Workers Claim Employers Are Paying Below Minimum Wage and Deducting Subsidys

By Yoon Sat - Feb 13, 2025

Some employers are reportedly not paying the full amount and are deducting wages, according to workers although the minimum daily wage is set at 4,800 MMK with an additional 2,000 MMK as a support subsidy.

The cost of living has skyrocketed since the military coup, prompting demands to increase the minimum wage from 4,800 MMK to 10,000 MMK per day. However, the military regime has arrested and imprisoned workers who protested instead of raising wages.

Rather than officially increasing the minimum wage, the regime decided to add 1,000 MMK twice as a support subsidy, bringing the total to 2,000 MMK per day in 2023.

“The support subsidy was given in two parts, so in total, the minimum wage should be 6,800 MMK per day. However, some employers only pay 5,800 MMK and do not include the 2,000 MMK subsidy. Some factories only pay 1,000 MMK of the subsidy, while others do not pay anything at all. Factories that pay 6,800 MMK do not add the extra 2,000 MMK subsidy.We should be receiving 4,800 MMK plus 2,000 MMK. Some factories pay higher wages, reaching 400,000 to 500,000 MMK per month, and that’s how it should be. Wages should not be deducted, and all workers deserve the same treatment,” said a worker from Hlaing Tharyar Township.

Recently, workers at HC Garment Factory staged a protest after discovering that the factory had hired them at a rate of 5,800 MMK but was only paying 4,800 MMK. Additionally, they were not receiving the 2,000 MMK support subsidy, leading to a wage dispute inside the factory.

“At our workplace, we were not even informed about the subsidy deduction. They cut the 2,000 MMK subsidy if we miss a workday and if we come to work, they pay it. That’s how it works,” said a labor rights supporter.

The military’s wage increase policy has failed to address the skyrocketing cost of living faced by ordinary workers. With prices continuing to rise, garment workers say their ability to afford basic necessities has worsened.

The minimum daily wage of 4,800 MMK was set in May 2018, but after the military coup, in 2023, only a 2,000 MMK support subsidy was added. Workers argue that this small subsidy increase does nothing to keep up with inflation, leaving them struggling to survive.