Hiring Talent And Managing Payroll In Macau

Hiring in Macau? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Macau.

Employment Norms in Macau

Macau is a peninsular country. It was formerly a colony of Portuguese till 1987. It was handed over to China in 1999 and is now a Special Administrative Region. It is often referred to as the 'Las Vegas of Asia'. Its incredible economy survived the blow during the Asian financial crisis of 1997-98. The country has since been one of the leading financial regions in Asia.

General Information:

The Macau currency is the Macanese pataca (MOP).
Macau is the capital of Macau.
Chinese and Portuguese are the official languages of Macau. Documentation can be in any of the official languages. It can be translated into understandable language if required.

The labor laws in Macau provide employees with health benefits, social security, wages, leaves, etc. It protects employees from harassment and discrimination in the workplace.

Table of Contents

Select Section

Agreements
Onboarding Process
Visa
Minimum Wage
Payroll Cycle
Annual Bonus
Health Benefits
Working hours and overtime
Leaves
Social Security
Taxes for Employers
Taxes for Employees
Probation
Termination
Severance Pay
Employees or Contractors
Final Words

Agreements Onboarding Process Visa Minimum Wage Payroll Cycle Annual Bonus Health Benefits Working hours and overtime Leaves Social Security Taxes for Employers Taxes for Employees Probation Termination Severance Pay Employees or Contractors Final Words

Agreements

The employment agreements can be either written or verbal for indefinite-term employees. The language of the contract must be Portuguese, Chinese, or English. There are two types of employment agreements in Macau:

Indefinite or Open-ended agreement: It can be in oral or written form. It is widely used for hiring permanent employees and part-time employees.
Definite or Fixed-term agreement: The fixed-term contract must be in written format. The term of such an agreement is depended on both parties. It must not exceed the said duration or else it will be considered an indefinite agreement.

Onboarding Process

The employment process in Macau is as follows:

A job description is created by the HR staff. With the department that has an opening, they collaborate.
The description is then published on various platforms, including LinkedIn, as well as the company's official website.
Some companies might even publish job vacancies in local magazines and newspapers. It can remain for up to a week.
Applications are submitted by applicants proving their eligibility. They are further reduced after numerous screenings and interviews.
Finally, selected candidates then haggle over terms and conditions with the business. An agreement is reached with the company, and the candidate is hired.

Visa

Macau has two main types of work permits:

Skilled and non-skilled workers visa- Employers must prove that a person has the required qualifications and not be able to hire a suitably qualified person locally to obtain a Macau work visa. Non-skilled workers are given a quota per position to be filled with non-resident workers, determined by the Human Resources Bureau.
Occasional workers visa- The Macau Tax Bureau requires foreign workers to work in Macau without a visa or permit, but overseas companies must be registered with the Bureau and have a log. It is granted for 45 days.

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Minimum Wage

The minimum wage in Macau is legally fixed at 6,665 MOP per month.

Payroll Cycle

The payroll cycle in Macau is monthly.

Annual Bonus

There is no legal provision for paying the 13th salary in Macau. The annual bonus depends on the employer.

Health Benefits

The health benefits in Macau include sickness, old age pension, disability pension, etc.

Working hours and overtime

Work hours: The standard working hour in Macau is of 8 hours per day or 48 hours per week. The regular working week is of 6 days starting from Monday to Saturday.
Break: An employee is entitled to 30 minutes of break between continuous work hours.
Overtime: Overtime work hours in Macau are paid at the rate of 120% of the standard work hours.

Leaves

Sick leaves

Employees get 14 days of sick leave paid by the employer.

Maternity leaves

Employees get 70 days of maternity leave in Macau.
56 days are paid by the employer while 14 days are paid by the SS.

Paternity leaves

Employees get 5 days of paternity leave paid by the employer.

Annual leaves

Employees get 6 days of annual leave paid by the employer.

Other leaves

Bereavement leave: 3 days leave for the death of any direct relative.
Marriage leave: Employees get 6 days of leave for their marriage.

Public Holidays (for the Calendar year 2024)

Some dates may vary based on official notifications and traditional calendars.

New Year's Day - 1st January
New Year Holiday - 2nd January
Lunar New Year Holiday - 10th-13th February
Cheng Ming Festival - 4th April
Good Friday - 29th March
Holy Saturday - 30th March
Labor Day / May Day - 1st May
Buddha's Birthday - 15th May
Dragon Boat Festival - 10th June
Day after the Mid-Autumn Festival - 18th September
National Day of the People's Republic of China - 1st October
Day after PRC National Day - 2nd October
PRC National Day Holiday - 4th October
Chong Yeung Festival (Festival of Ancestors) - 11th October
All Souls' Day - 2nd November
Feast of the Immaculate Conception - 8th December
Macau S.A.R. Establishment Day - 20th December
Winter Solstice - 21st December
Christmas Eve - 24th December
Christmas Day - 25th December
Christmas Eve Holiday - 26th December

Public Holidays (for the Calendar year 2025)

Some dates may vary based on official notifications and traditional calendars.

New Year's Day - 1st January
New Year Holiday - 2nd January
Lunar New Year Holiday - 29th January - 1st February
Cheng Ming Festival - 4th April
Good Friday - 18th April
Holy Saturday - 19th April
Labor Day / May Day - 1st May
Buddha's Birthday - 5th May
Dragon Boat Festival - 31st May
Day after the Mid-Autumn Festival - 6th October
National Day of the People's Republic of China - 1st October
Day after PRC National Day - 2nd October
PRC National Day Holiday - 4th October
Chong Yeung Festival (Festival of Ancestors) - 30th October
All Souls' Day - 2nd November
Feast of the Immaculate Conception - 8th December
Macau S.A.R. Establishment Day - 20th December
Winter Solstice - 21st December
Christmas Eve - 24th December
Christmas Day - 25th December
Christmas Eve Holiday - 26th December

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Taxes for Employers

Employers have to pay the following taxes in Macau:

Social Security Fund — MOP 60

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Taxes for Employees

Employees have to pay the following taxes in Macau:

Social Security Fund — MOP 30

Income taxes for employees are as follows:

Up to 144,000 MOP — 0%
144,001 MOP to 164,000 MOP — 7%
164,001 MOP to 184,000 MOP — 8%
184,001 MOP to 224,000 MOP— 9%
224,001 MOP to 304,000 MOP — 10%
304,001 MOP to 424,000 MOP — 11%
Above 424,001 MOP — 12%

Probation

There is no fixed duration for probation in Macau. The probationary period can range from up to 3 months.

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Termination

Any of the following situations could lead to the employment relationship termination:

When an employee resigns,
the employee reaches retirement age,
the employment contract expires or is not renewed,
an employee can be terminated for serious misconduct (such as theft, fraud, etc.),
The notice period in Macau depends on the service tenure. An employee must be given 15 day's notice period before termination by the employer.

Severance Pay

An employee is entitled to severance pay upon wrongful termination. The severance pay depends on the tenure of the employee. It is as follows:

for service of up to 3 years — 10 days pay
3 years up to 5 years — 13 days pay
5 years up to 7 years — 15 days pay
7 years up to 8 years — 16 days pay
8 years up to 9 years — 17 days pay
9 years up to 10 years — 18 days pay
More than 10 years — 20 days pay

Employees or Contractors

Misclassification of employees or contractors in Macau is a punishable offense.
If found guilty, the employer is responsible for paying the overhead surcharges along with the imposition of a penalty.
The company is obligated to cover any related interests and penalties on behalf of a misclassified employee.
The company may also have to pay taxes retrospectively on the behalf of the misclassified employee.

Final Words

Macau is a peninsular country, formerly a Portuguese colony, handed over to China in 1999 and now a Special Administrative Region. Its economy has survived the Asian financial crisis and is one of the leading financial regions in Asia. For corporates looking for business expansion, Macau can be a reliable.