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MAURITIUS
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Mauritius Payroll and Employer of Record: Employment Contracts
In Mauritius, most workers require both a work permit and a residence permit, collectively known as an occupation permit (OP). Issued by the Economic Development Board (EDB), the OP allows foreign nationals to live and work in Mauritius. It caters specifically to sponsored professionals, investors, or self-employed individuals. Applicants generally need to be aged between 20 and 60, though exceptions may apply for those with specialized skills. Professionals under this permit must earn a minimum monthly salary of Rs 60,000, or Rs 30,000 in the ICT sector.
Typically valid for three years, the OP also offers a short-term option for up to nine months, which can be renewed once for an additional three months. Employers are responsible for submitting the Occupation Permit application on behalf of their employees.
PAID TIME OFF
Annual Vacation
Every employee, other than a part-time employee, who stays in continuous employment with the same employer for a period of 12 consecutive months is entitled to 22 days’ annual leave. Employees who have worked continuously for five years are eligible for 30 days of paid vacation for each subsequent five-year period.
Sick
Full-time employees are entitled to 15 days of paid sick leave after 12 months of continuous service. If the employee has not taken sick leave in the previous year, any unused sick time is accrued up to a maximum of 90 working days.
Maternity
A female employee who has worked consistently for one year is entitled to 14 weeks of paid maternity leave, with up to seven weeks used before giving birth. To confirm the pregnancy, the employee must get a medical certificate. The employee is also entitled to a maternity allowance of MUR 3,000. This is paid by the employer within seven days after the birth of the child.
Paternity
After 12 months of employment, male workers are entitled to five days of paid paternity leave.
Family
A female employee who adopts a child under the age of 12 months and has worked for the same company for 12 consecutive months is entitled to 14 weeks of paid leave. The employee must submit a certified copy of the court order as well as a copy of the child’s birth certificate.
National Holidays
Mauritius has a total of 15 public holidays which are paid.
Other Paid Time Off
Jury Leave: Employees summoned for jury duty are entitled to paid leave as ordered by the Court, regardless of salary or tenure.
Court Attendance Leave: Employees receive unpaid leave when attending court as a party or witness, and paid leave when representing their employer.
Special Leave: Defined under the Mauritius Workers’ Rights Act 2019:
- 6 paid working days for the employee’s first marriage
- 3 paid working days for the marriage of the employee’s son or daughter
- 3 paid working days for bereavement leave (as specified above) All types of special leave require 12 months of continuous employment.
Other Leave: Employees selected to represent Mauritius in international sports or cultural events are entitled to paid leave for the duration of the event.
STATUTORY EMPLOYEE BENEFITS
Unemployment
The Workfare Programme (WP), operational since February 2009, aims to assist laid-off workers by offering job placement, training and re-skilling, or support for starting a small business. The WP also provides TUB for 12 months under the same payment structure as mentioned. The Workfare Programme Fund (WPF) is managed by the National Savings Fund and financed by contributions from employers, workers, and the government. Employers must also pay a recycling fee to the worker’s National Savings account within 30 days of contract termination.
Money from the NSF Fund is used for lump sum payments, Transition Unemployment Benefits (TUB), and administrative costs. Employers contribute 2.5% of remuneration to the NSF, while workers contribute 1% of their basic wages monthly to individual accounts in the National Savings Fund. NSF contributions are not required for employees who have reached the retirement age of 65, regardless of their Contributory Retirement Pension (CRP) status.
Effective July 1, 2023, the minimum and maximum basic wages or salaries for NSF contributions are as follows:
- Daily Cap: Minimum wage is 91 for private household employees and 144 for other employees, with a maximum of 935 for all employees.
- Monthly Cap: The minimum wage is 2,375 for private household employees and 3,740 for other employees, with a maximum of 24,315 for all employees.
The TUB provides financial support for up to 12 months, with payments of 90% of basic wages for the first three months, 60% from the fourth to sixth month, and 30% from the seventh to twelfth month.
The training levy has been increased from 1% to 1.5%, with 1% going to the Workfare Program Fund. Employers must pay this levy on their employees’ total basic wages or salaries, except for household workers. No training levy is required for employees over 70 years old. For those under 70, the levy is payable regardless of CRP status.
The monthly minimum unemployed benefit is 270 rupees. Benefits are modified yearly in January to reflect increases in the cost of living.
Workers Compensation
The workers compensation is covered by CSG contributions.
Social Security
Contribution Sociale Généralisée (CSG)
Benefits
- Provides benefits for old age, disability, and work-related accidents and diseases.
Applicability
- It applies to all employed and self-employed individuals, including non citizens and those aged 65 and older.
Employer Responsibilities
- Employers deduct employee contributions from wages and add their own contribution.
- Both contributions are paid to the Mauritius Revenue Authority (MRA).
End-of-Year Bonus
- From September 2021 on, social contributions apply to end-of-year bonuses.
- Calculated separately from monthly wages and salaries and only on the basic wage and salary (excluding allowances, commissions, etc.).
- If the bonus is paid over multiple months, the social contribution rate is based on the cumulative bonus amount each month.
Contribution Rates
| Sector | Remuneration | Employer’s Contribution | Employee’s Contribution |
| Private Sector | ≤ MUR 50,000 | 3% | 1.5% |
| Private Sector | > MUR 50,000 | 6%f | 3% |
| Public Sector | ≤ MUR 50,000 | 4.5% | N/A |
| Public Sector | > MUR 50,000 | 9% | N/A |
Retirement
Portable Retirement Gratuity Fund (PRGF)
Purpose
- Established under the Workers Rights Act 2019.
- Provides gratuity payments:
- To workers upon retirement.
- To the legal heirs of deceased workers.
- To self-employed individuals who contributed upon retirement.
- To the heirs of deceased self-employed contributors.
- Administered by the Ministry of Social Security.
Obligations
- From January 2022, employers must submit monthly PRGF returns to the MRA, detailing each worker and paying contributions according to the Workers’ Rights Act (WRA).
Exemptions
- Workers under 16.
- Public officers or local government officers.
- Workers earn over Rs. 200,000 per month.
- Workers with employer contributions to an FSC-approved private pension scheme.
- Workers are covered by the Statutory Bodies Pension Funds Act or the Sugar Industry Pension Fund Act.
- Apprentices under the Mauritius Institute of Training and Development Act.
- Participants in government or public-private training schemes for job placement.
- Non-Mauritian citizens and migrant workers.
Coverage
- Contributions start from the month a worker begins employment, regardless of employment status (part-time, full-time, casual, or probationary).
- Includes individuals in atypical work arrangements.
Contribution Rates
- Standard rate: 4.5% of each worker’s monthly remuneration.
- Contributions are based on the worker’s monthly remuneration, including basic wages, productivity bonuses, attendance bonuses, and payments for extra work.
2.2.2
(a) The Act specifies that employers may apply to the Minister for a special rate of 8.5 percent, in which case their employees must contribute at a rate of 5%.
(b) Such personnel are entitled to the same enhanced pension coverage as Sugar industry employees.
2.2.3
(a) For home employees, the minimum monthly compensation on which contributions are payable is Rs 2680, and for other employees, it is Rs 1695.
(b) For both groups, the maximum monthly remuneration on which contributions are payable is Rs 17,470.
(c) No contributions are due on bonuses, overtime wages, or allowances.
Employee-3%
Employer-6%
Health
Mauritius has a public healthcare system that is free of charge for its citizens. Employers could, however, provide additional health benefits or provide employees with a monthly stipend to help them obtain their own health care.
Insurance
Private option and is based on an employee’s voluntary decision to sign up or for the employer to offer it.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
Private workers compensation is available in Mauritius.
Retirement
Private retirement/pension schemes are available in Mauritius.
Health
Private healthcare is available in Mauritius.
Insurance
Private life insurance is available in Mauritius.
PERSONAL INCOME TAX
Tax Year
Mauritius fiscal year runs from 1st July to 30th June .
Tax Tables
| Chargeable income (MUR*) | Basis of computation (MUR) | Tax rate (%) | |
| From | To | ||
| 0 | 390,000 | First 390,000 | 0 |
| 390,001 | 430,000 | Next 40,000 | 2 |
| 430,001 | 470,000 | Next 40,000 | 4 |
| 470,001 | 530,000 | Next 60,000 | 6 |
| 530,001 | 590,000 | Next 60,000 | 8 |
| 590,001 | 890,000 | Next 300,000 | 10 |
| 890,001 | 1,190,000 | Next 300,000 | 12 |
| 1,190,001 | 1,490,000 | Next 300,000 | 14 |
| 1,490,001 | 1,890,000 | Next 400,000 | 16 |
| 1,890,001 | 2,390,000 | Next 500,000 | 18 |
| 2,390,001 | and above | Remainder | 20 |
* Mauritian rupees
Taxation Method
Effective July 1, 2023, Mauritius has introduced a progressive tax system.
Double Taxation
Mauritius has multiple double-taxation agreements.
| Country | Duration to constitute permanent establishment | Maximum tax rates applicable in the State of Source | ||||
| Building Site etc | Furnishing of services | Dividends | Interest(i) | Royalties | ||
| 1 | Australia (Partial) | – | – | – | – | – |
| 2 | Barbados | 6 months | (iv) | 5% | 5% | 5% |
| 3 | Belgium | > 6 months | (iv) | 5% & 10% | 10% | Exempt |
| 4 | Botswana | > 6 months | > 6 months (ii) | 5% & 10% | 12% | 12.5% |
| 5 | Cabo Verde | >183 days | > 183 days | 5% | 10% | 7.5% |
| 6 | China | > 12 months | > 12 months(iii) | 5% | 10% | 10% |
| 7 | Congo | > 12 months | > 12 months | 0% & 5% | 5% | Exempt |
| 8 | Croatia | > 12 months | (iv) | Exempt | Exempt | Exempt |
| 9 | Cyprus | > 12 months | > 9 months (ii) | Exempt | Exempt | Exempt |
| 10 | Egypt | > 6 months | > 6 months | 5% & 10% | 10% | 12% |
| 11 | Estonia | > 12 months | > 6 months | 0% & 7% | 0% & 7% | 0% & 5% |
| 12 | Eswatini (Previously known as “Swaziland”) | > 6 months | > 6 months(ii) | 7.5% | 5% | 7.5% |
| 13 | France | > 6 months | (iv) | 5% & 15% | same rate as under domestic law | 15% |
| 14 | Germany (new) | > 12 months | (iv) | 5% & 15% | Exempt | 10% |
| 15 | Ghana | > 6 months | > 6 months (ii) | 7% | 7% | 8% |
| 16 | Guernsey | > 12 months | > 9 months | Exempt | Exempt | Exempt |
| 17 | Hong Kong | > 6 months | > 6 months | 0% & 5% | 5% | 5% |
| 18 | India | > 9 months | > 3 months | 5% & 15% | 7.5% | 15% |
| 19 | Italy | > 6 months | (iv) | 5% & 15% | same rate as under domestic law | 15% |
| 20 | Jersey | > 12 months | > 9 months | Exempt | Exempt | Exempt |
| 21 | Kuwait | > 9 months | (iv) | Exempt | Exempt | 10% |
| 22 | Lesotho (New) | > 6 months | > 4 months | 10% | 10% | 10% |
| 23 | Luxembourg | > 6 months | (iv) | 5% & 10% | Exempt | Exempt |
| 24 | Madagascar | > 6 months | (iv) | 5% & 10% | 10% | 5% |
| 25 | Malaysia | > 6 months | (iv) | 5% & 15% | 15% | 15% |
| 26 | Malta | > 12 months | > 12 months | Exempt | Exempt | Exempt |
| 27 | Monaco | > 12 months | > 12 months | Exempt | Exempt | Exempt |
| 28 | Mozambique | > 6 months | > 6 months (ii) | 8%, 10% & 15% | 8% | 5% |
| 29 | Namibia | > 6 months | > 6 months (ii) | 5% & 10% | 10% | 5% |
| 30 | Nepal | > 6 months | > 6 months (ii) | 5%, 10% & 15% | 10% & 15% | 15% |
| 31 | Oman | > 6 months | (iv) | Exempt | Exempt | Exempt |
| 32 | Pakistan | > 6 months | (iv) | 10% | 10% | 12.5% |
| 33 | Rwanda | > 6 months | > 6 months | 10% | 10% | 10% |
| 34 | People’s Republic of Bangladesh | >12 months | > 12 months | 10% | normal rate | normal rate |
| 35 | Seychelles | > 12 months | > 6 months (ii) | Exempt | Exempt | Exempt |
| 36 | Singapore | > 9 months | (iv) | Exempt | Exempt | Exempt |
| 37 | South Africa | > 12 months | > 6 months (ii) | 5% & 10% | 10% | 5% |
| 38 | Sri Lanka | > 6 months | > 6 months (ii) | 10% & 15% | 10% | 10% |
| 39 | State of Qatar | > 6 months | > 6 months (ii) | Exempt | Exempt | 5% |
| 40 | Sweden (New) | > 12 months | (iv) | 0% & 15% | Exempt | Exempt |
| 41 | Thailand | > 6 months | > 6 months (ii) | 10% | 10% & 15% | 5% & 15% |
| 42 | Tunisia | > 12 months | (iv) | Exempt | 2.5% | 2.5% |
| 43 | Uganda | > 6 months | > 4 months (ii) | 10% | 10% | 10% |
| 44 | United Arab Emirates | > 12 months | > 12 months | Exempt | Exempt | Exempt |
| 45 | United Kingdom | > 6 months | (iv) | Exempt & 15% | Same rate as under domestic law | 15% |
| 46 | Zimbabwe | > 6 months | (iv) | 10% & 20 % | 10% | 15% |
Residence Requirements
Individuals who are domiciled in Mauritius, spend 183 days or more in an income year in Mauritius, or have a total presence in Mauritius of at least 270 days in the tax year and the two preceding tax years are considered residents.
Payroll Calendars
Employees are not required to be paid on a set schedule.
Payrolls can be done weekly, biweekly, fortnightly, or monthly.
Rebates & Tax Credits
In Mauritius, there are no additional substantial tax breaks or incentives for individuals.
Health Insurance
Mauritius has a public healthcare system that is free of charge for its citizens. Employers could, however, provide additional health benefits or provide employees with a monthly stipend to help them obtain their own health care.
Unemployment
The Workfare Programme (WP), operational since February 2009, aims to assist laid-off workers by offering job placement, training and re-skilling, or support for starting a small business. The WP also provides TUB for 12 months under the same payment structure as mentioned. The Workfare Programme Fund (WPF) is managed by the National Savings Fund and financed by contributions from employers, workers, and the government. Employers must also pay a recycling fee to the worker’s National Savings account within 30 days of contract termination.
Money from the NSF Fund is used for lump sum payments, Transition Unemployment Benefits (TUB), and administrative costs. Employers contribute 2.5% of remuneration to the NSF, while workers contribute 1% of their basic wages monthly to individual accounts in the National Savings Fund. NSF contributions are not required for employees who have reached the retirement age of 65, regardless of their Contributory Retirement Pension (CRP) status.
Effective July 1, 2023, the minimum and maximum basic wages or salaries for NSF contributions are as follows:
- Daily Cap: Minimum wage is 91 for private household employees and 144 for other employees, with a maximum of 935 for all employees.
- Monthly Cap: The minimum wage is 2,375 for private household employees and 3,740 for other employees, with a maximum of 24,315 for all employees.
The TUB provides financial support for up to 12 months, with payments of 90% of basic wages for the first three months, 60% from the fourth to sixth month, and 30% from the seventh to twelfth month.
The training levy has been increased from 1% to 1.5%, with 1% going to the Workfare Program Fund. Employers must pay this levy on their employees’ total basic wages or salaries, except for household workers. No training levy is required for employees over 70 years old. For those under 70, the levy is payable regardless of CRP status.
Social Security
Contribution Sociale Généralisée (CSG)
Benefits
- Provides benefits for old age, disability, and work-related accidents and diseases.
Applicability
- It applies to all employed and self-employed individuals, including noncitizens and those aged 65 and older.
Employer Responsibilities
- Employers deduct employee contributions from wages and add their own contribution.
- Both contributions are paid to the Mauritius Revenue Authority (MRA).
End-of-Year Bonus
- From September 2021 on, social contributions apply to end-of-year bonuses.
- Calculated separately from monthly wages and salaries and only on the basic wage and salary (excluding allowances, commissions, etc.).
- If the bonus is paid over multiple months, the social contribution rate is based on the cumulative bonus amount each month.
Contribution Rates
| Sector | Remuneration | Employer’s Contribution | Employee’s Contribution |
| Private Sector | ≤ MUR 50,000 | 3% | 1.5% |
| Private Sector | > MUR 50,000 | 6% | 3% |
| Public Sector | ≤ MUR 50,000 | 4.5% | N/A |
| Public Sector | > MUR 50,000 | 9% | N/A |
Portable Retirement Gratuity Fund (PRGF)
Purpose
- Established under the Workers Rights Act 2019.
- Provides gratuity payments:
- To workers upon retirement.
- To the legal heirs of deceased workers.
- To self-employed individuals who contributed upon retirement.
- To the heirs of deceased self-employed contributors.
- Administered by the Ministry of Social Security.
Obligations
- From January 2022, employers must submit monthly PRGF returns to the MRA, detailing each worker and paying contributions according to the Workers’ Rights Act (WRA).
Exemptions
- Workers under 16.
- Public officers or local government officers.
- Workers earn over Rs. 200,000 per month.
- Workers with employer contributions to an FSC-approved private pension scheme.
- Workers are covered by the Statutory Bodies Pension Funds Act or the Sugar Industry Pension Fund Act.
- Apprentices under the Mauritius Institute of Training and Development Act.
- Participants in government or public-private training schemes for job placement.
- Non-Mauritian citizens and migrant workers.
Coverage
- Contributions start from the month a worker begins employment, regardless of employment status (part-time, full-time, casual, or probationary).
- Includes individuals in atypical work arrangements.
Contribution Rates
- Standard rate: 4.5% of each worker’s monthly remuneration.
- Contributions are based on the worker’s monthly remuneration, including basic wages, productivity bonuses, attendance bonuses, and payments for extra work.
PAYROLL ELEMENTS
Income
Salary, earnings, bonuses, overtime pay, taxable benefits, allowances, and certain lump-sum perks are examples of remuneration (revenue from employment). Profits or losses made by a company or trade. Income or profits derived from an individual’s status as a trust beneficiary.
Bonuses
In Mauritius, employees are entitled to an end-of-year bonus (EOYB). As per the Workers’ Rights Act (WRA), any employee who remains continuously employed with the same employer throughout the year is eligible for a bonus equivalent to one-twelfth of their annual earnings. This EOYB requires that 75% of the bonus amount be paid no later than five working days before December 25th, with the remainder settled by the final working day of the year.
Additionally, employees earning more than MUR 100,000 monthly, known as “gratuity,” must receive this payment by December 21st, provided they have been in continuous employment throughout the year.
Allowances
Deduction for Dependents:
- One dependent: MUR 110,000
- Two dependents: MUR 190,000
- Three dependents: MUR 275,000
- Four or more dependents: MUR 355,000
If a dependent is a child pursuing a non-sponsored, full-time undergraduate or postgraduate course at a recognized tertiary institution, an additional deduction of MUR 500,000 can be claimed. However, this exemption does not apply if:
- The annual fees, excluding administrative and student union fees, are less than MUR 34,800 for a child studying in Mauritius.
- An exemption has already been claimed for the same dependent for more than six years.
Medical and Health Insurance Premiums:
- Self: MUR 25,000
- Self and one dependent: MUR 25,000 (self) + MUR 25,000 (dependent)
- Self and two dependents: MUR 25,000 (self) + MUR 25,000 (first dependent) + MUR 20,000 (second dependent)
- Self and three dependents: MUR 25,000 (self) + MUR 25,000 (first dependent) + MUR 20,000 (second dependent) + MUR 20,000 (third dependent)
- Self and four dependents: MUR 25,000 (self) + MUR 25,000 (first dependent) + MUR 20,000 (second dependent) + MUR 20,000 (third dependent) + MUR 20,000 (fourth dependent)
Benefits in Kind
Fringe benefits, considered emoluments for PAYE purposes, encompass various advantages, including housing benefits, car benefits, tax benefits, full board and lodging for expatriates or locals, personal expenses covered by the employer, and any other monetary advantages.
The value of these monthly taxable benefits is specified as follows: car benefits are Rs 9,500 for vehicles up to 1600 cc, Rs 10,750 for those between 1601 cc and 2000 cc, and Rs 12,000 for vehicles above 2000 cc.
Housing benefits, if the property is owned by the employer, amount to 10% of the employee’s total emoluments for unfurnished housing and 15% for furnished housing, excluding the yearly bonus and the housing benefit itself. If the property is rented by the employer, the actual rent paid is considered.
For both car and housing benefits, any contribution made by the employee to the employer is deducted from the taxable benefit.
Investment Income
Corporations, whether resident or not, are excluded from paying tax on dividends received from resident companies.
Interest from a resident firm is subject to a 15% tax rate.
Retirement Funding
Covered under Social Security contributions.
Health Insurance
Mauritius has a public healthcare system that is free of charge for its citizens. Employers could, however, provide additional health benefits or provide employees with a monthly stipend to help them obtain their own health care.
Risk Insurance
Private option and is based on an employee’s voluntary decision to sign up or for the employer to offer it.
Taxable Income
Individuals, regardless of nationality, must pay Mauritian income tax on any income earned within Mauritius, whether they are residents or not. Residents, however, are taxed on their global income from all sources. Income earned outside Mauritius is only taxable if it is received in Mauritius. Additionally, income from work performed in Mauritius is considered to be sourced from Mauritius, even if the payment is received elsewhere.
Allowable Deductions
Deduction for Dependents:
- One dependent: MUR 110,000
- Two dependents: MUR 190,000
- Three dependents: MUR 275,000
- Four or more dependents: MUR 355,000
If a dependent is a child pursuing a non-sponsored, full-time undergraduate or postgraduate course at a recognized tertiary institution, an additional deduction of MUR 500,000 can be claimed. However, this exemption does not apply if:
- The annual fees, excluding administrative and student union fees, are less than MUR 34,800 for a child studying in Mauritius.
- An exemption has already been claimed for the same dependent for more than six years.
Medical and Health Insurance Premiums:
- Self: MUR 25,000
- Self and one dependent: MUR 25,000 (self) + MUR 25,000 (dependent)
- Self and two dependents: MUR 25,000 (self) + MUR 25,000 (first dependent) + MUR 20,000 (second dependent)
- Self and three dependents: MUR 25,000 (self) + MUR 25,000 (first dependent) + MUR 20,000 (second dependent) + MUR 20,000 (third dependent)
Self and four dependents: MUR 25,000 (self) + MUR 25,000 (first dependent) + MUR 20,000 (second dependent) + MUR 20,000 (third dependent) + MUR 20,000 (fourth dependent)
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
Employers are obligated to remit monthly social security contributions, training levy funds and personal income taxes ( PAYE ) on behalf of the employee.
Unemployment
The Workfare Programme (WP), operational since February 2009, aims to assist laid-off workers by offering job placement, training and re-skilling, or support for starting a small business. The WP also provides TUB for 12 months under the same payment structure as mentioned. The Workfare Programme Fund (WPF) is managed by the National Savings Fund and financed by contributions from employers, workers, and the government. Employers must also pay a recycling fee to the worker’s National Savings account within 30 days of contract termination.
Money from the NSF Fund is used for lump sum payments, Transition Unemployment Benefits (TUB), and administrative costs. Employers contribute 2.5% of remuneration to the NSF, while workers contribute 1% of their basic wages monthly to individual accounts in the National Savings Fund. NSF contributions are not required for employees who have reached the retirement age of 65, regardless of their Contributory Retirement Pension (CRP) status.
Effective July 1, 2023, the minimum and maximum basic wages or salaries for NSF contributions are as follows:
- Daily Cap: Minimum wage is 91 for private household employees and 144 for other employees, with a maximum of 935 for all employees.
- Monthly Cap: The minimum wage is 2,375 for private household employees and 3,740 for other employees, with a maximum of 24,315 for all employees.
The TUB provides financial support for up to 12 months, with payments of 90% of basic wages for the first three months, 60% from the fourth to sixth month, and 30% from the seventh to twelfth month.
The training levy has been increased from 1% to 1.5%, with 1% going to the Workfare Program Fund. Employers must pay this levy on their employees’ total basic wages or salaries, except for household workers. No training levy is required for employees over 70 years old. For those under 70, the levy is payable regardless of CRP status.
Social Security
Contribution Sociale Généralisée (CSG)
Benefits
- Provides benefits for old age, disability, and work-related accidents and diseases.
Applicability
- It applies to all employed and self-employed individuals, including noncitizens and those aged 65 and older.
Employer Responsibilities
- Employers deduct employee contributions from wages and add their own contribution.
- Both contributions are paid to the Mauritius Revenue Authority (MRA).
End-of-Year Bonus
- From September 2021 on, social contributions apply to end-of-year bonuses.
- Calculated separately from monthly wages and salaries and only on the basic wage and salary (excluding allowances, commissions, etc.).
- If the bonus is paid over multiple months, the social contribution rate is based on the cumulative bonus amount each month.
Contribution Rates
| Sector | Remuneration | Employer’s Contribution | Employee’s Contribution |
| Private Sector | ≤ MUR 50,000 | 3% | 1.5% |
| Private Sector | > MUR 50,000 | 6% | 3% |
| Public Sector | ≤ MUR 50,000 | 4.5% | N/A |
| Public Sector | > MUR 50,000 | 9% | N/A |
Portable Retirement Gratuity Fund (PRGF)
Purpose
- Established under the Workers Rights Act 2019.
- Provides gratuity payments:
- To workers upon retirement.
- To the legal heirs of deceased workers.
- To self-employed individuals who contributed upon retirement.
- To the heirs of deceased self-employed contributors.
- Administered by the Ministry of Social Security.
Obligations
- From January 2022, employers must submit monthly PRGF returns to the MRA, detailing each worker and paying contributions according to the Workers’ Rights Act (WRA).
Exemptions
- Workers under 16.
- Public officers or local government officers.
- Workers earn over Rs. 200,000 per month.
- Workers with employer contributions to an FSC-approved private pension scheme.
- Workers are covered by the Statutory Bodies Pension Funds Act or the Sugar Industry Pension Fund Act.
- Apprentices under the Mauritius Institute of Training and Development Act.
- Participants in government or public-private training schemes for job placement.
- Non-Mauritian citizens and migrant workers.
Coverage
- Contributions start from the month a worker begins employment, regardless of employment status (part-time, full-time, casual, or probationary).
- Includes individuals in atypical work arrangements.
Contribution Rates
- Standard rate: 4.5% of each worker’s monthly remuneration.
- Contributions are based on the worker’s monthly remuneration, including basic wages, productivity bonuses, attendance bonuses, and payments for extra work.
Workers Compensation
Covered by CSG contributions.
ADMINISTRATION
Income
Monthly pay-as-you-earn (PAYE) returns must be filed by employers within 15 days after the end of the month.
The employer is responsible for PAYE remittance and annual reconciliation for employment income. If employment is the only source of income, the employee does not need to file a tax return.
Payroll Taxes
Employers are obligated to remit monthly social security contributions, training levy funds, and personal income taxes (PAYE) on behalf of the employee.
Unemployment
The Workfare Programme (WP), operational since February 2009, aims to assist laid-off workers by offering job placement, training and re-skilling, or support for starting a small business. The WP also provides TUB for 12 months under the same payment structure as mentioned. The TUB provides financial support for up to 12 months, with payments of 90% of basic wages for the first three months, 60% from the fourth to sixth month, and 30% from the seventh to twelfth month.
Social Security
Contribution Sociale Généralisée (CSG)
- Benefits: Provides for old age, disability, and work-related accidents and diseases.
Remitting CSG
- When: CSG withheld for a month must be remitted to the Mauritius Revenue Authority (MRA) electronically by the end of the following month.
- Penalties for late payment:
- Penalty: 10% of unpaid CSG.
- Interest: 1% per month, or part of the month it remains unpaid.
- Assessment Penalty: Up to 25% of underpaid CSG.
Portable Retirement Gratuity Fund (PRGF)
- Benefits: Provides gratuity payments to:
- Workers upon retirement.
- Legal heirs of deceased workers.
- Self-employed contributors upon retirement.
- Heirs of deceased self-employed contributors.
Submission of Monthly PRGF Returns and Payment
- First Monthly Return: Employers must submit an electronic return detailing every worker:
- For whom is PRGF payable?
- For whom contributions are made to a private pension scheme approved by the Financial Services Commission or the Sugar Industry Pension Funds.
Offenses and Penalties
- Non-payment of PRGF:
- If an employer fails to pay the PRGF gratuity due upon the retirement or death of a worker, it is an offense.
- Penalty: fine between Rs. 50,000 and Rs. 150,000, and up to 12 months imprisonment.
- Late Contributions or Returns:
- Late Payment: 5% surcharge per month or part of the month during which contributions remain unpaid.
Workers Compensation
Covered by CSG contributions.
Statutory Benefits
Mauritius has a public healthcare system that is free of charge for its citizens. It also has a social security fund that offers a pension contribution. Employers could, however, provide additional health benefits or provide employees with a monthly stipend to help them obtain their own health care.
Employee Benefits
Many benefits are likely to be included in employment contracts; it is highly recommended to start with the benefits that are legally guaranteed. Mauritius has 15 paid public holidays, and employees are entitled to these days. There are also 22 days of paid leave every year. Women are also entitled to 14 weeks of maternity leave.
LEGISLATION
- The Employment Rights Act 2008;
- The Employment Relations Act 2008;
- The Labour Act 1975;
- The Non-Citizens (Employment restriction) Act 1970;
- The End of Year Gratuity Act 2001.
STATUTORY BODIES
Mauritius Revenue Authority
