Definitive Guide to Hiring in Macau (Macao)

Hiring in Macau (Macao)

Hiring employees compliantly in Macau (Macao) means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Macau (Macao) so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Macau (Macao); or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Macau (Macao)

Employee Probation Period

• The parties can agree on the probation period, which cannot exceed 90 days except in some specific positions such as managers (can be increased to 180 days) and fixed term contracts (reduced to 30 days).

Annual Leave in Macau (Macao)

• A minimum of 6 working days of annual leave after one year of service.

Holidays in Macau (Macao)

Maternity Leave Macau (Macao)

• According to article 54 of the Macau Labor Relations Law, female employees are entitled to, after childbirth, 56 days of maternity leave.
• Effective from 1st November 2020, Employer-paid maternity leave has been increased from 56 to 70 days, with the additional days initially being subsidized for a transitional period by the Social Security Fund (FSS).

Paternity Leave Macau (Macao)

• Male employees are entitled to a five-day employer-paid paternity leave

Sick Leave in Macau (Macao)

• Employees are entitled to 6 days of sick leave

Working Hours in Macau (Macao)

• The standard work week in Macau is eight hours a day, or forty-eight hours per week.

Overtime in Macau (Macao)

• Employee-consented overtime is paid at a rate of 120% of the base pay while forced overtime is paid at a rate of 150% of the base pay.

Termination of Employment in Macau (Macao)

• Employees can terminate their contracts at will at any time. This is provided they have given a minimum of seven days’ prior notice (longer periods can be imposed under the contract) or payment to the employer in lieu of notice.
• Under Law 7/2008 there is a distinction between dismissal by the employer with cause and dismissal without cause:
  • Dismissal without cause is subject to a minimum notice of 15 days (contracts may impose longer periods), or payment to the employee in lieu of notice.
  • Employees dismissed without cause are entitled to a redundancy compensation based on the number of years of service (up to a maximum amount of MOP240,000).
  • Dismissal with cause is immediate and does not entitle the employee to any compensation.
  • For the dismissal with cause to be valid, the employer must set out in writing to the employee the reasons for dismissal with cause within 30 days of becoming aware of the said cause.
• Reasons for dismissal with cause include:
• Willful disobedience of orders.
  • Repeated lack of commitment in fulfilling duties.
  • Chronic lateness, leaving early or abandoning work during the working hours without authorization.
  • Unjustified absences from work and false statements regarding the justification of absences.
  • Abnormal reduced productivity intentionally caused by the employee.
  • Repeated provocation of disputes with other employees.
  • Acts of physical violence, insult or other abuse.
  • Severe harm to the company's interests.
  • Violation of regulations on occupational hygiene and safety.

Notice Period in Macau (Macao)

• Dismissal without cause is subject to a minimum notice of 15 days (contracts may impose longer periods), or payment to the employee in lieu of notice.
• The length of previous notice agreed upon by both parties shall not exceed the length of the statutory period (i.e. 15 days in case of termination on initiative of an employer and 7 days in case of termination on initiative of an employee).
• For the dismissal with cause to be valid, the employer must set out in writing to the employee the reasons for dismissal with cause within 30 days of becoming aware of the said cause.

Severance in Macau (Macao)

• Employees dismissed without cause are entitled to a redundancy compensation based on the number of years of service (up to a maximum amount of MOP240,000).

Macau (Macao) Salary and Wages

13th / 14th Month Salary in Macau (Macao)

• Yes
• There seems to be a statutory requirement to pay the 13th month salary, this is paid at the end of the year.

• Apart from professional and complementary taxes, there is also a social security fund contribution.
• A total contribution of MOP 90 per month is payable for resident employees.
• The employer contributes two-thirds of the amount (i.e. MOP 60) and the employee contributes one-third of the amount (i.e. MOP 30).
• Payment is required to be made by the employer to the Social Security Fund Department before the end of the month following the quarter-end for full-time employees and following the month-end for part-time employees.
• Employees with a work permit are not required to contribute to the social security fund, but their employer must pay a foreign employee fee of MOP 200 per month for each nonresident employee.

Immigration Macau (Macao)

• Before a Non-resident Worker’s Identification Card (blue card) is granted by the Immigration Department, a work permit must be obtained from the Macau Labor Affairs Bureau (Direcção dos Serviços para os Assuntos Laborais, or DSAL), the government authority that handles the employment of foreign nationals and local workers.
• Before a work permit application is made to the DSAL, the employer must register the vacant position with the employment section of the DSAL and must indicate the identity of the employer, title of the position, remuneration, working hours, and qualifications and experience required.
• Vacancy order forms are available in the DSAL’s employment section.
• An employer that is unable to find a local employee with comparable experience and qualifications to fill a vacancy may apply for a work permit to bring in a qualified nonresident.
• The employer must prove that the DSAL was notified of the vacant position and was unable to provide a prospective employee.
• To obtain work permits from the DSAL for their foreign employees, employers must generally submit the following documents to the DSAL:
• A prescribed application form completed in full with details of the employer, reason for employing the foreign national, and number and positions of existing resident and nonresident employees
  • Photocopy of the employer’s commercial registration document from the Identification Services Bureau and photocopy of the legal representative’s identity card
  • Photocopies of the employer’s business license, industrial registration or equivalent registration document, and business tax payment record
  • Evidence of the employer’s contribution to the Social Security Fund
  • Photocopy of proof for local recruitment from the DSAL
  • Photocopy of the foreign employee’s passport or other travel document
  • Evidence of the foreign employee’s qualification and experience
• If an application is approved by the DSAL, a letter of approval is issued to the applicant for submission to the Immigration Department to process the foreign employee’s blue card.
• A foreign national may not undertake employment in Macau until a blue card application is submitted.
• The work permit and blue card are normally granted for employment with a specific employer.
• Work permits are normally granted for a maximum period of two years and are renewable by the DSAL.
• The application form for the renewal of a work permit, together with other required documents, must be submitted to the DSAL three months before the expiration date of the work permit.
• The applicant must also apply for renewal of a blue card from the Immigration Department when the work permit is renewed by the DSAL.
• Foreigners who enter Macau to set up their own businesses are also required to obtain a work permit to work in Macau.
• They must follow the procedures for recruiting nonresident skilled workers and submit the following documents:
  • Copy of the applicant’s identification document
  • Copy of the latest Business Tax Registration or Declaration of Start/Alteration of Activity Form M/1
  • Proof of the activities performed by the applicant, such as academic certificates or work reference letters
  • Proof of applicant’s economic capacity in Macau
  • Copy of the contributions to the Social Security Fund
  • Personal information of recruited local workers, including positions, remuneration and identity documents
• The government’s policy is to encourage people of financial standing, who will make substantial investment in the territory, to become residents of Macau.
• To qualify, an applicant must demonstrate his or her financial ability to invest significantly in an enterprise in Macau.
• Management and/or technical personnel employed or likely employed by a Macau-registered company with qualifications and professional experience that contribute to Macau’s economy may also be granted a residence permit on application.
• The temporary residence permit is normally granted for an initial period of three years, depending on the validity of the applicant’s travel document.
• A residence permit expires 30 days before the expiration of an applicant’s travel document.
• In general, a temporary residence permit holder may, after seven years of continuous residence in Macau, apply for permanent residence status.

Value Added Tax (VAT) in Macau (Macao)

• There is no VAT regime in Macau.
• Consumption tax is imposed only on tobacco and spirits entering into Macau.

Mandatory Benefits in Macau (Macao)

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Payroll Accrual in Macau (Macao)

Country Accruals Additional Information

Description

Apart from professional and complementary taxes, there is also a social security fund contribution. A total contribution of MOP 90 per month is payable for resident employees. The employer contributes two-thirds of the amount (i.e. MOP 60) and the employee contributes one-third of the amount (i.e. MOP 30). Payment is required to be made by the employer to the Social Security Fund Department before the end of the month following the quarter-end for full-time employees and following the month-end for part-time employees.

Payroll Accruals Additional Information

Accrued Benefits in Macau (Macao)

Why use Global Expansion to hire in Macau (Macao)

Establishing a branch office or subsidiary in Macau (Macao) can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Macau (Macao) labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Macau (Macao) law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Macau (Macao). We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Macau (Macao) Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.