Employer’s Guide to Hiring in Myanmar

Global companies are scanning Southeast Asia for their next wave of tech talent. They’ve maxed out the usual suspects like Vietnam and the Philippines. Now, hiring in Myanmar is catching their attention in ways that feel both opportunistic and essential.

The story here is about timing and necessity. Myanmar’s tech sector has quietly exploded with over 200 startups launching since 2022. These aren’t vanity projects. They’re training grounds producing engineers and developers who understand distributed collaboration because infrastructure challenges forced them to build digital skills early. What looks like a limitation from the outside became an accelerator for remote-ready talent on the inside.

Here’s what keeps coming up in conversations with hiring managers. You get access to English-speaking developers at competitive wages lower than those in other developing countries. The added advantage is cultural. Myanmar’s workforce adapted to working digitally and remotely out of necessity. That experience translates directly into value for companies running distributed teams across time zones. The talent exists. The question is whether you’re positioned to reach it before everyone else figures this out.

Inside Myanmar’s labor market

Myanmar has a workforce of roughly 22.7 million people, and the country’s median age is 30 years old. More than just demographics, these numbers reflect a generation that came of age during Myanmar’s digital transformation and learned to work around infrastructure gaps instead of waiting for them to close.

Yangon leads as the primary tech hub with the country’s highest concentration of startups and digital talent. Mandalay follows as an educational center with a growing IT industry. Young people make up more than one-third of Myanmar’s population, and many are hungry for opportunities in the digital economy. This creates a dynamic where tech professionals are already conditioned to work with international clients and remote teams as a matter of survival.​

The country’s economy runs on manufacturing and logistics. But the tech sector is where the momentum lives right now. The ICT market is projected to grow from US$2.45 billion in 2025 to US$3.20 billion by 2030. Software engineers in Yangon and Mandalay earn MMK 1.5 to 3.5 million annually (roughly US$715 to US$1,667).

The skill sets trending right now tell you where the market is headed. Data science roles saw a 22% demand surge, and mobile app development jumped 18% in 2025, according to Nucamp. Cloud computing specialists and full-stack developers round out the most sought-after positions. What makes this particularly useful for hiring managers is that Myanmar’s tech workers tend to be self-taught or bootcamp-trained rather than coming through traditional four-year programs. That practical orientation translates well to fast-moving distributed teams that value hands-on experience over credentials.

Primary hiring options in Myanmar

So you’ve decided that hiring in Myanmar makes sense for your team. Now comes the practical question: how do you actually hire someone there without spending six months navigating bureaucracy?

You have two main paths forward. One requires commitment and infrastructure. The other lets you move fast.

Setting up a local entity

This is the traditional route. You register a subsidiary or branch with Myanmar’s Directorate of Investment and Company Administration (DICA). That means choosing a business structure like an LLC or joint venture and preparing documentation that includes director information, shareholder details, capital investment declarations, and a detailed business plan.

The process involves multiple steps. You need to submit Articles of Incorporation and a Memorandum of Association. You have to obtain a tax ID from the Ministry of Planning and Finance. Then comes opening a local bank account and securing the necessary business licenses. If you plan to bring in foreign workers, work permits add another layer of complexity.

Branch registration offers a faster alternative if you want to test the market. It requires lower entry costs and has fewer corporate filing requirements. But either way, you’re building infrastructure. This path makes sense if you’re planning significant long-term operations in Myanmar or need complete control over your local presence.

Hiring through an Employer of Record (EOR)

An EOR functions as the legal employer of your Myanmar workforce. They handle payroll management, onboarding, offboarding, benefits administration, and compliance with Myanmar Labor Law. You get to work with the talent. They handle the legal complexity.

This option lets you hire in Myanmar without establishing your own entity. The EOR already has the legal infrastructure in place. For companies testing the market or building distributed workforces across multiple countries, this eliminates the setup time and ongoing administrative burden. You can move from job posting to the first day of onboarding in weeks instead of months.

Employment contracts in Myanmar

Here’s where things get specific. “An enterprise must enter into written employment contracts with its employees within 30 days of employment,” advises Suyoun E. Park, employment attorney at Tilleke & Gibbins, a reputable law firm with offices in six countries across Southeast Asia.

“Ministry of Labour policy requires these contracts to be in [the] Myanmar language or bilingual (in both Myanmar language and English) when they are registered,” Park adds. The Ministry of Labour wants you to use their standard template unless you get express permission to deviate. If you employ five or more people, those contracts need to be registered with your local Township Labour Office. Skip this step, and the contract can be declared void.

Fixed-term contracts dominate Myanmar’s employment landscape. Most run for two years. But these details catch foreign employers off guard: when a fixed-term contract expires, Myanmar labor authorities treat a non-renewal contract as a termination by the employer. That means notice periods and severance payments apply. In practice, there’s little difference between fixed-term and indefinite contracts. Probation periods can run up to three months with shorter notice requirements.

Working hours, holidays, and leave

The standard workweek is capped at eight hours per day and 48 hours per week. Anything beyond that counts as overtime and is paid at 200% of the regular rate. Shop and establishment employees max out at 12 hours of overtime per week, while factory workers can go up to 20 hours.

Myanmar observes numerous public holidays throughout the year. These include Independence Day, Union Day, Peasants’ Day, Labour Day, Martyrs’ Day, and various religious holidays reflecting the country’s Buddhist majority. Employees cannot be required to work on designated public holidays without appropriate compensation.

Annual leave typically starts at 10 days per year for employees who have completed one year of service. Sick leave provisions allow for paid time off during illness with medical certification. Casual leave and maternity leave round out the standard leave package. Female employees are entitled to maternity leave before and after childbirth, with specific protections around dismissal during pregnancy and maternity periods.

Statutory benefits and social contributions

Myanmar’s social security system covers employees working in establishments with five or more workers. Both employers and employees contribute to the Social Security Fund. The system provides coverage for:

• Workplace injuries and occupational diseases
• Medical care for employees and dependents
• Maternity benefits
• Funeral expenses
• Disability and survivor benefits

Employer contributions typically run around 3% of an employee’s wages, while employees contribute approximately 2%. These rates can vary based on industry and specific circumstances. Registration with the Social Security Board is mandatory and must happen within seven days of hiring.

Beyond statutory requirements, competitive employers doing business in Myanmar often provide additional supplemental benefits to attract tech talent. These might include health insurance, transportation allowances, meal subsidies, and performance bonuses. The benefits package you offer determines whether you’re competitive for the developers and digital professionals everyone else is trying to hire.

Payroll and tax considerations in Myanmar

Payroll in Myanmar operates on a monthly cycle. Wages must be paid in Myanmar Kyat through bank transfer or cash. As of October 1, 2025, the combined minimum daily wage is MMK 7,800 (comprising a base wage of MMK 4,800 and an additional MMK 3,000 allowance).

Individual income tax follows a progressive rate structure. Rates start at 0% for income up to MMK 4,800,000 annually and scale up to 25% for income exceeding MMK 30,000,000. Employers are responsible for withholding income tax from employee salaries and remitting it to the Internal Revenue Department monthly.

The 13th-month salary payment has become standard practice in Myanmar, even though it’s not legally mandated. Many employers pay this bonus at year-end or split it across multiple payments. Commercial tax and other indirect taxes don’t typically affect individual employees, but employers need to account for them in their overall cost calculations. Getting payroll right from the start matters because Myanmar’s labor authorities take compliance seriously. Errors get expensive fast.

Employee vs. contractor classification

The line between employee and contractor in Myanmar comes down to substance over labels. You can call someone a contractor in the contract, but if the relationship looks like employment, the authorities will treat it as employment.

Myanmar evaluates several factors when determining classification. Control matters most: does your company dictate how, when, and where work gets done? Employees typically operate under significant control while contractors maintain autonomy. Integration comes next: is this person’s work core to your daily operations or project-based? Then there’s financial dependence. Does the worker rely solely on your company for income, or do they serve multiple clients?

The risks of getting this wrong stack up fast. Misclassification can trigger unpaid social security contributions, penalties, back pay for minimum wage and overtime, and interest on unpaid taxes, fines from labor authorities, and legal costs. Here’s a detail that catches tech companies off guard: intellectual property created by contractors belongs to the contractor unless your contract explicitly assigns it to your company. Employee-created IP typically defaults to the employer. One more reason to get classification right from the start.

Termination and severance in Myanmar

Ending employment in Myanmar requires following specific procedures. Notice periods depend on whether you’re dealing with indefinite or fixed-term contracts. For indefinite contracts, either party typically must provide one month of written notice for termination.

Fixed-term contracts present an unusual wrinkle. When these contracts expire, Myanmar labor law treats non-renewal as termination by the employer. That means you owe notice periods and severance payments even though the contract simply reached its natural end date. This throws foreign employers for a loop because, in most jurisdictions, an employment contract expiration is just that—an expiration.

Severance payments follow a formula based on the length of service. The calculation typically involves wages and years worked. Employees can be terminated for cause without severance in cases of serious misconduct, but the standards for what constitutes valid cause are strict. Wrongful termination claims can result in reinstatement orders or compensation awards.

During probation periods (up to three months), termination becomes simpler with shorter notice requirements. Document everything. Myanmar’s labor dispute resolution process favors employees, and poor documentation may significantly weaken your position.

Work visas and permits

Foreign nationals cannot legally work in Myanmar without proper authorization. The process involves multiple steps and several government agencies. Your company needs to secure both a stay permit and a work permit for each foreign employee.

The work permit application requires extensive documentation:

• Passport copies and recent photographs
• Employment contract showing position and salary
• Company registration documents and tax certificates
• Detailed justification for hiring a foreign national
• Proof that no qualified Myanmar citizen can fill the role
• Health examination certificates

Processing times vary, but expect several weeks minimum. Work permits are typically issued for one year initially and can be renewed. The Ministry of Labour handles work permit applications while the Ministry of Immigration and Population manages stay permits. These two processes run in parallel and both must be completed.

Costs add up quickly. Application fees, legal assistance, documentation translation, and health examinations all factor into the total expense. Some positions qualify for exemptions or expedited processing, but tech roles typically follow the standard track.

Companies using an EOR in Myanmar can offload this administrative burden since the EOR handles visa sponsorship and permit applications as part of their service.

Hire in Myanmar with Pebl

Pebl operates in 185+ countries, including Myanmar, and handles the complexity you’d rather avoid. Our EOR services manage local HR, payroll processing, benefits administration, and compliance monitoring so you can focus on building your team instead of navigating Myanmar’s labor regulations. The onboarding process is straightforward, and our platform centralizes employee management in one place. You get to hire the talent you want without setting up a legal entity or spending months figuring out registration requirements. Contact us to learn more.

FAQs: Hiring in Myanmar

These are the questions that keep coming up. Here’s what you actually need to know.

What is the work culture in Myanmar?

Hierarchy and relationships matter deeply in Myanmar’s work culture. Communication tends to be indirect to preserve harmony and save face. A “yes” might mean “we’ll try” or even “probably not”. Raising your voice or showing frustration in front of others may damage relationships and cost you respect. Building trust takes time, but it’s the foundation everything else sits on.

What jobs are in high demand in Myanmar?

The tech sector is experiencing a 25% growth rate, and IT services employment is expanding at 7% annually, which is six times higher than overall employment growth. Cloud architects and cybersecurity specialists lead the demand as Myanmar faces a significant increase in cybersecurity challenges. AI and machine learning professionals are also in high demand as businesses push for automation. DevOps engineers and full-stack developers remain consistently in demand as the startup ecosystem continues expanding.

Is the Myanmar economy growing?

The World Bank estimates Myanmar’s economy will grow by just 1% through 2025; however, this varies widely based on industry. The reality is that Myanmar faces a challenging operating environment, but specific sectors show stronger momentum. The ICT sector anticipates an approximate 5.5% compound annual growth rate (CAGR) between 2025 and 2030, while overall employment growth remains flat. For companies hiring in digital and tech roles, the sector-specific growth matters more than headline GDP numbers.

Can I hire in Myanmar without a local business entity?

Yes, you can hire Myanmar talent without establishing a legal entity in the country. An employer of record handles the legal employer responsibilities so you can hire without establishing your own subsidiary. The EOR manages payroll, compliance, benefits, and employment contracts under its existing legal infrastructure. This approach lets you move from job posting to first day in weeks instead of the months it takes to register a local entity.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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