Macau PEO & Employer of Record Services
Global PEO Services (GPS), a Safeguard Global company, helps companies hire employees in Macau without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Macau, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
We hire the employees on your behalf, legally contracting them through our subsidiary in accordance with Macau labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Macau. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Macau - Country Overview
Macau is an autonomous territory and a Special Administrative Region of China, located in the country’s Southeastern coast. It is a free port that benefits from its openness to global trade and foreign investments. The importance of foreign trade is reflected in the combined value of Macau’s imports and exports, which is equal to 110% of its GDP. The most prominent industries are tourism, gambling, banking, construction and media.
Capital City
Beijing (as Macau is China’s Special Administrative Region)
Currency
Macanese Pataca (MOP$)
Principal Language
Chinese, Portuguese
Government
China’s Special Administrative Region Headed by a Chief Executive
Employment Contracts in Macau
Employment contracts can be written or verbal, but written contracts are required for certain types of employees. Written contracts are required for non-resident workers, employees with fixed-term contracts, variable labor contracts, and minors.
Some of the details typically mentioned in Macau’s written contract include:
- Employer and employee identification
- Employer and employee’s address
- Job description and duties
- Working hours and remuneration
- Employment start date
- and more
The different types of employment relationships are:
- Permanent contracts – Also known as indefinite or open-ended contracts, these can be written or oral and are commonly used for part-time and permanent employees.
- Fixed-term contracts – This contract must be written, and the term is agreed upon by both parties. Fixed-term contracts cannot exceed two years and cannot be renewed more than twice.
- Variable-term contracts – This contract cannot exceed two years and cannot be renewed more than twice.
Probationary Period
The probationary period for employment in Macau depends on the type of contract and the role of the employee:
- Fixed-term contracts: 30 days
- Permanent contracts: 90 days
- Leadership or management positions: 108 days
- Duties of high complexity or duties that require a special qualification: up to 180 days
Working Hours in Macau
Regular work hours are restricted to 8 hours a day and 48 hours a week. The daily limit may go up to 12 hours, but the weekly limit still needs to be maintained. Any change in the work schedule can be implemented only with mutual agreement.
Overtime
Overtime work is remunerated in Macau at the rate of 20% additional payment. However, the employer is allowed to force their employees to work up to 16 hours if the plant is facing significant losses, and up to 12 hours if there is an unprecedented spike in the volume of work. Overtime payment in these cases is 50% extra plus compensatory rest. Employees are also entitled to additional pay for night shifts.
Holidays in Macau
Employees in India are entitled to the following leaves:
Annual leave in Macau – Employees receive a minimum of 6 working days of annual leave after one year of service.
Maternity leave in Macau – All permanent female employees are eligible for 70 days of paid maternity leave. Per the labor code in Macau, employer pays for the first 56 days. The Social insurance (FSS) pays for the next 14 days.
Sick leave in Macau – Employees are eligible for fully paid 6 days of leave due to sickness after completing the probationary period.
Paternity leave in Macau – Male employees are eligible for 5 working days of paternity leave.
Public Holidays
The following are the statutory national holidays observed in Macau:
- New Year’s Day
- Lunar New Year Day
- Second day of Lunar New Year
- Third day of Lunar New Year
- Cheng Ming Festival
- Labour Day
- The day after the Mid-Autumn Festival (Chong Chao Festival)
- National Day of the People’s Republic of China
- Chong Yeong Festival
- Macao Special Administrative Region Establishment Day
Employee Termination in Macau
In Macau, the notice period for terminating an employment contract depends on who initiates the termination and whether there is a just cause:
- Employer initiates termination – The notice period is 15 days.
- Employee initiates termination – The notice period is 7 days.
- Termination with just cause – The initiating party doesn’t need to give notice. However, the employer must provide a written explanation of the reasons for dismissal within 30 days.
- Contract without a notice period – If the contract doesn’t specify a notice period, the statutory notice period applies.
If an employer terminates an employee without notice or compensation, it must be done in accordance with the Labor Law. The employer may also be required to pay the employee compensation if the termination is without just cause.
Global Mobility in Macau
Visa requirements for Macau depend on the length of your stay and the purpose of your visit:
- Ordinary visa – Valid for multiple entries within six months with 14 days of stay per entry.
- Official visa – Valid for two entries within three months with 14 days of stay per entry.
- Diplomatic visa – Valid for one entry within three months with 14 days of stay per entry.
Employee Benefits in Macau
Employers need to contribute 60 patacas while employees (permanent or temporary but working more than 15 days a month), need to pay 30 patacas to the Social Security Fund (FSS) of Macau. In case of casual workers who work less than 15 days in a month, the employer needs to pay 30 patacas while the employee pays 15 patacas to the fund.
Old-age Pension
The Social Security Fund of Macau pays 3,450 patacas to a person who qualifies under the following conditions:
- He/she has reached the age 65 or is 60 years of age and shows signs of premature decline in health.
- He/she has been a resident of Macau for a minimum of 7 years.
- He/she has made a minimum 60 months of contributions.
Early Old-age Pension
After reaching the age of 60, employees in Macau are eligible for an early old-age pension, provided they meet the conditions of residency and have made 60 months of contributions. The amount of early old-age pension is calculated by considering the number of actual contributions, a percentage assigned to the employee’s age, a specified early pension amount and the maximum amount of old-age pension.
Disability Pension
A person is eligible for the disability pension of 3,450 patacas after making contributions for 36 months, being resident in Macau for 7 years, and meeting certain medical conditions.
Sickness Allowance
In cases of hospitalization, an employee is eligible for a sickness allowance of 138 patacas per day for not more than 180 days a year. In non-hospitalization cases, the same is 104 patacas per day. The qualifying conditions for this allowance include 9 or more contributions to the social security fund in the preceding 12 months.
Updated: October 07, 2024