Minimum wage law under review

The Labor Affairs Bureau has commenced its second mandated review of the Minimum Wage Law, a process required every two years under local legislation. The announcement follows a written inquiry from lawmaker Lei Chan U, confirming that the Bureau will assess the law’s implementation from November 2022 to October 2024.

The review will involve analyzing execution data and current economic conditions to evaluate whether adjustments to the minimum wage or severance compensation limits are necessary. Once completed, the Bureau will compile its findings into a report for consideration by the Social Coordination Standing Committee. While changes to minimum wage rates and severance compensation limits require legislative action, the Bureau says it’s working to streamline the review process.

In 2024, Macau’s government increased the minimum wage to MOP7,072 per month, a rise of MOP416 from the previous rate of MOP6,656. This decision was made after assessing the macroeconomic environment and labor market evolution. The amendment to Law 5/2020 will be sent to the Legislative Assembly for discussion, with an intended enforcement date of January 1, 2024.

The amendment does not extend to domestic workers operating under a separate regime with a minimum wage ceiling of MOP3,500. Wong Chi Hong, director of the Labor Affairs Bureau, emphasized that domestic workers receive benefits such as food and lodging, impacting their overall compensation. VC