Mauritius Employer of Record & Payroll
Africa Deployments Mauritius offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Mauritius for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Mauritius.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
Africa Deployments Ltd (ADS) is blessed to call Mauritius home for its global operations. Some of the reasons for this beneficial business and lifestyle decision are highlighted below.
Mauritius is a volcanic Indian Ocean island nation, surrounded by a coral reef, and found on the East coast of Africa beyond Madagascar.
The coastline of Mauritius is 330 kms long and would take you less than 5 hours to drive around; overall the island is 45km wide and 65km long,
Known for its world-class white sandy beaches and crystal-clear waters, lagoons and reefs, Mauritius is a popular destination for swimming, snorkeling, and diving, especially for honeymooners.
Mauritus has a rich fusion of cultures from its Dutch, French, and British heritage reflected in the language, customs and cuisine. Rum made from locally grown sugar cane is famous along with the island’s rum distilleries.
1.27 million people call Mauritius home, of whom ±145 000 [±11%] reside in Port Louis, Mauritius’ capital city.
The island has a mountainous interior with the highest peak, Piton de la Petite Riviere Noire, standing at 828 meters. The Black River Gorges National Park – with rainforests, waterfalls, hiking trails and wildlife like the flying fox – is one of many to be enjoyed.
On the southwestern tip of the island is Mauritius’ Le Morne Brabant mountain – declared a UNESCO World Heritage Site in 2008.
The now-extinct dodo bird was native to Mauritius and you can see a replica at the Natural History Museum.
What is the main language spoken in Mauritius:
The vernacular language in Mauritius which is spoken by ±90% of the population is Mauritian Creole, which is French-based.
The semi-official languages in Mauritius are French and English which tend to be the main languages used in education/media, and business respectively.
Most Mauritians are bilingual in French and English.
What type of employment contracts can you offer in Mauritius:
Through our employer of record (EOR) solutions in Mauritius, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 1 month to 3 months [standard]
WHAT INCOME IS TAXABLE IN Mauritius:
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Mauritius:
Interest, rents, royalties, compensations and other amounts paid by a special purpose fund established under the Financial Services Act 2007 to a nonresident. Royalty payable to a non-resident by a company out of its foreign source income.
Standard working hours: Number Overtime to be paid?
Standard Working Hours:
- 45 hours per week
- 9 hours per day for five days in a week or 8 hours per day for six days in a week
- Overtime refers to any hours worked beyond the standard working hours.
- Overtime compensation depends on the agreement between the employer and the employee.
- If the employer does not provide specific overtime compensation, it must be included in the employee’s monthly remuneration.
- General practice: 1.5 times the salary of a normal hour for each hour of overtime worked.
- During public holidays: 2 times the salary of a normal hour for each extra hour of overtime.
Mandatory contributions?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
1.5% |
None |
|
National Health Insurance Fund (CNAM) |
1.5% |
None |
|
National Pension Fund (CNAPS) |
1.5% |
Monthly wage of MUR 25,000 or more |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security (CNaPS) |
2.5% |
None |
|
National Health Insurance (CNAM) |
2.5% |
None |
|
National Employment and Vocational Training Fund (FNEF) |
1.5% |
Monthly wage of MUR 25,000 or more |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
Social Security (CNaPS) |
2.5% |
1.5% |
|
National Health Insurance (CNAM) |
2.5% |
1.5% |
|
National Employment and Vocational Training Fund (FNEF) |
1.5% |
Not applicable |
What is the Maternity and Paternity policy within Mauritius:
Maternal leave:
- In most cases:
- Once a minimum of 1 year / 12 months employment has been completed consecutively
- Fully paid maternal leave
- Also applies on adopting a child younger than 12 months old.
- As long as the employer provides a certified copy of the court order and the birth certificate of the adopted child.
- In Mauritius there are also allocations in case of miscarriage and/or a stillborn child
- Up to 14 weeks / 98 days
- In most cases:
- Once a minimum of 1 year / 12 months employment has been completed consecutively
- Fully paid paternal leave
- Up to 5 days of paid leave
- Above is contingent upon providing a written statement mentioning that he lives in the same house as his spouse and a medical certificate.
- And/or In most cases:
- If less than 1 year / 12 months employment has been completed consecutively
- Unpaid paternal leave
- Up to 5 days of unpaid leave
What type of leave is allowed in Mauritius:
Annual leave
- 20 days, full pay per annum
Sick Leave
- Entitled to up to 15 days of sick leave every year.
Do I need to pay a mandatory bonus annually OR is it discretionary in Mauritius:
Bonuses are not mandatory in Mauritius but tend to be paid annually as follows:
- Employees earning MUR 100,000 or less:
- One-twelfth of an employee’s earnings for one year:
- Employees earning more than MUR 100,000:
- One-twelfth of December’s basic salary multiplied by the months of employees’ continuous employment in that calendar year
What Gratuity / Severance payments do you need to provide for Mauritius:
Gratuity/Severance Payments:
- Employees who have completed at least 12 months of continuous service are entitled to gratuity/severance payments upon termination.
- The specific payment amounts depend on the circumstances of termination and the employee’s earnings.
- If the employment is terminated, the employee is entitled to receive one-twelfth of their earnings for one year as gratuity/severance payment.
- If the employment is terminated, the employee is entitled to receive one-twelfth of their basic salary in December, multiplied by the number of months of continuous employment in that calendar year.
CAN YOU GIVE FRINGE BENEFITS IN Mauritius:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
Mandatory Probation period of Mauritius:
- The mandatory probation period in Mauritius is not specified by law.
- The duration of the probation period is determined by mutual agreement between the employer and the employee.
- Typically, the probation period in Mauritius ranges from one to three months.
- During the probation period, both the employer and the employee assess each other’s suitability for the job and work environment.
- Clear communication of expectations and evaluation criteria is important during the probation period.
- If the employment relationship is unsatisfactory during this period, either party may terminate the contract following the agreed procedures.
- It’s advisable to consult legal professionals or labor authorities to ensure compliance with specific requirements and regulations related to probation periods in Mauritius.
Is 13th month pay (Bonus) mandatory?
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 5 working days before 25 December and the balance no later than the last working day of the year.
What are the Corporate and VAT / Sales tax rates in Mauritius:
Corporate Tax Rates: 15% [in general]
VAT / Sales Tax Rates: 15% [on most goods and services]
Public Holidays in Mauritius:
- January 1 - New Year's Day
- January 2 - New Year's Holiday
- January 3 - New Year's Holiday
- January 22 - Chinese Spring Festival
- February 01 - Abolition of Slavery
- February 04 - Thaipoosam Cavadee
- February 18 - Maha Shivaratree
- March 12 - Independence and Republic Day
- March 22 - Ougadi
- April 22 - Eid-Ul-Fitr
- May 01 - Labour Day
- September 20 - Ganesh Chaturthi
- November 01 - All Saints' Day
- November 02 - Arrival of Indentured Labourers
- November 12 - Diwali
- December 25 - Christmas Day
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What Industries we support in Mauritius:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
