Council approves labor review including pay caps, maternity leave

The Permanent Council for Social Dialogue approved its 2026 work plan yesterday, which includes reviews of severance pay caps, maternity and vacation leave rules, and workplace injury compensation limits.

The council, chaired by Secretary for Economy and Finance Anton Tai, met in a closed-door session at Lotus Hall of the government-appointed Social Affairs Coordination Standing Committee at the World Trade Centre yesterday afternoon.

Council secretary-general and Labour Affairs Bureau director (DSAL) Chan Un Tong told reporters afterward that the agenda features six items.

Those items include reviewing the maximum monthly base remuneration for severance pay calculations under the Labor Relations Law; amending vacation and maternity leave provisions in the same law; ensuring compliance with International Labour Organization Convention No. 144; recognizing new associations and renewing existing ones; and other matters deemed necessary by the administration.

The plan also targets limits on compensation for workplace accidents and occupational diseases under Decree-Law No. 40/95/M, as well as revisions to maternity leave and annual leave regulations.

Addressing reporters’ questions on timelines and impacts, Chan stated, “The first item concerns No. 40/95/M, which requires an annual review according to legal regulations,” he said. “This is also part of this year’s review, and we will definitely have a result this year.”

On severance pay caps under the Labor Relations Law, Chan noted that the law mandates reviews every two years, making 2026 timely. Chan added, “This is also part of this year’s social work plan and will definitely be completed this year.”

To decide on adjustments, the council stated that the government will first integrate data from insurance companies, opinions from the Monetary Authority of Macao (AMCM), and labor market information from the past two years. Chan emphasized that these two reviews will run concurrently. No public consultations are planned, but professional sector views will be sought.

Responding to concerns about small and medium-sized enterprises (SMEs), Vong Kok Seng, vice president of the Macao Chamber of Commerce board of directors, said: “Of course, we are very concerned about SMEs […] we are concerned that the increase in the maximum compensation amount and the original maternity leave salary will put pressure on SMEs’ business operations, so we will offer our opinions on this matter.”

Chan also clarified that compensation interpretations under Decree 40/95/M do not directly tie to Labor Relations Law changes. He remarked, “If time is limited, we will prioritize addressing the issues of maternity leave and base salary in the bill, which are of concern to the public.”