Associations say minimum wage hike provides relief amid looming cost

Local service and property management associations have weighed in on the city’s minimum wage increase, which took effect on January 1, raising the hourly rate to MOP35 and the monthly salary to MOP7,280.

Yeung Kwong, from the Property Management Business Association Macau, said that more than a third of the affected employees are foreign workers.

While the 2.9% increase provides modest relief, employers face added costs from social security, insurance, and overtime pay.

As cited in a TDM report, he noted that around 10% of property management firms have approached property owners about raising service fees, while the rest are either absorbing the costs themselves or adjusting incentive-based pay.

“10% of management companies have already discussed the feasibility of raising management fees with the management authorities, while the remaining 90% may not be able to do so for the time being. Of these 90%, about one-third are likely operating on a fundraising basis, meaning they may not necessarily raise management fees, but their fundraising may be adjusted. A one-dollar increase represents 2.9%, but the story behind it is more than just 2.9%, because of changes in labor costs, social security, and insurance,” he said.

The official added that the current two-year review cycle is appropriate, cautioning that more frequent adjustments could strain both companies and owners.

Kuong Chi Fong, president of the Service Sector Employees’ General Association of Macau, welcomed the increase as a measure that eases financial pressure on workers. He suggested that future reviews be conducted annually and linked to inflation, and urged employees to pursue ongoing training to enhance skills and career prospects.

“This minimum wage is essentially a safety net. We hope our local employees can benefit from the economic recovery, as tourism has returned to 2019 levels, and that our workers can share in the recovery,” he said.