Invest in Macau

Employment Law in Macau

Employees’ Compensation

Work-related accident insurance

According to Macau’s Labour Affairs Bureau, the employer is required to arrange work-related accident insurance for each employee. Failure to do so is considered an offence and the employer is subject to a fine up to MOP$5,000.00 for each employee involved. The employer is obliged to notify the Labour Affairs Bureau if there has been a work-related accident, regardless of whether the accident has caused a serious injury. 

Work Permits

1. Employers unsuccessful in hiring suitable or sufficient local employees may apply for an employment permit for importation, renewal or transfer of specialized non-resident workersー individuals with tertiary education or highly skilled or with professional experience, to perform work that requires a high degree of expertise.
2. Employers unsuccessful in hiring suitable or sufficient local employees may apply for an employment permit for importation or renewal of non-specialized non-resident workersー individuals who do not meet the requirements for specialized non-resident workers nor provide domestic work

Minimum Wages

Macau is yet to have an overall minimum wage for all workers in the region except for cleaning and security employees in property management services:

MOP30 per hour

MOP240 per day

MOP6,240 per month

Maximum Working Hours

Normal working hours should not exceed 8 hours per day and 48 hours per week. Changes must be agreed upon by the employer and the employee. During working hours, employees are entitled to a rest period of at least 30 consecutive minutes so that they will not work for over 5 consecutive hours. 

Paid Annual Leave

According to Labour Law (Article 46) in Macau, employees must have a minimum of six working days of paid annual leave during the second year of service. If the duration of labour is less than a year but over three months, the employee is entitled to half a day’s leave for every month of actual service to enjoy in the second year of service. When the number of days left in the remaining period reaches fifteen, it shall be counted as half a day towards the annual leave, for example, an employee who has worked for 5 months and 17 days in one year will be entitled to 6 half days of paid annual leave in the subsequent year.

Rest Day

According to Labour Law (Article 42) in Macau, employees are entitled to a paid period of rest of twenty-four consecutive hours per week.

Termination

According to Labour Law (Article 72) in Macau, in the absence of contractual provisions on the length of the previous notice or when the length of previous notice provided for in the contract is less than the period stated below, the length of previous notice required to terminate a labour contract shall be:

1) Fifteen days in the case of rescission on the initiative of the employer;

2) Seven 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.

Severance Payment & Long Service Payment

According to Labour Law (Article 70) in Macau, termination payment is applicable if rescission without just cause on the initiative of the employer.

1. 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:

1) Seven days of the basic remuneration if the labour relation has duration above the probationary period and up to one year;

2) Ten days of the basic remuneration per year of service if the labour relation has duration above one year and up to three years;

3) Thirteen days of the basic remuneration per year of service if the labour relation has duration above three years and up to five years;

4) Fifteen days of the basic remuneration per year of service if the labour relation has duration above five years and up to seven years;

5) Sixteen days of the basic remuneration per year of service if the labour relation has duration above seven years and up to eight years;

6) Seventeen days of the basic remuneration per year of service if the labour relation has duration above eight years and up to nine years;

7) Eighteen days of the basic remuneration per year of service if the labour relation has duration above nine years and up to ten years;

8) Twenty days of the basic remuneration per year of service if the labour relation has duration of more than ten years.

2. For the purposes of the preceding paragraph, the length of service of the employee in the calendar year in which the labour relation is terminated shall be calculated by months, in the proportion of one-twelfth for each month or period of less than a month but more than fifteen days.

Employees

Stock Options and Share Awards

Stock options and share awards approved by employers, with respect to employee services in Macau, are subject to professional tax. Share awards gain are subject to tax in Macau in the year in which they are vested to the individual. Employers must inform the Macau tax authorities within 30 days after granting stock options or share awards.

New Employees

New employees must fill out an M2 form, which needs to be submitted within 15 days after the date of joining the new company. Local employees without FSS beneficiary number must submit a form for Enrollment of Beneficiary.

Discrimination Laws

Discrimination laws can be accessed here.

Payment

Bank Accounts and Paying Salaries

Macau Labour Law (Article 63), the basic remuneration should be paid within nine working days, counting from the date it becomes due. The remuneration should be paid at the employee’s workplace in Macau unless otherwise agreed by the parties. If both parties agree that remuneration can be paid elsewhere, the employer is obliged to facilitate the movement of the employees needed for the receipt thereof.

The employer is obliged to give the employee a payslip containing: 

• Identification of the employer
• Name and position of the employee
• Number of beneficiary of the Social Security Fund or any other numbers according to the employee under the law
• Period to which the remuneration corresponds
• Detailed items of the remuneration
• Deductions
• Net receivables

13th Month and Bonus Payments

13th month and bonus payments are not compulsory unless stated in the contract.