Management side hopes for ‘minimal impact’ amid discussion on minimum wage adjustments

As the review on minimum wage commences, the management side of the debate is hoping for “the smallest burden and impact,” despite “unprecedented support” for the government.

Over the weekend, the Standing Committee for Social Coordination held a meeting to discuss this issue.

At the meeting, Wong Chi Hong, director of the Labour Affairs Bureau (DSAL), disclosed that the government is considering increasing the minimum wage from the current amount of MOP32 per hour to an amount between MOP34 and MOP36. When questioned by the press, he said that there is no deadline for the review. Nonetheless, he emphasized that the bureau would strive to conclude the work “as soon as possible.”

Wong Kuok Seng, deputy executive director of Macao Chamber of Commerce and the management representative at the committee, emphasized the hardship of employers, amid expressing this hope.

He stressed that in the past three years, a number of businesses had to “survive on loans, although they stayed grateful to the government.” He also blamed the “change of consumption habits” for the hardship. “Recently, many residents have been inclined to spend outside Macau during weekends and holidays,” Wong said, adding that businesses in residential areas have not benefitted much from the economic recovery.

The businessman said there will be ripple effects from the minimum wage adjustment that will push other salaries and operational costs up. Inflation will also intensify, he added. “This will weaken competitiveness of our tourism, service and manufacturing industries,” Wong said.

The businessman reiterated that whatever the amount will eventually be, the business sector will support the government’s decision.

Meanwhile, Fong Ka Fai, a labor representative on the committee as vice president of the city’s main trade union – Macao Federation of Trade Unions – welcomed the government’s proposal to review the minimal wage.

Fong hopes that after reviewing the minimum wage, “laborers will have improved protection.” Echoing the management side, Fong said that the labor side will accept whatever amount will be passed at the end.

As the government proposes a possible range for the minimum wage, Fong was asked if the labor side will accept the updated amount at the lower end of the range, to which the trade unionist answered in the affirmative.

Pursuant to the law, minimum wage should be reviewed every two years. However, this review was only triggered three years after the previous implementation, which was also the system’s first implementation. Fong hopes that future review can be more frequent, and is calling for a dedicated committee to be established to provide better support.

Explaining this review, DSAL’s Wong disclosed that this review was commenced late last year, with the bureau reviewing data from Nov 1, 2020 to Oct. 31, 2022.