You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 14, 2024

Minimum Wage: Myanmar Increases Mandatory Daily Allowance

Subscribe to Updates

Myanmar has once again made significant amendments to its minimum-wage framework by introducing additional allowances for both public- and private-sector workers.

On August 9, 2024, the National Committee for Setting the Minimum Wage issued Notification No. 1/2024, which entitles private-sector workers to a new additional daily allowance of MMK 1,000 (approximately USD 0.48). This increase is on top of the MMK 1,000 additional daily allowance introduced last year. As a result, workers at private-sector employers with more than 10 employees are now entitled to the base minimum wage of MMK 4,800 plus additional allowances of MMK 2,000, for a total of MMK 6,800 (approximately USD 3.20) per day for an eight-hour workday, effective August 1, 2024.

A similar additional allowance had been announced for workers in government departments and organizations on July 26, 2024.

Background

The MMK 4,800 (approximately USD 2.29) minimum wage for an eight-hour workday (equivalent to MMK 600 per hour) was established in May 2018 for all workers, irrespective of location or job type. In September 2023, the Ministry of Planning and Finance announced an additional daily benefit of MMK 1,000 for workers in government departments and organizations, and on October 9, 2023, the National Committee for Setting the Minimum Wage extended this benefit to workers at private-sector employers with more than 10 employees, bringing the effective minimum daily wage to MMK 5,800 (approximately USD 2.77). These changes took effect on October 1, 2023.

Applicability of Additional Allowances for Private-Sector Workers

The latest announcement also entitles employees to the base minimum wage and additional allowances for days used from their entitlement to leave and holidays, in accordance with the 1951 Leave and Holidays Act.

However, the daily allowances—totaling MMK 2,000—are not to be included when calculating overtime payments. Instead, overtime payments must be calculated based on the base minimum daily wage of MMK 4,800.

For more details on these changes, or on any aspect of employee compensation or employment law in Myanmar, please contact Tilleke & Gibbins at [email protected].

Related Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

December 15, 2019
The National Wage Committee of Thailand’s Ministry of Labour has announced a new minimum daily wage, which will take effect on January 1, 2020. The announcement increases the minimum wage by THB 6 per day for workers in nine provinces—Bangkok, Chon Buri, Nakhon Pathom, Nonthaburi, Pathum Thani, Phuket, Prachin Buri, Samut Prakan, and Samut Sakhon—and by THB 5 in all other provinces. With these changes, the sliding scale for the minimum daily wage in 2020 will range from THB 313 to THB 336, as detailed in the table below.
Read More
December 12, 2019
On November 20, 2019, the National Assembly of Vietnam issued a revised version of the Labor Code, the primary legislation governing employment and employer-employee relationships in Vietnam. The new Labor Code will take effect on January 1, 2021, replacing the current Labor Code of 2012.The new Labor Code introduces a number of large and small changes, with the general intention being to address shortcomings and clarify unclear provisions of the current law, and bring Vietnam’s labor law more in line with international standards.
Read More
December 3, 2019
While most employers understand what “unfair termination” means, many may be unfamiliar with the term “unfair labor practice” and what it entails. The Labor Relations Act (LRA) gives three general categories of conduct considered to be unfair labor practices: retaliation, wrongful pressure, and termination while under collective bargaining agreements.RetaliationActions deemed retaliation are prohibited. These include the following scenarios:
Read More