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CESD’s Labor Market Reform Working Paper No. 1/2016 identifies three focus areas for policy makers to ensure an effective implementation of the recent minimum wage system, namely:
- ensuring that businesses comply with the new minimum wage law and government agencies enforce the law;
- monitoring and measuring the impacts of the minimum wage policy on different variables, including formal jobs, informal employment, wage levels, wage distribution, poverty, and social welfare;
- ongoing reviews and adjustments to the minimum wage system, to ensure it remains relevant and appropriate under changing economic and social conditions.
CESD’s Labor Team is providing training and capacity building to graduating students from the Yangon University of Economics as they prepare to undertake research on the socio-economic impacts of the minimum wage. A legal minimum wage was introduced in Myanmar in September 2015. It’s impact on employees and employers will be the focus of the research undertaken by the University of Economics students.
Since the establishment of Myanmar’s minimum wage in September 2015 (at 3,600 kyat per 8-hour day), CESD has monitored the challenges facing the implementation of the minimum wage law, and the opportunities for more effective implementation. CESD is also undertaking a legal review of labour laws related to Myanmar’s minimum wage, including the Employment and Skill Development Law, 2013, and Social Security Law, 2012.
To support this review, CESD has been meeting with representatives from different levels of government, workers organizations and industrial zones to discuss the challenges facing labour law implementation.