Mauritius: A Guideline to Payroll and Employer of Record

Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Mauritius.

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Overview

Did you know that one of Mauritius’ biggest attractions is actually a false illusion? The underwater waterfall found along the shore of Le Morne Brabant in Mauritius is an optical illusion. The waterfall is less of an actual waterfall and more of the effect of sand on the shore being swept into the water with the waves, and that same sand falls into the plateau of the ocean.

Nonetheless, Mauritius has much more to offer than the optical illusion of beauty. As Mark Twain once said, “Mauritius was made first, and then heaven; and heaven was copied after Mauritius.” If your organization’s expansion plans require you to hire employees in Mauritius and you lack a physical entity in the country – a key requisite to hiring local talent, Neeyamo is your way to go. Neeyamo assists organizations worldwide with onboarding and managing employees in Mauritius-processing payroll, managing local compliance requirements, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Port Louis

Currency

Mauritian Rupee (MUR)

Official Language

Mauritian Creole, French, and English

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+230

Other Languages

French and English

Time Zone

GMT + 04:00

Global Payroll

Overview

Payroll: Meaning

Payroll means the list of compensation to be paid to employees of a company or organization for a set period or date. Global payroll companies allow organizations to outsource their payroll, allowing employers to focus on other aspects of their business.

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can worsen things. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity. The solution to this problem is - Payroll Outsourcing.

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll. Neeyamos global payroll solutions ease the process for companies looking to outsource their global payroll requirements and aid them in maneuvering the tricky system for payroll in Mauritius.

Neeyamo's Payroll 3.0 has set in motion the era of single-touch payroll, which simplifies and accelerates the pace of the payroll process. Neeyamos payroll software provides the perfect solution for all your global payroll needs – for employees working in primary geographies, the long-tail region, remote or internationally located.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.

Employee Taxes

Employees have to make the following payroll contributions:

  • 1.50% - Contribution Sociale Generalisee (CSG) (An employee, other than a public sector employee, earning a basic wage or salary not exceeding MUR 50,000 in a month.
  • 3.00% - Contribution Sociale Generalisee (CSG) An employee other than a public sector employee earning a basic wage or salary exceeding MUR 50,000 monthly.
  • 1.00% - National Savings Fund (NSF)
  • 3.00% - National Pension Fund
  • 5.50% – 7.00% - Total Employee Cost

Public sector employees and domestic service employees (with a maximum monthly salary of 3,000 MUR) are exempt from CSG.

The following is the income tax bracket:

10.00% Up to 700,000 MUR
12.00% Between 700,001 MUR and 975,000 MUR
15.00% 975,0001 MUR and above, plus solidarity levy (If applicable: being a direct monthly income allowance of 1,000 MUR provided to those earning a gross income of up to 50,000 MUR)

Employer Taxes

THe following are the employer contributions:

  • 3.00% - Contribution Sociale Generalisee (CSG) (An employee, other than a public sector employee, earning a basic wage or salary not exceeding MUR 50,000 in a month.
  • 6.00% - Contribution Sociale Generalisee (CSG) An employee other than a public sector employee earning a basic wage or salary exceeding MUR 50,000 monthly.
  • 2.50% - National Savings Fund (NSF)
  • 6.00% - National Pension Fund
  • 1.00% - Training Levy
  • 18.50% - Total Employment Cost

With effect from the 2023-2024 fiscal year, there are changes in the income tax rate applicability, which will now be applied at a progressive rate.

Payroll Cycle/ Frequency

Overview

Undoubtedly, payroll is a critical aspect of any organization. The Payroll cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.

Frequency

The typical payroll cycle in Mauritius is monthly.

13th Month Cycle

There is a statutory requirement to provide a 13th salary. The employer shall pay the employee either an end-of-year bonus equivalent to 1/12 of the annual earnings figure or a gratuity in accordance with the End of Year Gratuity Act 2001 (whichever is the higher) as long as the employee has been in continuous employment for the whole or part of the year and is still in employment as of 31 December of that year.

75% of this expected bonus is payable no later than five working days before 25 December and the balance no later than the last working day of the year.

Global Work

Overview

EOR Meaning:

An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a locally registered entity and a local bank account before making a job offer to an international hire.

An Employer of record (EOR) service provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits, ensuring compliance with local tax laws and regulations.

The EOR industry allows organizations to focus on collaborating with the employee in Mauritius for operational tasks, with the knowledge that they have a cost-effective solution to support their global payroll & HR requirements as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

The National minimum wage payable to a full-time employee is:

  • For an employee of a non-export enterprise – 11,575 MUR
  • For an employee of an export enterprise – 10,875 MUR

(Should full-time employees' salary be less than 10,875 MUR, the government will pay a special top-up allowance of up to 1,200 MUR per month).

Overtime

The standard workweek in Mauritius is 45 hours per week, 9 hours per day for five days a week, or eight hours per day for six days a week.

All work exceeding the standard working hours a week is to be paid as overtime. Overtime is paid at 150% of the regular hourly salary rate. Should an employee be required to work more than 2 hours after completing the regular day's work on any day of the week, the employer must provide an adequate free meal or be paid a meal allowance of 85.00 MAU.

Data Retention Policy

There is no general data retention law in Mauritius. There are, however, sector-specific record-keeping requirements. For example, under Section 153 of the Income Tax Act 1995, records of employee payments must be kept for at least five years. Under the Banking Act, a financial institution must keep a record for at least seven years after the completion of the transactions to which it relates.

Hiring and Onboarding Requirements

Hiring

The Workers' Rights Act (WRA) requires an employer to give preference, as far as practicable, to an existing part-time worker or a worker on a fixed-term contract when a vacancy occurs for a full-time or permanent position. Further, the general prohibition on discrimination because of specific characteristics applies to access to employment.

Onboarding

While there isn't a single way to onboard new employees, you can take steps to ensure they're comfortable in their new position. If you can, try to fly to Mauritius to be present for a new employee's training week, or at least for the first day. Reviewing an employee's written employment contract with them on their first day is also good practice. In addition, you should discuss any company code of conduct documents or other rules such as dress code, communication policies, and more.

Probation

The standard probation period in Mauritius ranges from one to three months.

Leave

Public Holiday

There are 15 National Holidays in 2023

  • Jan 1: New Year
  • Jan 22: Thaipoosam Cavadee
  • Feb 1: Abolition of Slavery
  • Feb 5: Chinese Spring Festival
  • Mar 12: National Day
  • Mar 22: Ugadi
  • Apr 22: Eid al-Fitr
  • May 1: Labour Day
  • Aug 15: Assumption of Mary
  • Nov 2: Arrival of Indentured Labourers
  • Dec 25: Christmas Day

Paid Time Off

Employees are generally entitled to at least 20 days of paid annual leave once one year of service has been completed.

Before that, once an employee has been employed for six months, the employee is entitled to one day of leave per month for the remaining six months of the year, i.e., six days of paid annual leave.

Sick Leave

An employee is entitled to 15 working days, 100% paid sickness absence per year (covered by the employer) after completing 12 months of service.

All employees must alert the employer on the first day of sickness and provide a medical certificate by the fourth day (at the latest).

In 2022, a new provision regarding leave to take care of a sick child has been introduced, whereby an employee earning a basic monthly salary equal to or less than MUR 50,000 is allowed to take up to 10 days of paid leave during every period of 12 consecutive months to be calculated at the chosen option against annual, sick, or vacation leaves.

Paternity Leave

In Mauritius, a father is entitled to five days of paid paternity in one calendar year.

Maternity Leave

Female employees are entitled to 12 weeks of paid maternity leave in Mauritius (following completion of one year of service) with the requirement to take six weeks before the due date and six weeks after the birth.

Maternity confirmation certificates must be provided before any maternity leave can commence.

Other Leave

Employees also receive days off for the following:

  • Six days paid leave for an employee's first marriage
  • Three days paid leave for the marriage of an employee's child
  • Three days paid leave for the bereavement of a direct relative

Termination

Notice Period

The statutory notice period has stipulated in the Workers' Rights Act (WRA) that an employer must give a minimum of 30 days notice prior to dismissal. However, longer notice periods are often stipulated in the employment contract.

Severance Pay

Employees are generally entitled to severance pay based on length of service and reason for termination. In accordance with the Workers' Rights Act (WRA), where the employer terminates an employee's employment without justification, the worker may claim a severance allowance against the employer if they have completed continuous employment for at least 12 months.

Severance allowance is calculated based on three months' remuneration per year of service in that employment.

Visa

Overview

A foreign employee requires a work permit to start working in Mauritius but must also obtain a residence permit. An occupation is a package of residence and work permits, allowing people to work and live in Mauritius. Getting an occupation permit in Mauritius is only possible when being a sponsored professional, a self-employed worker, or an investor. Alternatively, a regular work permit with a separate residence permit can be applied.

However, the Minister of Finance has announced immigration measures in the 2022 budget to make the country's immigration system more investor-friendly. The announced measures include the introduction of work and residence permit eligibility rights and benefits for residential property owners and shareholders of companies in Mauritius; assisting businesses to recruit foreign national graduates of local tertiary institutions under the Young Professional Occupation Permit; enabling entrepreneurs and students to complete their studies to apply for a Premium Visa, which allows work for companies outside Mauritius while in Mauritius; and expediting the issuance of work permits. These measures will likely pass and be implemented into law over the next 12 months.

Employee Background Checks

Legal and Background Checks

Organizing a background check while hiring in Mauritius is a meticulous process. HR staff and employers must review the candidate's records and eliminate people with false data, documents, and criminal records.

While performing a background check, employers and recruits need to keep the following things in mind:

  • Employment history
  • Education History
  • Criminal record
  • Credit report
  • Social life

There are no prohibitions for conducting a background check in Mauritius. The only requirement is that the employer adheres to Mauritius's Data Protection Act 2017

Employers can ask for the following information and documents to verify and authenticate the candidate's details:

  • Applicant's full name as given in official documents
  • Date of birth
  • Last known address
  • Educational qualification certificates, degrees, and mark sheets
  • The employment history of the candidate
  • Visa details (non-native employee/candidate)
  • Photograph of the candidate

Last updated on September 11, 2023

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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