Employer of Record in Mauritius
Skuad’s Mauritius Employers of Record (EOR) solution is perfect for companies looking to expand into the country without setting up an entity. Employ, pay, and manage a team of employees in Mauritius without any hassles. Skuad’s solution will take care of all employment-related functions such as onboarding and training, compliance issues, payroll management, taxation, probation, and termination. An otherwise arduous task that requires the grasp of the local culture, laws, regulations, and business practices, becomes simple with Skuad. Use Skuad’s international network to hire in Mauritius. Talk to Skuad experts to learn more!
Mauritius at a Glance
Capital: Port Louis
Official Languages: English and French
Population: 1,265,475 (2019 estimate)
Gini Index: 36.8 (2017)
Currency: Mauritian rupee (MUR)
Nominal GDP: $14.812 billion (2019 estimate)
HDI: 0.804 (very high)
Group: Developing economy
Population below poverty line: 8%
Unemployment: 6.4%
Ease-of-doing-business rank: 13th
Employment In Mauritius
As Mauritius holds 13th place in the ease-of-doing-business index of 2021, expanding your business in Mauritius is uncomplicated. Instead of categorizing employees based on blue and white-collar, the government of Mauritius classifies the type of employees based on their salary. All the Mauritius employment laws apply to employees earning MUR 50,000 or less without any exceptions. However, only special provisions apply to employees earning over MUR 50,000. The employer and the employee can mutually decide to include additional benefits in a written agreement.
| Entitlement
|
Explanation
|
| Maximum working hours |
45 hours per week, 9 hours per day for five days in a week, or eight hours per day for six days in a week. It can also be agreed otherwise, contractually. |
| Overtime |
Any hour beyond 45 hours per week is counted as overtime |
| Overtime compensation |
According to Mauritius labor laws, an employee may or may not receive additional payment for working overtime based on the agreement with the employer. However, if the employer does not provide any specific overtime compensation, they must include it in the employee’s monthly remuneration.
Generally, an extra hour is paid at 1.5 times the salary of a normal hour. Similarly, during a public holiday, an extra hour is paid at 2 times the salary of a normal hour.
|
| Flexitime work |
An employer must send a notice to the employee at least 48 hours prior if they want the worker to work on flexitime. An employee can also request such working arrangements, but the employer has the authority to disapprove the request on reasonable grounds. The employer must notify the approval status of the request to the employee in writing within 21 days of receiving the request. |
| Minimum wage |
- A full-time worker in an export enterprise: MUR 9,000
- Other full-time workers: MUR 9,700
- Part-time workers in an export enterprise: 9000/195 x number of hours worked in a month x 1.10
- Any other part-time worker: 9700/195 x number of hours worked in a month x 1.10
|
| End-of-year bonus |
- Employees earning MUR 100,000 or less: One-twelfth of an employee’s earnings for one year.
- Employees earning more than MUR 100,000: One-twelfth of December’s basic salary multiplied by the months of employees' continuous employment in that calendar year.
|
| Annual leave |
Employees who have completed at least 12 months of service are entitled to annual leave as follows:
- 20 days annual leave and additional leave of 2 days.
- An employer must refund the annual leaves that are not taken by an employee if it has been contractually agreed upon by the employer and employee. However, they can impose a rule that half of the total number of annual leaves must be taken by an employee.
|
| Sick Leave |
An employee can take up to 15 days of sick leave every year. These leaves can be accumulated for up to 90 days.
An employer may send a medical practitioner on their behalf to verify the health status of an employee who is out on sick leave. If any inconsistencies are found in such a case, the employee may be subjected to disciplinary actions according to the laws.
|
| Vacation Leave |
If an employee works for an employer consecutively for five years, they can take 30 days of paid vacation leave. These five years will be counted from the 24th October 2019 which is the date of the commencement of the act.
|
| Special Leave |
- For an employee’s first marriage celebration: 6 days leave on full pay
- For the first marriage of an employee’s child: 3 days leave on full pay
- For the death of an employee’s parents, sibling, spouse, or child: 3 days leave on full pay
|
| Maternity leave |
14 days of paid leave on full pay.
An employee receives a one-time allowance of MUR 3,000 from her employer if she has been working for at least one year at the same company. This amount is paid after furnishing a valid medical certificate within seven days of confinement.
-
In case of a stillborn child: The employee is entitled to receive a fully paid leave of up to 14 weeks on providing a valid medical certificate.
- In case of a miscarriage: The employee can take up to 3 weeks of fully paid leave on providing a medical certificate.
An employee who has worked for an employer for one year consecutively can take up to 14 weeks of leave on full pay on adopting a child younger than 12 months old. For this, the employer must provide a certified copy of the court order and the birth certificate of the adopted child.
|
| Paternity leave |
An employee working for more than 12 months with an employer can get up to five days of leave by providing a written statement mentioning that he lives in the same house as his spouse and a medical certificate.
The said leave can be taken by an employer without payment if they have worked for an employer for less than 12 months consecutively. |
Skuad helps your company with employment in Mauritius. From drawing employment contracts to managing payroll and taxes, our professional team of lawyers and HRs will improve your efficiency by allowing you to focus on your daily business operations. Learn more by getting in touch with us.
Contractors vs. Full-time Employees
Employment contracts in Mauritius are drawn of two kinds:
- Contracts of indeterminate duration: Also known as indefinite contracts, these contracts are signed between the employer and employee without mentioning a specific date of contract expiry. If any of the parties - employer or employee, wishes to terminate these kinds of contracts, they should do it only after following the mandated procedures.
- Contracts of determinate duration: Also known as the employment of fixed duration, the employee and employer agree on a specific duration of employment in which the former is expected to perform a non-recurring work. These types of employees are appointed:
- For short-term or seasonal job
- As a terminated employee’s replacement
- For training
- Under a special contract
The written employment agreement in Mauritius must mention the duration of the contract, the special skills required, and the tasks that need to be performed in the said duration. If these conditions are not met, the worker and the employer cannot enter a fixed-term contract following the law.
As per the employment contract law in Mauritius, a part-time employee must not be discriminated against when compared to a full-time employee. The employer must design the employment contract in a way that the contract of a full and part-time employee is similar. If by any chance, a vacancy occurs for a full-time position, an employer must give priority to a temporary or part-time worker working on the same grade.
For overtime compensation, a part-time employee can be paid less than a full-time employee if the total number of hours worked is not more than the number of hours worked by a full-time employee at a similar position excluding the latter’s leave and overtime duration.
Book a demo to understand the operations of Skuad in terms of compliance and payroll management of part-time and full-time employees.
Hiring in Mauritius
If you’re looking to hire employees in Mauritius, the employment terms and conditions will be governed by Wages Regulations. Any employee that would be working for more than one month at an employer’s company, must have signed a written contract with the terms and details of employment explicitly mentioned in them. This contract must be submitted to the supervising officer within a month.
An employer must consider the following benefits for their employee.
- Medical: There are several employee health benefits in Mauritius because every employer who employs more than 10 employees must make the required arrangements for the health and safety of employees. If an employee meets with an accident or becomes sick at work, the employer must bear the expenses of conveying the employee to the nearest hospital along with a co-employee as appointed by the employer.
- Breaks: On every working day, an employer must allow their employees one hour of a break for every four consecutive hours of work. The employees must also have twenty minutes of tea break which can be taken straight or broken down into 10 minutes each throughout the day.
- Tools: An employer must provide the tools required for completing the work assigned to the employees. These tools must be replaced as required for improving the efficiency of work.
- Transportation: If an employee stays more than 3 kilometers away from the physical workplace location, the employer must either pay for their conveyance or arrange free transport. However, the employer must provide an allowance equal to the corresponding bus fare if the employee chooses to travel by their means of transport.
According to reports, 47,398 students enrolled in part-time and full-time graduate programs in Mauritius as of December 2018. This also included the number of students enrolled in Distance education courses. More than 46% of the population aged 20-24 years in Mauritius had enrolled for some of the other types of tertiary education.
Probation & Termination
When an employer and employee decide to end the employment contract, it becomes ineffective from the date mutually decided by them. A worker can claim that their employment agreement has been terminated by the employer when:
- The employer fails to pay monthly remuneration as promised
- The employer treats the employee in a bad manner
- The employer forces the employee to sign a resignation letter
The standard probation period in Mauritius ranges from one to three months depending on the terms agreed upon by the signing parties of the employment contract. During this period, the employer and employee get to analyze the work environment and performance of the other party to decide if it meets their requirements.
Termination of employment in Mauritius takes place through a series of strict procedures. The minimum period of notice for terminating an employee is one month unless stated otherwise in the employment contract. If a tribunal or court determines that an employee was terminated based on an unjustified reason, the court will reward the employee based on the calculated amount.
An employer has the right to suspend an employee for the reason of poor performance or misconduct. No notice is required for such dismissals. However, the employer must note that dismissals based on poor performance can be made only when the following conditions are met.
- The employee has received a minimum of seven days’ notice to answer the allegations made on them
- The employer has exhausted every possible option other than termination of the employee
Similarly, the following conditions must be met for terminating an employee based on misconduct.
- Within 10 days of learning about an employee’s alleged misconduct, the employer has informed the employee about it
- The employee has been given seven days’ notice to answer the allegations made on them
- The employer has tried every other course of action possible
The employer must notify the following authorities if they wish to reduce the number of employees working under them or shut the establishment down.
- Recognized trade union if there exists one
- Trade union with representational status
- If there is no trade union as mentioned in the above two points, an employee selected as the representative of the employees must be considered.
To ensure compliance with Mauritian employment laws, contact Skuad.
EOR Solution
Understanding and implementing local laws are difficult at many stages when you’re trying to expand your business overseas. Skuad works with an internal team of HRs, Benefit Professionals, International Lawyers, and Accountants for providing services better than other employers of record companies in Mauritius. We inform you about the latest updates in compliance, tax, and laws while managing the entire HR requirements from our end.
As a company looking to expand in a foreign country, your task of searching for the best candidates from the knowledge workers of that country is outsourced to us. We take the responsibility of searching for the candidates meeting the required profile, performing drug and aptitude screening of the selected candidates, and completing their onboarding procedures.
Book a demo to understand the process of outsourcing your HR responsibilities.
Types of Visas In Mauritius
A Mauritius work visa is issued by an international Mauritian diplomatic mission in different countries or Immigration Office. An Immigration Officer interviews a foreign employee to verify their eligibility to transit or enter Mauritius. Even after a foreigner receives a visa to Mauritius, they only receive permission to travel up to any one of the entry ports in Mauritius. From there, the Immigration Officer will consider the financial situation of the person to permit them to stay in the country for a specific number of days.
The people listed below are exempted from a Mauritian visa.
- Children or stepchildren of Mauritian residents
- Diplomatic passport holders (Exception: Such passports issued by the governments of Yemen, Nigeria, Afghanistan, Sudan, and Algeria)
- People who wish to stay in Mauritius only for the duration of their vessel’s stay
- Spouse of a Mauritian citizen
Listed below are the type of work visas and other visas in Mauritius.
- Tourist visa: A foreigner is permitted to tour the country without performing any business activities with this visa.
- Transit visa: A transit visa is valid for a maximum of three days as it allows a visitor to enter a port in Mauritius before moving to any other country.
- On-arrival visa: Visitors coming from the countries from where people are allowed to take on-arrival visas, can get it from their port of entry in Mauritius.
- Temporary worker visa: A visitor can briefly work in Mauritius with this visa.
- Student visa: An international student can study at a college in Mauritius.
- Spousal visa: These visas are provided to the spouses of Mauritian citizens.
- Business visa: This visa is provided for participating in work or business-related activities for a short-term in Mauritius.
Save yourself the worry of Mauritius work visa requirements as Skuad sponsors the work visas of your international employees. Learn more.
Work Permits
An employer must pay MUR 700 as the processing fee of an application for a work permit in Mauritius. After the application of the Mauritius work permit for foreigners is approved by the respective authorities, the employer must pay an annual amount as prescribed by Mauritian law to ensure that the work permit of their employee does not get suspended.
Skuad helps your employees in getting a Mauritian work permit without a job offer. Talk to our experts to understand the process of work permit sponsorship.
Payroll & Taxes in Mauritius
A tax year in Mauritius starts from July 1 and ends by June 30. Find the details of Mauritius employer payroll taxes and other social securities charges in the country in the table below.
| Tax
|
Explanation
|
| Individual tax
|
15% on an annual income of more than MUR 650,000
10% on an annual income of MUR 650,000 or more
|
| Corporate tax |
A company involved in the export of goods: 3%
Other companies: 15%
|
| Social security |
Employees: 1.5% of their basic salary (if earning MUR 50,000 a month or less) and 3% of their basic salary (otherwise)
Employer: 2.5% of the remuneration
|
| Dividends |
Tax-exempt |
| Payroll tax |
There are no specific Mauritius payroll tax rates, however, an employer must withhold taxes from an employee’s earnings under the PAYE system |
Skuad provides payroll outsourcing in Mauritius for companies of every size that wish to expand their business operations in the country. By partnering with us, you can ensure the compliance of local regulations and payroll management of your employees according to the updated employment laws of the country. Connect with us to leverage the benefits today.
Incorporation
Expanding your business in Mauritius is a complicated process with the need for multiple document submissions to the concerned local authorities. Instead of incorporating a holding company in Mauritius, you must outsource your HR responsibilities to our platform for remotely managing your teams as and when required.
Talk to our experts to learn about the business opportunities in Mauritius and the role of Skuad in your expansion.
Professional Employer Organization (PEO)
Hiring the right people and compensating them properly forms an integral part of your business expansion in Mauritius. But ignorance of the local law leaves a lot of room for error which can result in heavy penalties.
To safeguard from this, companies can opt to engage the services of a Professional Employer Organization (PEO) or Employers of Record (EOR). Even though you can outsource your HR requirements to both PEO and EOR organizations, understanding the minor differences between the two will help you choose better.
A PEO acts as a co-employer, wherein it manages all the HR-related functions such as setting up the payroll, processing the compensation and other benefits, handling all the tax-related compliances, etc. However, you, as a company, will hold the allied liabilities and responsibilities.
On the other hand, an EOR is a complete payroll outsourcing that provides all the services offered by a Professional Employer Organization Mauritius, and in addition, it becomes the legal employer of all the employees on your payroll. This means that they are responsible for compliance with the regulations and liable for non-compliance as well.
PEOs are suitable for companies looking for a long-term payroll partner, whereas EOR services are more suitable for companies looking for HR solutions for a quick international expansion.
Conclusion
Expanding your business operations in the subtropical island of Mauritius is valuable from a strategic and maritime perspective. Outsourcing your HR and compliance requirements is easy with the highly interactive platform of Skuad. Our professionals ensure the compliance of your business with the local laws, payroll management, and tax handling, without the need for an entity.
Connect with us to experience a highly efficient HR management system.
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