Myanmar Labor Law Compliance Playbook (2026)

The 8 laws every Myanmar employer must know

The 15 compliance obligations every Myanmar employer owes

1. Register with relevant authorities

• Labour Exchange Office — registration of business as employer
• Social Security Board — register the business AND each SSB-eligible employee
• Internal Revenue Department — business PIT withholding registration
• DICA — company registration (already covered under corporate compliance but HR-adjacent)

2. File a Standing Order

Factories must file a Standing Order (workplace rules) with the Labour Exchange Office covering:

• Shift schedules, attendance, OT policy
• Wage payment, deductions, advances
• Leave policy and application
• Disciplinary procedure (including the 3-warning sequence)
• Grievance mechanism

Shops and offices under SEL 2016 have lighter but similar requirements.

3. Sign bilingual employment contracts within 30 days

• Follow the MLIP-issued Employment Contract Template (21 mandatory clauses)
• Burmese + English
• Signed by both parties within 30 days of start date
• Penalty for non-compliance: imprisonment up to 6 months and/or fine under ESDL 2013 section 38
• See Employment Contract Template guide

4. Respect statutory working hours and OT

• Factories: 8 hrs/day, 44 hrs/week
• Shops/offices: 8 hrs/day, 48 hrs/week
• 1 full day of weekly rest
• OT at 2× ordinary rate (confirm public holiday multiplier per Standing Order)
• OT cap 12 hrs/week (guideline)
• See Overtime guide

5. Pay statutory leave

• Casual leave: 6 days/year
• Earned leave: 10 days/year (after 12 months)
• Medical leave: 30 days/year (after 6 months)
• Maternity: 14 weeks (SSB pays 70% on capped base)
• Paternity: 15 days (SSB-covered)
• Public holidays: as per annual gazette (~20–32 days)

6. Contribute SSB monthly

• Employer 3%, employee 2% of salaries and wages
• Wage cap MMK 300,000 (employer max MMK 9,000/mo, employee max MMK 6,000/mo)
• File monthly return to SSB
• See SSB guide

7. Withhold and remit PIT

• Apply current 2025-2026 UTL brackets
• Withhold monthly from payroll
• Remit to IRD per schedule
• File annual reconciliation
• See PIT guide

8. Follow termination procedure

• 30-day notice (or pay in lieu)
• 3-warning sequence for misconduct
• Severance per Notification 84/2015 for employer-initiated termination
• See Termination guide

9. Maintain workplace safety

• First aid kit on-premises
• Fire safety equipment
• Accident reporting to FGLLID
• Women and juvenile worker protections in factories

10. Handle maternity and paternity correctly

• Maternity: 14 weeks, job protection
• Paternity: 15 days
• SSB benefits flow
• See Maternity Leave guide

11. Respect grievance and dispute procedures

Under Settlement of Labour Disputes Law 2012:

• Workplace Coordinating Committee (WCC) for factories with 30+ workers
• Conciliation → township arbitration → regional arbitration hierarchy
• No dismissal of employees pursuing legitimate grievances

12. File annual returns

• Annual return to Labour Exchange Office
• Annual SSB reconciliation
• Annual PIT reconciliation

13. Keep records for 7+ years

• Employment contracts
• Payroll records, payslips
• SSB returns, PIT returns
• Attendance logs
• Termination records
• Accident / incident records

14. Respect collective bargaining

• Labour Organization Law 2011 allows worker organizations
• Good-faith bargaining where recognized labor organization exists
• No retaliation for union membership

15. Respect restrictions on specific populations

• Juvenile workers (under 18): restricted working hours, prohibited hazardous work
• Women workers: historical restrictions on night work (factory context; consult current MoL guidance)
• Foreign workers: work permit and residency compliance (separate from core labor law but adjacent)

The monthly compliance calendar

[VERIFY] specific deadlines with SSB and IRD offices — deadline dates vary and may be adjusted around public holidays.

The annual compliance calendar

Surviving a labor inspection

Labour inspectors (from FGLLID or the Labour Exchange Office) can arrive unannounced. They typically ask to see:

1. Business registration and Standing Order
2. Employee register (names, NRC, start dates)
3. Current employment contracts (bilingual)
4. Attendance logs for the last 6 months
5. Payroll records for the last 6 months
6. SSB contribution records
7. PIT withholding records
8. Leave register
9. Safety equipment and first aid
10. Termination records for the last 12 months
11. Grievance / complaint register

If you can produce all 11 within 2 hours, you're in good shape. If you can't, you have compliance debt.

Common violations and typical consequences

Repeat or severe violations escalate to criminal liability for directors/managers.

The compliance maturity scale

Level 1 — Informal: Contracts not bilingual, SSB filed inconsistently, OT calculated by feel. High risk of adverse inspection outcome.

Level 2 — Manual compliant: Contracts in place, SSB current, OT calculated in Excel. Survives routine inspection with effort.

Level 3 — Systematized: HR software in place, automated filing reminders, digital records. Inspection-ready anytime, minimal preparation required.

Level 4 — Audit-grade: Full audit trail, SOD enforcement, 7-year retention, regulator-format exports on demand. Required for banking, listed companies, regulated industries.

Most Myanmar SMEs live at Level 2. Most mid-market firms are Level 2–3. Regulated firms must be Level 4.

How QHRM supports compliance

• Pre-loaded statutory rules (PIT, SSB, OT, leave, holidays)
• Automated filings (SSB return, PIT export in IRD format)
• 7-year archived records with audit trail
• Bilingual contract generation from employee master
• Inspection-ready exports (one-click PDF pack of the 11 items above)
• Compliance dashboard showing green/yellow/red on all obligations
• Deadline reminders to HR for SSB, PIT, annual returns

Book a QHRM demo →

Frequently asked questions

Q: We're a 20-person company. Do all these obligations apply? Most do. The Factories Act applies at 10+ workers; SSB applies at 5+ (historically). ESDL, SEL, and Leave & Holidays Act apply universally. Small size is not a compliance exemption.

Q: What about foreign-owned companies? Same obligations. Foreign ownership does not change labor law application.

Q: We outsource payroll — are we still liable? Yes. Payroll outsourcing shifts execution but not legal liability. The employer remains liable for SSB, PIT, and labor law compliance.

Q: Can we use electronic signatures for employment contracts? Current practice favors wet signatures on bilingual paper contracts. E-signature use is growing but not universally accepted in Labour Exchange inspections. Use hybrid: e-sign for efficiency, print + wet-sign original for filing.

Q: What if a rule conflicts (e.g., Factories Act vs. SEL)? The law governing the establishment type applies. A garment factory follows the Factories Act; the HQ office follows SEL. Each site can have its own Standing Order.

Next steps