Navigating the complex labour laws governing employment practices is essential when running Mauritius payroll. However, building an in-house compliance team may not be the most efficient way to manage your remote team’s payroll in Mauritius.

Regardless of size, global companies need help to secure in-country expertise for localised payroll service. This is where a partner like Workforce Africa provides significant value in supporting global firms to maintain compliance when handling payroll in Mauritius, addressing every intricate detail, including;

• Salary computation requirements,
• Taxation legislation specifics (social security, employee income tax, corporate tax, VAT and other employee deductions.
• Benefits administration, and more (health insurance, pension, paid leaves, holiday compensation.

Workforce Africa simplifies hiring and payroll compliance for offshore talent management in Mauritius. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us – a payroll firm in Mauritius will help you focus on growth for greater levels of success.

Employment Contract Termination

In accordance with the laws of Mauritius, employment contracts can be terminated by either party upon giving notice, depending on the terms of the contract. The employer may also terminate an employee’s contract without notice if there is just cause, such as gross misconduct or breach of contract. Conversely, an employee may terminate their contract by resigning in writing, which must be acknowledged by the employer. It is essential to follow the proper procedures for terminating an employment contract to avoid any potential legal disputes or penalties.

Mauritius Country Overview

The Republic of Mauritius lies in East Africa. It is predominantly a French-speaking country, with English also commonly spoken. Two critical cities in Mauritius are Port-Louis, the capital and the economic hub, and Beau Bassin-Rose Hill, often referred to as a twin town, it is the second largest urban area. These urban centres act as transit points to ecotourism destinations and beach resorts. With a population exceeding 1.27 million people, Mauritius boasts a respectable demographic presence.

In recent years, key industries experiencing growth include textile and tourism. Mauritius boasts a market-based, diversified economy comprising energy, sea food processing, real estate development, natural gas, and business services. Considerations such as the low labour cost and abundant natural resources make Mauritius attractive for businesses seeking expansion opportunities.

Although Mauritius possesses a highly skilled workforce, hiring and establishing a team can be time-consuming and challenging. However, partnering with an Employer of Record (EOR) or Professional Employer Organisation (PEO) in Mauritius facilitates swift market entry. It manages all legal complexities associated with operations in the country.

Payroll Processing in Mauritius

Local labour laws in Mauritius govern payroll processing, with each employee’s salary potentially calculated differently. Due to compliance concerns, processing payroll at scale can become complex, cumbersome, and risky. Here are the phases of payroll processes global businesses should understand-:

Pre-payroll Phase

Your organisation’s unique approach to payroll compliance shapes its policies and processes, including payroll preparation. Global firms must prioritise essential business elements in the pre-payroll phase, such as accurate business profile documentation and tailored work location policies, which is crucial. Customise leave and work policies to align with local standards in Mauritius to ensure compliance and transparency while collaborating closely with compliance teams or partners to help adhere to statutory requirements throughout the payroll management process for your remote team. In this phase also, standardising compensation packages to conform with local payment norms, such as payment cycles, which enhance compliance and meet employee expectations, is necessary.

Payroll Calculation Phase

Streamlining input collection and validation processes ensures accurate wage calculations in this phase of payroll processing. This phase involves the actual calculation of wages, with a primary focus on this task. Utilising software automation and digital document submission tools makes payroll calculations efficient and reduces the risk of human error in this process.

Post-payroll Phase

The post-payroll phase in Mauritius refers to the period after payroll processing, where employers review and settle any outstanding issues related to employee compensation, benefits, and taxes. This phase typically includes: salary payment, compliance reporting, benefit administration, audit and reconciliation. The post-payroll phase is crucial in Mauritius as it ensures that employers comply with regulatory requirements, maintain a good employer-employee relationship, and reduce the risk of penalties or fines associated with non-compliance.

Payroll Components in Mauritius

Here are some aspects comprehensively needed to navigate Mauritius’s payroll compliance:

• Salary/Wages
• Overtime benefits
• Social security contribution
• Paid leaves
• Paid holidays
• Payroll taxes
• Other laws

Navigating Mauritius Payroll Compliance

Mauritius’s employment regulation primarily revolves around Act No.20 of 2019 along with pertinent sections of other laws and acts. The Labor Law outlines critical aspects of payroll processing and compliance with crucial employment practices-:

• Salary/ Minimum Wage: The current minimum wage set is MUR 11,575 per month.
• Working Hours: A standard workweek consists of 45 hours for all employees, excluding time allocated for meals, tea, and other breaks. Any additional hours are subject to agreement between the employee and employer.
• Social Security Contribution: The Employer contributes between 18.75%- 20.75% overall, while the Employee pays social security contributions of 11% National Health Insurance Scheme.
• Health Insurance Scheme: Employers are required to provide their employees with medical insurance coverage that offers several key protections. This coverage provides compensation to employees in cases of death, permanent disability, loss of body parts, or temporary disability due to an accident. It also protects employers in situations where a work-related accident leads to an employee’s death or injury or in cases of illness arising from employment conditions. Additionally, the policy covers employees’ medical expenses, including hospitalization, outpatient care, and prescription drugs, ensuring comprehensive healthcare support.
• Pension Contributions: Pension contributions are governed by the National Social Insurance Law (Law No. 148 of 2019). Contributions to private pension schemes are voluntary and require the employee’s consent.
• Payroll Deductions:
• Paid Leaves
  • Annual Leave: After six consecutive months of service without absences, an employee becomes eligible for one day of leave per month until reaching the 12-month mark. Upon completing 12 months of continuous service, the employee qualifies for 22 days of annual leave per year. If any leave days remain unused or ungranted by the end of the 12-month period, the employee will be compensated with a regular day’s wage for each untaken day.
  • Sick Leave: After completing six consecutive months of service without absences, an employee accrues one day of sick leave per month up to the 12th month. Upon reaching 12 months of continuous service, the employee becomes eligible for 15 days of sick leave annually. Any unused sick leave after 12 consecutive months will be carried forward, accumulating up to a maximum of 90 days.
  • Maternity Leave: A female employee, upon providing a medical certificate, is entitled to 14 weeks of maternity leave at full pay. This leave can be taken before confinement, with at least 7 weeks required to be taken immediately after confinement, or it may be taken entirely after confinement. If a female employee has been in continuous employment with the same employer for 12 consecutive months and gives birth, she is entitled to a maternity allowance of Rs 3000, payable within 7 days of confinement upon submission of a medical certificate. For nursing a child under six months, she is further entitled each day to either two half-hour breaks or one one-hour break.
  • Other Leaves: In Mauritius, employees may be granted compassionate/ special leaves on some family events. Such leave shall be paid within the limits and deadlines specified. Public holidays are not fixed days and they can be changed according to the government decision.
• Paid Public Holidays: In Mauritius, the paid holidays are as follows:
  • Jan 1 & 2 – New Year
  • Feb 1 – Abolition of Slavery
  • March 12 – Independence and Republic Day (National Day)
  • May 1 – Labour Day
  • Nov 2 – Arrival of Indentured Labourers
  • Dec 25 – Christmas
  • Chinese Spring – Date Varies
  • Eid-ul-Fitr – Date Varies
  • Thaipusam Cavadee – Date Varies
  • Maha Shivratri – Date Varies
  • Ugaadi – Date Varies
  • Ganesh Chaturthi – Date Varies
  • All Saints’ Day – Date Varies
  • Diwali – Date Varies

Payroll Outsourcing in Mauritius

Payroll in Mauritius also encompasses termination and probationary periods law. Employees are not generally eligible for severance pay, except if the termination is unjustified, or the employer voluntarily decides to make severance payment.

Collaborate with an Africa employer of record and payroll solutions provider such as Workforce Africa to strategically outsource your payroll operations while ensuring compliance with local labour regulations. Additionally, leverage our flexible service offerings to expand your international teams as needed.