Myanmar seeks establishment of national minimum wage for workers

Myanmar's Labor Ministry is encouraging a prompt negotiation between employers and employees in garment factories in Yangon for establishing a national minimum wage for workers.

The ministry is trying to get a proposed figure for the national minimum wage out of the negotiation and submit to the parliament for debate and approval. The minimum wage is expected to be announced in the months ahead.

Parliament speaker U Shwe Mann suggested both employers and workers consider the daily wage level of 3,000 Kyats (about 3 U.S. dollars) for government employees set by the Ministry of Finance and Revenue as a standard for setting the minimum wage level for workers.

The current minimum daily wage levels range from 900 Kyats to 1, 300 Kyats in industrial zones.

The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) urged the government to adopt policy and work to decrease the country's transportation costs in order to decrease commodity prices in the country.

According to the rules and by-laws of the Minimum Wage Law, the minimum wage level can be amended within two years after its announcement.

The Minimum Wage Law was enacted in March 2013 and the government approved the related by-laws in July 2013.

On the occasion of the Workers Day, Myanmar President U Thein Sein stressed the need to settle dispute between employers and workers based on commiseration in accordance with the labor dispute settlement law, however, warning that if they are settled in accordance with the wish of individuals neglecting the law, it will seriously hurt productivity s well as the interest of both employers and workers.

He also warned that workers' demonstration will have a negative impact on the economy of the country unless these dispute can be handled properly or reduced in accordance with the law as manufacturing industries and livelihood of workers families will be hurt, foreign investment will be hindered and expansion plans of local entrepreneurs will be delayed.

He emphasized the need for employers to build peaceful, safe and healthy work environment by taking into account corporate social responsibility and promoting a system that prevent damage to the social environment without considering only profit in running their businesses.

Meanwhile, Myanmar's parliament passed the government's decision to raise salaries of state employees beginning April, the current fiscal year of 2015-16.

The increment will be made once two years instead of once a year previously, while abolishing monthly allowances.

The government designated that the original minimum salaries of 75,000 Kyats ( about 70 U.S. dollars) will be increased by 60 percent to 120,000 Kyats, while the maximum salaries of 250,000 Kyats will be raised by 100 percent to 500,000 Kyats depending their rank positions.

Myanmar government has allocated 2.9 trillion Kyats (2.67 billion U.S.dollars) for government employees' salaries for 2015- 16 fiscal year to meet 1.4 million government employees in the country.

The government last allowed in January 2014 a pay rise for government employees for 2014-15 fiscal year .

It was the fourth time that the present government allowed pay rise since it took office in March 2011.