SSB capped at MMK 300k. PIT annualised. MMK-only filing. Myanmar payroll, solved.
Myanmar’s statutory on-costs look light – SSB is capped at just MMK 9,000 employer and MMK 6,000 employee a month – but the compliance choreography is not. It demands annualised progressive PIT with a 20% basic allowance and spouse/child/parent reliefs, the SSB salary-cap calculation, a 183-day residency test that flips non-resident foreigners onto relief-free rates, and settlement of every kyat in MMK under Central Bank foreign-exchange controls. Most providers deliver two of these. Mercans delivers all of them – on a single proprietary stack with no intermediaries.
native payroll
vs nearest peer
since inception
- Personal Income Tax
- Progressive 0–25%
- Corporate Tax
- 22% (17% YSX · 25% oil/gas)
- Employer SSB
- 3% · max MMK 9,000/mo
- Employee SSB
- 2% · max MMK 6,000/mo
- SSB Salary Cap
- MMK 300,000 / month
- Basic Allowance
- 20% of income (cap MMK 10M)
- Spouse Relief
- MMK 1,000,000 / year
- Child Relief
- MMK 500,000 / child / year
- Tax-Free Threshold
- ≤ MMK 4.8M / year salary
- Non-Resident PIT
- Progressive · no reliefs
- Minimum Wage
- MMK 7,800/day (10+ staff)
- Overtime
- 2× basic wage
- Maternity Leave
- 14 weeks · SSB 70%
- Payment Currency
- MMK only · FX controls
- PIT Annual Return
- By 30 June
Payroll compliance: the details that can’t be missed
Myanmar’s regulators enforce on annual reconciliation, not just monthly rhythm. The Internal Revenue Department reconciles monthly salary withholding against the full-year progressive liability at the 30 June annual return. The Social Security Board audits the 5-employee registration threshold and contribution bases. The Ministry of Labour enforces minimum wage, overtime, and the statutory severance scale. And every contribution and tax must be settled in MMK under Central Bank foreign-exchange controls – regardless of the currency staff are paid in. None of these failures announce themselves – they accumulate until a return or an inspection makes them visible.
SSB non-registration above the 5-worker threshold
Employers with five or more workers must register with the Social Security Board and remit contributions (ER 3% + EE 2%, capped at MMK 300,000 salary) by the 15th of the following month. Failing to register or under-declaring the base leaves the employer liable for arrears plus both shares for the non-compliant period.
PIT annualisation & relief errors
PIT is progressive and annualised: the 20% basic allowance (capped MMK 10,000,000), plus spouse, child, and parent reliefs, are reconciled at the 30 June annual return against monthly withholding. Systematic monthly errors surface as year-end shortfalls attracting a 10% penalty on unpaid tax plus late-filing charges.
Resident vs non-resident foreigner status
A foreigner present 183 days or more in the income year is a resident and taxed on the progressive scale with reliefs; below 183 days they are non-resident and taxed on the same progressive rates but with no deductions or reliefs. Applying the wrong status – or missing a mid-year change – produces systemic under- or over-withholding.
MMK-only settlement under FX controls
SSB contributions and income tax must be paid in Myanmar kyats even where staff are paid in foreign currency. With a volatile kyat and Central Bank foreign-exchange controls on conversion and remittance, funding the correct MMK amount on time is an operational exposure most offshore providers underestimate.
The three types of providers who struggle with Myanmar
Global Aggregator Platforms
Platforms like Deel, Remote, and Rippling operate through a partner network in Myanmar – they don’t own the entity, don’t directly manage SSB filings, and don’t control the IRD relationship. When the Union Tax Law changes or a minimum-wage allowance is added, the instruction travels: platform → partner → your payroll. Each handoff introduces delay and interpretation risk.
- ×No direct SSB relationship – third-party intermediary handles filings
- ×SSB MMK 300,000 salary-cap logic often hardcoded or absent
- ×PIT annualisation with basic allowance & reliefs handled manually
- ×MMK-only settlement under FX controls filtered through partner SLAs
Large Global Payroll Incumbents
ADP, Ceridian, and similar incumbents have Myanmar coverage – in name. In practice, their frontier-market coverage is often delivered through regional partners or legacy systems that weren’t built for annualised progressive PIT, the 183-day residency switch, or the interaction between SSB caps and MMK-only remittance.
- ×PIT annualisation and relief logic hardcoded, not dynamically updated
- ×183-day resident / non-resident switching handled off-system
- ×No statutory severance-scale engine (0.5–13 months by service)
- ×Long implementation timelines – Myanmar not a core market
Local Myanmar Firms
Local Myanmar accounting and bookkeeping firms know the market – but they can’t scale with you. No payroll technology platform, no HRIS integration, no multi-country consolidation, and no data-security certifications that multinationals require. Fine for 15 employees in Yangon. Inadequate at 150 across multiple townships and an SEZ.
- ×No proprietary payroll technology – manual spreadsheet-based processing
- ×No HCM connector – Workday, SAP, Oracle feeds require custom work
- ×No data-security certifications (SOC 1/2, ISO 27701, BCR)
- ×No APAC consolidation – cannot report across Myanmar + regional entities
The only provider that closes every gap
Mercans is the only Myanmar payroll provider that combines a proprietary payroll technology stack, full-time in-country compliance teams, direct IRD and SSB relationships, and enterprise-grade data security – simultaneously, on one contract, with no intermediaries.
The only engine built for Myanmar’s actual payroll architecture
G2N Nova™ is the world’s only API-first gross-to-net payroll engine. It natively runs Myanmar’s annualised progressive PIT with the 20% basic allowance and spouse/child/parent reliefs, enforces the SSB MMK 300,000 salary cap (max MMK 9,000 employer / MMK 6,000 employee), switches residents and non-resident foreigners on the 183-day test, and settles every statutory amount in MMK. This isn’t configuration. It’s engineering.
Full-time Myanmar team – not a partner you phone when things break
Mercans employs full-time payroll and compliance professionals in Myanmar. They maintain active relationships with the Internal Revenue Department, the Social Security Board, and the Ministry of Labour – not through a contact directory, but through ongoing regulatory engagement. When the Union Tax Law is enacted for the new financial year, when the SSB updates its schedule, when the minimum-wage committee adds a daily allowance – we know before it reaches your inbox.
The security posture multinationals require – even where local law is still emerging
Myanmar has no comprehensive data-protection statute; the closest instrument is the Law Protecting the Privacy and Security of Citizens (2017), which constrains how personal data may be accessed and disclosed. Mercans runs a GDPR-aligned posture on top: BCR approval, ISO 27701 certification, SOC 1 & 2 certifications, and ISO 27017/27018 – the complete certification stack most Myanmar and offshore providers cannot match. Zero security breaches since inception.
Where Mercans wins on every Myanmar-specific capability
Each row is a Myanmar-specific capability. Each cell shows native coverage as a fill bar – full = native in-platform, half = partial / manual workaround, empty = gap.
Myanmar Capability Coverage · 11 dimensions
max 9,000 / 6,000 per month
6 bands · 0–25%
cap MMK 10M · spouse/child/parent
under Central Bank FX controls
Every rate. Every cap. Every obligation.
Myanmar payroll operates on exact numbers with hard deadlines. Mercans builds every figure below into G2N Nova™ and monitors them proactively – so you’re never discovering a rate change from a penalty notice.
Myanmar · Rate & Compliance Dashboard
Live 2025–26SSB Is Capped – Not a Percentage of Full Salary
Employer 3% and employee 2% apply only to the first MMK 300,000 of monthly salary, so contributions are capped at MMK 9,000 and MMK 6,000. The scheme is compulsory at five or more workers, with payment due by the 15th of the following month. Mercans’ G2N Nova™ enforces the cap on every run – not as a hardcoded flat figure.
→ SSB MMK 300,000 cap logic in G2N Nova™PIT Is Annualised With Capped Reliefs
The six progressive bands (0–25%) are applied to annual income after the 20% basic allowance (capped MMK 10,000,000) and spouse, child, and parent reliefs. Monthly withholding is reconciled to the annual return by 30 June; systematic monthly errors surface as year-end shortfalls with a 10% penalty on unpaid tax.
→ Annualised PIT with capped-relief engineResidency Is a 183-Day Switch
Foreigners resident 183 days or more are taxed on the progressive scale with reliefs; below 183 days they are non-resident on the same rates but with no deductions. The former flat non-resident rate has been abolished. Non-resident Myanmar citizens working abroad may instead elect a 2% flat computation where lower.
→ 183-day residency switching in G2N Nova™MMK Settlement, MIC/SEZ Incentives, and Foreign Permits
All statutory amounts settle in MMK under Central Bank FX controls. Companies under a Myanmar Investment Commission permit or in a Special Economic Zone can access corporate income-tax holidays, while foreign staff require the correct stay permit and work registration and remain within PIT and SSB.
→ MMK settlement · MIC/SEZ · permit trackingRun a Myanmar payroll. Right here, right now.
Switch worker type. Move the slider. Every number you see is the same calculation G2N Nova™ runs in production – SSB capped at the MMK 300,000 salary ceiling, annualised progressive PIT with the 20% basic allowance, and true cost of employment exposed live.
Myanmar Payroll Sample · Live
G2N Nova™ engineEight things only Myanmar experts know to handle
These are the compliance details that don’t appear in standard payroll setup guides – but appear in every IRD annual reconciliation, SSB audit, and Ministry of Labour inspection we’ve encountered in Myanmar.
SSB Contributions Are Capped at MMK 300,000 of Salary
Employer 3% and employee 2% apply only up to a monthly salary of MMK 300,000 – so the contribution never exceeds MMK 9,000 (employer) and MMK 6,000 (employee), regardless of how high the salary is. The scheme is compulsory for employers with five or more workers, and contributions are due by the 15th of the following month.
PIT Is Progressive and Reconciled Annually
Salary tax runs on six annual bands from 0% to 25%. Employers withhold monthly and remit within 15 days of disbursement, but the true liability is annualised and reconciled on the return due by 30 June. No tax is due where annual salary income is MMK 4,800,000 or less.
The 20% Basic Allowance Has a Hard MMK 10M Cap
Residents deduct a basic allowance of 20% of total income, capped at MMK 10,000,000 per year, plus MMK 1,000,000 for a non-earning spouse, MMK 500,000 per qualifying child, and MMK 1,000,000 per dependent parent. SSB contributions and life-insurance premiums are also deductible. Reliefs require documented eligibility.
The 183-Day Test Flips Non-Resident Foreigners onto Relief-Free Rates
A foreigner in Myanmar 183 days or more in the income year is resident and taxed on the progressive scale with reliefs; below 183 days they are non-resident, taxed on the same progressive rates but with no deductions. The old flat non-resident rate is gone. Status can change mid-year and must be re-tested.
Statutory Payments Must Be Made in Kyats
SSB contributions and income tax must be settled in MMK even when the employee is paid in USD or another currency. With a volatile kyat and Central Bank foreign-exchange controls on conversion and outward remittance, the correct MMK amount must be funded and paid on the statutory date – a recurring operational exposure.
Minimum Wage Is a Base Plus Layered Allowances
The statutory base wage is MMK 4,800 per eight-hour day (MMK 600/hour), set in 2018. Three mandatory daily allowances of MMK 1,000 each – from October 2023, August 2024, and October 2025 – bring the effective daily minimum to MMK 7,800 for employers with 10 or more workers. Overtime is 2× the basic wage.
Severance Follows a Statutory Service-Length Scale
Severance on termination follows a graduated scale from half a month’s wage (6 months–1 year of service) up to 13 months’ wages (25+ years). Statutory leave adds earned leave (10 days), casual leave (6 days), and medical leave (up to 30 days) – each with its own accrual and eligibility rules.
MIC and SEZ Incentives Reshape the Tax Picture
Companies operating under a Myanmar Investment Commission permit or in a Special Economic Zone can access corporate income-tax holidays and other reliefs that change the surrounding tax profile. Foreign staff still require the correct stay permit and work registration, and remain within PIT and SSB even under incentive regimes.
One workforce. Two entirely different compliance tracks.
Local nationals and resident staff on full progressive PIT with reliefs vs. foreign and non-resident workers on the 183-day residency test require two distinct calculation frameworks, two sets of relief rules, and two different terminal settlements. Mercans runs both simultaneously on every pay cycle.
Parallel Compliance Engines
Progressive PIT with capped reliefs from Day 1. Six bands from 0% to 25%, applied after the 20% basic allowance (capped MMK 10,000,000) plus spouse, child, and parent reliefs. No tax where annual salary income is MMK 4,800,000 or less.
SSB is compulsory but capped. Employer 3% and employee 2% on salary up to MMK 300,000 – so a maximum of MMK 9,000 and MMK 6,000 a month, remitted by the 15th of the following month for employers with five or more workers.
Statutory severance follows a service-length scale. From half a month’s wage (6 months–1 year) up to 13 months’ wages (25+ years), alongside earned leave (10 days), casual leave (6 days), and medical leave (up to 30 days).
Monthly withholding, annual reconciliation. PIT is withheld monthly and remitted within 15 days of salary disbursement, then reconciled to the annual return due by 30 June. Payment is made in MMK regardless of the currency of pay.
Residency turns on 183 days in the income year. 183 days or more and the foreigner is resident – progressive rates with full reliefs. Below 183 days they are non-resident – the same progressive rates but with no deductions or reliefs. Status is re-tested and can change mid-year.
The old flat non-resident rate is abolished. Non-resident foreigners are now taxed on the progressive scale, not a flat rate. Non-resident Myanmar citizens working abroad may instead elect a 2% flat computation where that produces a lower charge.
SSB can still apply to foreign staff. Foreign employees engaged under Myanmar contracts by a covered employer fall within SSB on the same capped basis. Contributions are settled in MMK regardless of the currency the employee is paid in.
Work registration is a payroll prerequisite. Foreign workers need the correct stay permit and work registration; MIC- and SEZ-licensed employers follow specific procedures. Payroll without valid permits exposes the employer to enforcement action.
Every obligation. Every authority. Mercans owns the calendar.
Myanmar compliance runs across the Internal Revenue Department, the Social Security Board, and the Ministry of Labour on monthly, quarterly, annual, and event-triggered cadences over an April–March financial year. Mercans’ managed payroll absorbs every filing as standard scope – you don’t track deadlines. We do.
SSB Contribution Payment
Employer 3% + employee 2% on salary up to MMK 300,000 (max MMK 9,000 / MMK 6,000) remitted to the Social Security Board by the 15th of the following month for employers with five or more workers. The employer withholds and pays the combined amount in MMK.
PIT Salary Withholding
Personal income tax withheld from salary and remitted to the Internal Revenue Department within 15 days of disbursement. Computed on the annualised progressive scale (0–25%) with the basic allowance and reliefs, then reconciled at year-end.
Withholding Tax Remittance
Withholding tax on qualifying payments to suppliers and service providers (rates vary by payee type and residency) remitted to the IRD, in practice on a monthly basis within 15 days of payment. Non-resident payees attract higher WHT rates.
CIT Advance Payment
Corporate income tax paid quarterly in advance within 10 days after the end of each quarter, based on estimated annual profit. Reconciled against the annual CIT return. Standard CIT is 22% (17% for Yangon Stock Exchange-listed companies, 25% for oil and gas).
PIT Annual Return & Salary Statement
Annual personal income tax return and statement of annual salary, filed within three months of the 31 March year-end (by 30 June). Reconciles monthly withholding against the full-year progressive liability including all reliefs; shortfalls attract a 10% penalty plus late-filing charges.
CIT Annual Return
Annual corporate income tax return filed within three months of the 31 March financial year-end. Advance quarterly payments and the 2% advance income tax on imports/exports are credited against the final liability computed on worldwide (resident) or Myanmar-source (non-resident) income.
SSB Registration / Enrolment
Employers reaching five or more workers must register with the Social Security Board, and new employees must be enrolled and issued SSB cards. Registration typically completes within 7–14 working days. Late registration blocks employee benefit entitlements.
Severance & Final Settlement
Final settlement applying the statutory severance scale by length of service – from half a month’s wage (6 months–1 year) up to 13 months’ wages (25+ years) – plus accrued leave encashment and any outstanding entitlements under the employment laws.
Myanmar is one market. Mercans covers the entire region.
For companies running payroll across multiple Asian markets, complexity multiplies – not adds. Each country runs its own labour authority, social-security body, and tax regime. Mercans covers all major APAC markets on a single platform with country-specific compliance engines running in parallel.
covered
1 contract
consolidation
APAC
Every filing. Every format. Submission-ready.
Mercans generates the exact file types that the Internal Revenue Department, the Social Security Board, and the Ministry of Labour expect to receive – not formatted summaries that need reformatting before you can submit them.
