Minimum wage hike falls short of labor proposal, Lawmaker Says

Leong Sun Iok

The Legislative Assembly (AL) approved a one-pataca increase in the minimum wage hourly rate early this month, with lawmaker Leong Sun Iok acknowledging that while this amount falls short of the labor sector’s proposal, he understands the government’s consideration of the overall circumstances.

In response to the Times’ inquiry about the minimum wage bill, Leong was asked whether a one-pataca increase truly reflects current economic conditions.

He stated that the government’s decision must balance protecting employees while mitigating excessive pressure on residents, taking into account economic development and affordability for both residents and businesses.

“From a protection standpoint, a one-pataca increase is certainly warranted, though affected employees may find it insufficient. We hope to refine the relevant mechanisms in the future to ensure that future increases better align with actual needs,” he stated in an interview with the Times.

The legislator from the labor sector went on to elaborate on the purpose of the minimum wage, stating, “It not only safeguards the basic livelihood of low-income individuals but also serves as a crucial measure to respect labor.” He stressed the need for future adjustments to the minimum wage to be based on more scientifically grounded criteria.

The draft amendment to the minimum wage requirements proposes raising the hourly rate to MOP35, the daily rate to MOP280, and the monthly rate to MOP7,280, set to take effect on January 1 next year.

This change is expected to benefit approximately 18,000 employees, representing 4.4% of the total workforce, excluding domestic workers, with those in property management and cleaning services being the primary beneficiaries.

Macau’s minimum wage was implemented on January 1, 2024, and is subject to review and potential adjustment every two years as mandated by law.

However, Leong questioned whether the current “biennial review” mechanism suffers from implementation delays.

“The primary issue is that our review cycle is every two years. Similar to the previous review, the government typically submits the bill to the Legislative Assembly at year-end, but the implementation deadline of January 1 leaves relatively little time. Management companies need time to adjust fees and hold meetings with owners. If coordination fails, it will impact both management companies and the entire building’s operations,” he said.

Leong also emphasized the need for the government to reassess its implementation practices, particularly regarding time management efficiency.

“Many companies, such as those handling government cleaning, security, or outsourced contracts, typically base their bids on the minimum wage amount. Adjustments inevitably impact their costs. While some businesses may have anticipated minimum wage changes and budgeted accordingly, others may not have, which disrupts reasonable operations,” he explained.

He referenced Hong Kong’s establishment of a dedicated task force to handle minimum wage adjustments and develop a set of data-driven indicators, stating, “Using these metrics as a reference, the final decision on a reasonable increase amount should be reached through tripartite consultation among labor, management, and government representatives.”

Leong noted that the labor sector has observed a gradual shift in Macau’s job market away from non-technical roles. With the implementation of the minimum wage, local residents’ career choices have also changed. He suggested that the government consider localizing requirements for outsourcing, cleaning, and security services.

“Against the backdrop of minimum wage increases, this could attract more residents to participate in the workforce, positively impacting local employment and addressing Macau’s unemployment issues,” he asserted.

The lawmaker also expressed hope that the government will focus on the situation of low-income individuals in future policies.

He called for improvements to the review system of the current Labor Relations Law, enhanced protection of rest entitlements, and optimization of overall working hour arrangements.

“From the perspective of labor standards and employment policies, we hope the government will not only prioritize labor standards in the Policy Address but also strengthen related measures through comprehensive policy approaches,” he concluded.