DOING BUSINESS IN MYANMAR 2014 HR GUIDE

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.

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2. TAXATION Information on various tax rates, including income and corporate taxes. • OVERVIEW ON TAX • PERSONAL INCOME TAX • CORPORATE INCOME TAX

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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 2012. • MINIMUM WAGE LAW Recent developments and salient points relating to the Minimum Wage Law, which came into effect in 2013.

• 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.

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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

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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.

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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

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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

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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

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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.

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10. USEFUL LINKS/CONTACTS

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