Although Macau is known for its luxury entertainment and travel options, its value in the business world should not be forgotten. Being only an hour ferry ride from the world’s freest economy – Hong Kong, Macau’s location at the heart of Asia makes it one of the fastest-growing economic stations on the globe. If you’re interested in opening a business in Macau, Links International has created a company set up guide that includes the main employment laws and best practices in Macau. Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Macau employment laws and regulations, please visit the official government websites.
Need HR support for your new business in Macau? Get in touch with one of our representatives to see how we can help you elevate your HR function today.
There are two categories of companies recognized in Macau, Macau Local Company and Macau Offshore Company. According to the Macau Trade and Investment Promotion Institute (IPIM), the general procedures of company incorporation in Macau include:
In order for a company to pursue business activities in Macau, an application must be submitted in person or by an authorized person. The following documents must be provided (Macao SAR Government Portal):
Documents must be submitted 30 days before the business commences.
It takes approximately 21 banking days to open a company bank account in Macau. After all the procedures are completed, it takes an additional 14 days to set up the account.
The following documents are generally required:
Macau is an attractive, highly developed location for both foreign and local business operations. Through its application of international business operation principles, investments in Macau are simple and popular. According to the 2016 Macau Business Intelligence Report, Macau holds trade and economic connections with over 100 regions and is a member of over 50 organizations. In addition to leading the world’s gambling and entertainment industries, Macau holds the 34th position in the 2018 Index of Economic Freedom released by the Wall Street Journal and The Heritage Foundation and ranks 9th in the Asia Pacific Region.
On the Pearl River Delta, Macau’s strategic location near Hong Kong and China and its recognition as a free port with low tax makes its one of the world’s fastest-growing economic regions. Since the opening of the Macau International Airport, international investors have also been able to take advantage of Macau’s advantageous location.
According to the World Trade Organisation (WTO), Macau has some of the most open trade and investment regimes in the world. Corporate tax is no more than 12%, which is significantly lower than the rates in European countries and the United States.
As stipulated in the Executive Order, with effect from 1 January 2017, the contribution amounts as stated by the Social Security Fund of Macau are as follows:
Payment of Contributions
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.
As of 1 November 2020, the statutory minimum wage in Macau is:
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.
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. Annual leave and may be accumulated up to two years by agreement between the parties.
According to Labour Law (Article 42) in Macau, employees are entitled to a paid period of rest of twenty-four consecutive hours per week.
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.
According to Labour Law (Article 70) in Macau, termination payment is applicable if rescission without just cause on the initiative of the employer.
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.
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 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 can be accessed here.
Macau has amended its Labour Relations Law which will increase statutory maternity leave from 56 days to 70 days. This takes effect for children born on or after May 26 2020. Maternity leave applies if:
Until May 25, 2023, the minimum employer-paid period will remain 56 days, and the FSS will pay 100% of base pay to the employee for up to 14 days. From May 26, 2023 onwards, employers will be responsible for the full 70 days of paid leave.
Employees with a year’s service at the company will be entitled to 5 days paid paternity leave that can be taken anytime up to 30 days after the delivery date, effective from 26 May 2020. This leave can be taken either consecutively or separately.
According to Macau Labour Law (Article 53), an employee who has completed the probationary period is entitled to 6 days of paid statutory leave per year.
Financial filing should take part from the 1st of January to the 31st of December every year.
Employer to deduct from monthly salary and pay in every April, July, October and January of every year.
Forms M3/M4 should be filed by the employer before the end of February each year. Submission methods should be online via e-submission.
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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:
13th month and bonus payments are not compulsory unless stated in the contract.
Employees are entitled to public holidays as follows:
|New Year’s Day||1 January|
|Lunar New Year’s Days (the first, second and third day of the Lunar Year)||1, 2, 3 February|
|Cheng Ming Festival||5 April|
|Good Friday||15 April|
|The Day Before Easter||16 April|
|Labour Day||1 May|
|The Buddha’s Birthday (Feast of Buddha)||8 May|
|Tung Ng Festival (Dragon Boat Festival)||3 June|
|The Day following Chong Chao (Mid-Autumn) Festival||11 September|
|National Day of the People’s Republic of China||1 October|
|The Day following National Day of the People’s Republic of China||2 October|
|Chong Yeung Festival (Festival of Ancestors)||4 October|
|All Souls’ Day||2 November|
|Feast of Immaculate Conception||8 December|
|Macau Special Administrative Region Establishment Day||20 December|
|Winter Solstice||22 December|
|Christmas Eve||24 December|
|Christmas Day||25 December|
Working Hours: 09:00-18:00
Standard time zone: UTC/GMT +8 hours
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