Capital: Port Louis
Population: (2023 est.) 1,235,000
Monetary Unit: Mauritian Rupee
Mauritius, officially known as the Republic of Mauritius, is an island country in East Africa. Port Louis is the capital and the largest city of Mauritius. Mauritius is a high-income economy. Tourism, textiles, sugar and financial services are some of the major industries of Mauritius.
The public holidays in Mauritius are as follows;
- 1 Jan New Year’s Day
- 2 Jan New Year Holiday
- 22 Jan Chinese New Year
- 1 Feb Abolition of Slavery
- 4 Feb Thaipoosam Cavadee
- 18 Feb Maha Shivaratree
- 12 Mar National Day
- 22 Mar Ugadi
- 22 Apr Eid al-Fitr
- 1 May Labour Day
- 20 Sep Ganesh Chaturthi
- 1 Nov All Saints’ Day
- 2 Nov Arrival of Indentured Labourers
- 12 Nov Divali
- 25 Dec Christmas Day
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.
Employees are generally entitled to 20 days of paid annual leave.
Female employees are generally entitled to 12 weeks of paid maternity leave, 6 weeks to be taken before the birth and 6 after. She is entitled to full pay if she has been employed for more than 12 months.
Fathers are entitled to 5 days of paid paternity leave.
Employees are generally entitled to 21 days of paid sick leave per year.
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.
13th / 14th Month Pay: 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.
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.
The Act requires companies with a minimum of 15 workers or a minimum yearly revenue of 25 million rupees to inform recognized labor organizations or employee representatives and engage in pre-reduction negotiations with them. Without a contract, the Redundancy Board’s prior approval must be requested. The Redundancy Board must finish its actions within 30 days after the employer’s notice date, with any extension requiring the parties’ consent.
Employment cannot be terminated before 30 days have passed after the Redundancy Board was notified, or any other longer period that may be negotiated. Any labor decrease will be ruled unjustifiable if the company violates such rules. The employer must give the employee a severance allowance at the rate of three months’ pay for every year of service when the Redundancy Board determines that the reasons for the workforce reduction are unjustified. Alternatively, the Board may, with the employee’s consent, order the employer to reinstate the employee to his prior position.
According to legal presumption, these benefits are obligatory. These include the probationary period, yearly leave, public holidays, maternity, paternity, and sick leaves, as well as the 13th month salary, overtime pay, notice period, and severance compensation. Social Security payouts are also included in statutory benefits.
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.
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 nighttime.
The length of notice to be given to terminate an employment agreement cannot be less than 30 days.
Individuals, irrespective of nationality, deriving income from sources within Mauritius are subject to Mauritian income tax on all such income, whether or not they are resident. Resident individuals are subject to Mauritian income tax on their worldwide income from all sources. However, income derived from outside Mauritius is taxable only to the extent that it is received in Mauritius. Income from employment duties performed in Mauritius is deemed to have been derived from Mauritius, even if the related remuneration is received outside Mauritius. On the 1st of July 2018, the tax rate of 15% was reduced to 10% on annual net income derived by an individual of up to 650,000 Mauritian rupees (MUR). Net income derived above MUR 650,000 was then taxed at 15%.
Taxable Amount Rate (%)
Up to 650,000 Mauritian rupees (MUR) 10%
Over 650,000 Mauritian rupees (MUR) 15%
Employees in Mauritius must contribute to the National Pension Fund, which provides for employees’ old-age retirement. Effective from 1 July 2019, the contribution rate for employees was 3% of gross salary, up to a maximum monthly contribution of MUR562. For employers, the rate was 6% of gross salary, up to a maximum monthly contribution of MUR1,124 per employee.
The contribution rate to the National Solidarity Fund is 2.5% for the employer, with a maximum of MUR469, and 1% for the employee, with a maximum of MUR187. The contribution rate for the National Solidarity Fund is applied to the basic salary of the employee. The employer must contribute to a levy computed at 1.5% of the total salary of the employee.
Foreign nationals, other than those who work in export manufacturing enterprises, are within the scope of the social security obligations, regardless of their length of stay. However, foreign nationals who work in export manufacturing enterprises are within the scope of social security obligations following a period of two years of continuous residence in Mauritius.
Contribution Employer Employee
National Pension Fund 6% 3%
National Solidarity Fund 2.5% 1%
Resident individuals can benefit from an Income Exemption Threshold (IET). The IET is deductible in determining chargeable income. The IET depends on the number of the individual’s dependents. The following table shows the IET for the income year ending 30 June 2020.
Category Number of Dependents Amount of IET (MUR)
A 0 310,000
B 1 420,000
C 2 500,000
D 3 550,000
E 4 600,000
A retired individual who has reached age 60 before the start of the income year is eligible to deduct an additional amount of MUR50,000 if he or she does not derive any taxable income from emoluments exceeding MUR50,000 or business. The deduction of MUR50,000 also applies to an individual with a physical or mental disability. An individual is entitled to deduct the actual premium paid in connection with a medical or health insurance policy for himself or his dependent in addition to the IET.
The maximum deductible premium is MUR15,000 for the taxpayer. The amount of MUR15,000 is also the maximum deduction for the first dependent. The maximum deduction is MUR10,000 each for the second, third and fourth dependents.
If the dependent is a child pursuing a non-sponsored full-time undergraduate course at a recognized tertiary educational institution, the individual is entitled, in addition to the IET, an exemption of MUR135,000 for each child pursuing his or her undergraduate course in Mauritius at an institution recognized by the Tertiary Education Commission. Deductions for a child pursuing tertiary studies is extended to a maximum of four dependents
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
Dividends: Mauritius does not levy withholding tax on dividends
Interest: A 15% withholding tax generally applies to interest paid by any person, other than a bank or non-bank deposit-taking institution, to any person other than a company resident in Mauritius, unless specifically exempted
Royalties: The general rate of withholding tax on royalties paid to nonresidents is 15% unless the rate is reduced under an applicable tax treaty. A 10% withholding tax is generally applying to royalties paid to residents
Technical Service Fees: A 10% withholding tax generally levied on technical service fees paid to nonresidents for services rendered in Mauritius, unless specifically exempted.