On 9 August 2024, the National Committee for Setting the Minimum Wage under the Government of the Republic of the Union of Myanmar issued a new notification (“Notification”), increasing wages for workers nationwide. The Notification introduces additional allowances on top of the existing minimum wage rates, effective from 1 August 2024.
Minimum Wage Adjustment
Under Section 10(d) of the Minimum Wage Law 2013 and following extensive negotiations with tripartite representatives, the national minimum wage has been set at 600 kyats per hour, which amounts to 4,800 kyats for an 8-hour workday. This rate has been effective since 14 May 2018, as per Notification No. (2/2018).
Additional Allowances
Starting from 1 October 2023, an additional daily allowance of 1,000 kyats was introduced for all workers. This was in line with the Leave and Holidays Act of 1951, as stipulated in Notification No. (2/2023) dated 9 October 2023. As of 1 August 2024, a further 1,000 kyats allowance will be added to the existing wages and allowances. This brings the total daily wage for an 8-hour workday to 6,800 kyats, effective immediately.
Application to Government Workers
Wages for daily employees and day laborers in government departments and organizations were increased by an additional 1,000 kyats on top of the existing fixed-wage of 4,800 kyats for an 8-hour workday, starting in October 2023. This monthly allowance was introduced to provide further support to these workers. As of 1 August 2024, an extra 1,000 kyats subsidy has been added, bringing the total daily wage for day laborers to 6,800 kyats. The Ministry of Planning and Finance officially announced this update on 26 July 2024, under Notification No. (54/2024).
Scope of Application
This wage adjustment does not apply to small businesses employing fewer than ten workers and excludes family-owned businesses.
Minimum Wage History
Here is a historical overview of the minimum wage rates and allowances over time, reflecting changes in wage policies and adjustments made to ensure fair compensation for workers.
Superseding Previous Notifications
The current Notification supersedes Notification No. (2/2023) dated 9 October 2023, by the National Committee for Setting the Minimum Wage, establishing the new wage standards moving forward.
This new Notification represents a continued effort by the Myanmar government to improve workers’ livelihoods through fair wage practices. The additional allowances, especially in a challenging economic climate, are expected to provide significant relief to workers nationwide.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
