Myanmar’s minimum wage has been set at Kyats 4800 for an 8-hour working day or an hourly rate of Kyats 600 since 2018. While the minimum wage has not changed, the National Committee for Setting the Minimum Wages (the Committee) issued Notification No.2/2023, providing for an additional allowance of Kyats 1000 per day starting from 1 October 2023.
Now with the latest Notification No. 1/2024 of the Committee and No.54/2024 of the Ministry of Planning and Finance, another additional surplus allowance of Kyats 1000 has been approved for daily wage workers. Hence, starting from August 2024 the total daily wage for government departments and organisations workers will rise to Kyats 6800.
Small businesses or family-owned business with ten or fewer workers are exempted from this wage increase.
This will be welcome relief for workers who have been struggling to cope with soaring inflation. According to the latest World Bank Economic Monitor, CPI inflation has been over 25% for the past two financial years.
Monitoring the impact of the recent announcement is important, given that the Myanmar economy is reactive to shifts in policy. A recent increase of Kyats 30,000 in the monthly benefits for government workers appeared to have exerted extra strain on the Kyat's valuation.
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