How is Payroll Calculated in Macau?
In Macau, payroll is governed primarily by the Labour Relations Law (Law No. 7/2008), the Professional Tax Regulation, and the Social Security Fund (FSS) system. Wages are almost always paid monthly in Macanese pataca (MOP), and the employer acts as the withholding agent: each pay run, the employer deducts the employee's professional (salaries) tax where it applies and the employee's small fixed FSS contribution from gross pay, then remits both to the authorities on the employee's behalf. The employer also pays its own FSS contribution — and, for non-resident staff, a monthly levy — on top of salary cost.
Net pay: from gross salary to take-home
An employee's net (take-home) pay is the gross salary minus the mandatory deductions. In simplified terms:
Net pay = Gross salary − Employee FSS contribution (MOP 30/month) − Withheld professional taxPayment of wages
Under the Labour Relations Law, wages must be paid in full, regularly, and at the agreed intervals — in practice, at least once a month for monthly-paid staff. Payment is made in Macanese pataca, typically by bank transfer. On termination, the employer must settle all outstanding wages and any compensation due within the statutory period. Most employers run a single monthly cycle, commonly paying at or near month-end.
Overtime and rest-day pay
Work beyond normal hours and work on weekly rest days or mandatory public holidays attracts premium pay under the Labour Relations Law and must be added to payroll. Indicative statutory rates are:
Overtime worked at the employee's request
1.2× the normal hourly wage (base + 20%)
Overtime required by the employer
1.5× the normal hourly wage (base + 50%)
Work on a weekly rest day or mandatory holiday
Additional pay plus, in defined cases, a compensatory rest day
Type of work
Minimum pay rate
Overtime worked at the employee's request
1.2× the normal hourly wage (base + 20%)
Overtime required by the employer
1.5× the normal hourly wage (base + 50%)
Work on a weekly rest day or mandatory holiday
Additional pay plus, in defined cases, a compensatory rest day
Professional Tax (Salaries Tax)
Employment income in Macau is taxed under professional tax (salaries tax) on a progressive scale from 0% to 12% — among the lowest personal tax rates in the region. The first MOP 144,000 of annual income is exempt, and each rate applies only to the slice of income within its band, not to the whole salary. There is no separate resident / non-resident rate scale for the standard progressive table, although unregistered foreign freelancers can face a minimum effective rate. Employers withhold professional tax at source from salaries above the monthly threshold and remit it quarterly to the Financial Services Bureau (DSF).
Professional tax progressive brackets
Macau grants generous, discretionary annual tax reliefs voted in each year's Budget Law: a 30% reduction of the professional tax payable for the year, and a refund of a share of professional tax already paid to Macau residents (for example 60% of tax paid, capped at MOP 14,000, for the 2024 exercise). These percentages and the refund cap are re-decided every year and can change or lapse — always confirm the measures in force for the relevant tax year.
Annual assessable income (MOP)
Tax rate
Annual assessable income (MOP)
Tax rate
0 – 144,000
Exempt (0%)
144,001 – 164,000
7%
164,001 – 184,000
8%
184,001 – 224,000
9%
224,001 – 304,000
10%
304,001 – 424,000
11%
Over 424,000
12%
Deductions, allowances, and the withholding threshold
Beyond the MOP 144,000 exemption, employees benefit from limited deductions (for example mandatory FSS contributions and, for self-employed professionals without organised accounts, a notional expense deduction of
around 25% of income). In practice, the key rule for employers is the
withholding trigger:
- Professional tax is withheld only where an employee's monthly income exceeds MOP 16,000 (or, for part-timers, a daily wage above MOP 640).
- Salaries below the threshold have no tax withheld during the year, though the annual assessment still applies the MOP 144,000 exemption.
Because thresholds and reliefs are reset annually, employers should confirm the current figures with the DSF when configuring payroll.
Social Security Fund (FSS)
Macau's Social Security Fund (Fundo de Segurança Social, FSS) is a flat, fixed-amount scheme rather than a percentage-of-salary system. Under the compulsory (obligatory) system, a total of MOP 90 per month is payable for each resident employee: the employer pays MOP 60 and the employee pays MOP 30. The amount does not rise with salary, so it is a small, predictable cost regardless of pay level. The FSS funds benefits including old-age pension, unemployment, sickness, and other social allowances. Employers register employees with the FSS and pay contributions quarterly.
Monthly FSS contributions at a glance
For casual / part-time workers, the contribution is MOP 90 if they work 15 days or more in the month, and MOP 45 (employer MOP 30, employee MOP 15) if they work fewer than 15 days. Employers of non-resident workers also pay a separate levy of MOP 200 per non-resident employee per month (halved for manufacturing; domestic helpers are exempt). Unlike Hong Kong, Macau has no MPF — its second-pillar Central Provident Fund is non-mandatory.
Contributor
Monthly contribution
Employee
MOP 30
Employer
MOP 60
Total
MOP 90
Withholding & Statutory Filing
Employers are legally responsible for withholding professional tax from qualifying salaries and remitting it to the Financial Services Bureau (DSF), for filing the annual employer declaration of employees and income, and for paying FSS contributions. Missing these deadlines exposes the company to surcharges and penalties, so most employers automate the calendar below.
Key payroll filings and deadlines
Quarterly professional tax remittance
Professional tax withheld from employees is remitted to the DSF quarterly, due by 15 January, 15 April, 15 July, and 15 October for the preceding quarter.
Annual employer declaration (Form M/3 & M/4)
Annual nominal roll of employees and part-timers paid during the year, with income and tax withheld, filed with the DSF by the end of February of the following year.
FSS quarterly contribution
Employer + employee FSS contributions for full-time staff are paid to the Social Security Fund by the end of the month following each quarter (monthly for part-timers).
Employee professional tax return
Employees whose tax is fully withheld by the employer generally need not file separately; self-employed professionals file their own return by 31 March (or mid-April where organised accounts are required).
Quarterly professional tax remittance
Professional tax withheld from employees is remitted to the DSF quarterly, due by 15 January, 15 April, 15 July, and 15 October for the preceding quarter.
Annual employer declaration (Form M/3 & M/4)
Annual nominal roll of employees and part-timers paid during the year, with income and tax withheld, filed with the DSF by the end of February of the following year.
FSS quarterly contribution
Employer + employee FSS contributions for full-time staff are paid to the Social Security Fund by the end of the month following each quarter (monthly for part-timers).
Employee professional tax return
Employees whose tax is fully withheld by the employer generally need not file separately; self-employed professionals file their own return by 31 March (or mid-April where organised accounts are required).
Payslip and record-keeping requirements
When wages are paid, the employer should provide the employee with a payslip itemising the payment details — gross pay, overtime, allowances, the FSS deduction, any professional tax withheld, and net pay. Employers must also keep payroll, attendance, and employee records and make them available for inspection by the Labour Affairs Bureau (DSAL) and the DSF.
Central Provident Fund & Non-Resident Workers
Two further features shape total employment cost in Macau: a voluntary second-pillar retirement scheme, and the monthly levy that applies when employing non-resident (imported) workers.
Non-Mandatory Central Provident Fund (voluntary)
Macau operates a Non-Mandatory Central Provident Fund as its second-pillar retirement savings scheme. Unlike Hong Kong's compulsory MPF, participation through an employer joint-provident-fund scheme is voluntary: where an employer chooses to offer one, it and the employee agree contribution rates and the amounts are paid into individual provident-fund accounts. Because it is optional, many employers use it as a retention and benefits differentiator rather than a statutory obligation.
Non-resident worker levy (employer-only)
Macau's local labour pool is small, so many roles rely on non-resident (imported) workers hired under the non-resident worker programme. Employers of non-resident staff pay a monthly levy of MOP 200 per non-resident employee (reduced by half for the manufacturing industry; employers of non-resident domestic helpers are exempt). This levy is an employer-only cost, separate from the FSS, and should be budgeted alongside sponsorship and quota lead times.
Macau Payroll Processing
Because payroll in Macau ties together the Financial Services Bureau (professional tax and the M/3 & M/4 declarations), the Social Security Fund (fixed FSS contributions and the non-resident levy), and the Labour Relations Law (wages, overtime, and payslips), many companies outsource processing to a local expert or an Employer of Record. A specialist provider can register employees, run the monthly cycle, calculate and remit withholding tax and social security, manage non-resident worker obligations, and keep the business compliant as thresholds and annual reliefs change.
How can Glints help you?
You can streamline your company's payroll in Macau by outsourcing to Glints, your expert PEO and EOR solution. With our payroll expertise across Greater China and Southeast Asia, we ensure compliance with Macau's Labour Relations Law, professional tax rules, and the Social Security Fund system, and handle salary calculations, professional tax withholding, and FSS filings — delivering smooth and efficient payroll management for your business.
Book a schedule with our team to discover how we can manage payroll and tax for your team in Macau.
Social Security Fund (FSS)