A. Update

The Mauritius Revenue Authority (MRA) has announced that the Employee Declaration Form (EDF) for the year 2024/2025 is now accessible on the MRA website. Employees are required to fill out the form, submit it through the provided link, and also give a copy to their employer for payroll processing. Link to declare: E-Services (mra.mu)

B. Statutory Compliance Release Date: July 26, 2024

C. Effective Date: July 26, 2024

A. Update

The Mauritius Revenue Authority has revised the ceiling of the Minimum and Maximum basic wage or salary for National Savings Fund (NSF) as follows:

B. Statutory Compliance Release Date: July 2024

C. Effective Date: July 01, 2024

A. Update

The Honorable Minister of Finance, Economic Planning and Development, Dr. Renganaden Padayachy, presented the Budget 2024-2025 on Friday, June 7, 2024. While there is no payroll impact for this year, there are a few proposed changes to the Workers' Rights Act, as outlined below:

• The length of paid leave for maternity to be increased from 14 to 16 weeks,
• 2 additional weeks to be provided for mothers who give birth to twins or triplets (or more) or to a premature baby,
• Expecting mothers to benefit from a grant of MUR 3,000 upon completing 6 mandatory checkups,
• A maternity allowance of MUR 2,000 for 9 months to be provided to expecting mothers as from third trimester of pregnancy,
• The length of paid leave for paternity to be increased from 1 to 4 weeks,
• Workers on maternity or paternity leaves not to be discriminated in respect of career development or promotion opportunity,
• Ensuring job security for workers on maternity or paternity leave by establishing provisions that prohibit termination under such circumstances,
• The minimum wage threshold to be increased from MUR 18,500 to MUR 20,000 for full-time workers.

B. Statutory Compliance Release Date: June 07, 2024

C. Effective Date: July 01, 2024

A. Update

The Mauritius Revenue Authority has revised the minimum and maximum ceiling of basic wage or salary on which the contributions to the National Savings Fund (NSF) are payable effective from July 01, 2023, are as follows:

B. Statutory Compliance Release Date: July 04, 2023

C. Effective Date: July 01,2023

A. Update

The Mauritius Revenue Authority has released the Communique to confirm the revised Personal Income Tax Rates and Income Exemption thresholds reliefs, as announced in the Budget speech.

For revised slabs, please visit our earlier update ‘Budget 2023-24’. Further, in the Communique, Income Exemption Thresholds (IET) deductions for dependents have been revised for the Tax Year 2023-24 as follows:

All other personal reliefs and deductions remains unchanged.

B. Statutory Compliance Release Date: : June 08, 2023

C. Effective Date: July 01, 2023

A. Update

The Minister of Finance, Economic Planning and Development, Dr. Renganaden Padayachy presented the Budget 2023-2024 on 2 June 2023. A series of key measures have been proposed and will be gazetted in due course. Below is an overview of the relevant proposals having payroll impact:

A. Changes in Personal Income Tax Rates

1. Change in Rates and Bracket of Individual Income Tax

The below rates have been proposed wherein a new tax rate has been introduced:

Under the new personal income tax rates, maximum marginal tax rate goes down from 40% to 20% and the maximum effective tax rate goes down from 25% to less than 20%.

2. Solidarity levy

Solidarity Levy leviable at the rate of 25% on leviable income is proposed to be abolished, which is currently imposed on individuals earning a leviable income of more than MUR 3 million.

The above Budget proposals are subject to change. Till further updates, existing tax slabs needs to be applied. Refer below for the Budget documents for further details.

C. Statutory Compliance Release Date: June 02, 2023

D. Effective Date: July 01, 2023

A. Update

Monthly Contribution Report

In Budget 2022/2023, Government of Republic of Mauritius has announced a social contribution (CSG) Income allowance of Rs 1,000 payable to employees from July 2022 to July 2023 and one additional month as bonus in December 2022.

An employee is eligible for the allowance, if the emoluments excluding exempt emoluments and statutory end-of-year bonus derived for a month which does not exceed Rs 50,000.

To this effect, Mauritius Revenue Authority has updated the Monthly contribution report to incorporate the additional column “Emoluments excluding Exempt Emoluments and Statutory End of Year Bonus” which is required to be used for the submission from the month of June 2022.

Additionally in the above circular MRA clarified that they will issue a circular letter to employers informing the changes in the Budget 2022/2023 as well as the submission of Employee Declaration Form. For the month July and August 2022,employers may operate the PAYE system on the basis of EDF submitted by employees for the income year 2021/2022.

National Savings Fund

The ceiling of basic wage or salary for National Savings Fund (NSF) has been revised from July 01, 2022, as follows

B. Statutory Compliance Release Date: July 07, 2022

C. Effective Date: June 01, 2022 & July 01,2022

A. Update

In Budget 2022/2023, Government of Republic of Mauritius has announced a Social Contribution (CSG) Income Allowance of Rs 1,000 Payable to Employees from July 2022 to July 2023 and one additional month as bonus in December 2022.

An employee is eligible for the allowance, if the emoluments excluding exempt emoluments and statutory end-of-year bonus and any basic retirement or widows pension derived for a month which does not exceed Rs 50,000.

An employee who are not eligible for the allowance are as follows:

• An individual who is not a Mauritian citizen
• An individual who is below the age of 16 years or above the age of 65 years as at the last day of the month for which the allowance is payable
• An employee whose employer is not compliant with his obligations under the Social Contribution and Social Benefits Act
• An individual who is undergoing training
• A non-executive director of a company.

The payment for the month of July 2022 will be based on the emoluments derived by the employee in the month of May 2022 and any basic pension in the month of July 2022.

Employees are requested to provide their bank details available on the MRA website: www.mra.mu. In case if an employee qualifies for the payment, MRA will pay it directly in their bank account.

B. Statutory Compliance Release Date: July 01, 2022

C. Effective Date: July 01, 2022

A. Update

The Minister of Finance, Economic Planning and Development, Dr. Renganaden Padayachy presented the Budget 2022-23 on 7 June 2022. A series of key measures have been announced. Below is an overview of the relevant proposals made which impacts payroll:

A. Changes in Tax Rates and Solidarity Levy

1. Change in Rates and Bracket of Individual Income Tax

The below rates have been proposed wherein a new tax rate has been introduced:

Currently, the 5% tax credit to employees with annual net income between Rs 650,000 and Rs 700,000, which effectively reduces the tax rate of the employee to 10%. Since the tax rate earning up to Rs 700,000 is being reduced to 10%, there will be chance that the 5% tax credit will be repealed.

The annual income exceeds 3 million rupees is liable to a solidarity levy.

There has been no change in the Income Exemption Threshold (IET).

2. Solidarity levy

Individual deriving pension or director’s fees, liable to solidarity levy, may request the payer to deduct SL under PAYE at 10 percent

B. Increase in Tax Deductions

Various proposals have been made to increase the deductions for the Individuals:

1. Additional deduction for dependent child pursuing undergraduate and postgraduate course

2. Increase the maximum deduction for medical insurance premiums:

3. Donation to Charitable Institutions

The limit for the maximum allowable deduction for the donations made to an approved religious body or charitable NGO has been proposed to be increased from Rs 30,000 to Rs 50,000

4. Contribution to Approved Personal Pension Schemes

Increase the deduction amount for the contributions made in an individual pension scheme from Rs 30,000 to Rs 50,000

5. Deduction for dependent who is a bedridden next of kin

Taxpayer now are allowed to claim spouse as bedridden next of kin irrespective of any financial assistance provided under the National Pensions Act

6. Transport Allowance

The exemption of travelling allowances deductible from income tax has been proposed to be increased from Rs 11,500 currently to Rs 20,000.

C. Amendments proposed in Workers Right Act, 2019

• Petrol allowance will be increased by 10 percent up to a maximum of Rs 2,000 in a month.
• The payment for food allowance is extended to employees on shift whose normal hours of work in a day exceeds 10 hours.
• Allowance of up to 10 sick leaves for parents to cater for children with healthcare related issues
• The ceiling of 90 days is removed to give an employee the possibility to accumulate all his untaken sick leave
• The rate of contribution made by an employer on behalf of his workers to a private pension scheme and the SIPF (Sugar Industry Pension Fund) be not less than the prescribed PRGF (Portable Retirement Gratuity Fund) rate 4.5%.
• The 90% of his retirement benefits can be paid on the date of his retirement and the remaining 10% after the completion of benchmarking exercise following filing of the last return by the employer
• In case a cyclone class III or IV is in force, an employee who is required to work from home, or any other place be also entitled to the cyclone allowance and that the allowance will not be payable to a person drawing more than Rs 600,000 in a year

C. Statutory Compliance Release Date: June 07, 2022

D. Effective Date: July 01, 2022

A. Update

As per the consolidated Covid-19 (Amendment No. 2) Regulations 2022, made under the Quarantine Act 2020, Government Notice No. 37 of 2022, which was gazetted on Saturday February 12, 2022, provides for:

a) Special leave for Covid-19 Vaccination

As from January 24, 2022, a worker is entitled to a special leave with pay for the purpose of being vaccinated. The worker has to present to his employer his Covid-19 vaccination card certifying that he was vaccinated on that day.

b) Leave related to self-confinement

• The absence of a worker who is tested COVID-19 positive or who has been in contact with a person positive to COVID-19 and who is ordered to be self-confined at his place of residence by a quarantine officer or who was admitted to a hospital or a private health institution for treatment, shall be with pay and reckoned, at his option, against his paid sick leave, accumulated sick leave, annual leave, or vacation leave.
• Where a worker is not entitled to any paid leave, or has exhausted his paid leave entitlement, any absence from work may be with pay and shall be reckoned, at his option, against any of his future paid leave entitlement.
• The worker shall, however, notify his employer of the reason for his absence on the first day of such absence and submit accordingly to his employer, within 3 days of his resumption of work, a medical certificate issued by a Government medical practitioner, certifying that he was ordered to be self-confined.
• Where the worker was admitted to a hospital or private health institution, he shall submit to his employer, within 3 days of his discharge, a medical certificate, issued by a Government medical practitioner or a registered medical practitioner.

c) Non-Access to Specified Institutions for Non-Vaccinated Workers

• Where a worker, who does not have access to his workplace and is absent from work, such absence shall be with pay and reckoned against his paid sick leave, accumulated sick leave, annual leave or vacation leave entitlement or a combination of such leave; and
• Where the worker does not give his consent for his absences to be deducted from his leave entitlement or where he has exhausted all his leave entitlement, his absence shall be without pay.

The provisions are applicable to all employees including workers whose basic wage exceed Rs. 600,000 per year.

B. Statutory Compliance Release Date: February 12, 2022

C. Effective Date: a) January 24, 2022; b) August 20, 2021; c) February 10, 2022

A. Update

The obligation to contribute to PRGF was suspended for the period January 2020 to December 2021. PRGF contribution is mandatory from January 2022. PRGF contribution payment and return submission for the month of January 2022 needs to be done on or before February 28, 2022 for which necessary facilities will be made available by end of January on MRA website (www.mra.mu)

Further, PRGF contribution with respect to the period January 2020 to December 2021 shall be deemed to form part of ‘Past Services’. The facilities for the submission of “PRGF Past Services” return and payment of contribution with respect to the employment of employees for months prior to January 2022 will also be available on the MRA website.

B. Statutory Compliance Release Date: December 31, 2021

C. Effective Date: January 01, 2022

A. Update

From September 01, 2021, where an end of year bonus is paid, the bonus shall be treated separately as remuneration for an additional month and the employer and the employer shall, in respect of that additional month, pay the CSG and PRGF.

To this effect, Mauritius Revenue Authority has updated the Monthly contribution report to incorporate the additional columns for End of Year Bonus and CSG on the bonus.

B. Effective Date: September 01, 2021

A. Update

The Ministry of Finance, Economic Planning and Development has announced the Budget 2021-2022 which was legislated on August 05, 2021. The relevant updates announced are below:

1. Changes in Tax Reliefs and deductions

• Income Exemption Threshold (IET)
  There is no change with respect to IET for the income year 2021-2022.
• Relief for Medical Insurance premium or contribution
  The maximum relief in respect of Medical Insurance premium or contribution has been increased by MUR 5,000 and is shown in the table below:

  Category	2020-2021	2021-2022
  A. Individual with no dependent	MUR 15,000	MUR 20,000
  B. Individual with one dependent	MUR 15,000	MUR 20,000
  C. Individual with two dependents	MUR 10,000	MUR 15,000
  D. Individual with three dependents	MUR 10,000	MUR 15,000
  E. Individual with four dependents	MUR 10,000	MUR 15,000

• Additional exemption in respect of dependent child pursuing undergraduate course
  The additional exemption in respect of dependent child pursuing a non-sponsored full-time undergraduate course at a recognised institution in or outside Mauritius has been increased to MUR 225,000.
• Deduction for contribution made to National Covid-19 Vaccination Programme Fund
  A person who has contributed to the Covid-19 Vaccination Programme Fund shall be entitled to deduct such amount from his net income.
• Deduction for donation to charitable institutions
  A person who donates to a charitable institution shall be entitled to deduct such amount, up to a maximum of MUR 30,000, from his net income.
• Deduction for contribution made to approved personal pension schemes
  A person, who has contributed to an individual pension scheme approved by the Financial Services Commission for the provision of a pension for himself, shall be entitled to deduct such amount, up to a maximum of MUR 30,000, from his net income.

Social Security changes

2. National Savings Fund (NSF)

The ceiling of basic wage or salary for NSF has been revised as follows:

3. HRDC Training Levy

The training levy, in respect of every employee, has increased from 1% to 1.5% of the total basic wage or salary of its employees.

Other Employment law related changes

4. Severance Allowance

No severance allowance shall be payable to a migrant worker, or a non-citizen employed under one or more contracts of fixed duration, at the expiry of his contracts. Further, where a worker whose basic wage or salary exceeds MUR 600,000 in a year is paid, at the end of every period of 12 months or at the end of each contract of employment of a determinate duration, a gratuity, compensation or such other payment, by whatever name called, in lieu of pension or in respect of his length of service, the worker will not be entitled to the payment of any severance allowance on the expiry of each contract or the last contract.

5. Continuous Employment

It has been clarified that an employee who earns basic wage or salary in excess of MUR 600,000 in a year and is employed successively under one or more contracts of a determinate duration, that employee will not be considered in continuous employment.

6. Portable Retirement Gratuity Fund (PRGF)

Pursuant to Section 87, a jockey and track rider, shall be considered as a worker and eligible for contribution to PRGF.

7. Retirement

It has been clarified by stating that notwithstanding any agreement or any provision to the contrary in any other enactment, an employer shall not require a worker to retire before the retirement age. The retirement age is defined as the date on which a worker attains the age of 65.

8. End of Year Bonus

Effective from September 01, 2021, where an end of year bonus is paid, the bonus shall be treated separately as remuneration for an additional month and the employer and the employer shall, in respect of that additional month, pay the CSG and PRGF.

9. Statement of Emoluments

The format for Statement of Emoluments has been updated.

B. Statutory Compliance Release Date: August 05, 2021

C. Effective Date: July 01, 2021
September 01, 2021 (for End of Year Bonus)

A. Update

In order to further support stable employment and ensure employment, and reduce the tax burden of the new recruits' personal income tax withholding, the following is an announcement¹ regarding the improvement and adjustment of the personal income tax withholding for those who obtain wages and salary income for the first time in the middle of the year:

• For a resident individual who obtains income from wages and salaries for the first time in a tax year, the withholding agent can calculate the cumulative standard deduction by multiplying 5000 Yuan per month by the number of months ending in the taxpayer's current year. This means that in the first month of employment of such first-time earners, cumulative standard deduction shall be granted starting from January till the month of tax withholding in a tax year.
  For example, for a fresh graduate who commences employment on July 01, 2020 and receives the first salary for July, the deduction for that month will be the standard monthly amount of CNY 5,000 plus the accumulated deductions of CNY 30,000 for 6 months, from January to June, prior to the commencement of the first employment, i.e. CNY 35,000 in total.
• If a student receiving full-time academic education obtains labor remuneration for internship, the withholding agent should withhold personal income tax in the erstwhile cumulative manner, without giving effect to this announcement. In short, this announcement is not applicable to interns.
• Employees who comply with the provisions of this announcement should promptly declare to the withholding agent/employer and truthfully provide the relevant supporting materials or undertakings. Such supporting materials or undertakings should be kept for future reference.

B. Statutory Compliance Release Date: July 28, 2020

C. Effective Date: July 01, 2020

A. Update

In order to further support stable employment and ensure employment, and reduce the tax burden of the new recruits' personal income tax withholding, the following is an announcement¹ regarding the improvement and adjustment of the personal income tax withholding for those who obtain wages and salary income for the first time in the middle of the year:

• For a resident individual who obtains income from wages and salaries for the first time in a tax year, the withholding agent can calculate the cumulative standard deduction by multiplying 5000 Yuan per month by the number of months ending in the taxpayer's current year. This means that in the first month of employment of such first-time earners, cumulative standard deduction shall be granted starting from January till the month of tax withholding in a tax year.
  For example, for a fresh graduate who commences employment on July 01, 2020 and receives the first salary for July, the deduction for that month will be the standard monthly amount of CNY 5,000 plus the accumulated deductions of CNY 30,000 for 6 months, from January to June, prior to the commencement of the first employment, i.e. CNY 35,000 in total.
• If a student receiving full-time academic education obtains labor remuneration for internship, the withholding agent should withhold personal income tax in the erstwhile cumulative manner, without giving effect to this announcement. In short, this announcement is not applicable to interns.
• Employees who comply with the provisions of this announcement should promptly declare to the withholding agent/employer and truthfully provide the relevant supporting materials or undertakings. Such supporting materials or undertakings should be kept for future reference.

B. Statutory Compliance Release Date: July 28, 2020

C. Effective Date: July 01, 2020

A. Update

In order to further support stable employment and ensure employment, and reduce the tax burden of the new recruits' personal income tax withholding, the following is an announcement¹ regarding the improvement and adjustment of the personal income tax withholding for those who obtain wages and salary income for the first time in the middle of the year:

• For a resident individual who obtains income from wages and salaries for the first time in a tax year, the withholding agent can calculate the cumulative standard deduction by multiplying 5000 Yuan per month by the number of months ending in the taxpayer's current year. This means that in the first month of employment of such first-time earners, cumulative standard deduction shall be granted starting from January till the month of tax withholding in a tax year.
  For example, for a fresh graduate who commences employment on July 01, 2020 and receives the first salary for July, the deduction for that month will be the standard monthly amount of CNY 5,000 plus the accumulated deductions of CNY 30,000 for 6 months, from January to June, prior to the commencement of the first employment, i.e. CNY 35,000 in total.
• If a student receiving full-time academic education obtains labor remuneration for internship, the withholding agent should withhold personal income tax in the erstwhile cumulative manner, without giving effect to this announcement. In short, this announcement is not applicable to interns.
• Employees who comply with the provisions of this announcement should promptly declare to the withholding agent/employer and truthfully provide the relevant supporting materials or undertakings. Such supporting materials or undertakings should be kept for future reference.

B. Statutory Compliance Release Date: July 28, 2020

C. Effective Date: July 01, 2020