By Hanthar Hein - Nov 09, 2023

According to the Ministry of Labor under the Military Council, workers who work in businesses with 10 or more workers will be paid an additional allowance of 1,000 kyats per day as well as a minimum wage of 4,800 kyats, but overtime wages will only be calculated using the previously set minimum wage of 4,800 kyats.

The Ministry of Labor announced on October 9 that the subsidy of 1000 kyats will start on October 1, 2023, but there is no clarity.

 Some workers thought that the overtime wages should be calculated based on 5,800 kyats including 1,000 kyats allowance, causing confusion, according to the labor supporters.

"As the additional allowance of 1,000 kyats is allowed for working days starting from 1/10, 2023, and according to the 1951 leave and working holiday law, the daily wage becomes 4,800 kyats, and we will have to calculate the overtime with that, and 1,000 kyats will be under the title of stipend,'' said the official of the ministry.

According to the statement, except for small businesses with less than 10 workers, any worker regardless of location or type of business, would be entitled to a uniform benefit of 5,800 kyats. Among those covered, day laborers must be paid a wage of 5,800 kyats for 8 hours of work.

According to the 1951 Law on Leave and Working Holidays, the 1,000 kyat additional allowance will be covered for public holidays and regular government holidays, but if the employee is absent from work on normal days without a leave complaint, the 1,000 kyats allowance would not be covered.

At present, there are local factories that pay a minimum wage of 4,800 kyats including the 1,000 kyats subsidy, and there are factories that have not yet paid the subsidy, and some factories have paid more than 5,800 kyats, but after the release of this statement, they only paid 5,800 kyats including the specified amounts of subsidies, according to the workers.