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The government is proposing to increase the minimum wage

Predictably, the labour sector is in favour but a leading business figure warns that the raise will be passed on to consumers in the form of higher prices.

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Predictably, the labour sector is in favour but a leading business figure warns that the raise will be passed on to consumers in the form of higher prices.

ARTICLE BY

PUBLISHED

READING TIME

Less than 1 minute Minutes

The minimum wage could be raised to as much as 36 patacas an hour from the current 32, the government said yesterday, without offering a timeline.

The head of the Labour Affairs Bureau, Wong Chi Hong, made the remarks after a meeting of the Standing Council on Social Concerted Action – a government appointed body that advises on labour affairs.

Wong said that his bureau would propose to Chief Executive Ho Iat Seng that the minimum wage be increased to between 34 and 36 patacas an hour, or 6,656 patacas a month, Macau Post Daily reports.

A bill would then need to be debated and passed by the Legislative Assembly in order for the increase to take effect.

[See more: ‘Unlawful, disorderly or disruptive’ trade unions will be banned]

According to Macau Post Daily, the vice-chairman of the Macao Federation of Trade Unions, Fong Ka Fai, said the labour sector would accept a 2 pataca raise to 34 patacas an hour.

However, Vong Kok Seng, vice-president of the Macao Chamber of Commerce, told reporters that a hike in the minimum wage would increase costs for business operators, who would then pass them on in the form of higher consumer prices.

Macao’s minimum wage system came into effect in November 2020, but does not cover domestic helpers and people with disabilities – exclusions that have attracted international criticism.

 

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