Macau’s Social Security Fund says a review of the Central Provident Fund (CPF) supports a phased approach to mandatory contributions.
Employers and employees in Macau now contribute voluntarily to the CPF.
Launched in 2018, the CPF is managed by the Social Security Fund, which says the scheme has operated smoothly and gained broad social support, with a steady increase in the participation rate since its introduction.
“Estimates suggest that mandatory contributions to the Central Provident Fund would not place undue pressure on employers,” the Social Security Fund says in a report on January 6. “Meanwhile, employees would benefit from enhanced retirement protection through consistent, long-term contributions.”
But it points out that Macau’s economic recovery has been uneven across sectors, particularly among micro, small and medium-sized enterprises, hence it was “more appropriate for the time being” to keep the CPF non-compulsory.
The report proposes adopting the principle of “building consensus and gradual implementation” in making the scheme mandatory by establishing specific indicator conditions in coordination with Macau’s social and economic development.
