How to Run Monthly Payroll in Myanmar — Step-by-Step (2026)

The 12-step Myanmar payroll checklist

Pre-run (5–4 days before payday)

Step 1 — Close attendance for the pay period

• Pull attendance from biometric devices
• Reconcile against leave records
• Flag any unexplained absence to the employee's manager for immediate resolution
• Lock the attendance period once approved

Step 2 — Review overtime

• Sum OT by employee for the period
• Flag any worker with >12 hours OT in any week — this is the Factories Act cap
• Get supervisor sign-off on OT claims above a threshold (e.g. 15 hrs in the month)
• Confirm public-holiday OT is flagged at the correct premium (see overtime guide)

Step 3 — Review leave

• Pull approved leave for the period (casual, earned, medical, maternity)
• Confirm leave balances are not in negative territory for any employee
• Flag unapproved absences and unreconciled leave to HR

Step 4 — Update employee master

• Process new joiners for the period (confirm start date, salary, SSB registration)
• Process leavers — final settlement calculation (see termination guide)
• Process changes — promotions, salary revisions, department transfers

Pre-run (3–2 days before payday)

Step 5 — Apply salary structure

• Base salary × prorated days worked
• Add fixed allowances (transport, meal, housing, etc.)
• Add variable payments (OT, incentives, bonuses)

Step 6 — Calculate SSB contributions

• Employer: 3% of monthly wage (capped at MMK 300,000 wage base → max MMK 9,000)
• Employee: 2% of monthly wage (capped at MMK 300,000 → max MMK 6,000)
• Verify every SSB-eligible employee is registered with a valid SSB number

Step 7 — Calculate PIT (personal income tax)

Using the 2025-2026 Union Tax Law brackets:

1 Lakh (L) = 100,000 MMK.

• Apply personal reliefs: 20% of income capped at MMK 10,000,000, spouse 1M, child 500K each, parent 1M each
• Verify no employee with salary below MMK 4,800,000/year has PIT deducted (below basic exemption threshold)

Step 8 — Apply other deductions

• Advance salary recovery
• Loan installment
• Uniform/tool deduction (if in Standing Order)
• Union dues (if applicable)
• Court orders / garnishments

Pre-run (1 day before payday)

Step 9 — Generate payslips and review

• Bilingual (English + Burmese) payslip for each employee
• Spot-check 5–10 random payslips:
  • Does gross × 2% = employee SSB? (capped at 6,000)
  • Does attendance days match?
  • Are allowances correct?
  • Are deductions itemized?

Step 10 — Management approval

• Export total payroll summary for CFO/MD approval
• Confirm payroll total is in expected range (±2% of previous month unless known headcount change)
• Get sign-off before bank file generation

Payday

Step 11 — Disburse salaries

• Generate bank transfer file in the format your bank requires (MFTB, KBZ, AYA, etc.)
• Execute bank transfer
• Email/Viber notification to each employee with payslip attached (bilingual)

Post-payday (within 5 working days)

Step 12 — Statutory filings and reconciliation

• SSB filing — submit monthly SSB contribution return to Social Security Board
• PIT withholding — remit to Internal Revenue Department (monthly/quarterly depending on size)
• Reconcile payroll GL against finance books
• Archive signed payslips and bank confirmations
• Update running total for annual PIT reconciliation (year-end)

Timing: the 5-day window

A well-run Myanmar payroll follows this calendar:

If you're still calculating SSB on T-1, you're at error risk. Push earlier.

The three biggest failure modes

1. Attendance data arrives on T-1

If biometric logs aren't integrated, someone types attendance data on the day before payroll. This is where most transcription errors happen.

Fix: Integrate biometric devices directly into payroll (see biometric attendance guide).

2. OT calculation formula in Excel gets overwritten

Someone edits the formula to fix a single row, doesn't notice the formula now refers to the wrong column, and for 2 months payroll is systematically wrong by 3%.

Fix: Use a system where OT rules are configured once, not in formulas.

3. SSB and PIT remittance delayed

Payroll runs fine but the SSB return is filed 2 weeks late. Compounded over 6 months, you're looking at interest and penalties.

Fix: Calendar alerts for filing deadlines, automated export from payroll system.

Annual year-end wrap-up

In addition to the monthly 12-step process, run these year-end tasks:

1. Annual PIT reconciliation — compare cumulative withholding vs. actual PIT liability per employee. Issue adjustment or refund certificate.
2. Annual SSB reconciliation — confirm all months are filed and reconciled.
3. Annual leave roll-over — earned leave carry-forward (company policy) and casual leave forfeit.
4. Year-end payslip archive — keep for 7 years minimum for audit.
5. Gratuity / severance provision review — book annual provision in finance.

How QHRM automates the 12 steps

Total processing time for a 200-employee payroll: under 2 hours end-to-end.

Book a QHRM demo →

Frequently asked questions

Q: Can we pay salaries on the last working day of the month instead of the 1st? Yes — Myanmar law doesn't mandate a specific payday. Many Myanmar businesses pay on the 25th–30th for cash flow reasons. Payday policy must be in the employment contract and/or Standing Order.

Q: What if we discover an error after payday? Adjust in the next payroll with a clear correction line on the payslip. Never retroactively alter a processed payslip. Communicate to the employee in writing with the correction reason.

Q: Do we need to give employees a physical payslip? A digital bilingual payslip (email, employee portal, or Viber) is acceptable. Keep the digital record archived.

Q: What happens if we miss the SSB filing deadline? Interest and penalties accrue. File as soon as possible with explanation. For repeat delays, SSB can pursue stronger enforcement.

Next steps