Dismissal compensation salary cap set to increase to MOP21,500

A bill to raise the maximum compensation for dismissal without just cause was passed yesterday at the Legislative Assembly, with all lawmakers voting in favor.

The bill proposes increasing the compensation ceiling from 20,000 patacas to 20,500 patacas. While the proposal received unanimous support, some lawmakers felt it was too modest and long overdue.

Among the less satisfied was Ella Lei, a directly elected lawmaker who represents workers’ interests. Lei acknowledged the increase of 500 patacas was a step forward but argued the entire framework governing dismissal and compensation is outdated and no longer reflects the realities of modern society.

She also criticized what she referred to as a “false review mechanism,” noting that while the law requires regular evaluations and updates of labor standards every two years, the government often opts to simply maintain previous standards, making updates only every four, six or even more years.

Lei also expressed concerns the current bill only addresses the maximum compensation amount and does not consider other important provisions, such as the number of months used to calculate compensation or other relevant factors.

In general, lawmakers noted the existing laws remain heavily tilted in favor of employers, a situation that undermines social harmony and hinders meaningful negotiations.