Employer of Record in Mauritius

Businesses can only operate smoothly in Mauritius if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Mauritius below, to avoid any compliance issues.

Employment Contract Requirements

In Mauritius, employment contracts are drafted in either English or French, with the option for bilingual content. These contracts are required to be in written form and necessitate the signatures of both parties involved. Essential components in the contracts include:

• Job Description
• Length of Employment
• Payment Terms
• Termination Conditions

Onboarding Process

We can help you get a new employee started in Mauritius quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Mauritius

The standard workweek is 45 hours, either distributed as 9 hours per day over five days or 8 hours per day over six days.

Overtime in Mauritius

Any work beyond the standard 45 hours per week in Mauritius qualifies as overtime, and it is compensated at a rate of 150% of the regular hourly salary.

Probation Period in Mauritius

There's no law setting a maximum probationary period, but it's usual for companies to have probation periods lasting one to three months.

Fiscal Year in Mauritius

1 January - 31 December is the 12-month accounting period that businesses in Mauritius use for financial and tax reporting purposes.

Payroll Cycle in Mauritius

The payroll cycle in Mauritius is usually monthly, with employees being paid by the last day of the month.

Minimum Wage in Mauritius

The minimum wage for employees in Mauritius is typically 103.13 MUR per hour, amounting to ~16,500 MUR per month for a typical 40 hour work week.

Bonus Payments in Mauritius

Employers in Mauritius are required to provide a 13th salary to employees. This can be in the form of an end-of-year bonus, equivalent to 1/12 of the annual earnings, or a gratuity as per the End of Year Gratuity Act 2001, whichever is higher. This applies if the employee has been continuously employed for all or part of the year and remains employed as of December 31 of that year.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 12.5% - 15.5% on top of the employee salary in Mauritius.

Employee Payroll Tax Contributions

In Mauritius , the typical estimation for employee payroll contributions cost is around 5.5% - 7%.

Individual Income Tax Contributions

Individual income tax varies between 10% and 15%, with progressive rates as defined below. Its worth noting that income exemption thresholds may also apply depending on the number of dependents - for more information on this, reach out to one of our experts!

Pension in Mauritius

Mauritius' pension system comprises various pillars, including a basic retirement pension scheme, mandatory contributory lump sums, mandatory contributory income streams, and voluntary pension schemes. The standard retirement age is 65 years old.

Mandatory Leave Entitlement in Mauritius

The annual leave entitlement in Mauritius is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Mauritius

Public holidays might change if they fall on a weekend; the government decides whether to move them to a weekday or not. Some religious holidays determined by the lunar cycle will be confirmed closer to the date.

Paid Time Off in Mauritius

Any full-time employee working continuously with the same employer for 12 consecutive months is entitled to 20 working days of paid annual leave by the employer.

Maternity Leave In Mauritius

Effective June 7, 2024, female employees get 16 weeks of paid maternity leave. A maternity allowance of Rs 2,000 p/month is granted for the mother, for a duration of nine months from the third trimester of pregnancy. A special 2-week additional maternity leave is provided for multiple births or premature births. Female employees adopting a child under 12 months old are entitled to 14 weeks of fully paid leave.

Paternity Leave In Mauritius

Effective June 7, 2024, fathers are entitled to 4 consecutive weeks of paid paternity leave.

Sick Leave In Mauritius

Employees are entitled to up to 15 days of paid sick leave. To be eligible, an employee must have worked for one year, but if no absences occurred within the first 6 months, they become eligible for sick leave after 6 months of employment. The sick leave is fully paid by social security.

Parental Leave In Mauritius

Mauritius does not have a separate shared parental leave policy.

Marriage Leave

Employees are granted six days of paid leave to celebrate and attend to matters related to their own first marriage.

Bereavement Leave

In the unfortunate event of the passing of a direct relative, employees are entitled to three days of paid leave to cope with grief and attend related arrangements and ceremonies.

Termination Process in Mauritius

In Mauritius, employee contracts can be terminated for just cause, including reasons such as:

• Negligence
• Misconduct
• Fraud
• Business needs

Notice Period in Mauritius

In accordance with the Workers Rights Act (WRA) in Mauritius, the statutory notice period requires employers to provide a minimum of 30 days' notice before dismissing an employee. However, it's common for employment contracts to specify longer notice periods.

Severance in Mauritius

Employees are entitled to severance pay based on their length of service and the reason for termination. If an employer lets go of an employee without a good reason and the employee has worked for at least a year, the worker can ask for severance pay. The amount is three months' pay for each year of service.