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Mauritius

Benefits and Entitlements Overview

Learn about mandatory and optional employee benefits in Mauritius

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Mandatory benefits

In Mauritius, labor laws mandate a comprehensive set of benefits for employees. These benefits ensure worker well-being, provide financial security, and promote a positive work environment. Employers in Mauritius are legally required to provide the following benefits to their staff:

  • Annual Leave: Employees are entitled to a minimum of 20 working days of paid annual leave after completing one year of service, with an additional two days added per year of service thereafter. Prior to completing a year, employees who have been employed for at least six months receive one day of paid leave per remaining month in the year, totaling six days.
  • Sick Leave: Employees are entitled to 15 days of fully paid sick leave per year after completing 12 months of service. Employees must notify their employer on the first day of absence and provide a medical certificate within four days. A new provision allows employees earning less than MUR 50,000 monthly to take up to 10 days of paid leave to care for a sick child per year.
  • Public Holidays: Employees are entitled to paid leave on all national public holidays declared by the government of Mauritius.

Maternity and Paternity Leave

  • Maternity Leave: Female employees are entitled to 14 weeks of fully paid maternity leave.
  • Paternity Leave: Male employees are entitled to two days of paid paternity leave upon the birth of their child.

Social Security Contributions

Employers are required to contribute to national pension and savings schemes on behalf of their employees. These contributions ensure employees have financial security after retirement.

Additional Notes

  • Probationary periods are legal in Mauritius, but their length is not mandated by law.
  • Overtime pay is required by law for any work exceeding the standard working hours.
  • Notice periods for termination of employment are also mandated by law, with the specific timeframe depending on the length of service.

Optional benefits

Many employers in Mauritius offer additional benefits to attract and retain top talent, beyond the mandatory ones. These optional benefits can significantly enhance the overall compensation package, making the company more attractive to prospective employees.

Wellness Programs

More and more employers are recognizing the value of employee well-being and are offering wellness programs. These can include gym memberships or fitness class reimbursements, Employee Assistance Programs (EAPs) to provide confidential counseling and support services, and wellness initiatives such as weight loss programs or smoking cessation programs. These programs can help improve employee health, reduce absenteeism, and boost morale.

Financial Benefits

Some companies offer bonuses or profit-sharing schemes that allow employees to share in the company's success. Employers may also offer voluntary retirement savings plans that supplement the mandatory national scheme. Additionally, meal vouchers or subsidized meals can help employees save money on their lunch expenses.

Work-Life Balance Benefits

Flexible work arrangements, such as telecommuting options, compressed workweeks, or flexi-time schedules, can help employees manage their work-life balance. Employers may also offer on-site childcare facilities or childcare vouchers to help employees with childcare costs. Some companies offer additional paid leave days beyond the mandated minimum to allow employees more time for personal needs and vacations.

Other Perks

Some companies may offer employees discounts on their products or services. Free or subsidized transportation can help employees save money on commuting costs. Free or subsidized lunches can be a welcome benefit for employees, especially those who work long hours.

Health insurance requirements

Mauritius operates under a mixed healthcare system with both public and private options. While the system offers universal health coverage for basic services through public facilities, it's important to understand the health insurance requirements for employees.

Public vs. Private Healthcare

  • Public Healthcare: Mauritius offers a comprehensive public healthcare system funded through employee social security contributions. This system provides citizens with access to basic medical services at government hospitals and clinics.

  • Private Healthcare: Private healthcare facilities offer a wider range of services, often with shorter wait times and more advanced technology. However, private healthcare can be expensive.

Employer Requirements

  • Not Mandatory: Interestingly, Mauritius does not legally require employers to provide health insurance to their employees.

Employer Practices

  • Common Benefit: Despite not being mandatory, many employers in Mauritius offer private health insurance plans to their employees, either fully or partially subsidized. This can significantly reduce healthcare costs for employees and their families, making them more attractive employers in the competitive job market.

Additional Considerations

  • The specific coverage and benefits offered by private health insurance plans can vary depending on the employer and the chosen provider.
  • Employees considering private health insurance should carefully review plan details to ensure it meets their needs and budget.

While health insurance is not mandatory for employees in Mauritius, it is a commonly offered benefit that can significantly impact employee well-being and financial security.

Retirement plans

In Mauritius, employees have several options for retirement planning.

Portable Retirement Gratuity Fund (PRGF)

The Portable Retirement Gratuity Fund (PRGF) is a mandatory plan introduced in 2022. Employers contribute 4.5% of the employee's monthly salary (capped at a certain amount) to the PRGF. The employee becomes eligible upon retirement or death, and the benefit is calculated based on total service time across all employers. There are some exceptions for specific employee categories, so it's important to check eligibility requirements.

National Savings Fund (NSF) for Public Sector Employees

This applies to government employees. Employers contribute 2.5% of the employee's basic salary to the NSF. Upon retirement or death, the employee receives a lump sum consisting of their contributions and accrued interest.

Group Pension Schemes

Offered by employers or associations, these are voluntary plans that provide retirement and other benefits. Employers typically contribute a portion alongside employee contributions. The specific benefits and contribution structure vary depending on the scheme.

Individual Retirement Accounts (IRAs)

Not as common in Mauritius, but employees can explore setting up IRAs with private financial institutions. These allow for personal contributions towards retirement savings and offer tax benefits.

Additional Considerations

Some employers might offer their own private pension plans on top of the mandatory contributions.

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