Welcome additional allowance for employees amid rising costs

Recently, Myanmar’s National Committee for Setting Minimum Wages announced an additional K1,000 allowance for daily wage workers, raising the minimum wage to K6,800 for an eight-hour workday. This change is effective from 1 August, following a previous increase in October 2023 when the minimum wage was set at K4,800, with a K1,000 monthly allowance added for the first time.
Myanmar’s Minimum Wage Law, enacted in 2013, mandates a review and adjustment of the minimum wage every two years to reflect changing economic conditions. The initial minimum wage was set at K3,600 in 2015, followed by an increase to K4,800 in 2018. The law’s requirement for a regular review has not been met at this time, leading to the introduction of the additional allowance. The process of resetting the minimum wage for the third time has been delayed by more than six months, primarily due to factory closures, workforce reductions, and other economic challenges.
The introduction of the extra allowance is seen as a positive step to help employees cope with rising costs, particularly in the face of steep increases in commodity prices. Myanmar is currently experiencing high inflation, leading to significant price hikes in essential goods such as fuel, medicines, cooking oil, and basic foodstuffs. These increases have placed a heavy burden on daily wage workers and the general population, who are struggling to make ends meet.
Business owners are urged to consider the daily hardships faced by low-income families. Despite rising fuel and transportation costs, businesses are encouraged to reduce their profit margins on goods as much as possible. This would demonstrate a sense of responsibility and solidarity with the general public, who are often forced to cut back on basic expenses and take on debt to survive.
By adopting a mindset that recognizes all people as part of a broader community, business owners can foster a culture of empathy and support for those struggling in difficult economic times. The extra allowance for employees is a small but important step in helping workers manage the rising cost of living, and it highlights the need for continued efforts to support vulnerable populations in Myanmar.
Although the government adds an extra allowance for workers, employers in the private sector should not cut the welfare services for employees. Authorities need to reduce taxes and costs for businesspersons so as to reduce burdens for manufacturing industries. Only when the government, businesspersons, and employees are in unison at the workplace will employees have improved socioeconomic lives.