PEO&Employer of Record in Macau – Hire Without An Entity
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PEO in Macau

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When you are looking to expand into the Macau market, knowing the best way to make an entrance can be difficult. Complex and unfamiliar local regulations are often problematic for foreign companies, and the support offered by potential local partners is not always advantageous.  

INS Global offers a PEO (Professional Employer Organization) solution that can be your key to a successful market entry. With over 15 years of experience helping companies expand to over 80 countries, INS Global has the skills and tools you need to succeed.  

Want to have a Team in Macau TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to have a Team in Macau TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

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PEO in Macau - Summary

What are the Main Advantages of a PEO?

Ensured Compliance with Local Regulations

A PEO service provider will understand every aspect of local labor laws and regulations. This means you can operate in Macau while feeling completely secure. 

Market Entry in Days

Establishing a new company in a foreign market can potentially take months of effort. Forming a PEO agreement means your employees can be operating in the target market in 4-5 days.  

Reduced Hassle and Challenges

Every process involved in setting up a new company requires your effort and attention, meaning less time spent on the tasks that matter to your company’s success. A PEO manages everything you need to operate in Macau without needing your constant consideration 

Lower Cost Than Alternatives

Company incorporation requires months of work and fees, and joint ventures may lead to serious legal and financial problems if your partner’s priorities change. A PEO service provider gives you all the support you need for one simple monthly fee. 

How Does a PEO Offer a Better Solution Than Company Incorporation?

The steps to open a new company in Macau are lengthy and complicated, requiring a presence and legal expertise in the area. A PEO offers a way for companies to operate while avoiding the processes required to set up a new legal entity.  

A PEO:
  • Makes the most of established local networks and support.
  • Provides a much shorter setup time.
  • Allows companies to save money on fees and potential fines.
  • Offers expert advice and services.
Hiring an Overseas Employee

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

How does a PEO in Macau Work?

INS Global offers a simple 4 step solution to establishing a PEO agreement: 

  1. We meet to discuss your requirements.
  2. We provide you with a legal entity in Macau through which we can hire your employees on your behalf.
  3. We take on the administrative responsibilities for hiring and paying your staff.
  4. Your staff operate as usual, and we take care of every aspect of HR.

What is an EOR and how is it Different to a PEO?

When considering a PEO, you are likely to hear about Employer Of Records. The two types of service differ in how they relate to you and your employee, but ultimately, they are very similar.  

 Typically: 

  • PEOs provide HR services to employees of other companies.
  • EORs legally and officially hire and take responsibility for employees on behalf of other companies.
  • PEOs make contracts with the original company that requests the service.
  • EORs make contracts directly with the employee under the direction of the client company.

 

While in some countries, there may be more of a distinction made between PEOs and EORs, INS Global’s PEO solution in Macau offers the benefits of both.  

Labor Law in Macau

Employment Contracts

Macau doesn’t require contracts with residents to be written; however, for non-residents, employment contracts must be both written and fixed term. 

It is still always suggested to have a written work agreement with all employees to avoid potential problems later.  

Macau’s work agreements must reach basic minimum benefit amounts offered within the Macau SAR or be considered void. This includes the MOP 32 per hour minimum wage introduced in 2020.  

Working Hours and Overtime

A workweek in Macau is limited to 48 hours, typically spread out as 8 hours per day in a 6-day week. However, the daily limit may be increased to 12 hours so long as the 48-hour weekly limit is respected.  

Overtime is calculated as 20% over standard salary, and overtime hours can be agreed upon by mutual consent. There are exceptions to this where an employer can require employees to work up to 12 or 16 extra hours of paid overtime (at 50% over standard salary) in the event of an emergency.   

Holidays in Macau

Macau employees are eligible for a minimum of 10 days of national holidays. Many of these holidays are based on a lunar calendar, so they change annually. Employers are expected to ensure time off or make alternative arrangements for these days, so it is essential to check regularly for updates   

Sick Leave and Annual Leave

In addition to public holidays, employees in Macau must have a minimum of 6 days statutory leave (including annual leave, sick leave, etc.) per calendar year after the first year of service.  

Maternity/Paternity Leave

Since 2020, maternity leave has been increased to 70 days for the birth of a new child. This starts from the date of an employee’s confinement, and the employee must have worked for the company for a year previously. During this period, the employee must be given basic remuneration.  

 Male employees are eligible for 5 days of paid paternity leave upon the birth of a new child.  

Tax and Social Contributions

Employers are expected to organize resident long-term employee payments to Macau’s Social Security Fund, which covers pension, disability, unemployment, and other social security payments. This contribution is MOP 30 per month from the employee and MOP 60 per month from the employer.  

 Employers are also expected to pay MOP 200 per quarter for each non-resident employee as a “recruitment fee.” 

 Employers and employees (residents and non-residents) share the cost of Macau’s universal Health Care Fund, which amounts to around 5% of an employee’s monthly salary. 

Corporate tax in Macau is a maximum of 12%, one of the lowest in the world.  

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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