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Payroll In Macau

Benefits & Compensation in Macau

What are Employee Benefits? 

Every company or business organization offers employee benefits to retain employees and meet their needs. If you want to operate your business or open a company in Macau, you need to be aware of the compensation and benefits policy in Macau. 

Considering the tight labor situation today, organizations that provide high-quality compensation packages get better employees than those that still need to catch up. Any form of package or compensation perks in the form of salaries and wages offered by the employer or business organization is known as employee benefits. 

Some benefits included in this employee compensation package include a health insurance plan, retirement benefits, life insurance, profit sharing, and many more. 

In short, employee compensation and benefits in Macau are given to the employees indirectly to help employees lead a better life. 

It is necessary to have the right employees to establish a functional business in Macau. One of the best ways to get and retain the best employees is to offer the right compensation and benefits in Macau. Get a clear idea about the rules on  employee compensation and benefits in Macau here. 

Compensation Laws in Macau 

The compensation structure in Macau is determined by some laws formulated by the government of Macau. Here are laws stating the employee compensation and benefits in Macau: 

  • The Macau Labor Law determines the benefits and compensations that employers should provide to every employee. The Legislative Assembly takes care of the labor law in Macau under Article 71 of the Basic Law of Macao Special Administrative Region. 
  • Article 4 of the Labor Law describes the working conditions of the employees. 
  • Article 6 of the Labor Law speaks of the principles of equality of the employees in every organization. The difference in treating the employees in terms of class, caste, creed, race, and sex is highly prohibited. 
  • Article 8 of the Labor Law discusses the privacy rules employers and employees should maintain. 

How to Design an Employee Benefits Program for Employees in Macau?

Developing a solid compensation package in Macau includes step-by-step learning. Although the employee benefits in Macau are very different from other countries, the basic structure of the employee benefits program remains the same. The steps to design an employee benefits program are as follows:

Step 1: Defining the goals 

  • Defining the company’s goals is mandatory for an effective employee benefits program. 
  • Set your priorities and prepare a list of the benefits you can offer without compromising the company’s operations. 
  • Some of the vital factors to consider while defining the goals include the employee’s value proposition, the program’s budget, market competition, and the employee’s needs. 

Step 2: Performing a needs assessment 

  • This need assessment helps you determine the organization’s strengths and the existing employee benefits in Macau. 
  • Look into the loopholes and turn your weaknesses into your strengths. 
  • Consider the needs of the employees. 
  • Figure out the federal laws and make employee benefits programs in sync with the laws. 

Step 3: Determining the benefits you want to provide 

  • Make a list of the benefits that you would offer to your employees. 
  • Prepare an estimated budget from this list to meet the employee’s needs. 
  • Look for a more comprehensive plan for cost savings. 

Step 4: Discussing program with employees 

  • Effective communication of the employee benefits plan with the employees is necessary to make the most use of the plan. 
  • Gather feedback from the employees to make them feel valued and heard. 
  • Communicating the employee benefits plan helps retain high-quality employees, improves employee morale, and minimizes confusion about employee benefits in Macau. 

Step 5: Evaluating and revise periodically 

  • Finally, evaluate the employee benefits plan to determine the potency of the benefits. 
  • Assess the benefits plan at regular intervals to meet the employee’s demands. 

Types of Guaranteed Benefits in Macau

The employee compensation policy in Macau includes a series of benefits guaranteed to the employee by every employer for a better work-life balance. Let’s look at the workers’ compensation in Macau in different aspects. 

Minimum wage 

  • The minimum wage of employees in Macau per month should be MOP 6,656. 
  • For employees paid weekly, employers must pay a salary of MOP 1,536 per week. 
  • In the case of employees paid daily, their wage per day is MOP 256. 
  • The hourly rate of employees in Macau is MOP 32. 

Working hours 

  • The standard working hours of employees in Macau is eight hours per day. 
  • As an employee benefit in Macau, a working week consists of six days. 
  • The maximum number of hours employees in Macau should work should be, at most, 48 hours. 
  • Every employee should get a 24-hour rest every week. 
  • The working week ranges from either Monday to Friday or Monday to Saturday. 
  • Working hours that exceed the time mentioned in the Labor Law are considered overtime. 
  • The employees get a 120% hike in their salary rate for overtime.  

Holiday entitlement 

  • Every employee in Macau gets a paid leave of at least six days a year, along with public holidays. 
  • Employees serving an organization for over three months but less than a year get three paid leaves. 
  • Every employee gets leave benefits in Macau on public holidays, followed by the government. 

Injury and illness of employees 

  • As medical benefits for employees in Macau, they get paid statutory leaves only if they have completed their probationary period. 
  • Employers get up to 6 days of paid medical leave. 

Maternity and paternity rights 

  • All female employees are entitled to maternity benefits in Macau, provided they have completed a year of service in an organization.
  • The maternity leave for female employees is for 70 days, out of which 56 days are paid leaves, and Social Insurance covers the payment of the remaining 14 days. 
  • The father of a newborn also gets leave benefits in Macau. 
  • Fathers receive a paternity leave of five days, provided they have completed a year in a respective business organization. 

Other leave benefits 

  • Employees in Macau get leaves during the marriage. 
  • For marriage, employees are granted a paid leave of six days. 
  • In case of bereavement, employees get a three-day leave which increases to twelve days. 

Termination 

  • Employers can terminate a contract of an employee on the following grounds: 
    1. Employee misconduct 
    2. Breach of company privacy 
    3. Personal issues 
  • For termination, employers should provide a written document with a valid explanation.

Notice period 

  • The statutory notice period for employees in Macau varies according to the employer. 
  • If the employer initiates the rescission, the notice period is fifteen days. 
  • If the employee initiates the rescission, the notice period is seven days. 
  • If the cause of termination is justified, no notice period is required. 

Employee Benefits for Expatriates 

Macau is an economically stable country striving hard to get more economic growth. For this, the country welcomes expatriates from around the world. Talented, experienced, and skilled professionals can get work visas and permits in Macau. An added advantage is the compensation and benefits policy in Macau applicable to the expatriates as well. 

From the leave benefits in Macau to maternity leave, termination policy, and holiday entitlement, expats get everything that localities in Macau enjoy as employees. The goal of every employer, irrespective of the residential location of employees, is to impart benefits that serve two functions – first, to meet the needs of the employees and second, to improve business productivity. 

How are Employee Benefits Taxed in Macau?

Employers are entitled to make some contributions and pay taxes, as mentioned in the Labor Law of Macau, to formulate an effective compensation package in Macau. Employers have to pay MOP 60 as social security for employer payroll contributions. On the other hand, employees must pay MOP 30 as social security. 

According to the employee benefits in Macau, the income tax to be paid by employees depends on their annual earnings. 

Income

Applicable taxes

Lower than MOP 144,000

N/A

MOP 144,001 to MOP 164,000

7%

MOP 164,001 to MOP 184,000

8%

MOP 184,001 to MOP 224,000

9%

MOP 224,001 to MOP 304,000

10%

MOP 304,001 to MOP 424,000

11%

More than 424,001

12%

Restrictions for Macau Benefits and Compensation 

Some of the compensation and benefits in Macau for the employees are taxed. Therefore, you can allot a separate budget for paying this tax. As an employer, you ought to pay the salaries and wages of the employees at the respective time. A delay in payment can lead to the loss of employees and may negatively impact the company’s reputation. 

No employer can discriminate against employees based on origin, among other things, class, caste, sexual orientation, marital status, age, race, gender, religion, and economic background. The employer and the employee should have a degree of mutual respect and follow the rights to protect privacy, as determined by the employee benefits in Macau. 

Supplemental Benefits for Employees in Macau

For ease of working with the employee, here are two supplemental employee benefits in Macau: 

Payroll cycle 

  • According to the Labor Law of Macau, employers can pay monthly, weekly, fortnightly, or daily. 
  • The 13th salary rule does not exist in Macau. 

Severance pay

  • Employers have to pay for termination if the cause of rescission is not justified. 

Tenure

Severance pay

Completed probation period

7 days

One year to three years

10 days

Three years to five years

13 days

Five years to seven years

15 days

Seven years to eight years

16 days

Eight years to nine years

17 days

Nine year to ten years

18 days

More than ten years

20 days

How Multiplier Can Help with Benefits Management in Macau

Adherence to local laws and regulations is necessary to open a business abroad and hire employees. Employers need to thoroughly understand the local regulations and legislation to develop a desirable employer-employee contract and establish benefits that eliminate market challenges. An effective global PEO platform like Multiplier can systematically shorten this drawn-out process. 

With the help of Multiplier, you may easily comply with Macau’s labor laws and regulations and offer compensation and benefits in Macau. We simplify hiring international talent for you. Our team members manage the workforce effectively and efficiently without setting up a subsidiary. As a result, you can monitor staffing expenses and undertake continuing market research.

Frequently Asked Questions

Yes, the employees in Macau have to abide by some obligations, as mentioned in the Labor Law of Macau. These obligations include: 

  • To be punctual and diligent. 
  • To respect employers and fellow employees. 
  • To perform company operations with commitment and zeal. 
  • To be obedient and loyal to the employer and the organization. 
  • To collaborate willingly in company operations.

As one of the crucial employee benefits in Macau, the working days for employees in Macau range from five to six days, depending on the company’s operations. However, every employee should get 24 hours of leave every week.

Every employer should provide a payslip to employees in Macau with these details – employer identity, name and position of the employee, number of beneficiaries of social security, deductions, net receivables, and detailed items included in the remuneration.

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