Macau: A Guideline to Payroll and Employer of Record

Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Macau.

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Overview

Macau is a small special administrative region of China, located on the southern coast of the country, bordering the province of Guangdong. It is known for its casinos and nightlife, with a reputation as the 'Las Vegas of Asia'.

Macau has a service-oriented economy, with tourism and gambling being the main industries.The region also has a developing manufacturing sector and a small but growing financial services industry.

Neeyamo provides assistance for onboarding and management of employees in Macau along with processing of a firm's payroll, compliance, benefits and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Macau

Currency

Macanese pataca (MOP)

Official Language

Chinese (Cantonese), Portuguese

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+853

Other Languages

English, Mandarin Chinese

Time Zone

Macau Standard Time (UTC +08:00)

Global Payroll

Overview

Handling payroll for a widespread workforce can pose as a major challenge for any firm. The added complication of compliance can make things worse and drastically effect the time and efforts that can be used in other equally important aspects of an organization's development.

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the welfare of the general population.

Employee Taxes

Employee Payroll Contribution:

Social Security contribution per employee - 30 MOP

Employee Income Tax (Annually):

Income Rate
Up to 144,000 MOP 0.00%
Between 144,001 MOP and 164,000 MOP 7.00%
Between 164,001 MOP and 184,000 MOP 8.00%
Between 184,001 MOP and 224,000 MOP 9.00%
Between 224,001 MOP and 304,000 MOP 10.00%
Between 304,001 MOP and 424,000 MOP 11.00%
Above 424,001 MOP 12.00%

Employer Taxes

Employer Payroll Contribution:

Social Security contribution per employee - 60 MOP

Payroll Cycle

Overview

Undoubtedly, payroll is a critical aspect of any organization. The pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.

Frequency

The frequency cycle in Macau is Monthly.

13th Month Cycle

In Macau, it is not common to have a 13th, 14th, or 15th-month salary cycle. Instead, employers often provide other benefits and bonuses, such as an annual bonus or end-of-year payment, which can vary depending on the company and industry.

Global Work

Overview

An Employer of Record service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance, payroll taxes, and employee benefits to comply with local tax laws and regulations.

This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

The minimum wages have been revised in the Macau Special Administrative Region with effect from January 01 2024. The national minimum wage is increased from MOP6,656.00 to MOP7,072.00 per month.

Overtime

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%.

Data Retention Policy

In Macau, the Data Retention Policy is governed by the "Law No. 8/2005 on Personal Data Protection" and its supplementary regulations. This legal framework sets out the guidelines and requirements for organizations handling personal data, including the retention and disposal of such data.

Hiring and Onboarding Requirements

Hiring

Macau's Labor Relations Law governs the relationship between employers and employees, outlining their respective rights and obligations. It covers topics such as employment contracts, working hours, wages, and termination procedures.

Macau's legal framework prohibits discrimination in hiring based on factors such as gender, race, religion, or disability. Employers must ensure equal opportunities during the recruitment and selection process.

Onboarding

In Macau, when hiring new employees, there are several key documents that are typically required as part of the onboarding process. Here is a list of common onboarding documents for employees in Macau:

  • Name 
  • Address 
  • Contact information
  • Emergency contact information
  • Proof of Identity
  • Proof of Qualifications
  • Identity and Work Permit Documentation
  • Employment Contract

Probation

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.

Leave

Public Holidays

The dates below can be modified if there are any changes in the gazette.

  • 1 January  New Year's Day
  • 9 February - Lunar New Year Eve (Half Day for Public Employees)
  • 10 February -Lunar New Year (First Day)
  • 11 February -Lunar New Year (Second Day)
  • 12 February - Lunar New Year (Third Day)
  • 13 February - Lunar New Year Holiday (Holiday for Public Employees)
  • 14 February -Lunar New Year Holiday (Holiday for Public Employees)
  • 29 March - Good Friday
  • 30 March - Holy Saturday
  • 1 April - Holy Saturday Holiday (Holiday for Public Employees)
  • 4 April - Cheng Ming Festival
  • 1 May - Labor Day / May Day
  • 15 May -Buddha's Birthday
  • 10 June - Dragon Boat Festival
  • 18 September - Day after the Mid-Autumn-Festival
  • 1 October - National Day of the People's Republic of China
  • 2 October -Day after PRC National Day
  • 11 October - Chong Yeung Festival (Festival of Ancestors)
  • 2 November - All Souls' Day
  • 4 November - All Soul's Day Holiday (Holiday for Public Employees)
  • 8 December - Feast of the Immaculate Conception
  • 9 December - Feast of the Immaculate Conception Holiday (Holiday for Public Employees)
  • 20 December - Macau S.A.R. Establishment Day
  • 21 December - Winter Solstice
  • 23 December - Winter Solstice Holiday (Holiday for Public Employees)
  • 24 December - Christmas Eve
  • 25 December - Christmas Day
  • 31 December - New Year's Eve Afternoon (Half Day for Public Employees)

Annual Leave

Employees in Macau are entitled to a minimum of six days of paid annual leave after completing one year of service. Those with less than one year but more than three months of service receive three days of paid leave. Leave should typically be used within the allotted year, but it can be carried over for up to two years by agreement.

Sick Leave

Employees who have completed their probationary period are entitled to six days of paid statutory sick leave per year, as per the Macau Labour Law (Article 53).

Maternity Leave

Female employees who have completed one year of service are eligible for 70 days of maternity leave, with 56 days paid by the employer and the remaining 14 days covered by the Social Insurance (FSS). However, it is common for employers to pay for the entire 70 days.

 

Paternity Leave

Fathers are entitled to five days of mandatory paid paternity leave, to be taken within thirty days following the birth of their child, provided they have completed one year of service.

 

Parental Leave

There are currently no provisions in the law regarding parental leave beyond maternity and paternity leave.

 

Other Leave

Employees are granted six days of marriage leave and three days of bereavement leave for the loss of a direct relative, which can be extended to 12 days.

 

Termination

Overview

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.

Notice Period

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

Severance Pay

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.

Visa

Overview

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.

Employee Background Checks

Legal and Background Checks

In Macau, legal and background checks are an essential part of ensuring compliance with the law and maintaining a safe and secure environment for individuals, businesses, and the community. Here are some key aspects of legal and background checks in Macau:

  • Identity and Work Permit Verification
  • Identity Verification
  • Education and Qualification Verification
  • Employment History and Reference Checks
  • Health Examinations

Last updated on August 12, 2024.

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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