DOING BUSINESS IN MYANMAR 2014 HR GUIDE
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1 DOING BUSINESS IN MYANMAR 2014 HR GUIDE
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3 CONTENTS 1. MYANMAR: AN OVERVIEW STATISTICS Statistical information covering Myanmar s population, GDP growth, inflation rate, religion, demographics, etc. A BRIEF HISTORY An overview of the country s recent history, as well as recent developments in the country. ECONOMY An overview of Myanmar's economic progress. ECONOMIC REFORMS Phasing out foreign-exchange certificates. Foreign banks allowed to begin some operations. FOREIGN INVESTMENT Updates on foreign direct investment in Myanmar. KEY TRADING PARTNERS Highlights Myanmar s key trading facts with a comprehensive view of exports and imports compositions over a five-year period. INVESTMENT CHALLENGES Covers infrastructure issues, the need for legal system improvements, terrorism threats, health considerations, etc. 2. TAXATION Information on various tax rates, including income and corporate taxes. OVERVIEW ON TAX PERSONAL INCOME TAX CORPORATE INCOME TAX 3. LEGISLATION UPDATES TO LEGISLATION Brief updates on recent legislative amendments, such as labor laws. THE LABOR ORGANIZATION LAW Covers the details of the law that was enacted in MINIMUM WAGE LAW Recent developments and salient points relating to the Minimum Wage Law, which came into effect in 2013.
4 FOREIGN INVESTMENT LAW Key highlights of the law, which took on new detailed regulations in early 2013, including issues pertaining to ownership, restricted sectors, and more. THE SOCIAL SECURITY LAW 2012 (DRAFT) Summary of the changes the law brings, detailed under each scheme below: SOCIAL SECURITY FUND Details the funds included as well as compulsory or voluntary contributions. HEALTH AND SOCIAL CARE INSURANCE SYSTEM BENEFITS Health and medical entitlements of the insured person. MEDICAL TREATMENT FOR SICKNESS AND INCURRING OF EXPENSES Duration for medical treatment and types of medical institutions where treatment can be sought. CASH BENEFITS RELATING TO SICKNESS Covers market practices and guidelines on cash benefits for sickness and the conditions that the insured person has to fulfil before receiving the benefit. MATERNITY BENEFIT Covers market practices and guidelines for maternity leave, medical care, and associated cash benefits. PATERNITY LEAVE/BENEFIT Covers market practices, leave, and cash benefit guidelines upon insured person becoming a father. FUNERAL GRANT Market practice and guidelines for condolence allowance upon the death of the insured person. RETIREMENT BENEFITS Retirement benefits for government employees, including the stipulated benefits entitlement based on their length of contribution. FAMILY ASSISTANCE INSURANCE SYSTEM BENEFITS Brief information on education allowance, health care, relief material, and cash assistance. INVALIDITY BENEFIT Benefits entitlement of the insured person based on length of contribution. UNEMPLOYMENT INSURANCE SYSTEM Covers the measures and entitlements for unemployment benefits. EMPLOYMENT INJURY BENEFIT INSURANCE SYSTEM Information on the temporary disability and permanent disability benefits. WORKMEN S COMPENSATION ACT Covers compensation in the event of death/disablement for employees that are not insured under the Social Security Law. EMPLOYMENT AND SKILL DEVELOPMENT LAW This section addresses the requirements of this new law, including monthly employer contributions required, training guidelines, and use of apprentices.
5 4. WORKING TIME AND LEAVE Market practices and guidelines of the various types of leave and overtime pay policies are covered in this section. WORKING HOURS AND OVERTIME PAY ANNUAL LEAVE SICK LEAVE AND HOSPITALIZATION LEAVE 5. HIRING AND TERMINATION EMPLOYMENT CONTRACTS Common clauses in employment contracts for Myanmar. TERMINATION Offences that can result in the dismissal of an employee. NOTICE PERIOD AND SEVERANCE PAYMENT The common practice for notice period and severance payment. 6. MYANMAR S SECTORS OF OPPORTUNITY Specific information on each sector below, including market information, barriers to entry, government support, regulations and ongoing developments. BANKING INSURANCE ELECTRICITY GENERATION TELECOMMUNICATIONS 7. BUILDING AN HR STRATEGY Outlining key HR components that help to tie up a successful workforce strategy, including: GENERAL ADVICE FOR COMPANIES WORKFORCE ENGAGEMENT PERFORMANCE MANAGEMENT 8. COMPENSATION AND BENEFITS This section explores the market compensation for Myanmar s key positions and compares salaries across Myanmar and Thailand. We also take a comprehensive look into the prevalence of specific benefits and allowances. SALARIES OF KEY POSITIONS PAY DIFFERENTIALS BY EMPLOYEE CATEGORY SALARY INCREASE VARIABLE BONUS BENEFITS
6 9. KEY CONSIDERATIONS FOR EXPATRIATES WORK PERMITS PERMANENT RESIDENCY SCHEME VISA AND TRAVEL RESTRICTIONS HEALTH CARE COST OF LIVING IN YANGON Covers cost-of-living elements such as housing, education, and business travel, as well as price tables on common goods and services. 10. USEFUL LINKS/CONTACTS
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