The Government has decided to raise the hourly minimum wage from 34 to 35 patacas (MOP), a measure expected to benefit around 18,200 workers, according to the Secretary for Economy and Finance, Tai Kin Ip. The 2.9% adjustment will raise the minimum daily wage for an eight-hour worker to 280 MOP, amounting to an extra 48 patacas per week and 208 patacas per month.
For Paul Pun, Secretary-General of Caritas Macau, the proposed 35 patacas falls short of inflation and of the needs of the lowest-income workers. “Some people will not be satisfied because they expected a higher amount. Everything depends on inflation; in two years it must have exceeded 2.9%,” he told PLATAFORMA.
Many workers consider the increase “symbolic,” Pun adds, noting that they want Consumer Price Index (CPI) data to be used more rigorously in future updates.
Under the current law, the Government must review the minimum wage every two years. The rate went from 32 patacas in 2020 to 34 patacas in 2024. At that time, labour representatives proposed setting the minimum wage at 37 patacas, but the move faced strong opposition from employers due to the ongoing difficulties of small and medium-sized enterprises (SMEs), weak consumption, and an incomplete economic recovery.
Earlier this month, when the Legislative Assembly approved the proposal in general terms, only lawmakers José Pereira Coutinho, Che Sai Wang and Chan Hao Weng abstained. Che Sai Wang was the only one to speak before the voting statements, saying the adjustment was “lower” than in other regions. “We don’t have a scientific formula for the calculation, and the method for arriving at the adjustment has never been disclosed,” he lamented at the time.
“Headaches” for SMEs
Pun acknowledges that for business owners, particularly SMEs, the increase “will give them headaches,” as many consider that the local economy has still not fully recovered since the pandemic. This creates a “dilemma” for the Government in balancing both perspectives.
Nevertheless, he argues that using inflation as a reference point for adjusting the minimum wage would be a more “scientific” and effective approach. Pun also suggests that the Government could support workers who earn near the minimum wage but perform essential roles for the functioning of the city. “The Government could give a small incentive, a subsidy for those who do this kind of work. For example, cleaning the city is essential for hygiene and public health. It’s not a job many are willing to do,” he says.
Weight of Reality
The CPI rose 0.6% year-on-year in October, with the largest increases seen in food and non-alcoholic beverages, and in housing and fuel, according to the Statistics and Census Service (DSEC). The CPI measures the price of goods and services purchased by the most representative households. The consumption basket excludes second-hand items, investment goods, savings goods, profit-making items, and non-consumption expenses.
Considering housing prices alone reveals the financial burden they impose on residents. The average residential rent increased 1% to 140 MOP/m², according to DSEC. A worker wishing to live alone in a 50 to 70 m² studio would need to pay between 7,000 and 9,800 patacas per month. Even in Barra, where prices are lower (121 MOP/m²), average rents would range from 6,050 to 8,470 patacas.
No Relief
The minimum wage increase once again excludes domestic workers, who are not covered by the Minimum Wage Law. They are regulated separately, with a minimum wage of 3,200 patacas per month.
According to Paul Pun, around 123 people requested financial and food assistance this year at the WelAnser Centre of Caritas Macau. They are all non-resident workers, with 32 facing severe economic hardship because they are “unemployed or in conflict with their employers.” “I would say domestic workers are the segment of the local population most likely to earn less than the established minimum wage. Around 80% must earn between 4,000 and 5,000 patacas,” he says.
But even domestic workers earning above the minimum wage face difficulties, says Nedie Taberdo, president of the Green Philippines Migrant Workers Union. “My salary is 8,300 patacas, including housing allowance, and it’s still not enough. My room costs 1,500 patacas, not including expenses. The 3,200 patacas minimum wage is far from enough,” she says.
Taberdo, who has worked for the same family for 22 years, explains that the rising cost of living has eroded her income. Her monthly expenses include around 1,000 patacas for food, 300 for vitamins, 200 for phone bills, 1,800 for rent and utilities, 500 for her health plan in the Philippines, and bank loan payments. “How can anyone earning around 3,000 patacas survive?” she asks. “On top of that, if I get sick, since I’m not a resident, I have to pay for the consultation and the medication,” she concludes.
