What Myanmar law says
Myanmar generally requires domestic transactions, including wages, to be settled in Myanmar Kyat (MMK). Foreign-currency wage payment is constrained by the Foreign Exchange Management Law and Central Bank of Myanmar (CBM) circulars. Common scenarios where USD or other foreign currencies are used:
- SEZ-registered employers — typically permitted under SEZ-specific regimes.
- Expat staff with offshore contracts — paid abroad in foreign currency, with a local MMK component.
- CBM-approved employers — some foreign-invested companies obtain specific CBM approval to pay foreign currency wages.
Whatever the contract currency, PIT and SSB are computed in MMK at the CBM reference rate on the payment date.
Tax conversion example
| Step | Math | Result |
|---|---|---|
| Monthly USD salary | Given | USD 3,000 |
| CBM reference rate on pay date (illustrative) | Given | MMK 2,100/USD |
| MMK gross for the month | 3,000 × 2,100 | MMK 6,300,000 |
| SSB wage base (capped) | — | MMK 300,000 |
| Employee SSB | 2% × 300,000 | MMK 6,000 |
| PIT (after relief) | per Union Tax Law 2025-2026 brackets | computed on annual MMK gross |
Documentation requirements
- CBM approval letter (where required) on file.
- Contract clause stating currency, conversion rate convention, and pay date.
- Payslip in MMK (or dual currency) with PIT and SSB shown in MMK.
- Record retention: at least 7 years.
Edge cases
- Split payroll (offshore + onshore) — common for expats; both portions must be reported for tax if the employee is a Myanmar tax resident.
- SEZ workers — foreign currency wages are generally permitted; SEZ employer-specific rules apply.
- Casual or gig workers — foreign-currency wages are not generally permitted.
- Daily exchange-rate fluctuation — use the CBM reference rate on the payment date.
- Bonus or one-off in USD — same conversion rule.
- Foreign-currency bank account — employee must have a CBM-permitted account.
Employer takeaway
Default to MMK for Myanmar wages. Foreign-currency payment typically requires CBM approval, except for SEZ-registered employers and certain expat offshore contracts. Convert to MMK at the CBM reference rate on the payment date for PIT and SSB. Show MMK gross, deductions, and net on the payslip. Retain CBM approval and FX records 7 years.
Common payroll mistakes
- Paying USD wages without CBM approval (or SEZ basis) and breaching the FX management framework.
- Using a "fixed" historical FX rate rather than the CBM reference rate on the payment date.
- Treating offshore-paid expat wages as out-of-scope for Myanmar tax (residency triggers liability).
- Skipping the MMK equivalent on the payslip — Payment of Wages Law violation.
- Not benchmarking USD-paid roles against the MMK minimum wage floor (see salary in USD).
We publish practical, legally-grounded HR guidance for Myanmar employers. Each piece is reviewed by our compliance team against current MLIP and Labor Law requirements.