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Payroll In Macau

How to Hire in Macau: Essential Guide for Employers

Macau is in proximity to both Hong Kong and China, making it one of the most sought-after offshore investment hubs. Additionally, its dominant sectors are entertainment and gambling. Both of these are in great demand among investors from countries abroad. With several companies conducting recruitment and selection in Macau, there’s no doubt that the country is providing several lucrative benefits.

Being close to the ports of Hong Kong allows Macau-based businesses easy access to one of the freest economies globally. The country also has a low corporate tax structure, further attracting investors and workers from abroad. Moreover, Macau employers take great care to honor the labor Relations Code in the country  when engaging in recruitment and selection in Macau. 

With its location near Pearl River Delta and growing investment in the gaming sector, Macau is also focusing on foreign exchange-related reserves. The country attracts investors and employers who want to hire a workforce due to its affordability and buyable rates for real estate. These factors immensely contribute to recruitment and selection in Macau.

Even with a small population of around 600,000, the workforce is well-trained in digital skills with a good grasp over English. The economy is seeing steady growth over the years, and its GDP per capita stands at 32,418.334 USD, while its FDI growth touched 4.9 billion USD to 30621.00 MOP million in 2021. Macau plans to see 37.5% GDP growth in 2023, as per data from Fitch Solutions.

Things to Know Before Hiring in Macau

As you begin hiring, recruitment and selection in Macau, employees and start with recruitment and selection in Macau, ensure adhering to the policies related to hiring employees in Macau. It helps to avoid attracting penalties or skipping over compulsory hiring norms.

Employment Contract

  • Employment contracts are a much-needed document when entering a working relationship with a foreigner. However, a written employment contract with a resident is not mandatory in every case. 
  • The contract must be in Portuguese or Mandarin with a translated English copy.
  • Both parties need to sign the contract, and once the same is in place, the employee can join the employer formally for work.
  • The contract needs to state the term of work, and going ahead, there always remains scope for renewal as per mutually agreed terms.
  • The employment contract after recruitment and selection in Macau must state the following-
    1. Details of employer and employee
    2. Identification and address details of both parties
    3. Terms of service
    4. Scope of the job involved
    5. Payment and benefits
    6. Social security and insurance details
    7. Leaves and holidays
    8. Termination, severance, and notice period

Probation and Termination

  • As per the Labor Relations Law in Macau, the probation period for employees is three to six months, but there is no mandate for the same.
  • An employer may terminate the employee’s services justly after the probation expiry if there is an issue related to performance or behavior from the employee’s end. 
  • It applies even if there is bankruptcy, dissolution, or modification of employer business.

Notice period

The notice period for the termination in Macau varies as per who initiates the conclusion of the working relationship-

TYPE

NOTICE PERIOD

Rescission from the employer’s end

15 days

Rescission from the employee end

Seven days

Employment laws

When handling any recruitment and selection in Macau, the primary laws that apply other than collective agreements are the Labour Relations Law. The country promotes inclusiveness and non-discriminatory practices at work. 

Working hours and breaks

As you hire staff in Macau, do note the permissible working hours-

  • The standard working hours for staff in Macau are 48 hours per week, which is eight hours of work six days a week.
  • Employees are mandated to take a rest day of 24 hours every week.
  • Overtime is any period above the standard working hours, and it attracts payment at 120% of the regular salary.

Payroll

  • When you hire employees in Macau, you can pay daily, monthly, bi-weekly, or weekly.

Minimum wage

  • The minimum wage to hire employees in Macau is 15,600 MOP per month for employees getting a monthly payout. However, the minimum wage in manufacturing is 10,800 MOP per month.

Bonuses

  • There is no statutory mandate for a bonus payment in Macau.

Holidays for employees 

Official public holidays in Macau are below-

Chong Yeong Festival

New Year’s Day

Macao Special Administrative Region Establishment Day

Cheng Ming Festival

Lunar New Year 

Labour Day

Chong Chao Festival

National Day of the People’s Republic of China 

Other Leaves

Vacation Leave

The paid annual vacation period in Macau is as per service tenure as under-.

TENURE OF SERVICE

ANNUAL LEAVE

Tenure up to a year

Six days

Tenure more than three months and less than a year

Three days

Maternity and Paternity Leave

1 – New moms are entitled to 70 days of maternity leave.
2 – Fathers can avail of paid paternity leave of five days, within a month from the child’s birth, provided that he has completed a year of employment.

Other Leaves

1 – In Macau, employees get bereavement leave of three days. However, this can extend up to 12 days.
2 – An employee can take up to six days of leave for marriage.
3 – Paid sick leave for an employee who has completed probation is six days a year.

Social security

As per MOP or Macanese Patacas, the social security contribution break-up in Macau is as under-.

Type of worker

Employee contributions per month

Employer contributions per month

Long-term, permanent worker

30 MOP

60 MOP

Casual worker with at least 15 days and more of monthly work

30 MOP

60 MOP

Casual worker with less than 15 days of monthly work

15 MOP

30 MOP

Taxation

  • Macau’s corporate tax rate is 12% for those making profits above 600,000 MPA.
  • There is no VAT regime in Macau.
  • The income tax brackets in Macau follow a progressive structure as below-

Income in MOP

Effective Tax in %

0 to 144,000

NIL

144,001 to 164,000

7

164,001 to 184,000

8

184,001 to 224,000

9

224,001 to 304,000   

10

304,001 to 424,000

11

Above 424,001

12

The Cost of Hiring an Employee in Macau

Concerning the recruitment fees in Macau and costs of the hiring process in Macau, the main expenses the employer needs to bear are as under-.

  • Advertisement costs
  • Hiring, market research, and interviewing expenses
  • Verification and background check costs
  • Visa and permit costs, when applicable
  • Payroll and bonuses
  • Taxes and social security costs
  • Salary related coats
  • Annual vacation and leave-linked costs
  • Contractual costs
  • Onboarding and induction costs

What Does a Company Need to Hire Employees in Macau?

Employers and companies in Macau may employ permanent, occasional, or need-based employees. To hire employees in Macau, following all relevant laws is compulsory. 

Any lapses might attract penalties and cause undue issues in running your business. A contract of employment in Macau needs to specify all essential aspects of employment. The documents you will need to have in hand for hiring employees in Macau are-

  1. Work visa for the employee if they are non-locals
  2. Permits for local workers as per industry of work
  3. Passport copy of an employee
  4. Employee photograph and age proof
  5. ID card of workers if local, and Blue Card that Immigration issues for non-local workers
  6. Signed employment contract
  7. Notarized certificate for company registration
  8. Tax registration certificate for company 
  9. Copy of company tax payments
  10. Proof of intimation to DSAL about hiring of non-locals for vacancies
  11. Educational qualification certificate of non-local workers
  12. Criminal record certificate if an employee is willing to apply for Temporary Residence Permit for three years

Various options for Hiring Employees in Macau

For any process of recruitment and selection in Macau, you could pick from either of the two standard options-

  • Internal hiring: A traditional approach is to hire and then rely on a team for HR to hire staff in Macau. For this, you need to have an expert panel for hiring already. This HR team does all the groundwork for beginning hiring for the Macau market.
  • Employer of Records (EOR) service: For any need related to recruitment and selection in Macau, you may outsource the job to an EOR service provider. These solutions providers have all the right resources and expertise to handle hires as per Macau laws. It eases the overall management while ensuring all contractual mandates. 

The Steps to Hiring in Macau

The recruitment and selection in Macau process can follow a simple algorithm as elaborated below-

Advertising

  • Advertise any open position you might have at the company on leading job boards, social media channels, and industry-specific sites for hiring in Macau.
  • Use references and leverage your networks to understand the candidate database.
  • Mention the job duties and the essential qualifications and experiences you need from the candidate for an open role.

Shortlisting candidates for recruitment and selection in Macau purposes

  • Candidates put in an online application with their resumes or CVs attached.
  • Draw up a list of the most eligible hire prospects.
  • Schedule an interview round to inform such candidates.

Interviews for recruitment and selection in Macau

  • Set up an interview with the prospective employee on-site or even via the web.
  • Discuss the expected work roles from the prospect. Do give a clear heads-up of the company goals and culture.
  • The employee, too, can ask questions related to work, and the interview could end with a possible negotiation on the final salary.

Final offer and contracts

  • Make the relevant offer by issuing an offer letter. Employers must mention the basic terms of the job in the offer letter.
  • However, the completed terms are on paper when you draft an employment contract per related recruitment and selection in Macau laws.
  • For recruitment and selection in Macau, keeping a signed copy of employee contracts in the workplace is a norm.

Onboarding and training

  •  Onboarding and induction happen right as a new hire joins the organization.
  • The primary processes for recruitment and selection in Macau conclude with the first day of an employee reporting for work.

Let Multiplier be Your EOR Platform in Macau

Thanks to being a Special Administrative area under China, Macau’s rules might appear daunting in the context of recruitment and employment. Moreover, there always remains the possibility of lapses while hiring employees in a foreign land. Furthermore one needs to register as a legal entity, before hiring. Such cases take up a lot of time and effort. It is why you could partner with a reputed PEO-EOR firm such as Multiplier.

Recruitment and selection in Macau is smoother with Multiplier as your partner. Multiplier is a SaaS-based Employer of Record solutions provider that helps seal a company’s presence in a new territory without the need for registering your company in a foreign land.

Frequently Asked Questions

The minimum age for contract-based employment in Macau is 18 years.

The Macau Government has its own Department of Human Resources that oversees the issuance of all visas and permits for non-locals. 

Portuguese and Mandarin are official languages for business purposes and otherwise in Macau.

Need help hiring in Macau?

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