Macau is a Special Administrative Region of China and is often referred to as the “Las Vegas of Asia” due to its thriving casino industry.
Payroll and Benefits Guide - Macau
Fun Facts
Macau is the most densely populated region in the world, with a population of approximately 670,000 people in an area of just 32.9 square kilometers
Macau was a Portuguese colony for over 400 years until it was returned to China in 1999.
The official languages of Macau are Chinese (Cantonese) and Portuguese.
Macau is famous for its impressive skyline and modern architecture.
Macau is home to the world’s largest casino, The Venetian Macao.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Social Security contribution | 30 MOP |
Employer Payroll Tax
| Contribution Type | Rate |
| Social Security contribution per employee | 60 MOP |
Payroll
Payroll Cycle
Payroll cycles in Macau can often occur daily, weekly, biweekly, or monthly.
13th Salary
The payment of 13th salary is not mandated by law.
Work Hours and Week
The typical workweek is made up of six days with eight hours each day, or a maximum of 48 hours per week. Employees in Macau are entitled to a paid period of rest for twenty-four hours each week, as stated in Article 42 of the labor code.
Overtime
Every hour above the typical 48 hours is compensated as overtime, and this payment is governed by the job contract and collective agreements. In general, overtime is compensated at 120% of the usual wage rate or, if agreed upon with the employer, at 150%.
Leave
Paid Time Off
Following the completion of one year of service, and in addition to public holidays, paid leave in Macau is defined in the employment contract as a minimum of six days paid leave each year.
Employees who have worked for less than a year but more than three months will be entitled to three days of paid leave. Although per agreement, leave may be carried over for up to two years, it must be utilized within the designated year.
Public Holidays
There are ten public holidays that are required, but there are also a number of extra holidays that are frequently given off.
Weekend public holidays are changed to a weekday as an alternative day off.
Sick Days
An employee who has successfully completed the probationary term is entitled to six days of paid statutory sick leave per year under Macau Labour Law (Article 53).
Maternity Leave
Following one year of employment, all female workers are entitled for maternity benefits, which include 70 days of paid leave, of which 56 days are covered by the employer and 14 days by the Social Insurance (FSS).
Starting on May 26th, 2023, the employer will be liable for covering the full 70 days.
Paternity Leave
After one year of employment, the father is entitled to a total of five days of required paid paternity leave, which must be used within thirty days of the baby’s birth.
Parental Leave
There are no parental leave provisions in the law.
Termination
Termination Process
Employers may end a fixed-term agreement by citing wrongdoing on the part of the employee, business, or personal reasons. It necessitates notification and a justification for the termination in writing.
Notice Period
The following describes the Macau statutory notice period:
- 15 days in the event of revocation at the employer’s request
- If the employee decides to cancel on their own, they have seven days to do so.
- The originating party is not obligated to give prior notice in the event of termination for reasonable cause.
Severance Pay
In accordance with Macau’s Labour Law (Article 70), termination payments are required if the employer initiates the revocation without good reason. Regardless of justification, the employer has the right to cancel the contract at any moment, and in such event, the employee is entitled to pay in the amount of:
- If the employment relationship lasts longer than the probationary term, but no more than one year, seven days of the basic salary.
- If the employment relationship lasts more than one year, but no longer than three years, then ten days of the basic salary are paid for each year of service.
- If the employment relationship lasts more than three years, but no longer than five years, then 13 days of the basic salary are paid every year of service.
- If the employment relationship lasts more than five years, but no longer than seven years, employees are entitled to fifteen days of their basic pay every year of service.
- If the employment relationship lasts more than seven years, but no longer than eight years, sixteen days of the basic wage are paid for each year of service.
- If the employment relationship lasts more than eight years, but no longer than nine years, then seventeen days of the basic wage are paid for each year of service.
- If the employment relationship lasts more than nine years, but not more than 10, then 18 days of the basic salary are paid for each year of service.
- If the employment relationship lasts more than 10 years, twenty days of the basic wage will be paid for each year of service.
Probation Period
Probation Period
The length of the probationary period in Macau is not expressly stated in the labor rules, however it typically lasts 30 days for fixed-term contracts and 90 days for indefinite contracts.
Immigration
The Labor Affairs Bureau must provide a work permit to non-Macau inhabitants. The employer must get approval from the Chinese government to engage non-resident workers before any work permits are provided. The chief executive of the Macau SAR or any delegated government authority may provide this authorization.
Only in situations where local employees are unable to complete tasks can non-resident personnel be hired. The hiring of non-resident workers shouldn’t lead to the firing of resident workers or a deterioration in their working circumstances. After making the initial request to engage non-resident personnel, the procedure to secure a work visa typically takes three to four months.
VAT
In the Macau SAR, there is no VAT.