The Legislative Assembly (AL) yesterday passed a government-initiated bill that will raise the statutory paid maternity leave for private-sector employees to 90 days, up from the current 70 days.
The new legislation will also increase the statutory minimum paid annual leave for private-sector workers. Currently, employees with at least one year of service are entitled to six days of annual leave, regardless of their total tenure. The bill passed yesterday establishes a tiered system where annual leave increases alongside length of service, capped at a maximum of 12 days.
The bill amends the Labour Relations Law, which regulates private-sector employment. The public sector operates under its own employment regulations, which remain significantly more generous.
The outline of the amendment bill was passed during a plenary session last month, after which it was reviewed by the legislature’s 1st Standing Committee. It was then resubmitted to yesterday’s plenary session – attended by Secretary for Economy and Finance Dora Ng Wai Han – where it was voted on article-by-article in its second and final reading.
The initial draft proposed that the amended Labour Relations Law would come into effect on January 1 next year. However, following discussions between legislators and government officials during the committee review, the final version stipulates that the 20-day increase in maternity leave will take effect the day after its publication in the Official Gazette (BO). The increase in statutory annual leave will still take effect on January 1 next year.
During yesterday’s session, Ng pledged that the government aims to gazette the amendment as soon as possible so pregnant employees can benefit from the additional 20 days of leave earlier.
When the Labour Relations Law first came into force in 2009, statutory paid maternity leave was set at 56 days. This was raised to 70 days on 26 May 2020, when the law’s current version took effect.
All private-sector employees with a minimum of one year of service – including local and non-resident workers (NRWs) – are entitled to statutory paid maternity leave. Under the law’s current version, 63 out of the 70 days must be taken immediately after childbirth, with the remaining seven days taken either before or after. Under the new 90-day framework, mothers must take 60 days immediately after birth, but will have the flexibility to take the remaining 30 days either before or after delivery.
When the 2020 amendment came into effect, the government introduced a three-year transition period during which employers were required to cover at least 56 days of maternity pay, with the remaining balance of up to 14 days covered by the government.
After that transition period ended on May 25, 2023, the government launched a provisional subsidy scheme to assist eligible employers with those 14 days of pay. Under this temporary scheme, which runs until December 31 this year, employers must pay workers for the full 70-day period upfront before applying to the Labour Affairs Bureau (DSAL) for a 14-day reimbursement.
This current subsidy applies strictly to local female employees; employers hiring non-resident workers (NRWs) remain fully responsible for funding the entire 70-day maternity leave.
Govt to make maternity leave subsidy permanent
Ng noted during yesterday’s session that once maternity leave is expanded to 90 days, the government will make its subsidy scheme permanent. Under the permanent mechanism, eligible employers can apply for a subsidy covering 20 days of maternity leave.
She added that an administrative regulation (by-law) will be drafted to detail the operational procedures of the permanent scheme.
Ng further explained that because the temporary 14-day subsidy remains active until December 31 this year, eligible employers will effectively benefit from a combined 34-day subsidy between the date the new 90-day law comes into force and the end of the year. From January 1 next year onwards, the subsidy will revert to the standard 20 days.
The amendment bill does not include any changes to statutory paid paternity leave, which remains at five days.
Regarding annual leave, the updated Labour Relations Law establishes the following breakdown based on continuous service with the same employer:
Up to 2 years: 6 days
2 to 4 years: 7 days
4 to 6 years: 8 days
6 to 8 years: 9 days
8 to 10 years: 10 days
10 to 12 years: 11 days
12 years or more: 12 days
Ng added that the government will launch a new feature on the Macao One Account mobile application to allow employees to check their exact annual leave entitlements easily.
Secretary for Economy and Finance Dora Ng Wai Han addresses yesterday’s plenary session in the Legislative Assembly’s (AL) hemicycle. – Photo courtesy of TDM
