Myanmar's Ministry of Labour, Employment and Social Security announces a minimum amount of compensation rate for fired workers, aiming to resolve tensions between workers and employers

The Ministry of Labour, Employment and Social Security issued a statement July 3 that establishes a minimum amount of compensation for fired workers.

According to the statement, compensation must range between the value of half a month and 13 months of wages.

According to the statement, which was signed by Labour Minister Aye Myint, workers will be compensated according to their most recent paycheck. A worker with at least 6 months of service but less than a year will be paid half a month's wages; between one and two years gets a full month's wages; between two and three years gets a month and a half of wages; between three and four years gets three months' wages; between four and six years gets four months' wages; between six and eight years gets five months' wages; between eight and 10 years gets six months' wages; between 10 and 20 years gets eight months' wages; between 20 and 25 years gets 10 months' wages; and workers with over 25 years of service receive 13 months' wages as compensation upon their termination.

The ministry's decision has been seen as a step toward resolution in the tensions between workers and employers in Myanmar in recent months.

Since the announcement of a new minimum wage to be set at Ks 3,600, business owners, especially in the garment and manufacturing industries, have threatened to close their factories and leave the country without offering compensation to their workers.

Workers have requested that the government take up the role of mediator between the two parties in order to reduce further confrontations and possible conflicts.

Minister Aye Myint promised workers at a field visit and assessment trip to the Dagon Port Industrial Zone that the government will do its best to find a solution to the minimum wage impasse.

Source: http://elevenmyanmar.com/local/govt-announces-minimum-compensation-rates-terminated-workers

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