Business

Gov’t proposes raising minimum wage to between MOP35-37 per hour

By Lynzy Valles,MDT

Copyright macaudailytimes

Gov’t proposes raising minimum wage to between MOP35-37 per hour

Officials have said there is room to raise the minimum hourly wage to between MOP35 and MOP37.

The city’s current minimum wage stands at MOP34, up from MOP32, where it had remained from November 2020 to December 2023.

Yesterday, the Standing Committee for the Coordination of Social Affairs convened to review the minimum wage, chaired by its president, Secretary for Economy and Finance Anton Tai.

The government presented data and review work for the second implementation period of the minimum wage, covering Nov. 1, 2022, to Oct. 31, 2024.

After analyzing changes in the macroeconomy, labor market, employee wages, and business conditions – and balancing factors such as the business environment, worker protection, and consumer affordability – authorities concluded there is room to raise the minimum wage, proposing an hourly rate between MOP35 and MOP37.

Labour Affairs Bureau director Chan Un Tong said the government hopes to collect written opinions from employers and employees within a week, after which a recommendation will be submitted to the Chief Executive to implement the adjustment on Jan. 1, 2026.

“Time is short, so we hope to collect opinions within a week. Based on the written submissions, if an adjustment is approved, the new period can start on January 1, 2026,” Chan said, as cited in a TDM report.

Citing the challenging business climate, Vong Kok Seng, deputy chairman of the Macao Chamber of Commerce, strongly opposed the proposed increase, warning it would place an extra burden on small and medium-sized enterprises.

He suggested introducing additional support programs, similar to current subsidies, without linking them to the minimum wage, and providing clarity on how much labor cost assistance is actually needed.

Meanwhile, labor representative Choi Kam Fu, vice president of the Macao Federation of Trade Unions, said he hopes the hourly minimum wage can rise to MOP37 to protect low-wage employees.

He also urged the government to shorten the review cycle, completing all procedures, including wage adjustment, within two years.

“Looking at neighboring regions, including Hong Kong, they also raised the minimum wage this year and changed the review cycle to annual,” Choi said, stressing that if an annual review is not possible, the government must complete the process within two years.