Payroll Compliance Updates-Macau
A. Update

The Chief Executive of Macau delivered the Policy Address for the Fiscal Year (FY) 2021 at the Legislative Assembly. The below mentioned professional tax measures have been proposed to be continued in year 2021 as previously provided in Law no. 22/2019 – the Government Budget of FY 2020 (before amendments due to COVID-19):

  • 30% relief on salaries tax
  • Personal exemption allowance for part-time and full-time employee who are aged 65 or above or with permanent disability level of or above 60% is MOP 198,000 per annum or MOP 16,500 per month
  • Personal exemption allowance for other employees is MOP 144,000 per annum or MOP 12,000 per month.

The following amendments made due to the effect of COVID-19 in accordance with the amendment to Budget 2020, approved and published on April 17, 2020 for the FY 2020, are proposed to be reinstated to the erstwhile limits as follows:

  • Fixed reduction of taxable personal income was increased from 25% to 30%. For FY 2021, the fixed reduction limit to be considered will be 25%
  • Employer withhold tax from causal worker whose daily salary is over MOP 686 or employees whose monthly salary is over MOP 17,143. However, in FY 2021, employer will withhold tax from causal worker whose daily salary will be over MOP 640 or employees whose monthly salary will be over MOP 16,000.

These are the proposed amendments introduced by Budget Bill 2021 and hence, is yet to be approved officially.

B. Statutory Compliance Release Date: November 16, 2020
C. Effective Date: January 01, 2021
 
A. Update

The forms of the social security fund have been updated. As per the update, sections of declaration have changes requiring disclosure of employment relationship and the full name of the signor.

Other details remain the same.

B. Statutory Compliance Release Date: October 15, 2020
C. Effective Date: October 01, 2020
 
A. Update

The Third Standing Committee of the Legislative Assembly has agreed to the following amendment in Severance/Termination Pay (Labor Relations Law).

For a situation where an employee is dismissed by the employer without any reasonable cause, the ceiling of monthly basic salary for calculating severance pay has now increased to MOP 21,000.

B. Statutory Compliance Release Date: May 25, 2020
C. Effective Date: May 26, 2020
 
A. Update

The Third Standing Committee of the Legislative Assembly has agreed to the following amendments in Statutory Leaves (Labor Relations Law):

1. Maternity Leave

The maternity leave for childbirth for eligible female employees is now extended from 56 days to 70 days.

The above adjustment of 14 days (i.e., from 56 days to 70 days maternity leave) is sponsored and supported by the government for the first three years starting from the effective date of Law No. 8/2020 (i.e., from May 26, 2020 to May 25, 2023).

The Law stipulates that 63 days of the maternity leave must be taken immediately after childbirth, with the remaining days used at the discretion of the female employee before or after childbirth.

According to the Law, female employees are also entitled to maternity leave under the following circumstances:

  • a) In the event of stillbirth, the female employee shall be entitled to 70 days of maternity leave;
  • b) In the case of involuntary abortion after three months of pregnancy, the female employee shall be entitled to at least 21 but up to 70 days of maternity leave, depending on the health condition of the female employee and on the advice of a doctor with a proper certificate;
  • c) In the case that baby dies (after birth) during the maternity leave of a female employee, the maternity leave shall be extended to 10 days after the death of the baby, and the female employee shall be guaranteed at least a total of 70 days of maternity leave.
2. Paternity leave

Male employees are entitled to 5 days of paternity leave consecutively or intermittently from three months after the baby's mother pregnancy to 30 days after the childbirth.

3. Working on statutory holiday

Employees are entitled to compensation, in the form of compensatory leave or payment, for working on statutory holiday.

In the case of compensatory leave, the date should be determined by negotiation and taken within 3 months from the statutory holiday concerned. If an agreement cannot be made, the date will be determined by the employer. Alternatively, the employee can also negotiate with employer for cash payment as compensation:

  • a) If the employee is paid on a monthly basis, the employee will be entitled to one extra day’s pay or a compensatory day-off (within 3 months from the statutory holiday concerned).
  • b) If the employee is paid per job or per hour, the employee will be entitled to one day of extra basic salary or an extra day of holiday (within 3 months from the statutory holiday concerned).
4. Working on day-off

Employees are entitled to compensation, in the form of compensatory leave or payment, for working on paid day-off.

In the case of compensatory leave, the date should be determined by negotiation and taken within 30 days from the original day-off concerned. If there is no agreement, the date will be determined by the employer according to need of the Company's operation. Alternatively, the employee can also negotiate with employer for cash payment as compensation.

  • a) If the employee is paid on a monthly basis, the employee will be entitled to one extra day’s pay or a compensatory day-off (within 30 days from the original day-off concerned).
  • b) If the employee is paid per job or per hour, the employee will be entitled to one day of extra basic salary or an extra day of holiday (within 30 days from the original day-off concerned).
5. Overlap with statutory holiday

In the case that paid day-off overlaps with a statutory holiday, the date shall be treated as statutory holiday and the employer should offer an extra paid leave to compensate for the paid day-off within 30 days of such statutory holiday.

B. Statutory Compliance Release Date: May 25, 2020
C. Effective Date: May 26, 2020
 
A. Update

According to Article 18 of Law No. 3/2020, which is an Amendment to the Budget 2020, the current annual fixed amount of Macau Professional Tax reduction will be adjusted from 25% to 30% for the year 2020.

Accordingly, an employee is required to pay Professional Tax as under:

  • a) Casual worker: only if his/her daily income and relevant taxable income exceed MOP686.
  • b) Full-time worker: only if his/her monthly income and relevant taxable income exceed MOP17,143.
B. Statutory Compliance Release Date: April 17, 2020
C. Effective Date: January 01, 2020
 
A. Update

The upper limit of the amount of non-taxable allowances of employees in the private sector has been changed as under:

  • 1. Family/Household allowance: MOP 910
  • 2. Marriage allowance: MOP 4,095
  • 3. Birth allowance: MOP 5,460
  • 4. Housing allowance: MOP 3,640
  • 5. Funeral allowance: MOP 5,005
B. Statutory Compliance Release Date: January 09, 2020
C. Effective Date: January 01, 2020
 

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