Blogs

Macau – Employer of Record

EWS helps you to hire an international workforce quickly and compliantly, without setting up a legal entity locally. If you’d like to get in touch about our employer of record solution in Macau, click here

Country Introduction – Macau:

Capital –  Macau
Currency –  Macanese Pataca
GDP –  $53 Billion (2022)
People/Nationality- Macanese
Language –  Chinese
Major Religions – Buddhism
Population – estimated 695,168 as of August 2022

Macau owns a very favourable location near Hong Kong and China, making trade an undeniably vital platform of business in this country. The mainland is of major importance as a supplier of food and inexpensive consumer goods, and a 2004 agreement with China that eliminated tariffs on many of Macau’s goods helped increase exports to the mainland. Much of Macau’s imports consist of raw goods for manufacturing purposes. Other imports include machinery and apparatuses as well as petroleum, providing most of the power for domestic electric generation.

Its recognition as a free port with low tax makes Macau one of the world’s fastest-growing economic regions. Since the opening of the Macau International Airport, foreign investors have also been able to take advantage of the business leverage.

Globally, Macau is said to be the most successful gaming capital. The booming casino industry accounts for around 80% of its economy. It remains the only place in China where gambling is legal, making it a huge attraction for gamblers from the mainland and Hong Kong. Similar to Hong Kong and Singapore, Macau is one of Asia’s best places for expats as it has a good fusion of Eastern and Western culture as well as good opportunities for work and business.

Contract of Employment

A written labour contract must contain the identification and signatures of the employer and the employee, working conditions, the date when the contract is entered into, the date when the contract comes into force, and other requirements stipulated by law.  Each party shall have a copy of the written labour contract.

If it is a term contract (including fixed term contract or variable term contract), the grounds justifying the term agreed upon by the employer and the employee must also be stated.

Probation Period

For general workers, the probationary period in Macau is 30 days for a term contract and 90 days for an indefinite contract.

Termination

Employers can terminate a fix term contract by giving the following reasons – business, personal, or employee’s performance or behavioural misconduct. It requires notice and a written explanation for the termination.

The statutory notice period in Macau is as follows:

–  Fifteen days in the case of rescission on the initiative of the employer.
–  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.

Working Hours

Normal working hours should not exceed 8 hours per day and 48 hours per week, regularly on a 6-day workweek. An employee has an entitlement to a minimum of 45 minutes of lunch break. Should there be changes in the schedule, this must be agreed upon between the employer and the employee.

Overtime

All hours exceeding the standard 48 hours must be paid as overtime and are regulated by employment contract/collective agreements. In general, overtime is paid at 120% of the standard salary rate.

Annual Leave

Paid leave in Macau is outlined in the employment contract as a minimum of 6 days of paid leave a year, following completion of one year of service, in addition to public holidays.

For employees with less than one year of service but more than three months of service, the leave entitlement will be 3 days of paid leave.

Sick leave

In accordance with the Macau Labour Law (Article 53), an employee who has completed the probationary period is entitled to 6 days of paid sick leave per year.

Maternity and Paternity Leave

All female employees are entitled to maternity benefits consisting of 70 days of maternity leave, with 56 days paid by the employer, and the remaining 14 days paid by the Social insurance. This will duly be granted given a minimum of 1 year completed service.

As for the paternity leave, it entails a total of 5 days and must be taken within thirty days following the child’s birth. This takes effect once they have completed 1 year of service.

VAT / GST:

Currently, there is no value-added tax (VAT) or goods and services tax (GST) levied in Macau.

Income Tax

The first 144,000 Macau patacas (MOP) of an individual’s taxable income is exempt from MPT. Progressive tax rates range from 7 percent to 12 percent. Taxable income over MOP424,000 is taxed at 12 percent.

Employer/Employee Contributions

Employers can deduct the employee’s portion of contributions from his/her wages.

Taking effect in Macau’s Executive Order, the contribution amounts as stated by the Social Security Fund are the following:

Long-term employee:

Employer’s contribution: 60 patacas, Employee’s contribution: 30 patacas
Total of 90 patacas per month

Casual worker (fixed-term labour contract):

Employer’s contribution: 60 patacas, Employee’s contribution: 30 patacas
90 patacas per month for casual employees working for 15 days or more monthly

Employer’s contribution: 30 patacas, Employee’s contribution: 15 patacas
45 patacas per month for casual employees working less than 15 days monthly

Public Holidays

–  New Year’s Day
–  Lunar New Year
–  Cheng Ming Festival
–  Good Friday
–  Holy Saturday
–  Easter Sunday
–  Labour Day
–  Buddha’s Day
–  Tuen Ng Festival
–  The day after the Mid-Autumn Festival
–  National Day of the People’s Republic of China
–  Chong Yeong Festival
–  All Souls Day
–  Feast of the Immaculate Conception
–  Macau Special Administrative Region Establishment Day
–  Winter Solstice
–  Christmas Day

Severance Pay

According to Labour Law in Macau, the termination payment is applicable if rescission 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:

–  7 days of the basic remuneration if the labour relation is above the probationary period and up to 1 year.
–  10 days of the basic remuneration per year of service if the labour relation is above 1 year and up to 3 years.
–  13 days of the basic remuneration per year of service if the labour relation is above 3 years and up to 5 years.
–  15 days of the basic remuneration per year of service if the labour relation is above 5 years and up to 7 years.
–  16 days of the basic remuneration per year of service if the labour relation is above 7 years and up to 8 years.
–  17 days of the basic remuneration per year of service if the labour relation is above 8 years and up to 9 years.
–  18 days of the basic remuneration per year of service if the labour relation is above 9 years and up to 10 years.
–  20 days of the basic remuneration per year of service if the labour relation is of more than 10 years.

Work and Residence Permits (Expatriates)

The process to obtain a work permit often takes three to four months, from the initial request to hire non-resident workers.

It is highly advised that you start looking for an employer prior to arriving in Macau ‘ howe. Once you’ve secured a job, you can apply for a working permit or what they call the “Blue Card”. The initial requirements are as follows:

–  Passport
–  Birth certificate (copy)
–  Criminal record from the country of permanent residence
–  ID photos
–  Employment contract
–  Job description (separate from employment contract)
–  License and business registration of the hiring company
–  Proof of relationship if you have dependents travelling with you

While waiting for the release of the aforementioned, you may apply for a temporary residence permit. You will need to set an appointment at the Macau Trade and Investment Promotion Institute (IPIM) and go through the interview and screening process to check your eligibility for temporary residence. The following are needed:

–  Valid ID
–  Documentary proof of the purpose of your residence in Macau (investment, work, family, etc.)
–  Duly filled in application form
–  Two copies of your passport
–  Criminal record
–  Non-resident Worker ID (if applicable)
–  ID photo
–  Proof of relationship with accompanying dependents

Interested in global expansion? click here