Myanmar HR Law Reference — SSB, Income Tax, Annual Leave Entitlement

Win Store Asia

June 08, 2026 08:26

Myanmar HR Compliance — What Every Business Owner Must Know

Running a business in Myanmar means complying with several key labor laws. This reference article explains the mandatory HR obligations every Myanmar employer must follow — and shows exactly how MyHR Nest handles each one automatically.

This article is for reference only and is not legal advice. For specific legal questions, consult a Myanmar labor law specialist. MyHR Nest calculates based on the standard rates below.

1. Social Security Board (SSB) — မှတ်ပုံတင်ခြင်းနှင့် ကြေးနှုန်း

SSB is managed under the Social Security Law 2012 (as amended). It provides health insurance, disability, and retirement benefits to covered employees.

Who Must Register?

All businesses with 5 or more employees must register with SSB
Each employee must be registered individually and receive an SSB number
New employees must be registered within 30 days of starting

SSB Contribution Rates

Party	Rate	Calculated On	Example (500,000 MMK salary)
Employee	2%	Basic salary	10,000 MMK deducted from pay
Employer	3%	Basic salary	15,000 MMK additional cost to company
Total SSB	5%	Basic salary	25,000 MMK total

SSB Salary Cap

SSB contributions are calculated on a salary cap set by the SSB office. If an employee's salary exceeds the cap, SSB is calculated on the cap amount, not the full salary. Check the current cap with your local SSB office as it is updated periodically.

SSB in MyHR Nest

✅ MyHR Nest automatically calculates the correct SSB for each employee on every payroll run. Both employee deduction and employer contribution are shown on the payslip. No manual calculation needed.

2. Myanmar Income Tax — ဝင်ငွေခွန်

Employee income tax is governed by the Income Tax Law administered by the Internal Revenue Department (IRD). Employers are responsible for withholding tax from salary and remitting it to IRD.

Income Tax Bands (2024–2025)

Annual Income (MMK)	Tax Rate	Monthly Salary Range (approx)
Up to 4,800,000	0% (exempt)	Up to 400,000/month
4,800,001 – 10,000,000	5%	400,001 – 833,333/month
10,000,001 – 20,000,000	10%	833,334 – 1,666,667/month
20,000,001 – 30,000,000	15%	1,666,668 – 2,500,000/month
30,000,001 – 50,000,000	20%	2,500,001 – 4,166,667/month
Above 50,000,000	25%	Above 4,166,667/month

How Tax Is Calculated

Tax uses a progressive method — each band applies only to the income within that band range, not the full salary. Example for 1,200,000 MMK/month (14,400,000 MMK/year):

First 4,800,000 MMK: 0% = 0
Next 5,200,000 MMK (up to 10M): 5% = 260,000
Remaining 4,400,000 MMK (10M to 14.4M): 10% = 440,000
Total annual tax: 700,000 MMK → Monthly deduction: 58,333 MMK

✅ MyHR Nest calculates progressive income tax correctly across all 6 bands automatically. No Excel formula or manual calculation needed.

3. Annual Leave — နှစ်ပတ်ဝစဉ်ခွင့်

Governed by the Leave and Holidays Act. Minimum legal requirements:

Leave Type	Minimum Legal Entitlement	Who Is Entitled
Annual Leave (Casual Leave)	10 working days/year	All employees after probation
Medical/Sick Leave	30 working days/year (with medical certificate)	All employees
Maternity Leave	98 calendar days	Female employees (6 weeks before, 8 weeks after delivery)
Public Holidays	As declared by Myanmar government each year	All employees

⚠️ Many Myanmar businesses offer MORE than the legal minimum (e.g. 14 days annual leave instead of 10). MyHR Nest lets you configure the actual days your company offers — not just the legal minimum.

4. Overtime (OT) Rules — အပိုဆောင်းနာရီ

Governed by the Factories Act and Shops and Establishments Law:

Day Type	Legal OT Rate	Example: 10,000 MMK daily rate
Weekday overtime (beyond 8 hours)	1.5× normal hourly rate	15,000 MMK/day OT equivalent
Rest day / Weekend work	2× normal daily rate	20,000 MMK
Public holiday work	3× normal daily rate	30,000 MMK

Standard working hours under Myanmar law: 8 hours/day, 44 hours/week for most industries. Hours beyond this qualify as OT.

✅ MyHR Nest automatically applies the correct OT rate (1.5×/2×/3×) based on the day type. You only need to enter OT hours worked — the system calculates the amount.

5. Minimum Wage — အနည်းဆုံးလုပ်ခ

Myanmar's minimum wage is set by the National Minimum Wage Committee. The current minimum wage is 4,800 MMK per day (approximately 124,800 MMK per month based on 26 working days).

All employee salaries in MyHR Nest must be at or above this amount to comply with Myanmar law.

6. Employer Obligations Summary

Obligation	Frequency	Where to Handle
Pay SSB contributions (employee 2% + employer 3%)	Monthly	Via SSB office / township SSB
Withhold and remit employee income tax	Monthly	Via Internal Revenue Department (IRD)
Issue payslips to employees	Monthly	MyHR Nest generates automatically
Keep attendance records	Ongoing	MyHR Nest GPS attendance
Provide annual leave as per law	Annual	MyHR Nest leave management
File annual income tax return (Form ITR)	Annual	With your tax accountant

🗣️ မြန်မာဘာသာ — အလုပ်ရှင်တာဝန်များ အကျဉ်းချုပ်

SSB (လူမှုဖူလုံရေး):

ဝန်ထမ်း ၅ ယောက်ထက်ပိုပါက မှတ်ပုံတင်ရမည်
ဝန်ထမ်း 2% + လုပ်ငန်းရှင် 3% = စုစုပေါင်း 5% (basic salary အပေါ်)
MyHR Nest — auto calculate ၊ payslip တွင် ပြပေးသည်

ဝင်ငွေခွန် (6 band):

နှစ်ချင်း 4.8M အောက် = 0%
4.8M–10M = 5% | 10M–20M = 10% | 20M–30M = 15% | 30M–50M = 20% | 50M အထက် = 25%
MyHR Nest — progressive method ဖြင့် auto calculate

နှစ်ပတ်ဝခွင့် (minimum): Annual = 10 ရက် | Sick = 30 ရက် | Maternity = 98 ရက်

OT: Weekday = 1.5× | Weekend = 2× | Public holiday = 3×

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📞 Need help? Email support@myhrnest.com | Mon–Sat 9AM–5:30PM Myanmar Time