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 Non-Mandatory Central Provident Fund

The Macao Special Administrative Region Government has implemented Law No. 7/2017 "Non-Mandatory Central Provident Fund System" and Administrative Regulation No. 33/2017 "Supplementary Provisions of the Non-Mandatory Central Provident Fund System" since 1 January 2018. The establishment of the Non-Mandatory Central Provident Fund System aims to strengthen the social old-age protection for residents of the Macao Special Administrative Region and to supplement the existing social security system.

Macao residents who have reached the age of 18, or those under 18 but already registered under the social security system, may become individual account holders of the Non-Mandatory Central Provident Fund. The individual account consists of three types of sub-accounts: the Government-Managed Sub-Account, the Contribution Sub-Account, and the Preserved Sub-Account.

Government-Managed Sub-Account

  • This account is opened by the Social Security Fund for Macao residents upon registration of the Incentive Basic Funds;
  • Records funds distributed by the government, including Incentive Basic Funds and Special Allocation from the Budget Surplus;
  • Records transfers of funds between sub-accounts;
  • Only one transfer-in and one transfer-out of funds may be applied for each year.

Contribution Sub-Account

  • Before the first contribution is made, the account is opened by the fund management entity;
  • Used for making voluntary contributions;
  • Records transfers of funds between sub-accounts;

(Note: Under the Non-Mandatory Central Provident Fund contribution system, there are the "Individual Provident Fund Scheme" and the "Joint Provident Fund Scheme".)

Preserved Sub-Account

  • This account is primarily used to record and manage the balance transferred from the Contribution Sub-Account upon termination of the employment relationship;
  • This account is opened by the fund management entity upon cancellation of the Contribution Sub-Account;
  • Records transfers of funds between sub-accounts.
Diagram of the Non-Mandatory Central Provident Fund individual account and sources of funds
Note:
The rules governing the transfer of funds between sub-accounts are as follows:
  1. Funds in the Government-Managed Sub-Account are limited to one transfer-in and one transfer-out each per year.
  2. Funds in the Joint Provident Fund Scheme may only be transferred out after the employer has notified that the relevant employment relationship has been terminated.

Establishment and Participation

  • The establishment of an Individual Plan is non-mandatory and is at the discretion of the individual;
  • Applicants must be Macao SAR residents aged 18 or above, or under 18 but already registered under the social security system;
  • Employees who have already joined the Joint Provident Fund Scheme may also concurrently join the Individual Provident Fund Scheme;
  • The Individual Plan may be established with multiple fund entities simultaneously;
  • Those interested in joining our company's Individual Scheme may consult banks or agents;
  • The steps for establishing an Individual Plan are as follows:
1
Account Holder
Signs the relevant documents with the fund management entity to establish an Individual Provident Fund Scheme
  • Applying in paper or electronic form
2
Fund Management Entity
Paper application
Within 10 working days from receipt of all documents, forward the relevant documents for setting up the Individual Provident Fund Scheme to the Social Security Fund
⏱ Within 10 working days
Electronic application
Within 10 working days from signing the documents, submit the plan information on the Social Security Fund e-platform for matching
The account holder must also submit plan information via the “Macao One Account” platform
⏱ Within 10 working days
3
Social Security Fund
  • Within 60 days of receiving all documents or successful matching of plan information, make a decision and notify the account holder of the approval result
⏱ Within 60 days
4
Fund Management Entity
  • After receiving the Social Security Fund approval notification, and before the first contribution is made, open a Contribution Sub-Account for the account holder

Contributions

  • The minimum monthly contribution amount is MOP 500, and the self-determined contribution amount must be adjusted in multiples of MOP 100, with a maximum monthly contribution of MOP 3,600;
  • Contributions will be deducted from the participant's designated bank account via auto-debit on a specified date each month (our company's designated banks: Bank of China Macau Branch, Tai Fung Bank, China Guangfa Bank, OCBC Bank, Luso International Banking, Delta Asia Bank);
  • The amount deducted via monthly auto-debit is the previous month's contribution;
  • Contributions will be recorded in the "Contribution Sub-Account" for investment purposes.

Contribution Investment

  • The participant selects the fund management entity and allocates the contribution investment choices at their own discretion.

Establishment and Participation

  • The plan is voluntarily established by the employer and voluntarily participated in by the employee, with both parties making joint contributions.
  • The employee must be a Macao resident aged 18 or above, or under 18 but already registered under the social security system.
  • The employee must be an individual account holder, and participation in the Joint Provident Fund Scheme does not affect the ability to establish an Individual Provident Fund Scheme.

Contributions

  • Based on the employee's basic monthly salary, both the employee's and employer's contributions are 5% of the calculation basis.
  • Based on the employee's basic monthly salary, both the employee's and employer's contributions are 5% of the calculation basis.

Contribution Investment Allocation

  • The fund management entity is selected by the employer. Both the employer and the employee may choose appropriate retirement funds and investment allocation for their respective contribution portions. However, each investment allocation percentage shall be at least 5% or an integer multiple thereof.
  • When the employee's contribution period meets the criteria for the employee to acquire full entitlement to the employer's contributions, the employee shall have the right to determine the investment allocation of the employer's contribution portion. The employer may also, from the establishment of the Joint Provident Fund Scheme, transfer the investment allocation right of its contributions to the relevant employee.

Vesting Ratio

  • The percentage of the employer's accrued benefits that the employee is entitled to upon termination of the employment relationship is determined based on the contribution period.
  • The employer may stipulate a contribution period calculation and vesting ratio that is more favourable to the employee than the following:
Contribution Period Vesting Percentage
Less than 3 years 0%
3 years to less than 4 years 30%
4 years to less than 5 years 40%
5 years to less than 6 years 50%
6 years to less than 7 years 60%
7 years to less than 8 years 70%
8 years to less than 9 years 80%
9 years to less than 10 years 90%
10 years or more 100%

Account holders who meet the following eligibility criteria may apply to the Social Security Fund for withdrawal of funds. The maximum withdrawable amount varies depending on the reason for withdrawal.

Reasons for making withdrawals All or part of the balance in the individual account The upper limit is the amount accumulated under the allocation system (Note 2)
He/she has attained age 65 ✓  
He/she is under age 65 but in the following situations:
He/she has attained age 60 and is not engaged in any paid activities (Note 1) ✓  
There is a need to bear huge medical expenses due to serious injury or illness of his/her own ✓  
He/she has humanitarian or other properly explained reasons ✓  
There is a need to bear huge medical expenses due to serious injury or illness of his/her spouse, any degree of lineal consanguinity or affinity   ✓
He/she has been receiving disability pension from the Social Security Fund for more than one year   ✓
He/she is currently receiving special disability subsidy from the Social Welfare Bureau   ✓

(Note 1) Once the application has been approved, the individual account owner cannot withdraw funds for the same reason again.

(Note 2) The upper limit is the sum of the incentive basic funds and the special allocation of funds from budget surplus that are injected into the accounts by the government over the past years and less the accumulated amount of withdrawals.

Important Notes
  • The employer’s contribution balance in the contribution sub-account can only be withdrawn by application after the termination of a labour relationship;
  • Account owners may make withdrawals no more than twice a year.