with a sales agent who runs their own business, has multiple clients, and invoices the company on B2B terms. Mixing the two — calling someone a contractor while controlling them like an employee — re-classifies as employment with retroactive ESDL and SSB exposure.

Three engagement patterns compared

If you go base + commission (employee)

1. Set the base at or above the minimum-wage daily rate × working days.
2. Define commission scheme in writing — basis (revenue / margin / collected cash), rate, payment cadence, claw-back rules.
3. Issue ESDL appointment letter with base + commission scheme attached — within 30 days of start.
4. Register with SSB within 30 days; SSB applies to total wages including commission, capped at MMK 300,000.
5. Withhold PIT PAYE on total earnings monthly.
6. Pay commissions on a stated cadence (monthly / quarterly).

If you go contractor sales agent

The sales agent must genuinely run their own business — multiple clients, own tools, control over how they sell. Use a B2B service agreement with commission terms, not an ESDL appointment letter. The agent invoices monthly, handles their own PIT and Commercial Tax, and has no SSB. Mis-classification risk is the headline danger — see contractor vs employee.

Edge cases

• High-base, low-commission senior sales — clearly an employee; classic ESDL letter.
• Outbound call-centre piece-rate — employee with piece-rate base at minimum-wage floor, plus output commission.
• Multi-level marketing — typically agent-style; written B2B agreement, not ESDL.
• Foreign-national sales agent — immigration constraints; see foreign-worker hiring.

Common hiring mistakes

• Running pure commission-only employees and falling below minimum wage in dry months.
• Skipping the SSB calculation on commission earnings (capped at MMK 300,000).
• Calling an employee-like sales rep a "contractor" to avoid SSB and PAYE.
• Forgetting to write the commission scheme into the appointment letter (see appointment letter).