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Myanmar PEO: Benefits & Best Services in 2024

A Myanmar Professional Employer Organization (Myanmar PEOs) is a professional services provider that acts as the local co-employer of your Myanmar (also known as Burma) team. By working with a Myanmar PEO, international businesses save on the substantial cost of setting up a local Myanmar subsidiary. 

Key Takeaways

  • Myanmar (Burma) PEOs provide essential HR services, enabling businesses to enter the Myanmar market.
  • They manage legal and regulatory compliance, reducing operational risks for companies.
  • The top 5 Myanmar PEOs are Safeguard Global, Globalization Partners, Horizons, Atlas and Remote.

What Is a Myanmar PEO?

A Professional Employer Organization (PEO) operates by entering into a joint-employment relationship with a company, becoming the administrative employer for tax purposes while the client company continues to oversee the employees’ day-to-day activities.

In Myanmar (also known as Burma), PEOs enable businesses to operate within the country’s borders without establishing a physical branch or subsidiary. They handle HR tasks, payroll, compliance, and risk management.

Top 5 Myanmar PEOs

  1. Safeguard Global is an international PEO company supporting businesses to hire in 180+ countries. Safeguard Global is one of the few Myanmar PEOs that also offer company incorporation services for businesses that seek a formal legal presence in that country. 
  2. Globalization Partners provides a premium PEO service in Myanmar and throughout the world. For companies that seek work visa and HR support in addition to PEO, Globalization Partners is a good choice. 
  3. Horizons is an international PEO platform with a strong presence in Myanmar and throughout the region. Horizons can support your company with recruitment and work visas in Myanmar, as well as traditional PEO services. 
  4. Atlas is a global employment organization that hires employees anywhere in the world, including Myanmar, through its network of wholly-owned entities. Atlas is an excellent choice for companies that seek to work only with Atlas, and avoid subcontractors. 
  5. Remote is a global HR SaaS platform that offers PEO solutions in Myanmar and throughout the world. Through their Remote Talent service you also get access to exclusive access to top talent in Myanmar and elsewhere, alongside your PEO service. 

Benefits of Using a Myanmar PEO

Utilizing the services of a PEO in Myanmar provides tangible advantages:

  • Cost Savings: Companies save on the expense of establishing and maintaining a legal entity.
  • Quick Market Entry: Businesses can commence operations swiftly, sometimes within days.
  • Compliance: PEOs manage regulatory and legal compliance, mitigating the risk of non-compliance penalties.
  • Local Expertise: PEOs offer local knowledge of employment laws and practices, which is crucial for foreign companies unfamiliar with the Myanmar business landscape.

Legal Framework for PEOs

The governance of PEOs in Myanmar falls under the general purview of labor laws and regulations concerning foreign investments and employment. Recent policy reforms have included anti-corruption measures, exchange rate regulations, and revised taxation rates. These reforms have made using a PEO in Myanmar increasingly attractive to foreign investors thanks to the added clarity and security in business operations.

Starting Operations in Myanmar

When embarking on business expansion into Myanmar, companies must navigate market entry, adhere to employment laws, and understand local cultural nuances.

1. Market Entry Strategy

To successfully enter the Myanmar market, a company often chooses to partner with a Professional Employer Organization (PEO) due to the complexities of establishing a legal entity. Services provided by a PEO in Myanmar streamline the setup process allowing businesses to commence operations swiftly, which can translate to beginning commercial activities within days.

2. Employment Compliance

Ensuring compliance with Myanmar’s labor laws is crucial. A PEO helps businesses by acting as the administrative employer of your local Myanmar team. This mitigates the risks associated with employment contracts, payroll, taxes, and worker’s compensation. 

3. Cultural Considerations

The cultural landscape in Myanmar is rich and diverse, which affects business interactions and workplace dynamics. Foreign entities must appreciate the significance of hierarchy and respect in Burmese business culture. Furthermore, having a grasp of Burmese language can be an asset, although many businesses operate in English to some degree. Cultural awareness is essential for building meaningful local connections and achieving long-term success.

HR Management in Myanmar

From recruitment to payroll, companies can rely on PEOs to ensure compliance with local regulations and to foster a supportive work environment.

1. Recruitment and Onboarding

The recruitment process is an area where PEOs provide substantial value. They offer customized recruitment solutions that match the company’s specific needs, ensuring a seamless integration of new employees into the organization. During onboarding, PEOs in Myanmar take charge of all necessary legal paperwork and job training procedures, setting up employees for success from day one.

2. Payroll and Tax Administration

PEOs effectively handle payroll processing and tax filings to adhere to Myanmar’s legal requirements. They ensure that all compensations are computed accurately and that employees receive their paychecks on time. Moreover, tax administration is meticulously managed to avoid any non-compliance issues, which can be especially complex for foreign companies unfamiliar with local laws.

3. Employee Benefits Management

Employee satisfaction is closely tied to the benefits they receive. PEOs skillfully manage various employee benefits programs, including health insurance, retirement plans, and leave entitlements. They work to provide competitive packages that not only comply with Myanmar’s labor laws but also attract and retain talent. The management of these benefits is handled with the utmost attention to detail, ensuring both company and employee contentment.

4. Legal and Regulatory Compliance

In Myanmar, ensuring adherence to legal and regulatory norms through a Professional Employer Organization (PEO) supports businesses in navigating complex local legislation. This service is crucial for maintaining full compliance with work permits, labor laws, and risk mitigation.

5. Work Permits and Visas

For foreign workers in Myanmar, obtaining the necessary work permits and visas is a meticulous process that involves various governmental departments. The PEO handles such administrative tasks, including applications, renewals, and maintaining the legal status of employees. This ensures that the workforce is legally compliant and can operate without interruption.

6. Risk Management and Compliance

A PEO in Myanmar plays a vital role in risk management and compliance. This includes:

  • Monitoring changes in employment law.
  • Advising on health and safety regulations.
  • Ensuring adherence to tax laws and insurance obligations.

By managing these responsibilities, a PEO mitigates legal risks, protecting both the company and its employees.

Financial Considerations

When engaging a Professional Employer Organization (PEO) in Myanmar, companies must carefully assess the financial implications of such a partnership. Precise understanding of the cost structure and tax obligations is crucial to maintain compliance and budgetary control.

1. Cost Structure of a PEO

In Myanmar, the cost structure of a PEO typically follows a fixed pricing model, where businesses are charged a per-employee fee each month. These fees can range from $200 to $1,000 per employee, depending on the complexity of the services provided. Companies should anticipate these costs and factor them into their financial planning.

2. Taxation for Foreign Entities

For foreign companies, understanding the taxation landscape in Myanmar is vital. The recent policy reforms in Myanmar have streamlined the tax system, yet foreign entities must still navigate corporate income tax, customs duties, and other tax liabilities. Engaging a PEO can assist in managing these responsibilities effectively, ensuring compliance with local laws.

Choosing a PEO Partner

When entering the Myanmar market, selecting a strong PEO partner is crucial for compliance and operational success. A meticulous approach can simplify complex labor laws and HR management for foreign companies.

1. Evaluation Criteria

In the assessment of potential PEO partners, companies should focus on several key criteria. Experience in the local market is paramount; it ensures that the PEO is familiar with Myanmar’s regulatory environment. Service offerings are another critical aspect; they should cover the gamut of human resources needs, from payroll to employee benefits. An experienced PEO with a track record in Myanmarcan guide businesses through these challenges effectively.

Companies should also weigh the technology utilized by the PEO. A user-friendly platform can greatly enhance efficiency and accessibility for managing HR functions. Customer support, including language proficiency and response time, should not be overlooked, as this will be vital for ongoing communication. Lastly, the PEO’s reputation, as discerned through references and reviews, will lend insight into their reliability and quality of service.

2. Contract Negotiation and Onboarding

Successful contract negotiation hinges on a clear understanding of the service level agreement (SLA). Companies must ensure that all HR services needed are well-defined and included in the contract. Transparent pricing structures are essential to avoid unexpected costs.

During onboarding, the PEO must provide a comprehensive implementation plan. This should include timelines, responsibilities, and support levels throughout the transition. Businesses must receive detailed information on factors to consider before choosing the right PEO or EOR partner to ensure a seamless integration of services. Regular communication and a dedicated contact person within the PEO can facilitate a smoother onboarding process.

Hire in Myanmar with a Trusted PEO

By using a PEO solution to hire in Myanmar, you can save money and time, and ensure that your Myanmar team is hired in full compliance with local labor and tax laws. 

When using a PEO in Myanmar, it is important to choose a trusted hiring partner. We recommend Safeguard Global, Globalization Partners, Horizons, Atlas and Remote as the leading Myanmar PEO companies. 

FAQ

A Myanmar PEO helps manage the risks associated with employing staff in Myanmar, including handling employment disputes, ensuring workplace health and safety, and managing any legal issues related to employment.

Yes, many Myanmar PEOs offer recruitment services, alongside their PEO solutions. 

Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.

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