Social security contributions to remain unchanged

Tuesday, October 26, 2010
Issue 1149, Page 4
Word count: 366
Published in: Macau Daily Times

By Poyi (Natalie) Leung

Representatives of the Government, employers and employees reached a consensus yesterday to retain the Social Security Fund’s (FSS) contribution amount as well as the contribution ratio at least during the year 2011.

The monthly contribution is currently set at MOP 45 and employers are required to pay two thirds of it, MOP 30, while employees pay the remaining MOP 15.

Coordinator of the Standing Committee for the Coordination of Social Affairs and director of the Labour Affairs Bureau Shuen Ka Hung told reporters after the plenary meeting that the three parties agreed not to raise the contribution amount or to adjust the contribution ratio in the first year after the new social security system comes into effect.

The revised citywide social security system will be enacted on January 1, 2011. Apart from covering Macau permanent residents as usual, the system will be extended to non-permanent residents as well. In addition, local residents aged 18 without a job will also be allowed to participate in the non-mandatory contribution scheme of the system.

During 2011, residents aged over 35 years will be able to make a one-off retroactive contribution to boost their future retirement pension, which can go up to a maximum of MOP 1,700 per month.

Shuen Ka Hung explained that the agreement was made mainly because the three sides agreed that there are “still many uncertainties” such as exactly how many new contributors the FSS will register next year.

He reiterated that any adjustments to the contribution amount or the ratio in the future would only be considered when it is certain that the new social security system is running stably and more data is available through research and actuarial reports.

However, Shuen said that the Government, employer and employee sides all agree that it is necessary to increase the contribution amount.

President of the FSS Fung Ping Kuen said earlier this month that the fund will be able to be sustained for at least 50 years, but added that the current MOP 45 contribution “is far too small”.

On the other hand, Shuen Ka Hung disclosed that the standing committee will touch on the minimum wage discussion in the next meeting scheduled for November 10.

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