| Key Takeaways |
|---|
| 1. Macao is a strategic location in the Greater Bay Area, offering low taxation, a thriving economy, and an efficient legal system for business expansion. |
| 2. Payroll is processed monthly, with employers required to pay within 9 working days after the end of the wage period. |
| 3. Minimum wage is MOP 7,072 per month, equivalent to MOP 1,632 per week, MOP 272 per day, or MOP 34 per hour. |
| 4. Personal income tax is progressive up to 12%, with exemptions and special brackets for part-time employees, seniors, and those with disabilities. |
| 5. Social Security contributions are mandatory under the General Regime, with employer contributions at MOP 60/month and employee contributions at MOP 30/month. |
| 6. Standard working hours are 8 hours per day, 48 per week, with regulated break periods and overtime compensated at 120%–150% depending on circumstances. |
| 7. Employees receive 6 days of annual leave after completing one year, with sick leave of up to 30 consecutive days or 45 non-consecutive days and maternity/paternity leave provided. |
| 8. Termination can occur with or without just cause, with specific notice periods and severance pay calculated based on length of service. |
| 9. Employees are entitled to 10 public holidays in 2025, with additional compensatory leave if required to work due to force majeure or unforeseen business needs. |
Discover the global hiring and employment landscape in Macao – as a key city in the Greater Bay Area, Macao is a prime choice for businesses seeking a regional presence. With a thriving economy, low taxation, and an efficient legal system, it's no surprise that many consider the city conducive for business expansion and sustained growth.
Personal Income Tax
| Taxable Income (MOP) | Progressive Tax Rate (%) |
|---|---|
| Up to 144,000 | - |
| 144,001–164,000 | 7 |
| 164,001–184,000 | 8 |
| 184,001–224,000 | 9 |
| 224,001–304,000 | 10 |
| 304,001–424,000 | 11 |
| Over 424,000 | 12 |
Note: Different tax brackets apply for part-time employees, those who are 65 years old and above, and those with a permanent disability level of at least 60%. The Financial Services Bureau provides a tax simulation calculator that allows individuals to estimate their tax liabilities according to their respective cases.
Local Taxes
Statutory Contributions
Under the General Regime of Labor Relations, any Macao resident who works under the authority and direction of an employer in return for remuneration must be registered with the Social Security Fund and make the necessary contributions.
Casual workers who work less than 15 days in the month are only obligated to contribute half the amount required otherwise from both the employer and employee.
Employer Contributions
| Contribution Rate | |
|---|---|
| Social Security Fund Contribution | MOP 60 per month |
Employee Contributions
| Contribution Rate | |
|---|---|
| Social Security Fund Contribution | MOP 30 per month |
Payment of Wages
Employers are obligated to pay their employees' basic remunerations within 9 working days from the expiry of the last day of the agreed remuneration period.
Minimum Wage
Statutory Bonus
Termination
An employment contract may be terminated without notice and without having to pay any compensation by a written mutual agreement. That being said, each party can also unilaterally terminate an employment contract with or without just cause.
Those terminating for just cause must produce a written notice within 30 days of knowing the relevant facts leading to the termination, summarily describing said facts to the other party. Generally, any fact or serious circumstance that makes it impossible to continue the labor relation shall constitute a just cause for termination.
| Just cause for dismissal | Just cause for resignation |
|---|---|
| Willful disobedience to orders given by superiors | Repeated failure to pay the remuneration on the due date and in the form agreed on or provided for by law |
| Repeated lack of commitment in fulfilling duties inherent in the exercise of the employee's functions | Wrongful infringement of the employee's rights and guarantees |
| Chronic tardiness, leaving early or abandoning work without authorization | Culpable violation of the regulations on hygiene and safety at work |
| Unjustified absences directly causing serious harm to the enterprise or when the absence is over 3 consecutive days or 5 separate days in a year | Wrongful harm to the employee's economic interests |
| Abnormal reduced productivity intentionally caused by the employee | Offences against the employee's physical integrity, freedom, honor or dignity |
| Repeated provocation of disputes with other employees | Transfer of the enterprise |
| Acts of physical violence, insult or other abuse punishable under law directed at the employer, superiors or other employees | Significant alterations in the working conditions contractually established |
| Causing severe harm to the enterprise's interests or violating the regulations on occupational hygiene and safety | [For minor employees] The opposition of the minor's legal representative against the work. |
If the terminating party decides to end the employment relationship without just cause, the following shall apply:
| Dismissal without just cause | Resignation without just cause |
|---|---|
| Employers dismissing their employees without just cause must pay severance | Employees who resign without just cause are not entitled to severance |
| Employers intending to dismiss their employee for just cause, but fail to establish sufficient grounds or do not produce the required written notice must pay double severance | Employees intending to resign with just cause, but fail to establish grounds or do not produce the required written notice must pay the employer in lieu of the notice not served |
Notice Period
In the event of any termination without just cause, the terminating party is required to observe the following notice period:
| Notice period | |
|---|---|
| Dismissal | 15 days |
| Resignation | 7 days |
The parties may contractually agree to different notice period, provided that the length of notice for resignation does not exceed those for dismissal.
Severance Pay
Employees who are dismissed without just cause or resign with just cause are entitled to receive the following severance:
| Length of service | Severance pay |
|---|---|
| After probation, up to a year | 7 days of basic remuneration |
| Over 1, up to 3 years | 10 days of basic remuneration per year of service |
| Over 3, up to 5 years | 13 days of basic remuneration per year of service |
| Over 5, up to 7 years | 15 days of basic remuneration per year of service |
| Over 7, up to 8 years | 16 days of basic remuneration per year of service |
| Over 8, up to 9 years | 17 days of basic remuneration per year of service |
| Over 9, up to 10 years | 18 days of basic remuneration per year of service |
| Over 10 years | 20 days of basic remuneration per year of service |
The maximum severance amount is capped at 12 times the employee's basic remuneration in the month of termination, irrespective of their length of service. Furthermore, unless a higher value has been agreed, the maximum amount of the basic monthly remuneration used to calculate severance is set at MOP 21,000.
Probationary Period
An employment contract may include a probationary period which, without prejudice to any written agreement to the contrary, is presumed to be as follows:
| Probationary period | |
|---|---|
| Indefinite-term employment | 90 days |
| Fixed-term employment | 30 days |
An alternative probationary period arrangement can be made, provided that they do not exceed the following limits:
| Maximum probationary period | |
|---|---|
| Fixed-term employees | 30 days |
| Employees holding leadership or managerial positions | 180 days |
| Employees whose work is of highly technical nature or involves special qualifications | 180 days |
| Other employees | 90 days |
During the probationary period, an employment contract can be terminated without having to show just cause and without paying any severance. Moreover, termination during the probationary period is only subject to advance notice under very specific circumstances.
Work Time Rules
Standard Working Hours
Normal working hours are subject to a maximum of 8 hours per day and 48 hours per week.
Break Period
Employees shall not be required to work more than 5 consecutive hours without a break period of at least 30 consecutive minutes. This break period is counted towards the employee's normal working hours only if they are not allowed to be away from the workplace unconditionally.
Overtime
Overtime can either be performed with the consent of the concerned parties or under the following circumstances, irrespective of the employee's consent:
| Circumstances | Maximum daily working hours |
|---|---|
| Force majeure | 16 hours |
| Employer facing a great loss | 16 hours |
| Employer facing an unpredictable increase in the amount of work | 12 hours |
Employees performing overtime shall be compensated as follows:
| Overtime rate | |
|---|---|
| Overtime with the concerned party's consent | 120% of the employee's normal remuneration |
| Overtime arrangements irrespective of the concerned party's consent | 150% of the employee's normal remuneration |
Employees required to work overtime due to force majeure or when the employer faces great loss must be granted compensatory rest of not less than 24 hours if the period of work reaches its maximum daily limit. Otherwise, the rest shall be prorated according to the period of work.
Those who perform overtime due to an unpredictable increase in the amount of work shall only be entitled to compensatory rest if they work overtime for 2 consecutive days.
Weekly Rest Days
Employees are entitled to 24 consecutive hours of paid rest day per week or, with the agreement of the concerned parties, 4 paid rest days for every 4-week period.
Employees may be required to work on their rest days when the employer faces a great loss, in cases of force majeure, when there is an unforeseen increase in the amount of work or when the service rendered is indispensable to ensure the continued operation of the business.
Employees required to work on their rest days shall be entitled to a compensatory rest day within 30 days following the performance of work and to the following compensation:
| Additional compensation | |
|---|---|
| Employees paid by the month | An additional day's basic remuneration OR A compensatory rest within 30 days |
| Employees paid by actual time worked or actual output | A day's basic remuneration OR A compensatory rest day within 30 days, in addition to the normal remuneration for the work performed |
Note: The additional compensation for work performed on rest days are not required for employees working their rest days voluntarily, provided that there is a record attesting the voluntariness of the work.
Holiday and Leave Entitlements
Public Holidays
Employees shall be allowed to suspend the performance of work on public holidays without any loss of basic remuneration. There are 10 days of public holidays in Macao for 2025.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Lunar New Year's Day | January 29 |
| Second Day of Lunar New Year | January 30 |
| Third Day of Lunar New Year | January 31 |
| Cheng Ming Festival | April 4 |
| Labor Day | May 1 |
| National Day of the People's Republic of China | October 1 |
| The Day After Mid-Autumn Festival | October 7 |
| Chong Yeung Festival | October 29 |
| Macao S.A.R. Establishment Day | December 20 |
Employees may be required to work on public holidays when the employer faces a great loss, in cases of force majeure, when there is an unforeseen increase in the amount of work or when the service rendered is indispensable to ensure the continued operation of the business.
Those working public holidays are entitled to a compensatory holiday within 3 months following the performance of work.
Annual Leave
Employees with at least a year of service are entitled to 6 working days of annual leave during their second year of service. Annual leave shall be taken during the calendar year in which it falls due, though it may be accumulated for up to 2 years by agreement between the concerned parties.
Employees with less than a year of service, but more than 3 months, shall be entitled to half a day's leave for every month of actual service in their second year of service.
Sick Leave
Employees are entitled to take justified leave due to an accident or sickness for up to 30 consecutive days or 45 non-consecutive days per calendar year. Employees who have completed their probationary period are entitled to have 6 days of their sick leave be paid in each calendar year
Maternity Leave
Employees are entitled to 70 days of maternity leave for reason of childbirth, 63 days of which must be taken immediately after confinement. The remaining days may be taken consecutively or separately, before or after confinement, at the employee's discretion.
Employees with at least a year of service on the day of their confinement are entitled to receive their basic remuneration during their maternity leave period.
Furthermore, employees are also entitled to take justified leave for up to 3 months for diseases related to pregnancy, confinement or involuntary abortion. Other maternity-related leave may also be provided in the event of stillbirth or the child's death, subject to the prevailing regulations.
Paternity Leave
Employees are entitled to 5 working days of paternity leave, which can be taken consecutively or separately during the period from 3 months of the mother's pregnancy to 30 days after childbirth.
Employees with at least a year of service on the date of childbirth are entitled to receive their basic remuneration during their paternity leave period.
Furthermore, employees whose spouse dies in childbirth or during maternity leave are entitled to a leave of 12 working days. Other paternity-related leave may also be provided in the event of stillbirth or the child's death, subject to the prevailing regulations.
Other Leave
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Adoption Leave | Unpaid | 2 working days | - |
| Bereavement Leave | Unpaid | 3 consecutive working days | This leave can be taken in the event of the death of the employee's spouse, parent or a relative in direct line within the first degree of consanguinity. |
| Emergency Leave | Unpaid | - | This leave can be taken for reasons outside the employee's control, e.g. legal obligations or force majeure. |
| Exam Leave | Unpaid | - | This leave can be taken for participating in work-related examinations. |
| Household Assistance Leave | Unpaid | 12 working days per year | This leave can be taken due to pressing need to provide assistance to a member of the employee's household. |
| Marriage Leave | Unpaid | 6 consecutive working days | - |
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