Overview of Legal Framework for Hiring Employees

The basic legal framework regarding foreign and local employees is prescribed in the Myanmar Companies Act of 1914, though new rules and regulations for large-scale employers have been outlined in the recent Myanmar Citizens Investment Law and Foreign Investment Law.

Under these laws, all employers are obliged to…

  • Ensure equal rights for local workers and avoid salary bias, i.e., ensuring that local and foreign workers have the same salary at the same level.  
  • Ensure that all foreign employees apply for the proper work permit and visa through the Myanmar Investment Commission (MIC).
  • Provide rights and benefits including (but not limited to) leave, holidays, overtime pay, compensation and social security. (Most of the particulars here are in the Myanmar Companies Act).  
  • Settle disputes (within the law) between workers, employers, consulting experts or any other personnel involved in the business operation.


Most legal requirements are concerned with who investors employ, not how they employ them. Employers may find new workers through local employment agencies, state or private recruitment centers or their own methods.

Local Worker Ratios

Foreign employers must employ Myanmar citizens for 100% of unskilled labor.

The minimum portion of citizens for skilled jobs must be:

  • 25% within the first two years
  • 50% within the second two-year period
  • 75% within the third two-year period

The Commission may mandate certain ethnic labor requirements for operations in area populated by particular ethnic groups. 

The Employment Agreement

The investor shall conclude the employment agreement within 30 days from the date of appointment of  staff and labours in accordance with the instruction of Ministry of Labour, Employment and Social Security.

[However, prospective employees in a pre-hiring period for training or probation are exempt from this requirement. The agreement must be through and detailed, clearly describing…

  • The type of employment and workplace conditions such as worksite transportation, accommodation, and meal arrangements
  • Payment structure, including rate and salary, working hours, overtime policy, holidays and leave
  • Employer-provided benefits, such as insurance and travel and meal vouchers
  • Workplace requirements and regulations
  • Any training or probation periods and terms of resignation or termination of employment]
Source Credit : Directorate of Investment and Company Administration (

TVP Group (the ‘Group’) is a local firm that provides highest standard financial advisory services to both Myanmar companies and MNCs. With our diverse corporate network, we support our clients on group structuring, valuation, M&A, Joint Venture structuring and research, while offering a fair pricing.

Business Hours

Contact us