Suppliers required to include minimum wage adjustments in cleaning, security service bids

The Secretary for Economy and Finance, Anton Tai, announced yesterday that government departments will now require suppliers bidding for cleaning and security services to factor minimum wage adjustments into their contract bid prices.

At yesterday’s Legislative Assembly session, the Secretary for Economy and Finance emphasized the response measures taken by various public entities regarding minimum wage adjustments and future policy implementation, disclosing that suppliers bidding for cleaning and security services must now incorporate minimum wage adjustments into their bid prices for the duration of the contract.

“While not all departments have such flexible provisions,” Tai emphasized, “we will continue to encourage other departments to adopt similar measures to ensure that future procurement projects can adapt flexibly to changes in the minimum wage. This will be a key focus of our future work.”

The commitment was made in response to lawmaker Nick Lei’s concerns about the adjustment of the minimum wage. Lei noted that the focus should not solely be on the increase itself but on the supportive measures the government will implement once the adjustment takes effect. He pointed out that some small- and medium-sized enterprises (SMEs) providing government cleaning and security services have raised issues regarding inconsistencies in bidding standards across different public entities, with some tender documents allowing for adjustments in response to the minimum wage while others do not.

According to Lei, the Financial Services Bureau (DSF) issued guidelines in February advising public entities to include flexibility clauses in contracts to accommodate future minimum wage adjustments; however, recent tenders have still lacked such clauses.

The assembly passed the detailed provisions of the bill to amend the law on the Minimum Wage for Employees yesterday. Under the new bill, minimum wage rates will be adjusted to MOP35 per hour, MOP280 per day, MOP1,680 per week, and MOP7,280 per month, effective January 1 next year.

Notably, this adjustment will benefit approximately 18,200 employees, representing about 4.4% of the workforce, with the first committee reviewing the bill deeming the effective date reasonable, ensuring timely biennial adjustments to the minimum wage.

In a subsequent joint voting statement, legislators from the labor sector underscored the importance of implementing and reviewing the minimum wage law, highlighting the need for policy transparency and a deep understanding of local contexts.

The three lawmakers, Ella Lei, Leong Sun Iok, and Leong Pou U, reiterated recommendations for the government to actively refine labor laws and regulations – such as the Nonresident Worker Employment Regulations – to prioritize local employment, optimize training subsidies, and enhance the workers’ compensation system, thereby better safeguarding employee rights.

Business sector legislators proposed improving transparency in future minimum wage reviews by signaling policy directions to the public in advance, allowing enterprises ample time to prepare, stabilize business expectations, and maintain overall competitiveness. The three– Chui Sai Peng, Kevin Ho, and Si Ka Lon – also recommended streamlining administrative measures to protect labor resources while fully considering the actual affordability of small and micro enterprises when assessing enhancements to employee benefits.

Next fiscal year’s budget detailed provisions approved

Additionally, yesterday’s plenary session approved the detailed provisions of next fiscal year’s budget, which projects a gross gaming revenue of MOP236 billion as the primary basis for its formulation, with estimated general consolidated revenue set at MOP118.8 billion.

The budget anticipates a surplus of MOP5.31 billion, with total expenditures amounting to MOP113.48 billion, covering the continuation of funding multiple livelihood measures, including the cash handout scheme, medical vouchers, and education allowances. At the same time, various tax relief measures will be maintained to support the development of the financial sector and technological innovation.