Clarifications & details on the new minimum wage
The Myanmar government has published several clarifications on the new minimum wage regarding the timeline for implementation and requirements for severance pay for laid-off employees.
The main facts are:
- Minimum wage of 3,600 kyats per (8 hour) work day took effect from September 1st. The minimum hourly rate, as such, is 450 kyats.
- There is no regional variation or industry-specific variation of the wage. 3,600 kyats is the basic minimum for all industries and regions within Myanmar for all enterprises employing more than 15 employees.
- There is, however, an allowance for training and probationary employment. Unskilled workers receiving on-the-job training may be paid 50% of the minimum for a maximum of 3-months. Hence, 1,800 kyats per 8 hour workday during training. The following 3-month probationary employment period may be compensated at 75% of the minimum wage: 2,700 kyats per 8 hour workday. After training and probation, the regular minimum rate must take effect.
- Any employees who are laid-off/terminated are entitled to the severance package to which they are legally allowed, as outlined in their contract and shall not be less than the amount required by the presiding laws of the Republic of the Union of Myanmar.
Government announcements and details: