Social Security

Social Security

Social Security Fund

The Social Security Fund is subordinate to the Secretariat for Social Affairs and Culture and responsible for implementing various policy measures concerning social security and managing relevant resources.

Established on 23rd March 1990, the Social Security Fund primarily serves to provide social security for local employees. With the exacerbated social phenomenon of ageing, the demand of residents for a universal coverage has become increasingly urgent. Thus, in November 2008 the Government announced the Social Security and Old-age Pension System Reform Programme. Its core content is to build a double-tier social security system (i.e.) through the first-tier social security system all Macao residents can enjoy basic social protection, particularly old-age protection in order to improve the quality of life of residents whilst a more ample protection for retired life is supported by the second tier non-mandatory Central Provident Fund.

Social Security System

Law No. 4/2010 “Social Security System” and Law No. 7/2017 “Non-mandatory Central Provident Fund System” came into effect respectively on January 1st, 2011 and January 1st, 2018. Since then, Macao’s two-tier social security system has entered a new phase. The new administrative regulation of the “Organization and Operation of Social Security Fund” took effect on July 18th, 2017, which was aimed at reorganizing the structure and adjusting the staffing of the Fund for the effective exercise of the newly added functions.

Contribution System

Social Security System is the first-tier of the two-tier social security system, which operates on the principle of social insurance, and its fiscal revenue mainly comes from the gambling revenue appropriation, 1% of recurrent income of the government’s total budget, the fixed contributions of employees, employers and contributors of arbitrary system, employment fee for non-resident workers as well as the revenue from the investments of the Social Security Fund.

According to Executive Order No. 357/2016, the monthly contribution amount of the Social Security System was increased to MOP 90 on 1st January 2017 (employer MOP 60, employee MOP 30), while monthly contribution of the Arbitrary System is MOP 90. 

Social Security Pension Payments and Allowances

According to the current social security system, eligible beneficiaries are legally entitled to old-age pensions, disability allowance, unemployment allowance, sickness allowance, funeral allowance, marriage allowance, birth allowance, disbursement for costs arising from work-related debts and respiratory diseases.

In accordance with Executive Order No. 307/2018, the amount of benefits and allowances for the social security system will be increased from 1 January 2019. The amounts after increase are as follows:

Pension payments/ Allowances Amount (MOP)
Old-age pension 3,630/month
Disability pension 3,630/month
Unemployment allowance 145/day
Sickness allowance Non-hospitalisation:  110/day
Hospitalisation: 145/day
Birth allowance 5,260/application
Marriage allowance 2,060/application
Funeral allowance 2,670/application
Relief Payments 2,385/month

Non-Mandatory Central Provident Fund System

“Non-Mandatory Central Provident Fund System” shall come into force on 1st January 2018, which is composed of Contributory System and Allocation System, holder of the Individual Account can accumulate funds for future retirement from investment return and rollover generated by the contribution made to the account.

Individual Accounts of Non-Mandatory Central Provident Fund

The following residents of the Macao Special Administrative Region can become the individual account owners of non-mandatory central provident fund:

    1. He/she who has attained 18 years of age;
    2. He/she under the age of 18, but has registered in the social security system in accordance with the provisions of Article 10 (1) (a) of Law 4/2010.

The individual account of non-mandatory central provident fund is composed of a government-managed sub-account, a contribution sub-account and a preserved sub-account.

Contribution Scheme of Provident Fund

The Contribution schemes of provident fund consist of Joint provident fund scheme and Individual provident fund scheme. The former is applied to employees; monthly contribution is made by both employer and employee, which is equivalent to five percent of the employee’s monthly basic wage, and within the upper and lower limit by law. Upon the termination of the employment relationship, the percentage of the employee’s obtaining of the employer’s contribution is determined based on the employee’s contribution period. The individual account of non-mandatory central provident fund has a portability feature, i.e. the contribution sub-account will not be settled because of the termination of labour relations. The individual provident fund scheme can be applied to all account owners, the minimum amount of monthly contributions is MOP 500, and the upper limit is MOP 3,100.

Allocation System

Subject to the budget implementation of the past fiscal years, an account owner, who is alive on January 1st of the calendar year of the publication of the Executive Order relating to the special allocation amount and meets the following requirements in the previous calendar year, will be entitled to the special allocation from budget surplus. The person who becomes eligible for the first time is entitled to a lump-sum incentive basic fund of MOP 10,000 which will be transferred to their sub-account managed by the Government:

  • Permanent resident of the Macao Special Administrative Region;
  • At least 22 years of age;
  • Having been in the Macao Special Administrative Region for at least 183 days;
  • By participating in the Provident Fund Contribution Scheme, the account owner may apply for transferring the balance from the sub-account managed by the Government to the contribution sub-account or retain it in the original sub-account for investment.

Withdrawal of Funds

In order to create conditions for a more comfortable retirement for account owners, in normal circumstances, they can withdraw the funds from their account only when they are 65 years old or older. If they have not reached the age of 65, they may apply for withdrawal in advance if they meet the legal requirements concerned.

 

Enquiries:

Social Security Fund

Tel: (853) 2853 2850

Fax: (853) 2853 2840

Email: at@fss.gov.mo

Website: https://www.fss.gov.mo/en