Mauritius Employment Guide

Navigating Mauritius' Minimum Wage Structure

Mauritius operates a multi-tiered minimum wage system. The foundational monthly minimum wage is set at 15,000 Mauritian Rupees (MUR). However, this base amount is supplemented by additional wage floors that vary depending on an employee's length of service and specific industry sector, making a thorough review essential for compliance.

Understanding Personal Income Tax in Mauritius

The personal income tax framework is progressive, with rates scaling from 0% to a maximum of 20%. This relatively straightforward system is a key consideration for both employees and employers when calculating net compensation.

A Breakdown of Employer Costs

When budgeting for a new hire in Mauritius, employers should anticipate additional costs averaging approximately 14.5% of the employee's gross salary. These mandatory contributions are broken down as follows:

• Social Security (CSG): 6% (capped at a monthly salary of MUR 50,001)
• Training Levy: 1.5%
• Transferable Pension Fund (PRGF): 4.5% (capped at a monthly salary of MUR 200,000)
• National Savings Fund: 2.5%, with a maximum monthly contribution of MUR 608

Annual Compensation Considerations

A significant annual cost for employers is the mandatory 13th-month salary, equivalent to one month's basic pay. For a precise and comprehensive calculation of all employment-related expenses tailored to your specific situation, consulting with a global HR partner like SailGlobal is highly recommended.

Overtime Regulations and Standard Working Hours

The standard workweek in Mauritius is defined as 45 hours, typically spread over Monday to Friday, with a standard workday not exceeding 9 hours (excluding lunch breaks).

Overtime compensation is mandatory for most employees, with specific rules for managerial or supervisory roles whose contracts may already include it. Work performed outside standard hours is considered overtime and is remunerated at:

• 150% of the normal hourly rate for overtime on regular days.
• 200% of the normal hourly rate for work on Sundays and public holidays.

Case Study: Managing Overtime in the Hospitality Sector

Consider a hotel in Mauritius that experiences seasonal peaks. By proactively planning schedules and understanding these overtime premiums, the management can effectively control labor costs while ensuring full legal compliance and maintaining staff morale during busy periods.