Payroll and Benefits Guide Macau
Last updated: May 10, 2023
Employer Payroll Contributions
Social Security contribution per employee
Total Employment Cost
Employee Payroll Contributions
Social Security contribution
Total Employee Cost
Employee Income Tax
|0.00%||Up to 144,000 MOP|
|7.00%||144,001 MOP to 164,000 MOP|
|8.00%||164,001 MOP to 184,000 MOP|
|9.00%||184,001 MOP to 224,000 MOP|
|10.00%||224,001 MOP to 304,000 MOP|
|11.00%||304,001 MOP to 424,000 MOP|
|12.00%||Above 424,001 MOP|
* For employees over the age of 65 or proven to be 60% disabled or above, the tax-free income threshold will be further increased to MOP 198,000 for the tax year 2022.
The minimum wage in Macau is MOP6,656 MOP per month for monthly paid employees, MOP1,536 MOP per week for weekly paid employees, 256 MOP per day for daily paid employees, and 32 MOP per hour for hourly rate employees.
MINIMUM WAGE (PER MONTH)
The typical payroll cycle in Macau can be daily, weekly, fortnightly, or monthly basis.
There is no statutory requirement to provide a 13th salary.
The standard workweek consists of six days at eight hours per day equating to 48 hours maximum per week. According to Labour Law (Article 42) in Macau, employees are entitled to a paid period of rest of twenty-four consecutive hours per week.
All hours exceeding the standard 48 hours are paid as overtime and are regulated by employment contract/collective agreements. In general, overtime is paid at 120% of the standard salary rate or according to the agreement with the employer where it is common to pay 150%.
Monday-Friday or Monday-Saturday
Paid Time Off
Paid leave in Macau is outlined in the employment contract as a minimum of six days paid leave a year following the completion of one year of service in addition to public holidays.
For employees with less than one year’s service but more than three months of service, the leave entitlement will be three days of paid leave. Leave should be used in the allotted year though by agreement, it can carry over for up to a period of two years.
There are 10 mandatory public holidays, however, there are several other public holidays, which are also common to give off.
Public holidays that fall on the weekend are moved to a weekday as a day off in lieu.
In accordance with Macau Labour Law (Article 53), an employee who has completed the probationary period is entitled to six days of paid statutory sick leave per year.
All female employees are eligible for maternity benefits, (following completion of one year’s service), consisting of 70 days maternity leave, with 56 days paid by the employer and the remaining 14 days paid by the Social Insurance (FSS).
With effect from May 26th, 2023, the employer will be responsible for paying for the entire 70 days.
PAID MATERNITY LEAVE (DAYS)
The father is entitled to mandatory paid paternity leave of a total of five days—to be taken within thirty days following the birth—once they have completed one year of service.
There are no provisions in the law regarding parental leave.
Employees are entitled to six days of leave in the event of their marriage. Employees in Macau are entitled to three days’ leave following the bereavement of a direct relative, with the potential to increase this to 12 days.
Employers can terminate a fix term contract by giving the following reasons – business, personal, or employees misconduct. It requires notice and a written explanation for the termination.
The statutory notice period in Macau is as follows:
- 15 days in the case of rescission on the initiative of the employer
- 7 days in the case of rescission on the initiative of the employee
- In the case of termination with a just cause, the initiating party is not required to serve a previous notice
According to Labour Law (Article 70) in Macau, termination payment is applicable if rescission is without just cause on the initiative of the employer. The employer may rescind the contract at any time irrespective of just cause, in which case the employee is entitled to compensation for an amount equivalent to:
- Seven days of the basic remuneration if the labor relation has a duration above the probationary period, but also up to one year.
- Ten days of the basic remuneration per year of service if the labor relation has a duration above one year, but also up to three years.
- Thirteen days of the basic remuneration per year of service if the labor relation has a duration above three years, but also up to five years.
- Fifteen days of the basic remuneration per year of service if the labor relation has a duration above five years, but also up to seven years.
- Sixteen days of the basic remuneration per year of service if the labor relation has a duration above seven years, but also up to eight years.
- Seventeen days of the basic remuneration per year of service if the labor relation has a duration above eight years, but also up to nine years.
- Eighteen days of the basic remuneration per year of service if the labor relation has a duration above nine years, but also up to ten years.
- Twenty days of the basic remuneration per year of service if the labor relation has a duration of more than ten years.
There is no clear provision in labor laws on the duration of the probation period in Macau, though generally it’s 30 days for a fixed-term contract and 90 days for an indefinite contract.
Non-residents of Macau must have a work permit that is issued by the Labor Affairs Bureau. Before any work permit is issued, the employer should obtain authorization from the Chinese government to hire non-resident workers. This permission is granted from either the Macau SAR’s chief executive or another delegated government body.
Hiring non-resident workers should be limited to circumstances where local employees are unable to meet work objectives. The employment of non-resident workers should not result in the termination of resident employees or a decline in working conditions for resident workers. The process to obtain a work permit often takes three to four months from the initial request to hire non-resident workers.
There is no VAT in Macau SAR.
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Public Holidays Calendar
|Sunday||Jan-1||New Year's Day|
|Monday||Jan-2||New Year’s Day Holiday||Day Off in Lieu|
|Sunday||Jan-22||Lunar New Year’s Day|
|Monday||Jan-23||The Second Day of Lunar New Year|
|Tuesday||Jan-24||The Third Day of Lunar New Year|
|Wednesday||Jan-25||Lunar New Year Holiday||Day Off in Lieu|
|Wednesday||Apr-5||Cheng Ming Festival|
|Friday||Apr-7||Good Friday||Not a mandatory holiday but very common to give off.|
|Saturday||Apr-8||Day Before Easter||Not a mandatory holiday but very common to give off.|
|Monday||Apr-10||Day Before Easter Holiday||Day Off in Lieu|
|Friday||May-26||Buddha's Birthday||Not a mandatory holiday but very common to give off.|
|Thursday||Jun-22||Dragon Boat Festival||Not a mandatory holiday but very common to give off.|
|Saturday||Sep-30||Second Day of the Mid-Autumn Festival|
|Monday||Oct-2||Day after National Day||Not a mandatory holiday but very common to give off.|
|Tuesday||Oct-3||Mid-Autumn Festival Holiday||Day Off in Lieu|
|Wednesday||Oct-4||National Day Holiday||Day Off in Lieu|
|Monday||Oct-23||Double Ninth Festival|
|Thursday||Nov-2||All Souls' Day||Not a mandatory holiday but very common to give off.|
|Friday||Dec-8||Feast of the Immaculate Conception||Not a mandatory holiday but very common to give off.|
|Wednesday||Dec-20||Special Administrative Region Establishment Day|
|Friday||Dec-22||Winter Solstice||Not a mandatory holiday but very common to give off.|
|Sunday||Dec-24||Christmas Eve||Not a mandatory holiday but very common to give off.|
|Monday||Dec-25||Christmas Day||Not a mandatory holiday but very common to give off.|
|Tuesday||Dec-26||Christmas Day Holiday||Day Off in Lieu|