How is overtime calculated for monthly-paid employees in Myanmar?
For Myanmar monthly-paid employees, hourly wage equals monthly basic salary divided by working days per month times 8 hours (commonly 26 × 8 = 208). Weekday overtime pays 2× hourly wage, rest-day OT pays 2×, and public-holiday work pays 3×. Authorisation must be logged. Confirm divisor and multipliers against the latest sector notification.
What Myanmar law says
For monthly-paid employees, Myanmar OT pay starts with deriving an hourly basic wage from the monthly basic salary, then applying the statutory multiplier. The Factories Act 1951 and Shops & Establishments Act both apply this approach. The most common payroll convention divides monthly basic by 26 working days × 8 hours = 208; some employers use 30 × 8 = 240 for a 30-day-month divisor. The 26-day divisor is the Myanmar payroll standard for OT.
The standard multipliers (subject to confirmation against the latest sector notification) are:
- Weekday OT: 2× basic hourly wage
- Rest-day OT: 2× basic hourly wage
- Public-holiday OT: 3× basic hourly wage
OT formula and worked example
| Element | Formula / value |
|---|---|
| Monthly basic salary | S |
| Working days/month | 26 (typical) |
| Hours/day | 8 |
| Hourly wage | S ÷ (26 × 8) = S ÷ 208 |
| Weekday OT pay | OT hours × 2 × hourly wage |
| Weekend OT pay | OT hours × 2 × hourly wage |
| Public holiday OT pay | OT hours × 3 × hourly wage |
Worked example. Employee on MMK 500,000/month basic salary, 26 × 8 divisor, 8-hour day:
- Hourly wage = 500,000 ÷ 208 = MMK 2,403.85 (round to MMK 2,404)
- Weekday OT (2 hrs) = 2 × 2 × 2,404 = MMK 9,616
- Weekend OT (4 hrs) = 4 × 2 × 2,404 = MMK 19,232
- Public holiday work (8 hrs) = 8 × 3 × 2,404 = MMK 57,696
Edge cases
- Allowances and bonuses — typically excluded from OT base unless contractually included; "basic" means basic salary.
- Pro-rated mid-month joiners — OT calculated on the contracted monthly basic, not the pro-rated month.
- 30-day divisor — some employers use S ÷ 240; document the chosen divisor in the payroll policy.
- Salaried staff — Myanmar law generally does not have an exempt category; OT applies above the regular schedule.
- Comp off in lieu — allowed by mutual agreement; document in the comp-off ledger.
Records and inspections
The OT register must show date, employee, regular hours, OT hours, type (weekday/weekend/holiday), hourly wage used, and OT pay. Cross-reference to payslips. The township labour office verifies the divisor used and the multiplier consistency during inspection. Retention ≥ 7 years.
Employer takeaway
Compute hourly wage as monthly basic salary divided by (26 × 8) for OT purposes. Apply 2× for weekday OT, 2× for weekend OT, and 3× for public-holiday OT. Log every OT instance in the register with the multiplier used. Document the chosen divisor in the payroll policy. Retain OT records for 7 years; the township labour office cross-checks divisor and multipliers during inspection.
Common mistakes
- Using gross salary (including allowances) as OT base instead of basic salary.
- Applying weekday rate (2×) on public holidays — public holidays are 3×.
- Switching divisors between months without policy documentation.
- Calculating OT but not logging the per-instance entries to support the payslip.
Related reading: OT for daily-paid employees, how OT is authorised, and comp off vs OT pay.
- Factories Act 1951 — OT rate provisions
- Shops and Establishments Act — OT rate provisions
- QHRM payroll convention — 26-day divisor for monthly-paid hourly wage
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