Working hours…

• Shall not exceed 8 working hours per day or 44 hours per week
• Shall not exceed 48 hours per week for the work which has to be done continuously
• There must be a minimum 30 minutes interval after each 5 working hours
• The combined working hours and interval time shall not exceed 10 hours per day
• The working days shall not exceed 6 days per week
• There must be one day holiday each week (Sunday). If Sunday service is required, there must be a substitution of another day.

Overtime…

• Shall not exceed more than 16 hours per week or, for continuous work, 12 hours per week
• The overtime wage shall be calculated as double the basic wage
•  
• Permission of Factories and the General Labour Law Inspection Department must be obtained for an approval of a constant overtime policy.

If working on days-off…

• Comply in accordance with the overtime and general working hour provisions
• There must be substituted an alternative day-off.

Calculation of overtime wages…

• For salary earners: Overtime wage per hour = {(salary x 12 month) / 52 week x 44 (48) hrs} x 2
• For daily wages worker: Overtime wage per hour = {(daily wage x 6 day) / 44 (48) hrs} x 2
• Piece-work labourers: Overtime wage per hour = {(daily average wage x 6 day) / 44 (48) hrs} x 2

Worksite Safety and Health Measures…

• The factory must be kept clean and the workspace must be situated away from drains, latrines or other things which create a bad or unhealthy smell.
• There must be proper ventilation, light and heat.
• There must be no dust or smoke in the hall or factory.
• There must be clean drinking water in proper places for all workers.
• Population of workers must not be dense and there must be sufficient light.
• The latrines must be in suitable places.
• The generators and other auxiliary units must be kept undercover.
• There must be arrangements made for any emergency cut out of electricity service.
• In weaving or spinning machines, any female workers and any children must not be allowed to handle.
• Females and young workers are not allowed to lift heavy loads.
• Floors, stairs and paths must be well-built and hand rails are to be built and necessary covers must be placed.
• In every factory, the arrangement of escape routes and fire alarms must be kept.

Welfare…

• There must be washing and cleaning facilities for workers.
• There must be sufficient seats for workers if a chance is given for sitting.
• There must be sufficient First Aid Boxes.
• If the workers in a factory exceed 250, doctors or nurses in clinic are to be appointed.
• If the workers of a factory exceed 100, recreation centres and canteens are to be kept for food.
• For factories with over 100 mother workers, there must be a child nursery centre available for the children under 5 years of age, arranged according to guidance from the Ministry of Social Welfare, Relief and Resettlement. Factories with fewer than 100 mother workers must arrange a suitable space for nursing mothers.

Penalty for violation…

Individuals violating this law may be sentenced to up to 2 years of imprisonment.

Objective…

Benefit for sickness, maternity, death, employment injury, invalidity benefit, superannuation benefit by: giving medical treatment, providing cash benefit or granting a right to residency.

Contribution of funds…

• All establishments shall contribute to the social security fund from the salary of insured workers, commencing from 1 April, 2014 as follows:
  • (a) Health and social care fund: 2% from employer, 2% from employee
  • (b) Injury fund: 1% from employer
  • Total:3% from employer, 2% from employee (total 5% contribution).
  • Note: The accepted maximum salary per month to qualify for participation in the social security fund is currently set at 300,000 kyats

Social Security Funds…

1. Health and social care fund
2. Family assistance fund
3. Injury fund
4. Invalidity benefit, superannuation benefit, and survivors’ benefit fund
5. Unemployment benefit fund
6. Other social security fund (hosing plan).

• (Note: Recently, only (1) to (3) are established. The rest are pending.)

Benefits…

Medical treatment and cash benefit for sickness…

• Beneficiaries have the right to take medical treatment at the permitted hospital or clinic for a period up to 26 weeks.
• When the insured person/beneficiary is retired, s/he is entitled for 50% payment of medical treatments if social security contributions have been paid for more than 180 months.
• Beneficiaries have the right to enjoy 60 percent of average wages, calculated against the most recent four month working period, as a cash benefit, during a period of illness lasting up to maximum 26 weeks.

Benefits relating to maternity…

• Benefits are allowed to be taken if the prior working period of an employee has been a minimum of one year and if there have been paid social security contributions by the worker for a minimum of six months.
• Maternity leave may total six weeks before confinement and eight weeks after confinement, up to 14 weeks in total. An additional four weeks are allowed for maternity leave if twins have been delivered
• Up to a maximum of six weeks total leave is allowed to be taken in cases of miscarriage
• Full wages may be taken for prenatal examination at the rate one day per time and up to a maximum of seven times
• 70% of average wages of the previous year can be taken as maternity leave compensation before the birth
• …plus an additional 50% of wages which can be taken once the child is born (additional 75% for twins, 100% for triplets). Hence, 120% of average wages will be administered for the eight weeks of maternity leave which may be taken after birth
• A parent has the right to take leave for medical treatment for their child up until one year after birth
• A father is entitled to take up to 15-days unpaid leave for infant care upon confinement of his wife

Benefits for funeral expenses…

• If under any circumstance a Social Security insured person passes away, his or her beneficiary is entitled to receive five times their average month’s wage. This is determined as the average wage of the last four working months of the deceased person.

Obligations of employers…

• To inform the Social Security Office within 24 hours when an injury has happened to an employee
• To register their business in the Social Security Office within 30 days from the day of first business operations
• To register every newly appointed employee with the Social Security Office

Opportunity for the employer…

The employer who registered in accordance with the Social Security Law has the right to be exempted from the Workmen’s Compensation Act.

Penalties…

• Any employer who fails to make the stipulated contributions shall be required to pay all defaulted contributions, defaulting fees and must pay all necessary medical or funerary benefits of the Social Security registered employee.
• An employer who defaults to pay contributions for his employees may be punished with one year imprisonment, with fines or with both
• Any person who violates any provisions contained in the rules, regulations, by-laws, and orders shall be punished with three months imprisonment, with a fine, or with both.

(The Social Security Rules and The Social Security Regulations, 1955 are repealed under these Rules)

Aim/objective…

Receipt of wages is made regularly. Unlawful deductions are not to be made.

Provision Period of Payments…

• The payment period may not exceed 1 month.
• Wages payments must be made within 5 days after the succeeding month for companies with 100 or more employees; –
• For factories employing fewer than 100 persons, payment must be maid on the last day of the payment period
• Wages must be paid during the working days (not during off days)
  If an employee is terminated, wages must be paid within 2 days from the date of termination

Prohibition for illegal deductions…

No deductions shall be made except for the following:

According to Chapter 3, Section 7, the employer can deduct:

(a) Can deduct from wages for absences except when such absence is during a public holiday or entitled leave, according to the law.
(b) Accommodation charges and transportation charges, meal allowances, charges for water and electricity, taxes and errors in payment shall be allowed for deduction.
(c) Can deduct from pre-issued, expensed and saved (or) contributed amount according to the law upon the employee contract.
(d) The Employer can deduct with the judgment of the Court of Arbitrator Jury Council.

According to Chapter 3, Section 11, the employer can also deduct for:

(a) Direct damage which is either intentional or due to negligence or due to the failure of the employee concerned with company property to take proper care.
(b) A breach of the employment contract or breech of any rules for which a fine had been previously set.

No other deductions are allowed, except those covered above by Sections 7 and 11 of Chapter 3.

Furthermore, according to Chapter 3, Section 10, no deductions shall ever be allowed for any workers under the age of 16.

The maximum amount which can be deducted…

• Total deductions cannot exceed 50% of wages entitled.

Penalty for violation…

• Up to 2 years imprisonment.

Full English language text of the 2016 Payment of Wages Act is available for download as a PDF here:

2016 Payment of Wages Act (English)

Aim/objective…

• To facilitate employment which is appropriate to the age and ability of the job seeker
• To help workers obtain employment and to provide stability of employment and skills development for employees
• To help employers obtain appropriate employees

Please note, as of July, 2018 factories are required to use this Employment Contract template (PDF link) as standard practice. Amendments can be added to this contract template with approval of the Ministry of Labour, Immigration and Population.

The facts required to be included & specified in the employment agreement are…

1. Type of employment
2. Probation period
3. Wage, salary
4. Location of establishment
5. Term of agreement;
6. Working hours
7. Days-off, holidays and leave
8. Working overtime
9. Meal arrangements within working hour
10. Accommodation
11. Medical treatment
12. Travel arrangements to/from work
13. Regulations to be followed by the employee
14. If the employee is sent to attend training, limitation agreed by the employee to continue his duty after the training
15. Employee resignation and termination of establishment
16. Termination of agreement
17. Obligations under the conditions of agreement
18. Termination of employment agreement by the mutual understanding of employer and employee
19. Any other matters
20. Specifying, amending and adding the conditions of agreement
21. Miscellaneous

• Aforesaid specifications shall not be less than the benefits of existing laws
• The employer shall send a copy of the employment agreement entered into by the employer and employee to the relevant employment exchange office within the stipulated period and shall obtain its approval
• An employment agreement concluded before the entering into force of this law shall continue to be valid until the end of the term of the original agreement.

Penalty for not following the law…

May be punished with a fine and/or imprisonment of up to 7 years.

(The Employment and Training Act, 1950 is repealed under this Law)