Myanmar: Increase of Additional Allowance Rates for Workers
In Brief
According to Notification No. 1/2025 issued by the National Committee for Determining the Minimum Wage on 14 October 2025, the daily wage of daily workers in government departments or organizations has been increased by an additional One Thousand Kyats (MMK 1,000; approx. USD 0.48 as of 28 January 2026), approving a total daily wage of Seven Thousand Eight Hundred Kyats (MMK 7,800; approx. USD 3.75 as of 28 January 2026).
Key Provisions
A. Previous Minimum Wage Rate
With the approval of the Union Government, the National Committee determined a daily wage of Four Thousand Eight Hundred Kyats (MMK 4,800; approx. USD 2.3 as of 28 January 2026) for all workers for eight (8) working hours under Notification No. 2/2018 dated 14 May 2018.
Under the 1951 Leave and Holidays Act, Notification No. 2/2023 was issued to grant an additional allowance of One Thousand Kyats (MMK 1,000; approx. USD 0.48 as of 28 January 2026), effective from 1 October 2023, followed by Notification No. 1/2024 which was issued to grant an additional allowance of One Thousand Kyats (MMK 1,000; approx. USD 0.48 as of 28 January 2026), effective from 1 August 2024, on top of the existing allowance.
B. Increased Daily Wage Rate
On 9 September 2025, the Ministry of Finance and Revenue issued Notification No.110/2025 to provide an additional allowance of One Thousand Kyats (MMK 1,000; approx. USD 0.48 as of 28 January 2026) to daily wage workers.
Under the 1951 Leave and Holidays Act, daily wage workers are entitled to a daily wage of Seven Thousand Eight Hundred Kyats (MMK 7,800; approx. USD 3.75 as of 28 January 2026) for eight (8) working hours, effective from 1 October 2025.
C. Non-Applicable Businesses
The newly increased daily wage for daily wage workers is not applicable to businesses with fewer than ten workers and to small family businesses.
D. Penalties
If an employer fails to comply with any order pursuant to the provisions of the 1951 Leave and Holidays Act, the employer shall be liable to a term of imprisonment not exceeding three (3) months, or to a fine not exceeding Fifty Thousand Kyats (MMK 50,000; approx. USD 24.03 as of 28 January 2026), or both. In addition, such employer is responsible for paying all wages and all remuneration that must be paid to the employee under the 1951 Leave and Holidays Act.
Conclusion
ILAW MYANMAR specializes in labor law and regulatory monitoring, providing timely updates on Myanmar’s evolving legal framework. From interpreting government notifications on wage adjustments to advising on compliance with relevant labor regulations and statutory requirements, we assist clients in understanding their legal obligations and mitigating potential risks through practical and accurate legal guidance.
