Social Security | Employers and workers to be equally responsible for pension fund

Leong Heng Teng

The Executive Council (ExCo) announced yesterday that the discussion on the Non Mandatory Central Provident Fund Scheme proposal has concluded. Employers as well as employees can participate in the scheme voluntarily, based on an agreement reached between the two parties. The draft suggests all Macau residents (aged over 18, or who have already participated in the labor market) are eligible to open a central provident fund account.
According to the proposal to be voted on by the Legislative Assembly plenary, once the account is established it will not be cancelled when the employment relationship ceases. Money in this account can be withdrawn once the owner turns 65. Contributions to the fund include joint schemes through both the employer, as well as personal contribution schemes made by the individual employee.
When referring to the joint contribution, the law draft indicates that both the employer and employee shall provide a minimum of five percent each  of the employee’s monthly salary. As to the personal contribution scheme, the minimum amount is MOP500 per month.
Moreover, the draft proposal suggests that if the employee leaves the company after being employed for three years, they can receive 30 percent of the contribution made by the employer, under the joint account. In turn, if the employee leaves the job after ten years of work, they can receive all the contributions made by the employer, also under the joint account.
According to Leong Heng Teng, spokesman for the CE, 40 percent of local companies already provide a selection of retirement schemes to their employees.
Leong said “the scheme serves to encourage the employers and the employees to be well prepared when dealing with retirement processes.” He added that within three years, the Non Mandatory Central Provident Fund Scheme will be assessed and could become mandatory. Staff reporter

Cash handouts to start in July

Cash handouts this year will start to be distributed on July 4. As previously disclosed, permanent and non-permanent residents of Macau will receive MOP9,000 and MOP5,400, respectively, the same amounts as were given in the past two years.
According to the CE, there are 623,524 permanent residents and 62,058 non-permanent residents eligible for cash handouts, which translates into a total of MOP5.9 billion.
Those who registered for automatic transfers to their bank accounts will receive the money on July 7.
For those who did not register for automatic bank transferring, checks will be mailed within the ten weeks between July 11 and September 16. Contrary to previous years, this time the government will not set up an assistance center to provide help regarding pecuniary sharing issues.