How do I manage HR for an NGO in Myanmar?

What this looks like in practice

Myanmar NGOs and INGOs operate as employers under the same labour stack as any private company. Registration with the relevant ministry (Ministry of Home Affairs for local NGOs; Ministry of Foreign Affairs for INGOs) is separate from DICA but doesn't exempt them from ESDL, SSB or PIT. Donor-funded programs run on fixed-term contracts that align with grant cycles, which creates the most common HR risk: contracts renewed past 2 cycles being deemed permanent.

Step-by-step setup

1. Confirm the NGO/INGO registration is current with the ministry of registration; renew Memorandum of Understanding as required.
2. Issue ESDL fixed-term contracts aligned to grant period — donor name, duration, and severance treatment on contract expiry.
3. Register with SSB at 5 employees within 30 days; foreign staff on Myanmar payroll are also IPs.
4. Run monthly payroll with PIT (resident bracket for residents, flat 25% for non-residents) and SSB.
5. Document volunteers separately — no payslip, no SSB, written volunteer agreement, no employment-like duties.
6. Track grant-coded cost centres in payroll for donor reporting.
7. Plan for grant transitions — 30-day notice, severance per ESDL Notification 84/2015 if contract is terminated mid-term.

Tools, templates and costs

• Cloud HRMS with grant cost-centre tagging: MMK 300,000–800,000/month for 20–80 staff.
• Per-staff cost: MMK 600,000–1,500,000/month gross (national staff in Yangon); expats run USD 4,000–10,000/month plus housing.
• Templates: fixed-term contract, volunteer agreement, expat contract, grant cost-centre matrix, severance calculator.

Volunteer vs employee

A volunteer receives no wages, has no fixed hours, no employment-like supervision, and signs a volunteer agreement. The moment any of these slip — for example, a "volunteer" working set hours with a stipend treated as wages — the ESDL applies and SSB and PIT exposure follows. Document carefully or default to a fixed-term ESDL contract with a small honorarium properly taxed.

Pitfalls to avoid

• Stipend-paid "volunteers" with set hours — ESDL applies, SSB and PIT exposure backdated.
• Fixed-term contracts past 2 renewals — deemed permanent under ESDL.
• Skipping SSB on expat staff — they're IPs unless a bilateral exemption applies.
• End-of-grant termination without severance — only mid-term termination triggers severance; contract expiry doesn't, but document carefully.
• No payslips on USD-paid expats — Payment of Wages Law applies.

Related: foreign-invested company HR, budgeting HR costs, and mandatory HR policies.