Myanmar Payroll Information

Updated on: 2025/08/07 09:55 (UTC)

Overview

The Republic of the Union of Myanmar, formerly known as Burma, is a country located in southeastern Asia. The countries that border Myanmar are Bangladesh and India to Myanmar’s west, China and Laos to its east, and Thailand to its southeast and south. The Bay of Bengal borders Myanmar to its southwest and the Andaman Sea borders Myanmar to its south. The official language of Myanmar is the Myanmar language, also known as Burmese.

Myanmar consists of seven taing-myar, or regions, seven pyi ne-myar, or states, and one union territory.

Myanmar contains 21 first-order administrative divisions, among which are the Nay Pyi Taw (Naypyidaw) Union Territory, seven states, seven regions, five self-administered zones (SAZs), and the Wa Self-Administered Division. The seven states of Myanmar are Chin, Kachin, Kayah, Kayin (Karen), Mon, Rakhine, and Shan. The seven regions of Myanmar are Ayeyawady (Ayeyarwady), Bago, Magway, Mandalay, Sagaing, Taninthayi (Tanintharyi), and Yangon. The five SAZs of Myanmar are Danu, Kokang, Naga, Pa Laung, and Pa-O (Pa’O). In addition to its mainland, Myanmar contains hundreds of islands, most of which are relatively close to the mainland, although Myanmar’s Coco Islands are about 225 kilometers afar from Myanmar’s mainland at their closest point and about 45 kilometers at their closest point to the northeast of India’s Union Territory of the Andaman and Nicobar Islands.

Myanmar’s currency is the kyat.

Employers in Myanmar are required to withhold for income taxes and social taxes from employee pay at the time of payment, and pay a share of social taxes. Employers also must uphold compensation and benefits provisions in the labor law.

Foreign workers in Myanmar generally are subject to the same tax and labor laws as Myanmar nationals. Resident individuals are taxed on all income derived from sources within and outside Myanmar. Nonresident individuals only are liable for compensation and remuneration for services rendered in Myanmar.

Myanmar citizens working in the United States must comply with the appropriate visa requirements, labor and tax laws.

CURRENCY DETAILS

The currency of Myanmar is the kyat (MMK), also known as the Burmese kyat. The internationally recognized three-letter currency code for the kyat is MMK, which also is one of the currency’s commonly used currency symbols. The standard plural form of kyat is kyats, although the currency’s singular form sometimes is used as its plural form.

When an amount of kyats is written using the currency symbol MMK, the symbol generally precedes, but sometimes follows, the numerical value, generally with a space, but sometimes no space, between the numerical value and symbol.

When an amount of kyats is written using the currency symbol K, the symbol precedes the numerical value, generally with no space, but sometimes with a space, between the numerical value and symbol. Although the currency symbol K is used more often than the currency symbol MMK for the kyat in international contexts, use of the currency symbol MMK instead of the currency symbol K distinguishes amounts of kyat from amounts of Papua New Guinea’s kina currency, for which the currency symbol K also is the primary currency symbol used for the currency in international contexts.

The currency symbol Ks and its variants (Ks., KS, and KS.) also are sometimes used for the kyat, and when an amount of kyats is written using the currency symbol Ks or one of its variants, the currency symbol has the same placement treatment as the currency symbol K.

One hundredth ( ¹ ⁄ ₁₀₀ ) of a kyat is referred to as a pya, which has the plural forms of pyas and pyar, with usage depending on context.

Additionally, when an amount of kyats is referred to in Burmese dialects of English without using a currency symbol, the numerical value sometimes follows the word kyats. For example, MMK 100 may be referred to as either 100 kyats or kyats 100.

TAXES

The national government of Myanmar generally enacts laws relating to income taxes and social taxes.

Effective starting with the 2019-2020 tax year, the tax year in Myanmar is from Oct. 1 to Sept. 30. Effective through tax years ending in 2019, the tax year in Myanmar was April 1 to March 31. There was a six-month transitional period from April 1, 2019, to Sept. 30, 2019.

The government of Myanmar in some cases uses the Myanmar Era Calendar, also known as the Burmese Calendar and as the Kawza Thekkarit, instead of the Gregorian Calendar. The Myanmar Era Calendar is a lunisolar calendar with a start date that as translated into the Gregorian Calendar is a day in April. The Myanmar Era Calendar year that ends in April of a Gregorian Calendar year is designated with a total of 639 fewer years than that Gregorian Calendar year, and the Myanmar Era Calendar year that starts in April of a Gregorian Calendar year is designated with a total of 638 fewer years than that Gregorian Calendar year. Years of the Myanmar Era Calendar are rendered with the prefix ME before the numerical year, or alternatively are rendered with the prefix BE, an abbreviation of Burmese Era, before the numerical year.

For example, ME 1381 coincides with the Gregorian Calendar period from April 17, 2019, to April 16, 2020, and ME 1380 coincided with the Gregorian Calendar period from April 17, 2018, to April 16, 2019.

It is notable that, in significant variation from how the vast majority of Earth’s calendars operate, the first day of Tagu, which is the first month of the Myanmar Era Calendar, does not typically coincide with the Myanmar Era Calendar New Year’s Day. The divergence is based on the calendar’s months recognizing cycles of the moon and the Myanmar Era Calendar New Year’s Day recognizing the start of a new solar transit through the signs of the zodiac. This typically causes part of Tagu to occur before the Myanmar Era Calendar New Year’s Day and part of Tagu to occur on and after that day.

Coronavirus (Covid-19) Guidance: Beginning with contributions due for May 2021, the payment deadline for employers to pay social security contributions was extended to six months following the month in which salary was paid, under Ministry of Labor Notification No. 341/2021, which was published Aug. 6, 2021. Notification No. 341/2021 repealed Notification No. 63/2020, which took effect March 20, 2020, and extended the payment deadline for social security contributions from 15 days to three months after the month in which salary was paid.

Income Taxes

Income taxes are administered by the Internal Revenue Department (MIRD) under the Ministry of Finance.

Coverage: Residents are taxed on all sources of income, domestic and international. Nonresidents only are taxed on their income from Myanmar sources.

Residents are defined as those who are “domiciled in” Myanmar. Individuals who reside in Myanmar for at least 183 days during the year are considered resident foreigners.

Employees: Employees are defined as persons who are employed, whether permanently or temporarily on wages or on basic pay.

Rates and Thresholds: Income tax rates are levied on a progressive scale and range from zero to 25%.

Effective starting Oct. 1, 2021, Myanmar’s personal income tax rates and minimum and maximum amounts of annual income for each tax bracket are as follows:

Range of Income for Tax Year (Kyats)	Income Tax Rate
Up to MMK 2 million	Zero
More than MMK 2 million and up to MMK 10 million	5%
More than MMK 10 million and up to MMK 20 million	10%
More than MMK 20 million and up to MMK 50 million	15%
More than MMK 50 million and up to MMK 70 million	20%
More than MMK 70 million	25%

Effective until Sept. 30, 2021, Myanmar’s personal income tax rates and minimum and maximum amounts of annual income for each tax bracket were as follows:

Range of Income for Tax Year (Kyats)	Income Tax Rate
Up to MMK 2 million	Zero
More than MMK 2 million and up to MMK 5 million	5%
More than MMK 5 million and up to MMK 10 million	10%
More than MMK 10 million and up to MMK 20 million	15%
More than MMK 20 million and up to MMK 30 million	20%
More than MMK 30 million	25%

Each employee is entitled to have 20% of his or her employment income exempt from income taxation as a basic allowance, but the amount of employment income that may be treated as a nontaxable basic allowance is capped at MMK 10 million per tax year.

Allowance amounts that may further reduce an employee’s taxable employment income also are available as follows:

• MMK 1 million per tax year for each of an employee’s parents who lives with the employee;
• MMK 1 million per tax year if the employee is married; and
• MMK 500,000 per tax year for each of an employee’s children who either live with the employee and are younger than 18 years of age, or who are at least 18 years of age and enrolled in a full-time educational program.

Effective since April 1, 2018, employees who have employment income of no more than MMK 4.8 million during a tax year are not assessed income tax on their employment income for that tax year.

Registration: Employers must submit company registration forms to the Directorate of Investment and Company Administration (DICA) and pay a stamp duty at the Internal Revenue Department.

There is no separate income tax registration requirement. The Internal Revenue Department only issues the income tax registration number when filing a return.

Taxable Amounts: Salary, wages, annuity, pension, benefits in kind, gratuity, fees and commissions are considered income and are taxable.

Withholding Methods: Employers are required to withhold income taxes for employees.

Returns and Remittance: Employers must remit withheld taxes to the MIRD within seven days of the end of the month in which the remuneration was paid. Employers also must file a statement of annual salary within three months after the end of the fiscal income year and provide a final annual statement of salaries paid to employees.

Employees must file income tax returns within three months from the end of the fiscal year.

Recordkeeping: Effective starting Oct. 1, 2019, employers must keep tax-related records for seven years.

Penalties: Employers who file late taxes or file taxes incorrectly can be subject to a fine of up to 10% of amounts due and/or imprisonment.

Social Taxes

Social insurance is supervised by the Ministry of Labor and administered by the Social Security Board.

Social security in Myanmar covers sickness, maternity, employment injury, unemployment, old age and death insurance benefits.

Coverage: Employees in commerce or in specified industries (railways, ports, mines and oil fields), certain individuals employed by the state, certain types of civil servants and employees of public or private firms with five or more are covered.

Rates and Thresholds:

The maximum monthly amount of wages paid to an employee upon which social security contribution rates may be assessed on the employee and employer is MMK 300,000.

Employers are assessed a social security contribution rate of 3%, with a maximum monthly contribution of MMK 9,000, and employees are assessed a social security contribution rate of 2%, with a maximum monthly contribution of MMK 6,000.

The contribution may be in kyats or an equivalent amount in the currency in which employees are paid.

Registration: Employers are required to register at the relevant township labor office with 15 days after the commencement of the business. Employers also must register all employees.

Taxable Amounts: Salaries, wages, annuities, pensions, benefits in kind, gratuities, fees and commissions are considered income and are taxable.

Withholding Methods: Employers are required to withhold social taxes for employees monthly and remit them to the township labor office.

Returns and Remittance: Employers are required to report and pay social security contributions within 15 days following the month in which salary was paid.

There are no annual returns, only monthly filings.

Recordkeeping: Employers are required to keep a record of contributions paid to the Social Security Fund. There is no length of time designated for record retention.

Penalties: Employers who fail to pay contributions can be subject to a fine of up to 10% and/or imprisonment for a time of up to one year.

Other Taxes

Myanmar’s national government does not assess any taxes on employment income other than those covered in the Income Taxes and Social Taxes sections of this primer.

State/Jurisdiction Taxes

Taxes on employment income are not assessed by any of Myanmar’s taing-myarm, pyi ne-myar, union territory, or local jurisdictions.

COMPENSATION AND BENEFITS

Various labor laws exist in Myanmar, including the Leave and Holidays Act, Workmen’s Compensation Act, Social Security Law, Factories Act, Payment of Wages Act, Employment and Skills Development Law and the Minimum Wages Act. These laws cover minimum wage, overtime, hours of work, holidays, leave, wage payment and termination pay.

Minimum Wage

The requirement to pay workers in Myanmar at least the national minimum wage applies to all employers except those with fewer than 10 employees.

Effective since May 14, 2018, Myanmar’s daily minimum wage is MMK 4,800 for a standard eight-hour workday. Effective until May 13, 2018, Myanmar’s daily minimum wage was MMK 3,600 for a standard eight-hour workday.

Overtime

Employers are required to pay two times the normal wages for hours worked in excess of the ordinary daily working period.

Hours of Work

The regular workweek may vary for different employers and workers, but the maximum is 48 hours per week and eight hours per day. Saturday and Sunday are weekly days off.

Holidays

The public holidays in Myanmar, for which paid leave must be provided by the employer and for which the government annually specifies dates based on the Myanmar Calendar, are:

• Jan. 1: International New Year’s Day
• Jan. 4: Independence Day
• Feb. 12: Union Day
• March 2: Peasants’ Day
• Full Moon Day of Tabaung
• March 27: Armed Forces Day
• The four days in April before New Year’s Day of the Myanmar Era Calendar: Maha Thingyan (Water Festival); Thingyan directly translates to the English word transit, referring to the solar transit recognized by Myanmar Era Calendar New Year’s Day
• Mid-April, typically April 17: Myanmar Era Calendar New Year’s Day (The day that from the perspective of Myanmar, the sun transits into the constellation of Aries from the constellation of Pisces)
• May 1: May Day (Labor Day)
• Full Moon Day of Kasong
• July 19: Martyrs’ Day
• Full Moon Day of Waso (Beginning of Buddhist Lent)
• Full Moon Day of Thadingyut (End of Buddhist Lent)
• Full Moon Day of Tazaungmone
• National Day
• Dec. 25: Christmas
• Dec. 31: International New Year’s Eve

Additionally, some employers, especially employers in Myanmar’s State of Kayin (Karen), provide paid leave to employees in recognition of the New Year’s Day celebrated by the Kayin (Karen) ethnic group of Myanmar. As with the New Year’s Day of the Myanmar Era Calendar as a whole, the Kayin New Year’s Day also does not occur on the first day of the first month of Myanmar Era Calendar years. Kayin New Year’s Day occurs on the first day of Pyatho, which is the 10th month of the Myanmar Era Calendar year.

Employees required to work on a public holiday must be paid at double the usual rate.

Leave

Employers are required to grant employees who have worked longer than a year a minimum of 10 paid days of leave per year.

Casual Leave: Employers are required to pay basic salary for six days per year for casual leave. Only three days may be taken at one time. Casual leave does not accrue.

Medical Leave: Employees are entitled to 30 days with wages and pay of medical leave in a year.

Maternity Leave: Female employees are entitled to six weeks of leave before pregnancy and a minimum of eight weeks after the birth of a child, for a minimum of 14 weeks of leave.

Paternity Leave: Male employees are entitled to 15 days of paternity leave in connection with the birth of a child.

Religious Leave: Male employees who complete three years with a company can take religious leave for up to 30 days.

Wage Payment

Employers must compensate all employees in cash on a regular payday and provide a final annual statement of salaries paid to employees.

Wages must be paid at least once per month. Wages must be paid at the end of the pay period if the employer has fewer than 100 workers or within five days of the end of the pay period if the employer has at least 100 workers.

Wages may be paid in kyats or in foreign currency.

Bonuses and Special Benefits

It is common to provide employees with a yearly bonus equal to one month’s salary, but no law is in effect regarding bonuses.

Termination Pay

Employers are required to give prior notice to termination. The minimum notice period is the same as the wage payment period. For example, an employee that is paid monthly must be given a month’s notice.

Alternatively, employers may pay the amount that the employee would have received during the period of notice as payment in lieu of notice.

Employees with at least six months of employment are eligible to receive severance pay. The amount of severance pay for which they are eligible is calculated based on the employee’s last monthly salary, as follows:

• for at least six months and up to one year of employment, half of the employee’s last monthly salary;
• for at least one year and up to two years of employment, the employee’s last monthly salary;
• for at least two years and up to three years of employment, one and one-half times the employee’s last monthly salary;
• for at least three years and up to four years of employment, three times the employee’s last monthly salary;
• for at least four years and up to six years of employment, four times the employee’s last monthly salary;
• for at least six years and up to eight years of service, five times the employee’s last monthly salary;
• for at least eight years and up to 10 years of service, six times the employee’s last monthly salary;
• for at least 10 years and up to 20 years of service, eight times the employee’s last monthly salary;
• for at least 20 years and up to 25 years of service, 10 times the employee’s last monthly salary; and
• for more than 25 years of service, 13 times the employee’s last monthly salary.

Workers’ Compensation

The Worker’s Compensation Act stipulates that employers must pay compensation to any employee who is incapacitated through a work-related injury or occupational disease. Employers are also required to take up an insurance policy to cover liability under the act.

Recordkeeping

Myanmar requires employers to keep records regarding the payment of wages and deductions from wages for absences, expenses, or fines, but does not require records to be kept for a specific period.

FOREIGN WORKERS

Foreign workers are entitled to the same rights as Myanmar citizens and generally are covered by the same tax and workplace laws.

Visas: Myanmar does not have a work permit program. Foreign workers may work in Myanmar on a business visa for up to 70 days. After first time entry on a business visa, individuals may apply for a six month multi-entry visa.

A 28-day entry visa for meetings, workshops and events also is available.

Foreign workers can apply for permanent residency by submitting Amana Form 1.

Taxes: The progressive tax rates applicable to residents of Myanmar with regard to employment income are applicable to employment income of nonresidents working in Myanmar. However, nonresidents are not eligible to reduce their amount of taxable employment income by the basic allowance available to residents or by the spouse, parent, and child allowances available to residents.

Wages/Payments: Wages may be paid in kyats or in foreign currency.

WORKING IN THE UNITED STATES

Foreign workers from Myanmar must meet general visa requirements and be certified to be employed in the U.S. General visa requirements for the U.S. are included in the separate

U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.

For tax purposes, Myanmar citizens are subject to U.S. employment-based taxation on income earned in the U.S. unless they can claim an exemption under specific visa types that exempt earnings from taxes.

State and local taxation of Myanmar workers also can apply.

The U.S. labor laws apply to all workers employed and providing services in the country.

Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.

Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the

Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.

Income Taxes: Generally, nonresidents in the U.S. who are from Myanmar and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.

A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in the U.S. who are from Myanmar and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c.

Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the

Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.

An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the

Nonwage income and self-employed foreign workers can be subject to income tax withholding at a flat rate of 30%.

Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.

Tax treaties: Myanmar and the U.S. do not have a tax treaty.

Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.

Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.

Totalization Agreements: Myanmar and the U.S. have not entered into a totalization agreement.

Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.

There are no particular requirements that employees be paid in U.S. dollars.

TREATY ARRANGEMENTS

Myanmar has entered into eight income tax treaties but has not entered into an income tax treaty with the United States.

Myanmar does not have any totalization agreements for social tax purposes in force.

Myanmar’s tax treaties are available in

RESOURCES

All resources in English unless otherwise noted.

General

U.S. State Department: U.S. Relations With Myanmar

CIA World Factbook: Myanmar

Central Bank of Myanmar

Ministry of Information (Myanmar)

The American Chamber of Commerce Myanmar Chapter

Currency Details

International Organization for Standardization: Currency Codes - ISO 4217

Unicode Consortium: Currency Symbols

United Nations: United Nations Terminology Database: Myanmar

Taxes

Internal Revenue Department (Myanmar)

Compensation and Benefits

Ministry of Labor

International Labour Organization: ILO Guide to Myanmar Labour Law

Foreign Workers

Ministry of Immigration and Population (Myanmar)

Ministry of Foreign Affairs (Myanmar)

Embassy of the Republic of the Union of Myanmar in Washington, D.C.

Working in the United States

U.S. Department of Labor:

• Foreign Labor Certification
• Hiring Foreign Workers

U.S. Internal Revenue Service:

• IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
• IRS Publication 15, Circular E, Employer’s Tax Guide
• IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
• IRS Publication 519, U.S. Tax Guide for Aliens
• IRS Publication 901, U.S. Tax Treaties

Treaty Arrangements