Minimum Wage in Myanmar - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Myanmar?

The legislation relating to minimum wage is Minimum Wage law, 2013.

Do one or more minimum wages exist that is/are determined by law?

In accordance with Section (10d) of the 2013 Minimum Wage Law, the Minimum Wage determined uniformly for the entire Union of Myanmar without differentiation in respect of location or type of enterprise. However, it shall not apply to shall not apply to small enterprises and family-owned self-managed enterprises with 15 or less employees.

At what level is minimum wages determined at?

Minimum Wage Law, Section 5, Article (e), minimum wage is set uniformly across the country as 450 MMK (four hundred and fifty kyat only) per hour and 3,600 MMK (three thousand and six hundred Kyat only) for standard working day (8 hour) without regarding location and industry. On what basis is minimum wage calculated? -- Minimum Wage is calculated per day and per hour.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

Minimum Wage rate is based on 8 hours per day and 6 days work week.

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

Representatives of the relevant Government Departments, Government Organizations, labour Organizations or representatives of Workers, Employer Organizations or representatives of Employer and other persons who are experienced, expert and fair in matters related to wage prescription are involved in minimum wage setting.

How are upratings (adjustments) of minimum wage/s decided upon?

Minimum Wage is decided in Tri-partite (government, employer and employee) consultative meetings and sanctioned by National Committee.

Which are the components of minimum wage in Myanmar?

There is only fixed component in minimum wage.

How frequently is the fixed component of minimum wage updated?

Fixed component of minimum wage is updated once in two years.

What is/are the yardstick/s on which minimum wage upratings are based?

The yardsticks considered for minimum wage upratings are: (a) needs of workers and their families; (b) existing salaries; (c) social security benefits; (d)living cost and changes of such living costs; (e) compatible living standard; (f) employment opportunities in conformity with the needs for State’s economy and development of production; (g) gross domestic production value of the State and per capita income; (h)hazardous to health and harmful to work, nature of the work; (i)Other facts stipulated by the Ministry with the approval of the Union Government.

What is the incidence of minimum wages(s) in the national labour force (wage earners only)?

The incidence of minimum wage in the national labour force is 23.9 percent in urban areas and 22.4 percent in rural areas.

How is minimum wages compliance regulated?

Minimum Wage compliance is regulated by Labour inspectors.

Which legal sanctions can be applied in compliance is lacking?

In case of non compliance, employer can be punished with imprisonment for a term not exceeding one year or with fine not exceeding 5 lakhs or with both.