How is overtime calculated for a daily-wage worker in Myanmar?
For a daily-wage worker in Myanmar, the OT hourly rate is the daily rate divided by 8, multiplied by 2 for weekday OT under the Factories Act / Shops & Establishments Act. At the minimum wage of MMK 4,800/day, OT is MMK 1,200/hour (4,800 ÷ 8 × 2). OT must appear on the payslip and is subject to PIT and SSB.
Step-by-step OT calculation for a daily-wage worker in Myanmar
Walk-through assumes a daily-wage worker covered by the Factories Act or Shops & Establishments Act with an 8-hour standard working day. All amounts in MMK.
Step 1 — Convert the daily wage to an hourly rate
| Daily wage example | Calculation | Hourly rate (MMK) |
|---|---|---|
| MMK 4,800/day (minimum wage) | 4,800 ÷ 8 | 600 |
| MMK 6,000/day | 6,000 ÷ 8 | 750 |
| MMK 8,000/day | 8,000 ÷ 8 | 1,000 |
| MMK 12,000/day | 12,000 ÷ 8 | 1,500 |
Step 2 — Apply the OT multiplier on the daily-wage hourly rate
| OT type | Multiplier | OT rate (at MMK 4,800/day) |
|---|---|---|
| Weekday OT (beyond 8 hours) | 2× hourly | MMK 1,200/hour |
| Weekly rest day work | 2× hourly | MMK 1,200/hour |
| Public holiday work | 2× hourly | MMK 1,200/hour |
Step 3 — Convert to OT pay for a daily-wage worker
- Example: 4 hours of weekday OT at MMK 4,800/day → 4 × MMK 1,200 = MMK 4,800. Day's total: MMK 9,600.
- Example: 8 hours of rest-day work at MMK 4,800/day → 8 × MMK 1,200 = MMK 9,600 (in addition to any normal-day pay).
- Recorded on payslip: separate OT line.
- OT cap: typically 12 hours/week or 60 hours/month.
Daily-wage OT and statutory deductions
OT pay is wages — subject to PIT in the year of earnings and SSB up to the MMK 300,000 monthly cap (if the employer is registered). For most daily-wage workers earning below MMK 200,000/month, PIT is zero (taxable income below MMK 2M) and SSB applies on actual wages.
Employer takeaway
For daily-wage workers, OT is the daily rate ÷ 8 × 2. At the MMK 4,800/day minimum wage, OT is MMK 1,200/hour for weekday OT. Show OT separately on the payslip. Total wages must clear the minimum wage floor for hours worked. Cap OT at 12 hours/week. Withhold SSB on actual wages (under the cap) and PIT if year-to-date wages cross MMK 2M of taxable income.
Variations on daily-wage OT
- Piece-rate workers — total earnings for hours worked must clear the minimum-wage floor and OT must be added on extra hours.
- Apprentices / trainees — generally covered by minimum wage and OT rules; check sector exemptions.
- Weekend rest day — 2× hourly typically; weekly rest is one paid day off.
- Monthly-paid worker — see monthly OT example.
Common daily-wage OT mistakes
- Paying flat daily wage even on OT hours (no multiplier).
- Treating rest-day work as ordinary OT — it is paid at 2× hourly.
- Not splitting "minimum wage shortfall" from "OT premium" — both must clear the floor.
- Failing to record OT on the payslip and in the wage register (retention 7 years).
- Factories Act / Shops and Establishments Act — overtime provisions
- Minimum Wage Notification — daily floor
- Payment of Wages Law — payslip and OT recording
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