Macau Employment & Payroll Guide: Employment Laws, Payroll & Taxes
Key Law Terms Overview in Macau
Employment Contracts Act
In Macau, employment contract law and the legal framework governing work relationships are principally established by the Labour Relations Law (Law No. 7/2008) and related regulations. These laws set out the rights and obligations of employers and employees, define employment contracts, and govern fundamental terms of employment.
1. Primary Legal Framework
a. Labour Relations Law (Law No. 7/2008)
This is the central statute regulating employment relationships in Macau and applies to all labor matters including contracts, working conditions, termination, and employer/employee obligations.
Official law text (Labour Relations Law No. 7/2008):
➡️ Labour Relations Law (PDF – English): https://www.dsaj.gov.mo/download/dadidir/laws/labour_law_e.pdf DSAJ
Macau’s Labour Affairs Bureau (DSAL) provides a legislative overview listing key employment laws:
➡️ Labour Law listings on DSAL: https://www.dsal.gov.mo/en/standard/dsallawc.html DSAL
2. Definition and Nature of Employment Contract
Article 2 – Definitions (Labour Relations Law)
Under the Labour Relations Law:
Employer — any natural or legal person that has authority and direction over the employee and pays remuneration under a contract.
Employee — a natural person who performs work under the employer’s direction for remuneration.
These definitions form the legal basis for identifying the contractual relationship that must exist between employer and employee.
3. Formation and Types of Employment Contracts
Freedom of Contract Principle
Employment contracts in Macau are governed by the principle of freedom of contract; parties may agree on terms provided they do not contravene the Labour Relations Law.
Contracts may be oral or written, but written form is usual practice, especially for fixed-term or foreign worker contracts. Statutory minimum terms cannot be waived.
Types of Contracts
Contracts in Macau generally fall into:
Indefinite (open) contracts – no specified end date; employment ends for cause or legal reasons.
Term contracts (fixed or variable) – with a defined end date or project duration (common for foreign workers and temporary needs).
Special contracts – may be used for specific or temporary work depending on business needs, but terms cannot be less favorable than statutory minimums.
4. Mandatory Contract Terms
While Macau does not prescribe an exhaustive statutory list of contract contents in Law No. 7/2008, key terms generally include:
Employer and employee details
Job description and place of work
Remuneration amount and pay frequency
Working hours and rest periods
Start date and, if applicable, end date of contract
Conditions for termination
Contract provisions that conflict with minimum rights under the Labour Relations Law are null and void, and the statutory terms will apply.
5. Probation and Notice Periods
Probation
Macau law does not set a universal statutory probation length, but employment practice commonly establishes probation periods in contract terms — typically up to three months.
Termination Notice
If termination is without cause, Macau law generally requires:
Employer: Minimum 15 days’ notice (or longer if specified in the contract).
Employee: Minimum 7 days’ notice (or longer if specified in the contract).
6. Termination and Severance Rights
The Labour Relations Law and related interpretations (as reflected in Macau labour practice and guides) distinguish between:
Termination without cause: Requires notice and possibly severance depending on length and nature of employment.
Termination with cause: Employer may terminate immediately for justified reasons (misconduct or gross breach), but obligations under the law regarding documentation and notice still apply.
The exact statutory framework for severance calculation is governed by Law No. 7/2008 and implementing regulations (e.g., Law on Employment of Non-Resident Workers when applicable).
7. Minimum Standards and Statutory Guarantees
Macau’s employment contract law integrates with broader worker protection mandates:
Working Hours and Rest
Standard week: 48 hours (8 hours/day, 6 days/week), with rest periods and overtime pay obligations.
Leave Entitlements
Annual leave (earned after service), paid public holidays, sick leave, maternity leave, and other justified absences are stipulated by law and judicial interpretation or contract.
These entitlements cannot be reduced below the statutory minimum by contractual terms.
8. Amendments and Additional Regulations
Amendments to Law No. 7/2008
The Labour Relations Law has been amended over time (e.g., Law 8/2020) to update provisions affecting maternity and paternity leave, compensation for rest days, and other employment conditions.
Other Related Laws
Law No. 21/2009 – Law on Employment of Non-Resident Workers (addresses specific requirements for non-resident employees).
Minimum Wage Law (Law No. 5/2020) – governs minimum remuneration levels.
Decree-Law No. 40/95/M – Work Accident Compensation – mandates insurance and employer obligations for workplace injuries.
Official Government Reference Links
Labour Relations Law (Law No. 7/2008) – Full Text (English PDF)
https://www.dsaj.gov.mo/download/dadidir/laws/labour_law_e.pdfDSAL – Labour Legislation & Related Laws (includes Law 7/2008 and others)
https://www.dsal.gov.mo/en/standard/dsallawc.htmlMacau Labour Affairs Bureau (DSAL) – official labour authority
https://www.dsal.gov.mo/
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Tax Law – Personal Income Tax Act
Macau Special Administrative Region (SAR), located in Southeast Asia, is bordered by Mainland China to the north and west and by the South China Sea to the south and east. The official languages of Macau SAR are Chinese and Portuguese, and the currency is the Macanese pataca (MOP).
Macau became an SAR of the People’s Republic of China on 20 December 1999. According to the Basic Law (Macau SAR’s constitutional document), Macau SAR is guaranteed a high degree of autonomy in all matters except foreign and defence affairs for the next 50 years after the sovereignty transfer under the ‘one country, two systems’ policy. The Basic Law ensures that Macau SAR has a legal system that is separate from Mainland China, vesting Macau SAR with executive, legislative, and independent judicial power, including that of final adjudication.
Macau SAR pursues an open economic policy despite having a relatively small economy. Macau SAR is a free port and has no foreign exchange controls, and the procedures for approval of investments by foreigners are the same as for local residents. The Macanese pataca is closely linked to the Hong Kong dollar (HKD), which is also widely accepted in Macau SAR. Macau SAR became a member of the World Trade Organization (WTO) on 1 January 1995. The Closer Economic Partnership Arrangement and its supplements entered into with Mainland China, amongst others, offer Macau-made products tariff-free access into Mainland China and provides a window of opportunity for Macau SAR businesses to gain greater access to the Mainland China market. Macau SAR has the lowest corporate and individual income tax rates among the Asia Pacific region, making it attractive as an investment location.
Over the past two decades, Macau SAR has witnessed surging economic development, mainly due to the liberalisation of its gaming industry in 2002. Macau SAR also made tremendous effort to position itself as a world-class tourist venue. In July 2005, the World Heritage Committee accredited the Historic Centre of Macau SAR as a United Nations Educational, Scientific, and Cultural Organization (UNESCO) World Heritage Site. Gaming and tourism have led to a massive increase in visitors, especially from Mainland China. In recent years, Macau SAR actively participates in quality development of the Guangdong-Hong Kong-Macau Greater Bay Area.
Apart from consolidating and improving traditional industries, Macau SAR actively develops policies to foster major industries. In particular, the ’1+4’ appropriate diversification development strategy aims to enrich Macau SAR’s function as ’One Centre‘ for integrated tourism and leisure, while facilitating the development of four nascent industries, namely the ’Big Health‘ industry, modern financial services, high and new technology, and convention and exhibition, sports, and the commercial and trade industries.
PwC China, PwC Hong Kong, and PwC Macau
PwC China, PwC Hong Kong, and PwC Macau work together on a collaborative basis, subject to local applicable laws. Collectively, we have around 800 partners and strength of over 20,000 people.
We provide organisations with the professional service they need, wherever they may be located. Our highly qualified, experienced professionals listen to different points of view to help organisations solve their business issues and identify and maximise the opportunities they seek. Our industry specialisation allows us to help co-create solutions with our clients for their sector of interest.
We are located in the following cities: Beijing, Changsha, Chengdu, Chongqing, Dalian, Guangzhou, Guiyang, Haikou, Hangzhou, Hefei, Hong Kong SAR, Jinan, Kunming, Macau SAR, Nanjing, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Tianjin, Wuxi, Wuhan, Xi’an, Xiamen, Zhengzhou, and Zhuhai.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) | 12 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date | Group B: 31 March; Group A: 31 July. |
| CIT final payment due date | The final CIT payment will be due in around a month’s time after the issuance of the final tax assessment by the Macau Finance Bureau. |
| CIT estimated payment due dates | Tax is payable in two equal instalments in September and November, unless the amount is not more than MOP 3,000, in which case the payment will be requested in one lump sum amount in September. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) | 12 |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date | End of February |
| PIT final payment due date | 15th January of the following year. |
| PIT estimated payment due dates | PAYE system: Before the 15th day of the month following the quarter-end. |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) | NA |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) | NA |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) | Capital gains are subject to the normal complementary tax rate. |
| Headline individual capital gains tax rate (%) | NA |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) | NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) | NA |
| Headline gift tax rate (%) | NA |
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Employees Pensions Act
Free Translation
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PENSION FUND “FIRST”
MANAGEMENT REGULATION
Article 1
Fund’s Denomination and Object
1.1. This Management Regulation establishes Pension Fund “First”, referred to hereafter as “the Fund”,
for an unlimited period of time.
1.2. The Fund is an open pension fund and its object is to ensure the implementation of pension plans.
Article 2
Management Company
The Fund’s management company is Macau Life Insurance Company, Ltd., referred to hereafter as “Macau
Life”, with paid-up share capital of MOP 30,000,000.00 and with its head-office located at Avenida da
Praia Grande, no. 594, BCM Building, 11 Floor, Macau. Macau Life is the entity responsible for all matters
concerning the Fund’s administration, management and representation.
Article 3
Members of Pension Plans
The present Management Regulation considers the following entities as parties involved in pension plans:
a) Sponsors – corporate entities that contribute to the Fund in order to finance their pension plans,
through the acquisition of Fund Units;
b) Members – individuals whose personal and professional circumstances define the rights established in
pension plans, regardless of whether they contribute to the respective financing;
c) Contributors – individuals or corporate entities that acquire Fund Units;
d) Beneficiaries – individuals entitled to pecuniary payments provided for in pension plans.
Article 4
Depository
The custody of the Fund’s securities and other documents representing the assets of the Fund will be
assumed by UBS AG, with its head-office in Zurich, Switzerland, through its Hong Kong branch located at
25/F One Exchange Square, 8 Connaught Place, Central, Hong Kong, referred to hereafter as Depository.
Article 5
Fund’s Patrimony
5.1. The Fund’s patrimony is constituted by assets, which are represented by decimal fraction or whole
Fund Units.
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5.2. The Fund’s patrimony is autonomous and will not be liable for any debts of the Sponsors,
Contributors, Members, Beneficiaries, Depository, Management Company, or any entity eventually
mandated for asset management.
Article 6
Membership of the Fund
6.1. Collective Membership of the Fund is the subscription of Fund Units by Sponsors. The Sponsor and
Macau Life shall sign a contract of membership to the Fund, which includes this Management
Regulation, the definition of the Pension Plan to be financed, and all information as stipulated by
legal norms in force.
6.2. Individual Membership of the Fund is the subscription of Fund Units by Contributors. The
Contributor and Macau Life shall sign an individual contract of membership to the Fund, which
includes this Management Regulation, the definition of the Pension Plan to be financed, as well as all
other agreed conditions.
Article 7
Value of Fund Units
7.1. Macau Life will determine the value of each Fund Unit with reference to the last working day of each
week (from Monday to Friday) and of each month, dividing the total net value of the Fund by the
number of Fund Units in circulation on that day.
7.2. The total net value of the Fund will be equal to the value of assets it holds, valued according to
applicable legal regulations in force, including all accrued interests, less the amount of due and
unpaid liabilities.
7.3. The Fund’s net income will be capitalized, and the accumulation will be reflected in the price of
Fund Units.
7.4. The price of Fund Units may go up as well as down, due to investment risks that may result in
capital loss and due to the fact that the Fund does not establish a minimum guaranteed income.
7.5. Macau Life may suspend the calculation of the price of Fund Units and their trading when the
following occurs:
a) closure or suspension of trading in markets where significant parts of the assets of the Fund are
quoted;
b) due to unsurpassable reasons of which AMCM will be informed, the price of Fund Units cannot
be determined.
Article 8
Acquisition of Fund Units
8.1. The amount of contributions from Sponsors and Contributors, after deducting the subscription fee
as defined in Article 13.1, will be converted into Fund Units at the price of the day.
8.2. The unit price, on the Fund’s inception date, is MOP 100.00.
Free Translation
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8.3. Upon the subscription of Fund Units, Certificates are issued.
Article 9
Withdrawal of Fund Units
9.1. The Members or the Sponsors can demand the withdrawal of Fund Units, only in accordance with
conditions stipulated in the respective contract of membership.
9.2. Upon the receipt of the Member’s or the Sponsor’s written notice, giving instruction for withdrawal,
Macau Life is obliged to pay the net proceeds of withdrawal within 15 working days.
9.3. The net proceeds of withdrawal will be equal to the total value of Fund Units owned, after deducting
the withdrawal fee as defined in Article 13.3.
Article 10
Transfer of Fund Units
10.1. The Sponsors, in the case of collective membership, or the Members, in the case of individual
membership, may require, through written notice, the transfer of the respective Fund Units from this
Fund to another pension fund established in accordance with laws and norms in force.
10.2. The value of Fund Units to be transferred, calculated on the transfer date, will be paid within 30
days upon the receipt, by Macau Life, of the respective notice.
10.3. The transfer will be made directly between the pension funds and, whenever applicable, between the
management companies.
10.4. The net amount to be transferred will be obtained by deducting the transfer fee from the total value
of Fund Units transferred, as referred to in Article 13.3.
Article 11
Investment Policy
11.1. Macau Life will invest the Fund’s financial resources in legal financial tools, in accordance with
applicable legal norms and regulations.
11.2. The Fund’s investment policy, defined by Macau Life, will follow the most suitable financial
management rules, namely safety rules, profitability rules, diversification rules and liquidity rules of
investments.
Article 12
Duties of the Management Company
12.1. In order to fulfill its duties concerning the administration, management and representation of the
Fund, in accordance with laws and norms in force, Macau Life has to:
a) buy, sell, subscribe, exchange or receive any movable or immovable property and exercise all
rights which are directly or indirectly related to the Fund;
b) control the issuance and the calculation of the price of Fund Units;
Free Translation
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c) buy, in the name and on behalf of the respective Beneficiary, insurance contracts to provide
annuity pension payments, if it is specifically required by the Beneficiary in the withdrawal
instructions;
d) fulfill its duties concerning the disclosure of information, as established by law or by this
Management Regulation;
e) decide on all matters concerning the asset management of the Fund.
12.2. As the administrator of the Fund, Macau Life can sign mandate contracts for asset management in
accordance with legislation in force.
Article 13
Depository and Management Company’s Remuneration
13.1. A subscription fee will be charged, not higher than 5% of the amount of each contribution, to cover
administration expenses.
13.2. As payment for asset management services and any expenses related to the remuneration of the
Depository and to the eventual mandate of asset management, Macau Life will charge the Fund a
fee, to be paid quarterly and not higher than a weekly rate of 1/52 of 2%, which is calculated weekly
and based on the total net value of the Fund. Macau Life is authorized to handle the withdrawal of
the total stipulated fee from the Fund’s account.
13.3. To cover transfer and withdrawal expenses, a fee up to 5% of the value of Fund Units may be
charged.
Article 14
Transfer of the Fund’s Management
14.1. Macau Life, upon the permission by AMCM, may transfer the management of the Fund to another
Management Company established in accordance with legal norms in force. In this situation, the
Sponsors, in the case of collective membership, and the Contributors and Members, in the case of
individual membership, will receive a written notice 60 days prior to the foreseen date of transfer.
14.2. Macau Life will pay for any costs involved with the transfer.
Article 15
Transfer of Depository
Macau Life may decide, in accordance with legislation in force, to transfer the Fund’s assets to another
depository institution. For this transfer, AMCM’s permission is required.
Article 16
Closure of the Fund
16.1. Macau Life may decide, after obtaining prior approval from AMCM, the dissolution and liquidation of
the Fund. In this situation, the Sponsors, in the case of collective membership, and the Contributors
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and Members, in the case of individual membership, will be notified, in written form, within a
minimum of 6 months prior to the foreseen date of closure.
16.2. In the case of the Fund’s closure, its patrimony will be transferred to other pension funds as
instructed by each Fund unit-holder concerning the Fund Units owned. In case there are no
instructions, the decision will be made by Macau Life in accordance with laws and norms in force.
16.3. The Fund unit-holders cannot, in any circumstances, request the Fund’s closure or partition.
Article 17
Amendments to the Management Regulation
17.1. Macau Life may modify the provisions of the present Management Regulation, in the best interest of
the Fund unit-holders, upon AMCM’s prior authorization.
17.2. In the case of amendments to the present Management Regulation, Macau Life will publish them in
the Official Gazette of the Macau SAR and will inform the Fund’s Sponsors and Contributors
accordingly.
Article 18
Periodical Information
The Fund unit-holders will be informed periodically, at least once a year, of the Fund’s investment return
rate, the number of Fund Units held and their unit price.
Article19
Arbitration
Any conflicts that may arise between the contracting parties, concerning the interpretation, application or
execution of the present Management Regulation, will be solved through compulsory arbitration, in
accordance with the following:
a) The arbitration panel will be formed by three arbitrators. The two arbitrators, appointed by each of the
contracting parties, will, in turn, appoint the third one to preside the panel.
b) If an agreement is not achieved, the president will be appointed by AMCM.
c) The arbitration panel will be held in session in the Macau SAR and the arbitrators are competent to
define the regulations.
d) In case of rules not specified in the above-mentioned regulations, the arbitration law to be applied is
the one in force at the time of the constitution of the arbitration panel.
Macau, 13 January 2004
Macau Life Insurance Company Limited
Note: This is a free translation. In case of dispute, the Portuguese version shall prevail.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
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Regulation Updates in Macau
Amendments to Law No. 7/2008 (Labour Relations Law)
What it is: Amendments to Law No. 7/2008 (Labour Relations Law) proposing changes to maternity leave and annual leave based on a seniority basis, creating new employer obligations for mandatory benefits and working time.
What it changes: The policy update states that the government will draft amendments to increase statutory paid maternity leave and to introduce a seniority-based minimum annual leave system, resulting in new employer obligations regarding mandatory benefits and working time.
Who is affected:
- Workers or employers explicitly mentioned or clearly implied by the policy summary.
What employers should do:
- Prepare to implement changes once the amendments are finalized, including reviewing planned increases to maternity leave and the seniority-based annual leave system.
- Monitor official guidance for any new employer obligations related to mandatory benefits and working time.
Notes: Effective month: 2026-05. Manual verification recommended.
Discover the latest employment and compliance updates in Macau — helping you stay ahead in a changing regulatory landscape.