Myanmar

6 Chapter Labor

    • Working Environment

      Population of Myanmar is about 55 million, and population pyramid with many young people. We can expect an increase in the working population in the future.

      Most of working population engaged in agriculture and the population which engaged in industry is increasing. It is characterized by a small percentage of managers and professionals, because many workers are working in Thailand or Singapore. Especially workers in Singapore are intellectuals such as engineer, nurse, professor, or UN staff. It trends to be hard to get high quality human resources and skilled technician in Myanmar.
       
      Unemployment rate in Myanmar is 5.7% in 2010 from CIA data.
       
      Monthly wage by occupation in Myanmar
      Occupation
      Wage
      US dollar
      Kyat
      Manufacturing
      Industry
      Worker
      68
      50,437
      Engineer
      176
      130,544
      Middle management
      577
      427,977
      Non-Manufacturing
      Industry
      General staff
      173
      128,319
      Manager
      562
      416,851
      Store staff [apparel industry]
      62~87
      50,000~70,000
      Store staff [restaurant business]
      80
      64,400
       
      Job hopping is performed actively and wages are on an upward trend.
      There is no regulation to oblige the number of local employees depends on number of foreign employees. However, if you employ 5 or more local employees, you should notice the employment conditions to regional labor office.
       
      There is the Trade Union Act, however trade union movement or strike has been prohibited from 1991. In October 2011, revision of the Trade Union Act was promulgated to protect the rights of workers and to maintain good industrial relations. According to the new trade union act, by participating more than 30people or 10% of employees you can organize labor union. Strike is also recognized, notification is required 14days before strike for public sector and 3days before strike for private enterprises.
       
      It is general to pay bonus equivalent to one month to several months. Payment is due end of March or December. There is no regulation in law for commuting allowance, meal allowance and rent allowance. When you set those allowance, you need to specify on the labor regulation or employment agreement.
      There is a case to passing one-third of salary for wedding celebration of family or friends. Lending and borrowing of money is also done frequently. Corporation may be asked for advance payment of salary. To prevent trouble, you need to specify about prohibition or setting the upper limit of the advance payment on the labor regulation or employment agreement.
       
       

    • Labor Law

      There are some laws which define labor standard such as Factories Act 1951, Oilfields (Labor and Welfare) Act 1951, and Shops and Establishments Act 1951. Corporation must follow one of the law and define the labor standard.
      Factories Act,1951
      Factories Act defines labor’s safety, insurance, welfare and working time. All facilities that manages a processing industry and hiring ten or more employees are scope of application. Those regulations are included into the Act, such as cleanliness, illumination, aeration, drinking water, sanitation facility and so on. And also there are regulations to secure break spaces, relief facilities, or daycare centers. Protection provision for women, children, and young labor is also regulated in the Factories Act. Under 13years old child is prohibited to work in factory.
       
      Labor standard on Factories Act,1951
       
      Labor standard
      Working time
      8 hours per day
      44 hours per week
      Break time
      30 minutes for every 5 hours of continuous work [amount of working time and break time must not be over 10 hours a day]
      Working days
      6 days per week
      Weekly holiday
      Sunday
       
       Oilfields Act, 1951
      This Act is applied only oilfields facilities. It is regulated the safety, health, welfare, working time, and holiday for labors who work at oilfield. The contents are almost same as Factories Act, 1951.
       
       Shops and Establishment Act, 1951
      This act is defined for optimization of working time and holiday for labor who working at shops. Foreign corporation’s local corporation or branch office are applied this Act.
       
      Labor standard on Shops and Establishment Act, 1951
       
      Labor standard
      Working time
      8 hours per day
      48 hours per day
      Break time
      30 minutes for every 5 hours of continuous work [amount of working time and break time must not be over 11 hours a day]
      Working days
      6 days per week
      Weekly holiday
      Any day of the week
      Closing time
      9PM to 5AM
       
      Regulation for overtime work and holiday work
       
      Labor standard
      Overtime work hours
      Maximum 16 hours per week
      Allowance is twice the normal wage
      Preapproved is needed from Factories and General Labor Laws Inspection Department.
      Holiday work
      Allowance is twice the normal wage
      Temporary holiday within 2 months
      Late time overtime work
      on usual working days
      No regulation
      Overtime work on holiday
      No regulation
       
      When the office which hire five or more workers adopts new employees, the office should notify employment conditions and employment plan to Township labor office.
      About holiday, it is regulated on Leave and Holidays Act, 1951. Public holidays deal with earned leave.
       
      Regulation for leaves and holidays
       
      Labor standard
      Earned leave
      10 days earned leave per year is awarded to workers who worked for more than 12 months and have a workday of 24 days or more per month. Continuous acquisition is until 10 days. Wage is the average of annual amount.
      Medical leave
      Up to 30 days medical leave per year is given to workers who worked for more than 6 months. It is better to require a submission of medical certificate.
      Casual leave
      You can get 6 days casual leave per year. Continuous acquisition is until 3 days and it’s not possible to carry forward to the following year.
      Public holidays
      Earned leave is awarded to all labor.
       
      Minimum wage is regulated on Minimum Wage Act. Based on this Act, Minimum Wage Councils and Enquiry Commissions are established.
       
      Payment of wage is regulated on Payment of Wages Act, 1936. Following 4 sentence are regulate.
      ・Fix the payment date and it has to be same date for each month
      ・Wage has to be paid by cash in principle
      ・Do not disinfect from wages except what is stipulated
      ・Wage has to be paid within 1 month
      In case of small amount, it is general that payment is done with Kyat.
       
      Ministry of labor describes regulations about employment contract on the Law prescribing the Fundamental Right and Duties of People’s Workers. Corporations makes employment agreement based on standard employment agreement defined by ministry of labor. Standard employment agreement is regulated to describe those contents below.
      ・Working time
      ・Holiday
      ・Leave
      ・Overtime work
      ・Payment of wage
      ・Compensation for death or injury on industrial accident
      ・Giving rights on Social Insurance Benefit
       
      When your employees violate labor regulation or employment agreement and they do not improve it by warning three times, you can dismiss without payment of retirement benefit.
      Dismissal is done at the circumstances of employers, employers should notice to employees 1 month before the dismissal.
       
      Length of service and Payment compensation
      Length of service
      Payment compensation
      3 months or more and less than 1 year
      Monthly salary and worth of compensation
      Total of 2 months’ salary
      1 year or more and less than 3 years
      Monthly salary and 2 months’ worth of compensation
      Total of 3 months’ salary
      3 years or more
      Monthly salary and 4 months’ worth of compensation
      Total of 5 months’ salary
       
      Compensation is calculated based on work style. In the case of monthly salary system, the compensation is salary of last month during employment period. In the case of daily salary system, the compensation is last day’s salary for 26 days. In the case of payment made, the compensation is average salary of last 30 working days for 30 days.   
       
       

    • Social security system

      There are two acts, Social Security Act, 1954 and Workmen’s Compensation Act for social security system of Myanmar. By Social Security Act which obeys Social Security Scheme of Social Security Board, subsidy or medical is compensated to protect labor who faced social or economic difficulties by death or injury on industrial accident, pregnancy, or disease.
      Social Security Act is applied for the office which has 5 or more lobar. Insurance benefit is separated to general insurance benefit and business insurance benefit. Who is not covered on Social Security Act, the labor is covered on Workmen’s Compensation Act.
      Social security insurance fee is 4% and it is paid 2.5% by employer and 1.5% by employee.
       
      Burden amount of social insurance fee [Kyat]
      Revel
      Monthly salary amount
      Burden amount
      Employer
      Employee
      Total
      1
      0~4,000
      75
      45
      120
      2
      4,001~6,000
      125
      45
      120
      3
      6,001~8,000
      175
      75
      200
      4
      8,001~10,000
      225
      135
      360
      5
      10,001~12,000
      275
      165
      440
      6
      12,001~14,000
      325
      195
      520
      7
      14,001~16,000
      375
      225
      600
      8
      16,001~18,000
      425
      255
      680
      9
      18,001~20,000
      275
      285
      760
      10
      20,001~22,000
      525
      315
      840
      11
      22,001~24,000
      575
      345
      920
      12
      24,001~26,000
      625
      375
      1,000
      12
      24,001~26,000
      625
      375
      1,000
      13
      26,001~28,000
      675
      405
      1,080
      14
      28,001~30,000
      725
      435
      1,160
      15
      30,001~
      775
      465
      1,240
       
      Burden amount of social insurance fee [US dollar]
      Revel
      Monthly salary amount
      Burden amount
      Employer
      Employee
      Total
      1
      0~30
      0.5
      0.3
      0.8
      2
      31~50
      1.0
      0.6
      1.6
      3
      51~70
      1.5
      0.9
      2.4
      4
      71~90
      2.0
      1.2
      3.2
      5
      91~110
      2.5
      1.5
      4.0
      6
      111~130
      3.0
      1.8
      4.8
      7
      131~150
      3.5
      2.1
      5.6
      8
      151~170
      4.0
      2.4
      6.4
      9
      171~190
      4.5
      2.7
      7.2
      10
      191~
      5.0
      3.0
      8.0
       
      Using general insurance benefit, you can receive free medical service up to 26 weeks for one disease. For injury on industrial accident, there is no limit term and rehabilitation fee is also free. There are more benefits such as for disease, pregnancy, and funeral in addition to treatment. If you will be not able to work by disease, you can receive benefit amount equivalent to 50% of salary longest 26 weeks. Pregnancy benefit period is 6 weeks before childbirth and 6 weeks after childbirth. For funeral benefit, there is no condition and restriction.
      Business insurance benefit are extraordinary benefit, disability benefit, and survivor pension and it’s supplied depending on the situation. Extraordinary benefit period is until it recovered or 52 weeks after the accident happen. Disability benefit period is after done supplying extraordinary benefit or 52 weeks after the accident happen.
       
      Payment amount of benefit and pension [Kyat]
      Revel
      Daily amount of Benefit
      Monthly amount of Injured pension
      Disease benefit
      Extraordinary benefit
      Pregnancy benefit
      Disability benefit
      Survivor pension
      Widow
      Orphan has a parent
      Orphan has no parents
      1
      57.7
      76.90
      76.90
      2,000.00
      800.00
      400.00
      600
      2
      96.15
      128.20
      128.20
      3,333.35
      1,333.30
      666.70
      1,000
      3
      134.60
      179.50
      179.50
      4,666.65
      1,866.70
      933.30
      1,400
      4
      173.10
      230.75
      230.75
      6,000.00
      2,400.00
      1,200.00
      1,800
      5
      211.5
      282.05
      282.05
      7,333.35
      2,933.30
      1,466.70
      2,200
      6
      250.00
      333.35
      333.35
      8,666.65
      3,466.70
      1,733.30
      2,600
      7
      288.50
      384.60
      384.60
      10,000.00
      4,000.00
      2,000.00
      3,000
      8
      326.90
      435.90
      435.90
      11,333.35
      4,533.30
      2,266.70
      3,400
      9
      365.40
      487020
      487020
      12,666.65
      5,066.70
      2,533.30
      3,800
      10
      403.80
      538.45
      538.45
      14,000.00
      5,600.00
      2,800.00
      4,200
      11
      442.30
      589.75
      589.75
      15,333.35
      6,133.30
      3,066.70
      4,600
      12
      480.80
      641.05
      641.05
      16,666.65
      6,666.70
      3,333.30
      5,000
      13
      519.20
      692.30
      692.30
      18,000.00
      7,200.00
      3,600.00
      5,400
      14
      57.70
      743.60
      743.60
      19,333.35
      7,733.30
      3,866.70
      5,800
      15
      596.15
      794.85
      794.85
      20,666.65
      8,266.70
      4,133.30
      6,200
       
      Payment amount of benefit and pension [US dollar]
      Revel
      Daily amount of Benefit
      Monthly amount of Injured pension
      Disease benefit
      Extraordinary benefit
      Pregnancy benefit
      Disability benefit
      Survivor pension
      Widow
      Orphan has a parent
      Orphan has no parents
      1
      0.40
      0.50
      0.50
      14.00
      5.60
      2.80
      4.20
      2
      0.77
      1.03
      1.03
      27.00
      10.80
      5.40
      8.00
      3
      1.15
      1.54
      1.54
      40.00
      16.00
      8.00
      12.00
      4
      1.54
      2.05
      2.05
      53.20
      20.20
      10.60
      16.00
      5
      1.92
      2.56
      2.56
      66.60
      23.60
      13.40
      20.00
      6
      2.30
      3.08
      3.08
      80.00
      32.00
      16.00
      24.00
      7
      2.70
      3.60
      3.60
      93.40
      37.40
      18.60
      28.00
      8
      3.08
      4.10
      4.10
      107.00
      42.80
      20.40
      32.00
      9
      3.46
      4.62
      4.62
      120.00
      48.00
      24.00
      36.00
      10
      3.85
      5.13
      5.13
      133.40
      53.40
      26.70
      40.00
       
      The Workmen’s Compensation Act, 1957 was enacted to compensation for labor about accident happened during working. On this act followings are compensated.
      ・In case of death
      ・Permanently and totally disabled
      ・Permanently and partially disabled
      ・Temporary disabled
      ・in case of assistance from others will be needed
       
      Request for compensation can be by only the principle. Compensation is decided by TWCC [Township Workmen’s Compensation Committee] which established based on Workmen’s Compensation Act. Compensation will be paid by TWCC within 60 days from decision date.
       
      Amount of compensation
      Death
      Monthly salary × 36 months
      Sever disability
      Monthly salary × 36 months × 140%
      Mild disability
      Right hand
      Sever disability compensation amount × 70%
      Left hand
      Sever disability compensation amount × 60%
      Leg
      Sever disability compensation amount × 60%
      Hearing
      Sever disability compensation amount × 50%
      Vision
      Sever disability compensation amount × 30%
       

    • Points to keep in mind when Japanese people are resided

      According to The Myanmar Immigration Act, 1947, you need to get a visa to entry Myanmar. First you will get Entry Visa and after, you will get Multiple Journey Special Re-entry Visa. If you stay over 90 days, you need foreigner registration and get Foreigner Registration Certificate. FRC’s expiration date is one year from every November. 4 weeks stay is possible with Entry Visa and the expiration date is 3 months from issued. If you proceed to get Commercial Visa, you will get one year Long Stay Visa.
      The corporation which established based on foreign investment law employ foreigner, MIC permission is needed.
       
      Following documents are needed to get Stay Permit and Multiple Journey Special Re-entry Visa.
      ・Recommendation letter form by the Japanese Embassy [only needed]
      ・Applicant's resume
      ・Passport
      ・Form26 [List of directors]
      ・Form1 [Business license]
      ・Certification of Registration of Branch Office in Myanmar [In cases where the tribes are foreign companies]
       
      And submit request for issuance of recommendation letter with those documents to related ministries and agencies. After you get a recommendation letter, apply for Stay Permit and Multiple Journey Special Re-entry Visa to Ministry of Immigration and Population, Department of immigration and Population.