Hundreds of Myanmar migrant workers on leave have been barred from returning to their jobs after failing to provide proof of contributions to the military regime’s coffers. Over the past three weeks, the regime’s Labor Department has blocked the departure of over 300 overseas workers—mostly for failing to meet 2023 mandates to pay 2 percent income tax and remit 25 percent of their earnings through official channels.
The regime is squeezing foreign currency from overseas migrant workers amid a cash crunch caused by international sanctions, foreign investment flight, and economic mismanagement.
In May, the Labor Ministry ruled that migrant workers seeking to return home on leave must obtain an endorsement letter from the Myanmar embassy or consulate in their host country. Applications for the letter must be accompanied by written permission from employers along with proof of income tax and remittance payments.
At the end of their leave, returnees must again submit endorsement letters and evidence of compliance with tax and remittance rules to the Labor Department. Labor Ministry data shows numerous returnees from Singapore and Malaysia have been barred from returning and asked to resubmit applications.
“Many of us dare not visit home even though we want to,” a Myanmar migrant worker in Singapore told The Irrawaddy. “Endorsement from the [Myanmar] embassy is difficult to obtain, and many are afraid they won’t be allowed to leave after returning.”
He added that most workers use unofficial channels to remit money to their families in Myanmar, as they offered better exchange rates and convenience than regime-run banks.
Others have given up on returning to their war-torn country.
“When their visas expire, some even try to move on to other countries instead of returning to Myanmar,” he said.
Meanwhile, new Labour Minister Maung Myint is ramping up enforcement of income and remittance rules for overseas workers, threatening penalties for failure to comply. Two days into his tenure, he declared collection of the funds was a “key duty” and threatened punishment for workers who failed to comply
He reiterated the point in a meeting with overseas employment agencies and remittance brokers in Naypyitaw on Saturday, stressing that “remittance serves the national interest” and workers should consider them “a donation.”
He told agencies they would be rewarded based on how much remittance they could collect.
More than 100 overseas employment agencies have been banned from recruiting after failing to report evidence of remittance collected from workers sent abroad, while others face license revocation and fines.
Experts warn that tighter remittance restrictions by the regime are in the pipeline as foreign currency inflows from its major exports such as oil and gas continue to shrink. The skimming of migrants’ earnings threatens to cut a lifeline for millions of families struggling amid economic collapse and conflict. Myanmar’s total remittance value soared to US$ 5.6 billion in 2025, according to Bloomberg – more than doubling since 2019.
