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MAURITIUS
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Mauritius Payroll and Employer of Record: Employment Contracts
The majority of workers will require a Work Permit. In addition to this document, they will need to secure a Residence Permit. Work permits and occupation permits are not the same thing in Mauritius. A work and residency permit that permits foreign nationals to live and work in Mauritius is known as an occupation permit. This permission, however, is only accessible to applicants who fit into one of three categories: sponsored professionals, investors, or self-employed employees. To be eligible for a work visa in Mauritius, the candidate must be between the ages of 20 and 60. Workers with special knowledge may be exempt from this requirement.
Probation Periods
The normal probation time in Mauritius runs from one to three months, based on the parameters agreed upon by the employment contract’s signing parties. During this time, both the employer and the employee can assess the other party’s work environment and performance to determine if it satisfies their needs.
Notice Periods
The desire to discontinue employment might be communicated verbally or in writing. If a worker has been with the same employer for at least three years, at least three months’ notice is required. In all other cases, shorter notice periods are required. If the employee is paid monthly or fortnightly, notice must be provided at least 14 days before the end of the calendar month; if the worker is paid at intervals shorter than 14 days, notice must be at least equal to the interval at which pay is paid. When dismissal is for gross misbehaviour, no notice is necessary.
Minimum Wage
The minimum pay is Rs 13,075.
Working Hours
The usual working week in Mauritius is 45 hours, excluding lunch and tea breaks. Every seven consecutive days, the employee must have a rest day of at least 24 hours. The rest day must be on Sundays unless the employer operates on a seven-day week by necessity.
Overtime
Overtime pay is normally determined over a two-week period. It applies if an employee works more than 90 hours in two weeks and is paid at 1.5 times the regular hourly rate. Overtime employment in Mauritius includes working on a public holiday or on a Sunday. And the salary is double the standard hourly amount. Every seven days, the employee must take at least 24 hours off. Unless the employer’s activities need a seven-day week, the rest day must be on Sundays.
Non Compete
Employers can impose restrictions on employees through non-compete agreements or a clear condition in the employment contract. Such limitations must be reasonable and for a specific period of time. Employees have implicit duties of secrecy, loyalty, and fiduciary duty to their employers. Employees in higher positions of employment have a higher level of fiduciary responsibility. Once clear provisions are established in the non-compete agreement or the employment agreement between the parties, the extent of the employee’s responsibilities will be known.
Severance
- Fixed-term contracts expire at the end of the period or upon renewal. Unless the parties agree differently, no severance payout is necessary in this scenario.
- Severance compensation is necessary when an indefinite term contract is terminated by the employer without cause or by the employee.
Termination
Fixed-term contracts are allowed.
Employment contracts can be cancelled with the following verbal or written notice:
- If you have been working for more than three years: three months’ notice
- Fewer than three years of service: if paid in 14-day intervals, at least 14 days’ notice before the end of the month; if paid in less than 14-day intervals, at least one pay interval.
Employees are generally entitled to severance compensation depending on their length of employment, cause for termination, and pay interval.
Collective Bargaining
Collective bargaining agreements must be for a period of at least one year, and they must include a provision for a final and conclusive resolution of any disputes between persons to whom the agreement applies.
Hours of work, earnings and salaries, rest intervals, overtime work and compensation, dispute resolution methods, promotion and training, holidays, punishment, dismissal and termination procedures, and many other employment-related concerns are all included in a typical collective agreement.
Enforcement
The Employment Relations Tribunal’s goals and objectives are as follows:
- Settlement of labour disputes
- Resolution of labour disputes in the Civil Service and the Private Sector
- Hearing of appeals from the Conciliation and Mediation Commission’s judgment
- Promotion of peaceful labour relations
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 20 working days’ annual leave during each following period of 12 months while he remains in continuous employment.
Sick
Except for part-time employees, every employee is 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 entitled to MUR 3,000 in maternity leave within seven days after giving birth.
Paternity
After 12 months of employment, male workers are entitled to five days of unpaid maternity 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
Employees who miscarry are entitled to two weeks’ leave immediately following the occurrence. The two weeks have been paid in full.
STATUTORY EMPLOYEE BENEFITS
Unemployment
Unemployment benefits during the transition period (National Savings Fund, social insurance): For the first three months, 90 percent of the insured’s average monthly basic wages are paid; 60 percent for the next three months; and 30 percent afterwards, up to a maximum of 12 months. Average monthly basic earnings are calculated using the insured’s covered earnings over the previous 12 months (or in the total period of covered employment if less than 12 months). The monthly transitional unemployment benefit is set at 3,000 rupees.
Unemployment benefit (Unemployment Hardship Relief, social assistance, income tested): A monthly payment of up to 468 rupees is made. A monthly payment of 468 rupees is granted to the spouse. Child allowance: 192 rupees per month is paid for each eligible child under the age of three; 181 rupees for each child aged three to nine; 220 rupees for each child aged ten to fourteen; 305 rupees for each child aged fifteen to nineteen if a full-time student; or 322 rupees for a disabled child under the age of nineteen.
Rent allowance: up to 363 rupees a month, 50% of the claimant’s rent is paid.
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 first and current legislation are from 1931 (workmen’s compensation) and 1976, respectively (national pensions).
Social insurance system is the type of program.
- Coverage
- People who are employed
- Exclusions: Self-employed people and others who only work on weekends or holidays
- Special systems exist for government personnel and some other occupations.
Employee – 3% every month
Employer – 6% every month
Social Security
Employees receive 3% of monthly covered wages; non-employed individuals receive at least 160 rupees per month; and certain low-income agricultural and domestic workers receive none. The minimal monthly earnings required to calculate contributions are 2,680 rupees; domestic workers earn 1,695 rupees. The maximum monthly earnings for contribution purposes are 17,470 rupees. Employer social insurance (National Pension Scheme): 6% of monthly covered payroll; 10.5 percent for millers and major sugar businesses.
The minimal monthly earnings required to calculate contributions are 2,680 rupees; domestic workers earn 1,695 rupees. The maximum monthly earnings for contribution purposes are 17,470 rupees. Employer payments also fund work-related injury benefits.
Retirement
2.2.1
(a) Contributions of 10.5 percent are payable by millers and major employers in the sugar industry (those having at least 100 arpents of sugar cane cultivation).
(b) Contributions are paid at a rate of 6% by all other employers.
(c) In both circumstances, the employee’s portion of contributions is 3%.
(d) Sugar sector employees are eligible to greater pensions since they accumulate more pension points.
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
Medical Aid is a private option and is based on an employee voluntary basis 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
Taxable Income | Rates of Taxes |
0 – 700 000 | 10% |
700 000 – 975 000 | 12.5% |
975 000 + | 15% |
Taxation Method
Taxes are levied on income earned during the calendar year. The taxation method is progressive in Mauritius.
Double Taxation
Mauritius has multiple double taxation agreements.
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
N/A
Unemployment
Employee Social Security: 1% of monthly covered wages.
- The minimal monthly earnings required to calculate contributions are 2,680 rupees; domestic workers earn 1,695 rupees.
- The maximum monthly earnings for contribution purposes are 17,470 rupees.
Employer social insurance: 2.5 percent of monthly covered payroll; no coverage for anyone over 65.
- The minimal monthly earnings required to calculate contributions are 2,680 rupees; domestic workers earn 1,695 rupees.
- The maximum monthly earnings for contribution purposes are 17,470 rupees.
Social Security
Employees contribute a minimum of 3% of their pensionable earnings to the National Pension Scheme (NPS), while employers contribute at least 6% of the employee’s pensionable earnings.
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
Bonuses are added to an individual’s monthly income. Employee EOY Bonus payments are necessary and should be provided as follows: – For workers receiving a monthly basic income of less than MUR 100,000: The end-of-year bonus is equal to one-twelfth of the employee’s profits for the year or merely portion of the year.
Allowances
The following are the allowed deductions, reliefs, and allowances for the fiscal year ending 30 June 2022:
- Amount by Category (Rs)
- 325,000 for a person with no dependents in Category A
- 435,000 for a person with one dependant in Category B
- 515,000 for a person with two dependents in Category C
- Category D: A person with three dependents 600,000
- 680,000 Category E: An person with four or more dependents
Benefits in Kind
Car Advantage
Capacity of Cylinders –
- Up to 1600cc Rs 9,500
- 1601 to 2000cc Rs 10,750
- Above 2000cc Rs 12,000
Housing assistance
Where there is property –
- Owned by the company – Unfurnished – 10% of employee total emoluments
- The employer rented – Furnished – 15% of total employee emoluments
Investment Income
There is no tax on capital gains in Mauritius. 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
Employees contribute a minimum of 3% of their pensionable earnings to the National Pension Scheme (NPS), while employers contribute at least 6% of the employee’s pensionable earnings.
Health Insurance
Health insurance is a private options which is voluntary.
Risk Insurance
N/A
Taxable Income
Non-residents are solely taxed on income earned in Mauritius. Employment income, pensions, income from a trade or profession, rent, and interest are all examples of taxable income. Rates: The usual rate is 15%, although persons with an annual net income of less than MUR 650,000 qualify for a 10% reduction.
Allowable Deductions
The following are the allowed deductions, reliefs, and allowances for the fiscal year ending 30 June 2022:
- Amount by Category (Rs)
- 325,000 for a person with no dependents in Category A
- 435,000 for a person with one dependant in Category B
- 515,000 for a person with two dependents in Category C
- Category D: A person with three dependents 600,000
- 680,000 Category E: An person with four or more dependents
Only residents of Mauritius for the fiscal year ending 30 June 2022 are eligible to claim an income exemption threshold, additional exemption for dependant child studying undergraduate course, or relief for interest paid on housing loan.
If a person claims an income exemption level in respect of Category B, C, D, or E for the fiscal year ending 30 June 2022, his or her spouse is only able to claim an income exemption threshold in respect of Category A for that year.
- An individual is not allowed to claim an income exemption threshold in respect of – for the fiscal year ending 30 June 2022.
- If his dependent’s net and exempt income surpasses 110,000 rupees, he falls into Category B.
- Category C, if his second dependent’s net and exempt income reaches 80,000 rupees.
- If his third dependent’s net and exempt income reaches 85,000 rupees, he falls into Category D.
- If his fourth dependent’s net and exempt income reaches 80,000 rupees, he falls into category E.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
Employees contribute a minimum of 3% of their pensionable earnings to the National Pension Scheme (NPS), while employers contribute at least 6% of the employee’s pensionable earnings.
Unemployment
Employee Social Security: 1% of monthly covered wages.
Employer social insurance: 2.5 percent of monthly covered payroll; no coverage for anyone over 65.
Social Security
Employees contribute a minimum of 3% of their pensionable earnings to the National Pension Scheme (NPS), while employers contribute at least 6% of the employee’s pensionable earnings.
Workers Compensation
The first and current legislation are from 1931 (workmen’s compensation) and 1976, respectively (national pensions).
Social insurance system is the type of program.
Coverage
- People who are employed
- Exclusions: Self-employed people and others who only work on weekends or holidays
- Special systems exist for government personnel and some other occupations.
Employee – 3% every month
Employer – 6% every month
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.
Rates: The usual rate is 15%, although persons with an annual net income of less than MUR 650,000 qualify for a 10% reduction. On yearly leviable income above MUR 3 million, a solidarity levy of 25% is levied. Capital gains are exempt from taxation in Mauritius.
Payroll Taxes
Employees contribute a minimum of 3% of their pensionable earnings to the National Pension Scheme (NPS), while employers contribute at least 6% of the employee’s pensionable earnings.
Unemployment
Employee Social Security: 1% of monthly covered wages.
Employer social insurance: 2.5 percent of monthly covered payroll; no coverage for anyone over 65.
Social Security
Employees contribute a minimum of 3% of their pensionable earnings to the National Pension Scheme (NPS), while employers contribute at least 6% of the employee’s pensionable earnings.
Workers Compensation
The first and current legislation are from 1931 (workmen’s compensation) and 1976, respectively (national pensions).
Social insurance system is the type of program.
- Coverage
- People who are employed
- Exclusions: Self-employed people and others who only work on weekends or holidays
Special systems exist for government personnel and some other occupations.
- Employee – 3% every month
- Employer – 6% every month
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 20 paid leave every year. Women are also entitled to 14 weeks of maternity leave. There is unpaid paternity leave of 5 days in Mauritius.
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
