Definitive Guide to Hiring in Mauritius

Hiring in Mauritius

Hiring employees compliantly in Mauritius means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Mauritius so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Mauritius; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Mauritius

Employee Probation Period

• Usually this period is defined under the contract and can stretch for a period between 1 to 3 months.
• In case the employer is not fully satisfied with the employee's (under probation) performance, the probation period can further be extended, during which corrective measures and adjustments are carried out.

Annual Leave in Mauritius

• Employees are generally entitled to 20 days of paid annual leave.

Holidays in Mauritius

Maternity Leave Mauritius

• Female employees are generally entitled to 14 weeks of paid maternity leave, 7 weeks to be taken before the birth and 7 after.
• She is entitled to full pay if she has been employed for more than 12 months.

Paternity Leave Mauritius

• Fathers are entitled to 5 days of paid paternity leave.

Sick Leave in Mauritius

• Employees are generally entitled to 15 days of paid sick leave per year.

Working Hours in Mauritius

• In general, the working day should not exceed 8 hours, and if the employee works 6 days in a week, one of those days should not exceed 5 hours and the worker should be compensated for 8 hours.

Overtime in Mauritius

• It becomes applicable if an employee works beyond 90 hours over a two-week period and is paid at 1.5 times the usual hourly rate.
• Working on a public holiday or on a Sunday is also considered as overtime work in Mauritius.
• The rate of pay here is at 2 times the usual hourly rate
• A worker on a night shift is entitled to an allowance of 15% of his basic wage in addition to his normal day’s wage for work performed during the night shift. The night shift allowance is however not applicable to workers only working night time.

Termination of Employment in Mauritius

• For employers with a minimum of 15 employees, or having an annual turnover of at least 25 million rupees, the Act imposes a duty on the employer to notify and negotiate with the recognized trade union or employees’ representatives prior to reducing the workforce.
• In the absence of an agreement, prior authorization of the Redundancy Board need to be sought.
• The Redundancy Board shall complete its proceedings within 30 days from the date of notification by the employer, with any extension to be agreed by the parties.
• It is not possible to terminate employment within 30 days from the date of notification to the Redundancy Board or such longer time as may be agreed.
• Where the employer acts in breach of those procedures, any reduction in the workforce shall be deemed unjustified.
• Where the Redundancy Board finds that the reasons for the reduction of the workforce are unjustified, the employer shall pay to the employee severance allowance at the rate of 3 months’ remuneration per year of service or the Board may, with the consent of the worker, order the employer to reinstate the employee to his former employment.

Notice Period in Mauritius

• The length of notice to be given in order to terminate an employment agreement cannot be less than 30 days.

Severance in Mauritius

• Where the Redundancy Board finds that the reasons for the termination are unjustified, the employer shall pay to the employee severance allowance at the rate of 3 months’ remuneration per year of service or the Board may, with the consent of the worker, order the employer to reinstate the employee to his former employment.

Mauritius Salary and Wages

13th / 14th Month Salary in Mauritius

• Yes (Mandatory)
• There is a statutory requirement to pay for the 13th month salary.
• This is called an end of year bonus and is paid in December.

• The contribution to the National Pension Fund (NPF) has been abolished and replaced by the Contribution Sociale Généralisée (CSG) as from 1 September 2020.
• The employer must make pay-related social security contributions equal to 2.5% (for the National Solidarity Fund (NSF)) and 1.5% (for the Human Resource Development Council (HRDC) levy) of the monthly basic salary (the monthly salary is capped for NSF contributions).
• HRDC levy contributions to be made by employers on behalf of their employees for the period 1 July 2020 to 30 June 2021 will be 1% of monthly basic salary.
• CSG contributions payable by the employer are based on specific remuneration brackets and are not capped.
• The employee must make pay-related social security contributions equal to 1% (in respect of the NSF) of the monthly basic salary, subject to a cap.
• CSG contributions payable by the employee are based on specific remuneration brackets and are not capped.

Immigration Mauritius

• Work permits and residence permits are required for all foreign nationals who wish to work in Mauritius.
• The permits are valid for one year and are renewable.
• Work permits are usually granted to foreign nationals who possess professional and technical qualifications in fields for which locally qualified candidates are not available.
• Work permits may also be granted to foreign workers in industries for which labor is in short supply.
• Application for work permits should be made in Mauritius by the employer and must indicate the exact title and duration of the position sought.
• The employer must submit the following documents with the completed application form before the foreign national arrives in Mauritius:
  • Job profile
  • Birth certificate
  • Four passport-size photographs
  • Copies of the relevant parts of the passport showing the name, date of birth, place and date of issuance of passport, photo, passport number, and movement
  • Documentary evidence of academic and professional qualifications and experience
  • For skilled workers, a copy of the contract between the employer and the employee together with documentary evidence demonstrating that the employee will earn a minimum of MUR30,000 per month
  • A full medical report on the expatriate from his or her home country
  • A completed application form
  • Evidence that appropriate advertising has been made in two leading newspapers for the position
• All documents provided must be in English or otherwise translated and authenticated by an authorized authority in the home country of the foreign employee.
• A processing fee of MUR700 must be paid on submission of each completed application form. Applications submitted without the fee are not considered.
• In general, an applicant may not work while his or her work application and other papers are being processed, except if married to a Mauritian citizen.
• Application must be made at least three months before the projected date of employment.
• If the foreign national wants to stay in Mauritius for more than five years, an application must be made for a residence permit, and a bank guarantee of MUR20,000 must be provided.
• The individual must also swear in an affidavit that he or she will not apply for Mauritian citizenship.
• To obtain a residence permit, an applicant must be able to show sufficient economic means to live in Mauritius.
• Residence permits are issued for one-year periods and are renewable.

Value Added Tax (VAT) in Mauritius

• Value Added Tax (VAT) is a tax on goods and services.
• The standard rate of VAT is 15%
• Zero-rated supplies include:
  • goods exported from Mauritius under customs control
  • certain food items
  • certain pharmaceutical products
  • the supply of services to a person who belongs to a country other than Mauritius and who is outside of Mauritius at the time the services are performed
  • electricity and water
  • CCTV camera systems, including CCTV digital video recorders.
• Certain items such as basic food stuffs are exempt from VAT

Mandatory Benefits in Mauritius

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, maternity leave, paternity leave, sick leave, overtime pay, notice period, severance pay and 13th month pay
• Statutory benefits also include social security benefits

Payroll Accrual in Mauritius

Payroll Accruals Additional Information

Accrued Benefits in Mauritius

Why use Global Expansion to hire in Mauritius

Establishing a branch office or subsidiary in Mauritius can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Mauritius labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Mauritius law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Mauritius. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Mauritius Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.