Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Myanmar (Ratification: 1954)

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Articles 1 and 3 of the Convention. Minimum wage fixing machinery. Further to its previous comments, the Committee notes with interest the adoption of the Minimum Wage Act, 2013, which provides for minimum wage fixing machinery covering the commercial, production, service, agricultural and livestock breeding sectors. The Committee also notes the Government indication in its report that the minimum wage established in 2015 in application of the new Act is in force for the whole country irrespective of regions and categories of industry.

Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Articles 1 and 3 of the Convention. Minimum wage fixing machinery. Following up on its previous comments, the Committee notes the Government’s statement that the country is in a transitional period and that existing labour laws are being amended while new ones are being adopted. The Government also states that in this context the Minimum Wages Act, 1949 is in the process of being reviewed to be brought fully in line with relevant international labour standards. The Committee understands that new draft minimum wage legislation is being prepared and it has been communicated to the Office for preliminary comments. The Committee is particularly encouraged by recent developments, namely the International Labour Conference decision of June 2012 to lift most of the limitations in ILO activities and technical assistance which had been applied since 1999, and the conclusions of the Officers of the Governing Body who visited the country in May 2012 and who observed the rapid transformation of Myanmar’s relationship with the multilateral system. The Committee accordingly expresses the firm hope that in this climate of transition towards a more open and democratic society, the Government will seize the opportunity to introduce all necessary changes for the modernization of the minimum wage legislation and the establishment of a truly comprehensive system of minimum wages based on workers’ needs and periodically reviewed after consultation with employers’ and workers’ representatives. The Committee requests the Government to keep the Office informed of any progress made regarding the approval of the new Minimum Wages Act by the National Parliament (Pyidaungsu Hluttaw) and to transmit the text of the new legislation once it has been adopted.

Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Articles 1 and 3 of the Convention. Minimum wage fixing machinery. The Committee notes that the Government is still not in a position to indicate any progress on a number of issues raised in previous comments, including the possible extension of minimum wage protection to industrial sectors other than the rice-milling and cigar- and cheroot-rolling industries, the revision of the minimum wage rates applicable in those sectors, the establishment of new minimum wage councils, the collection of statistical data on the evolution of economic indicators, such as the inflation rate, in recent years compared to the evolution of minimum wage levels, and the effective enforcement of the minimum wage legislation. In its last report, the Government merely indicates that existing labour laws are currently under review to ensure compliance with the Constitution and that any new draft legislation will eventually be submitted to the Parliament. Recalling the Government’s earlier statements that the minimum wage rates in force were no longer in line with market wages and needed readjustment, and also that the determination of minimum wages for the oil and garment industries was under consideration, the Committee asks the Government to take prompt action in this direction and to keep the Office informed of any concrete results.

Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

Articles 1 and 3 of the Convention. Minimum wage fixing machinery. The Committee notes that the Government’s report essentially reproduces information already communicated previously and does not reply to the specific points that the Committee has been raising over the past ten years, namely the extension of minimum wage protection to industrial sectors other than the rice-milling and cigar- and cheroot-rolling industries, the revision of the minimum wage rates in force, the evolution of minimum wage rates as compared to the evolution of economic indicators such as the inflation rate in recent years, and the enforcement of the minimum wage legislation in practice. The Committee notes with regret that, whereas the Government indicated earlier that the extension of the minimum wage fixing machinery to other industries such as the printing, oil-milling and garment industries was under consideration and that the minimum wage rates applicable to the rice-milling and the cigar- and cheroot-rolling industries were no longer in line with market wages and needed to be adjusted, its last report remains completely silent on these matters. The Committee further notes that the labour inspection statistics provided by the Government refer only to the number of inspection visits carried out in 2007–08 but give no indication as to the results obtained in terms of violations observed, sanctions imposed or amounts of wages recovered. The Committee therefore asks the Government to make every possible effort to collect and provide up to date information on the application of the Convention in law and practice and also to indicate the concrete measures it intends to take for the extension of minimum wage coverage to sectors other than rice-milling and cigar- and cheroot-rolling and the readjustment of existing minimum wage rates.

[The Government is asked to reply in detail to the present comments in 2010.]

Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the information provided in the Government’s report indicating that the Minimum Wage Act of 1949, which provides for the establishment of minimum wage councils, is still in force. It also notes that such councils continue to exist solely for the rice-milling and the cigar- and cheroot‑rolling industries. In this regard, the Committee notes the data sent by the Government concerning the number of enterprises and workers covered by such councils. The Committee is nevertheless forced to note that the Government’s report does not respond to the points raised in its previous comments concerning the following matters: (i) the extension of the minimum wage fixing machinery to other industries such as the printing, oil-milling and garment industries, which, according to the Government, has been under consideration for a number of years; (ii) the raising of the minimum wage rates applied in the rice-milling and the cigar- and cheroot-rolling industries, which, according to the Government’s recent reports, are no longer in line with market wages; (iii) the providing of up to date information on the application of the Convention in practice and, in particular, on the minimum wage rates currently in force in various industries; (iv) the providing of comparative statistics on the evolution of economic indicators, such as the inflation rate in recent years and minimum wage levels over the same period, and extracts from official reports and relevant studies; (v) the communication of data on inspection visits carried out, any reported violations of minimum wage legislation, and the measures taken to remedy the situation.

The Committee asks the Government to provide comprehensive information on these various matters in its next report. It once again urges the Government to take the necessary measures to ensure that the scope and level of minimum wage rates are such as to permit those rates to fulfil their role as tools of social protection and poverty reduction.

[The Government is asked to report in detail to the present comments in 2008.]

Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the Government’s report. It notes, in particular, that by Notification No. 60/2006 of 24 March 2006, the Ministry of Finance and Revenue has increased the minimum wage rate for public employees to 15,000 kyats (approximately US$18.75) per month whereas the minimum wages applicable to the traditional rice-milling and the cigar- and cheroot-rolling industries remain unchanged at the level established more than ten years ago, that is 100 kyats (approximately US$0.13) per day or 3,000 kyats (approximately US$3.75) per month. The Government makes also reference to a survey conducted in 105 factories, mainly in the garment, wood and fish processing industries, showing that the minimum wage rates practiced in these enterprises are higher than the minimum wages applicable in the public sector.

Article 1, paragraph 1, and Article 3, paragraph 2(2), of the Convention. The Committee notes the Government’s indication that the possible establishment of new minimum wages councils will be considered after the new Constitution is promulgated. It recalls, in this regard, that the Government has been reporting for a number of years that the extension of the minimum wage-fixing machinery to other industries such as the printing, oil-milling and garment industries is under consideration. In addition, the Government has been indicating that the minimum wage rates applicable to the rice-milling and the cigar- and cheroot-rolling industries are no longer in line with market wages and need to be adjusted. The Committee is concerned about the absence of any concrete progress in either direction and draws once more the Government’s attention to the fact that the application of a minimum wage system may only serve a meaningful purpose if it allows for the periodic review and adjustment of minimum wage rates in a manner that permits low-paid workers to satisfy their basic needs and enjoy a decent standard of living. Otherwise, minimum wages lose their purchasing power and eventually become irrelevant. The Committee urges therefore the Government to take the necessary measures to ensure that the scope and level of minimum wage rates are such as to permit them to fulfil their role as tools of social protection and poverty reduction.

Article 5 and Part V of the report form. The Committee notes that according to the latest statistical information provided by the Government, concerning the number of establishments subject to minimum wage orders and the number of workers covered, in 2005-06 there were 4,061 enterprises employing 7,873 workers in the rice-milling industry and 548 enterprises employing 2,966 workers in the cigar- and cheroot-rolling industry. The Committee requests the Government to continue to provide up to date information concerning the application of the Convention in practice, in particular the minimum wage rates currently in force in the above industries, any comparative statistics of the evolution of economic indicators, such as the inflation rate in recent years and of minimum wage levels over the same period, extracts from official reports and relevant studies, data on inspection visits and the results obtained in matters covered by the Convention, etc.

Observation (CEACR) - adopted 2005, published 95th ILC session (2006)

The Committee notes the Government’s report. It regrets that despite its repeated comments made in the past years, the Government has not as yet been in a position to take any substantive measures with a view to readjusting the minimum wage rates in force or expanding the coverage of the minimum wage legislation to industries other than the rice-milling and the cigar- and cheroots-rolling industries.

Article 1, paragraph 1, and Article 3, paragraph 2(2), of the Convention. The Committee recalls that the Government has been reporting for a number of years that the extension of the minimum wage-fixing machinery to the printing, oil-milling and garment industries is under consideration. In addition, the Government has been indicating that the minimum wage rates in force for the rice-milling and the cigar- and cheroots-rolling industries, established in 1993 and 1995 respectively, no longer reflect market wages and need to be revised. However, no active steps have been taken in either direction and therefore minimum wage levels remain unchanged for more than a decade and continue to apply to only a small fraction of low-paid workers.

The Committee has consistently taken the view that when minimum rates of pay are left to lose most of their value so that they ultimately bear no relationship with the real needs of the workers, minimum wage fixing is in fact reduced to a mere formality void of any substance. The Committee therefore requests the Government to indicate the measures it intends to take to ensure that the minimum wage fulfils a meaningful role in social policy, which implies that it should not be allowed to fall below a socially acceptable "subsistence level" and that it should maintain its purchasing power in relation to a basic basket of essential consumer goods. The Committee also requests the Government to keep it informed of any developments concerning the establishment of new minimum wage councils and the determination of minimum rates of pay for industries other than rice-milling and cigar and cheroots rolling.

Article 5 and Part V of the report form. The Committee notes the statistical information provided by the Government concerning the number of establishments subject to minimum wages orders and the number of workers covered. More concretely, in 2003-04 there were 4,371 enterprises employing 8,186 workers in the rice-milling industry and 609 enterprises employing 3,243 workers in the cigar- and cheroots-rolling industry. The Committee requests the Government to continue to provide up-to-date information concerning the application of the Convention in practice, in particular the minimum wage rates currently in force in the above industries, the evolution of these rates in recent years as compared to the evolution of economic indicators such as the inflation rate or the national average wage, extracts from official reports and relevant studies, data on inspection visits and the results obtained in matters covered by the Convention, as well as any other particulars which would enable the Committee to better appreciate the operation of the system of minimum wages in both law and practice.

[The Government is asked to reply in detail to the present comments in 2006.]

Observation (CEACR) - adopted 2004, published 93rd ILC session (2005)

The Committee notes the Government’s report which replies only partially to the matters raised in its previous comments.

Article 1, paragraph 1, and Article 3, paragraph 2(2), of the Convention. The Committee recalls its previous observation in which it requested the Government to indicate any progress made with regard to expanding the minimum wage legislation to industries other than the rice-milling industry and the cigar- and cheroots-rolling industry. The Government, without offering any specific information on this point, states that workers in the private sector generally enjoy wages higher than the minimum wages prescribed while in the public sector the minimum wage was last increased in 2000 by order issued by the Minister of Finance and now amounts to 100 kyats daily or 3,000 kyats monthly. The Committee recalls that a system of minimum wages serves hardly any useful purpose as a measure of social protection designed to overcome poverty and to ensure the satisfaction of the workers’ subsistence needs unless minimum wage rates are periodically reviewed in light of the socio-economic conditions prevailing in the country. It therefore asks the Government to provide in its next report detailed information, including copies of the most recent statutory instrument(s) establishing minimum wage rates on: (i) the sectors of economic activity and different categories of workers which are currently subject to minimum wage legislation; (ii) the criteria used in readjusting minimum wage rates from time to time, the rate of recent increases and whether such increases are adequate to maintain the purchasing power of workers concerned in relation to a basic basket of essential goods; and (iii) the measures taken to ensure the prior consultation and equal representation of employers’ and workers’ organizations in the operation of the minimum wage fixing machinery.

Article 5 and Part V of the report form. The Committee notes the statistical data provided by the Government according to which in 2003 there were 3,971 establishments employing 10,225 workers in the rice-milling industry and 649 establishments employing 3,784 workers in the cigar- and cheroots-rolling industry. The Committee requests the Government to continue to provide up-to-date information concerning the application of the Convention in practice, in particular the minimum wage rates currently in force in the above industries, the evolution of these rates in recent years as compared to the evolution of economic indicators such as the inflation rate or the national average wage, extracts from official reports and relevant studies and any other particulars bearing on the functioning of the minimum wage system.

[The Government is asked to reply in detail to the present comments in 2005.]

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

Article 5 of the Convention and Part V of the report form. The Committee notes that the last time the Government supplied information on the practical application of the Convention was in 1993. The Committee hopes that the Government will provide in its next report up-to-date information on the effect given to the Convention in practice, including, for instance, the approximate number of establishments and workers covered by the minimum wages orders in force, the minimum wage rates currently in operation, available statistics on inspection visits and the results obtained in matters dealt with in the Convention, as well as any other particulars which would enable the Committee to better appreciate the progress achieved or the difficulties encountered in discharging the obligations arising from the Convention.

Observation (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the information supplied in the Government’s reports.

Articles 1, paragraph 1, and 3, paragraph 2(2), of the Convention. The Government has been reporting for some time past that it is considering extending the coverage of minimum wage legislation to industries other than the rice milling industry and the cigar and cheroots rolling industries in respect of which minimum wages councils have long been in operation. The Government has also been stating that wages fixed by minimum wages orders have little relevance to the actual wages in the labour market and that it therefore intends to adopt new procedures for the revision of those wage rates. The Committee requests the Government to indicate in its next report any progress made in this respect specifying in particular the measures taken to ensure that the employers and workers concerned are associated in equal numbers and on equal terms in determining or adjusting minimum wage levels. Furthermore, in the absence of any reply to its previous comments relating to the point raised in paragraphs 473 to 475 and 512 of the report of the Commission of Inquiry appointed under article 26 of the Constitution of the ILO to examine the observance by Myanmar of the Forced Labour Convention, 1930 (No. 29), the Committee is bound to renew its request for explanations concerning the manner in which minimum wage rates are established and applied to local people called up for labour or services in various construction projects and agricultural works. Finally, the Committee asks the Government to keep it informed of any developments with regard to the enactment of the new labour law to which reference was made in an earlier report.

Observation (CEACR) - adopted 2000, published 89th ILC session (2001)

The Committee notes that the Government’s report has not been received. It must therefore repeat its previous observation which reads as follows:

The Committee notes that the Government’s report contains no reply on some of the matters raised in its previous observation. The Committee recalls the sections concerning the payment of wages in the report of the Commission of Inquiry appointed under article 26 of the Constitution of the ILO to examine the observance by Myanmar of the Forced Labour Convention, 1930 (No. 29).

  Article 1, paragraph 1, of the Convention, in conjunction with Article 4.  The Committee has noted from the previous report of the Government that the extension of the coverage relating to minimum wage fixing will be delayed for a while awaiting the enactment of the new labour law. It has also observed that, according to the report of the above Commission of Inquiry (paragraphs 473 to 475 and paragraph 512), local people in irrigation projects are denied remuneration and compensation, and are paid only in exceptional circumstances and then below market rates. The Committee again urges the Government to indicate the manner in which a minimum wage rate is applicable to local people in irrigation projects; also to state, in accordance with Article 4 of the Convention, the measures taken or contemplated, including supervision, inspection and sanctions, so as to ensure: (i) that the employers and workers concerned are informed of these rates in cases where they are applicable; and (ii) that a worker to whom the minimum rates are applicable and who has been paid at less than these rates shall be entitled to recover, by appropriate legal means, the amount by which he or she has been underpaid.

  Article 1, paragraph 2, in conjunction with Article 3.  The Committee requests the Government once more to inform it to what extent the employers’ and workers’ organizations are involved in the fixing, revision and extension of the minimum wage. It also asks the Government to provide a copy of the new labour law as soon as it is adopted.

  Part V of the report form.  The Committee requests the Government to communicate extracts from the reports of the inspection services and on any other relevant data of the application of the Convention in practice.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.

Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

The Committee notes that the Government's report contains no reply on some of the matters raised in its previous observation. The Committee recalls the sections concerning the payment of wages in the report of the Commission of Inquiry appointed under article 26 of the Constitution of the ILO to examine the observance by Myanmar of the Forced Labour Convention, 1930 (No. 29).

Article 1, paragraph 1, of the Convention, in conjunction with Article 4. The Committee has noted from the previous report of the Government that the extension of the coverage relating to minimum wage fixing will be delayed for a while awaiting the enactment of the new labour law. It has also observed that, according to the report of the above Commission of Inquiry (paragraphs 473 to 475 and paragraph 512), local people in irrigation projects are denied remuneration and compensation, and are paid only in exceptional circumstances and then below market rates. The Committee again urges the Government to indicate the manner in which a minimum wage rate is applicable to local people in irrigation projects; also to state, in accordance with Article 4 of the Convention, the measures taken or contemplated, including supervision, inspection and sanctions, so as to ensure: (i) that the employers and workers concerned are informed of these rates in cases where they are applicable; and (ii) that a worker to whom the minimum rates are applicable and who has been paid at less than these rates shall be entitled to recover, by appropriate legal means, the amount by which he or she has been underpaid.

Article 1, paragraph 2, in conjunction with Article 3. The Committee requests the Government once more to inform it to what extent the employers' and workers' organizations are involved in the fixing, revision and extension of the minimum wage. It also asks the Government to provide a copy of the new labour law as soon as it is adopted.

Part V of the report form. The Committee requests the Government to communicate extracts from the reports of the inspection services and on any other relevant data of the application of the Convention in practice.

[The Government is asked to report in detail in 2000.]

Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the information provided in the Government's report. It also notes the sections concerning the payment of wages in the report of the Commission of Inquiry appointed under article 26 of the Constitution of the ILO to examine the observance by Myanmar of the Forced Labour Convention, 1930 (No. 29).

Article 1, paragraph 1, of the Convention, in conjunction with Article 4. The Committee notes from the Government's report that the extension of the coverage relating to minimum wage fixing will be delayed for a while awaiting the enactment of the new labour law. It also observes that, according to the above Commission of Inquiry's report (paragraphs 473 to 475 and paragraph 512), local people in irrigation projects are denied remuneration and compensation, and are paid only in exceptional circumstances and then below market rates. The Committee recalls the obligation of the ratifying State, under Article 1, paragraph 1, of the Convention, to create and maintain a minimum wage fixing machinery for workers employed in certain of the trades or part of trades in which two conditions are fulfilled, namely: (i) the absence of arrangements for the effective regulation of wages by collective agreement or otherwise; and (ii) the existence of exceptionally low wages. The Committee requests the Government to indicate in which respect a minimum wage rate is applicable to local people in irrigation projects, and to indicate, in accordance with Article 4 of the Convention, the measures taken or contemplated: (i) to ensure, including by means of supervision, inspection and sanctions, that the employers and workers concerned are informed of the minimum wage rates in force and that wages are not paid at less than these rates in cases where they are applicable (Article 4, paragraph 1, of the Convention); and (ii) to ensure that a worker to whom the minimum rates are applicable and who has been paid at less than these rates shall be entitled to recover, by appropriate legal means, the amount by which he or she has been underpaid (Article 4, paragraph 2, of the Convention).

Article 1, paragraph 2, in conjunction with Article 3. The Committee requests the Government to indicate to what extent the employers' and workers' organizations are involved in the fixing, revision and extension of the minimum wage. It also asks the Government to provide a copy of the new labour law as soon as it is adopted.

[The Government is asked to report in detail in 1999.]

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the following matters raised in its previous direct request:

The Committee hopes that the Government will supply information on the results of the application of the minimum wage fixing machinery including, inter alia, the approximate number of workers covered, the minimum rates of wages fixed, and the more important of the other conditions, if any, relevant to the minimum rates as required by Article 5 of the Convention. The Committee also requests the Government to indicate any measures taken for the extension of the minimum wage fixing machinery to industries other than the cheroot and cigar rolling industry and the rice milling industry.

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes the Government's report. It hopes that the Government will supply information on the results of the application of the minimum wage fixing machinery including, inter alia, the approximate number of workers covered, the minimum rates of wages fixed, and the more important of the other conditions, if any, relevant to the minimum rates as required by Article 5 of the Convention. The Committee also requests the Government to indicate any measures taken for the extension of the minimum wage fixing machinery to industries other than the cheroot and cigar rolling industry and the rice milling industry.