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Mercans CountryIntel ® Mauritius Payroll And HR Insights

Mercans offers complete payroll, PEO and HR services in Mauritius

Moving away from its reliance on sugar cane, Mauritius has been developing into a regional hub for financial services, ICT and education. A business gateway to Africa, it was the top-ranked African country in the World Economic Forum’s 2019 Global Competitiveness Report. Diverse and multicultural, Mauritius offers a range of investment opportunities in over 15 sectors.

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Doing Business in Mauritius

Politically, socially and economically stable, Mauritius offers a conducive environment for doing business. Among the top 20 countries in the world for ease of doing business, Mauritius has consolidated its leadership position in Sub Saharan Africa. A National Electronic Licensing System offers a single point of entry for application, payment and determination of business-related licences and permits.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Mauritius is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.

Banking

Banks are open from Monday-Thursday 9 am-3:15 pm and on Friday from 9 am-5 pm

Working Week

The standard working week is 40 hours per week usually worked from Monday to Friday, 8 hours per day

Labor Law

The Ministry of Labour, Industrial Relations, Employment and Training is responsible for all labour legislation and tenders advice to workers and employers about rights and obligations. The primary pieces of legislation include the Employment Rights Act 2008, the Workers’ Rights Act 2019, the End of Year Gratuity Act and the Employment Rights (Registration of Employers) Regulations 2013.

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Main Industries

Textiles, tourism, financial and business services

GDP Growth

-9.00%

Dates & Numbers

yyyy/mm/dd

Official State Name

The Republic of Mauritius

Population

1.266 million

Capital

Port Louis

Major Languages

Mauritian Creole, French and English

Currency

Mauritian rupee ₨

Internet Domain

.mu

International Dialing Code

+230

Mauritius
Port Louis, MU
12:48 pm, December 2, 2022
26°C
light rain

Payroll

The government came up with a National Minimum Wage for which it has established a National Wage Consultative Council. The National Remuneration Board makes recommendations regarding minimum remuneration and the terms of employment in the private sector.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for 7 years

Reports

20 working days

Annual Leave

21 days

Sick Leave

12 weeks of paid maternity leave and 5 days of paid paternity leave

Maternity & Paternity Leave

An employer may dismiss a worker summarily (without notice)

Employee Termination

Not required by law

13th month salary

₨ 9,000 for export workers and ₨ 9,700 for non-export workers.

Minimum Wage

1.5 times the salary of a normal hour

Overtime

One quarter of a month's wages for each 12 months of service

Severance Pay

Tax and Social Security

Individuals, regardless of their nationality, who derive income from sources within the country are subject to Mauritian income tax on all such income (whether resident or not). Every employer and employee in the private sector pays a monthly contribution (of 2.5% and 1% respectively) of the basic wage of every employee towards the NSF (National Savings Fund).

Tax

Global companies who operate a multi-country payroll system need to be aware that income from employment duties performed in Mauritius is deemed derived from Mauritius (even if the remuneration is received outside Mauritius). There are no local taxes on income in Mauritius.

15%

Corporate Income Tax

15%

Personal Income Tax

15%

Sales Tax

15%

VAT

Social Security

Every employee (whether on a full time or part time basis) or self employed individual is liable to pay Contribution Sociale Generalisee (CSG) at the prescribed rate depending on their remuneration.

9%

Social Security Rate

6%

Social Security Rate for Employers

3%

Social Security Rate for Employees

Employment Law

Mauritius welcomes professionals and foreign talent, offering expatriates an opportunity to explore the Mauritian job market. Holders of the Professional Occupation Permit may invest in any business provided they are not employed in that business nor manage it. Professionals may also apply for a short-term Occupational Permit for a period not exceeding nine months, which can be extended once for a maximum period of three months.

Employment agreement

Generally, Mauritius recognises workers in terms of distinctions based on their salary. The Workers’ Rights Act 2019 is the primary governing legislation and the two most prominent types of contracts are fixed term and contracts of indeterminate duration.

Working condition

The maximum working hours are 45 hours per week and additional hours are counted as overtime, for which overtime payment is compulsory unless it is included in the monthly remuneration. Flexitime is purely a contractual arrangement.

Leaves

There are a few categories of leave available including annual leave, sick leave, vacation leave, special leave, maternity and paternity leave. The refund of annual leave depends on whether the individual is a worker or employee. Workers must have their annual leave not taken, refunded to them. However, the annual leave is contractual for employees with no obligation to refund.

Employment termination

The Workers’ Rights Act (WRA) requires employers to give a minimum of 30 days’ notice prior to dismissal or such longer period as may be stipulated in the employment contract. Prior to termination, the employer is required to give an opportunity to the worker to explain the charges that have been laid out against them, the answer of these charges may be provided in the form of a disciplinary hearing.

Nil

Minimum notice period for terminating an employee

15

Total number of public holidays

40

Working hours per week

3 days

Total number of days for Compassionate & Bereavement Leave

Immigration

The OP (Occupation Permit) is a combined work and residence permit which allows foreign nationals to work and reside in Mauritius under three categories: Investor, Professional and Self-Employed).

Residency permits

Under the Professional category , the OP is confined to expatriates employed in Mauritius by virtue of a contract of employment and who earns a monthly basic salary of at least MUR 60,000. For professionals in the ICT (information and communication technologies), BPO (business process outsourcing), pharmaceutical manufacturing and food processing sectors, the monthly basic salary should be at least MUR 30,000.

Work Permit validity

10 years

Required Documents

A completed application form with four passport-sized photos

Copies of the professional and academic qualifications of the applicant

A description of the job issued by the employer

Details of prior work experience of the prospective employee

A certificate of health issued to the applicant by the Ministry of Health and Quality of Life

A copy of the employer’s Certificate of Incorporation and its business registration card

The Contract of Employment (COE) that has been approved by the Labour Division with a minimum salary of 30,000 Mauritian Rupees (MUR)

Proof that the job opening and the number of employees required were posted in two or more newspapers in A5 format

Compliant, reliable, error-free and touchless payroll in Mauritius

Build the best team and hire top talent compliantly in Mauritius. Get in touch with Mauritius payroll outsourcing & PEO specialists for a free consultation!

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This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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