Decent wages in Myanmar

Abstract

The Decent Wage Myanmar project aimed to collect wage and cost of living data for the creation of a level playing field in tripartite negotiations and consultations, in preparation of establishing new minimum wage levels in the country, which is scheduled to be concluded July 2020. WageIndicator will report about its data collection on wages in selected low-wage industries and on the cost of living in selected regions.

The Minimum Wage Law (2013) defines minimum wage as the basic salary excluding pension and gratuity payments, social security cash benefits, severance payments and allowances for travel, accommodation, meals, electricity charges, water service charges and duties, taxes, medical treatment and recreational purposes. The Minimum Wage Law recommends the regional tripartite minimum wage committees to conduct research and calculate the minimum wage on the basis thereof. These committees submit their proposals to the National Minimum Wage Committee. The categories of business which must apply minimum wage rates are determined by the National Committee. The Committee must take into consideration the needs of workers and their families, existing salaries, social security benefits, living cost and compatible living standards.1

Within period of June-September 2019, supported by Mondiaal FNV and APHEDA Myanmar, the Myanmar Industry, Craft and Service-Trade Unions Federation (MICS-TUsF) organised a Labour Consultative Forum (LCF) on a minimum wage policy review. The forum was attended by representatives of trade unions such as Confederation of Trade Union Myanmar (CTUM) and Agriculture Farmer Federation Myanmar (AFFM-IUF) and workers’ rights groups. MICS-TUsF addressed the need for minimum wage survey as LCF’s platform for a joint campaign. The output of the survey also serves as inputs for social dialog and negotiation in the tripartite wage committee. FNV Mondiaal has asked WageIndicator Foundation to manage one survey on wages and one on cost-of-living, given their previous experience with both kinds of surveys. WageIndicator Foundation has cooperated with the Centre for Economic and Social Development (CESD) in Yangon for the fieldwork of the surveys. This WageIndicator Data Report presents the results of the surveys.