Macau sets minimum hourly wage at MOP35 next year

The Executive Council (ExCo) has announced plans to raise the minimum hourly wage from MOP34 to MOP35, which is expected to take effect this year and benefit approximately 18,200 employees.

The draft legislation proposes a 2.9% increase in wages, raising the daily wage from MOP272 to MOP280, weekly wages from MOP1,632 to MOP1,680, and monthly wages from MOP7,072 to MOP7,280. Excluding domestic workers, the number of employees benefiting from this increase would represent 4.4% of the total workforce.

Notably, employees in sectors such as property management and cleaning services are expected to be the primary beneficiaries of these changes.

According to legal provisions, the government is required to review the minimum wage every two years following its implementation. From November 1, 2020, to December 31, 2023, the minimum wage in Macau was set at MOP32, and it is set to increase to the current minimum wage of MOP34 in 2024.

In September of this year, the government conducted its second review of the minimum wage. During this process, labor representatives proposed raising the hourly rate to MOP37.

However, this proposal faced strong opposition from employers, who cited the unfavorable business environment in Macau, declining consumer spending power, and an incomplete economic recovery as reasons for their concerns.

After three months of deliberation, the ExCo convened its regular press conference on Friday and announced the completion of discussions on the draft amendment to the Minimum Wage for Employees. The bill will be submitted to the Legislative Assembly (AL) for immediate review to ensure that the law takes effect on January 1 next year.

At a press conference, Chan Un Tong, director of the Labour Affairs Bureau (DSAL), stated that the recent adjustment reflects a balanced outcome achieved by considering various factors, including Macau’s macroeconomic conditions, labor market dynamics, employee compensation levels, and employer operational circumstances. He emphasized, “The new adjustment amount of MOP35 represents a relatively moderate and appropriate increase.”

The labor chief emphasized that the purpose of implementing the minimum wage law is to ensure employees are safeguarded in their work and to prevent excessively low wages. He stated, “This adjustment considers various factors, including the overall business environment and the affordability for both employees and employers.” The government aims to strike a balance, highlighting that the increase to MOP35 will protect the income of low-income employees while maintaining corporate competitiveness. Chan added that there is currently no expectation that this increase will lead to conversions of full-time positions to part-time roles or layoffs.

According to him, since the Minimum Wage for Employees law took effect, the authorities have received three related cases involving 11 employees as of September this year. However, investigations have revealed no instances of employers violating the law.

Starting in July last year, the monthly salary for domestic helpers has been set at a minimum of MOP3,200, while the current median application amount stands at approximately MOP3,800. Although the existing Minimum Wage for Employees legislation does not apply to domestic workers, the government reaffirmed that it has maintained mechanisms to ensure that imported foreign domestic helpers receive fair wage levels.

Wong Sio Chak, as newcomer, confident in fulfilling role as ExCo spokesperson

Meanwhile, Friday’s 20-minute meeting marked the first ExCo press conference chaired by Wong Sio Chak in his new role as spokesperson, following his appointment as Secretary for Administration and Justice and member of the Executive Council. As a “newcomer,” he acknowledged that not every bill is familiar territory for him but emphasized his commitment to continuous learning through participation in the Executive Council’s legislative discussions. Wong expressed confidence in his ability to fulfill the role of spokesperson, stating, “This is also a valuable opportunity to enhance my capabilities and gain a deeper understanding of other areas and responsibilities.”