Hiring employees is one of the crucial aspects of running a business. The most important aspect of employment is payroll. In Mauritius, this implies setting up a system in which workers are enrolled, followed by the collection and payment of specific taxes.
If you want to know how payroll in Mauritius works, our specialists are at your service with information and solutions. You can also rely on us for support in opening Mauritius bank accounts for your employees.
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Payroll regulations in Mauritius
The goal of the payroll system in Mauritius is to coordinate employee compensation in accordance with:
- local laws;
- requirements imposed by the Ministry of Labor and Office of Labor;
- conditions imposed by the Ministry of Social Security;
- the payment of mandatory contributions;
- withholding tax (income tax by PAYE withholding tax system in Mauritius and payable to the Mauritius Revenue Authority).
Payroll in Mauritius implies HR and payroll management. The relationship between the company and the employee is formalized through the employment contract.
In Mauritius, payroll implies the issuance of a specific document whose requirements must be met. It must contain the employee’s salary. Both the employer’s Registration Number (BRN), the NPF number, Tax Account Number (TAN), and address, as well as the employee’s full name, local address, and TAN must be included. It must also clearly state how the employee’s compensation is determined.
If you are interested in immigration to Mauritius for the purpose of employment, do not hesitate to get in touch with us for support in getting a residence and work permit.
Payroll taxes in Mauritius
An important component of the Mauritius payroll is social security contributions. These are divided between employers and employees.
Here is how they are divided:
- social security payments of 3% to 9% of an employee’s gross salary must be contributed with by the employer;
- the employer must also contribute to the National Savings Fund with 2.5% of an employee’s wages;
- social security contributions for employees range from 1.5% to 3%;
- payments to the National Savings Fund for employees is 1.5% of their salaries.
Total employment cost for employers ranges from 1% to 12.5%, while for employees it represents between 1% and 4.5%.
The reason why social contributions have different percentages is because of the personal income tax that applies progressively, as follows:
- the income tax for a salary of less than 650,000 MUR is 10%;
- the income tax for a salary over 650,000 MUR is 15%.
Only the income earned in Mauritius is taxed for non-residents. For tax purposes, expatriates residing in Mauritius are deemed residents if their primary residence is there, they spend more than 183 days there during the tax year, or if they spend a total of 270 days there throughout the tax year and 2 years before it. The Mauritius Revenue Authority is in charge of collecting taxes in Mauritius, and tax returns must be filed annually by September 30.
If you need information about the computation of these taxes, you can address our accountants in Mauritius.
Our agents are also specialized in company incorporation in Mauritius, in case you need these types of services too.
Payroll services in Mauritius
If you are interested in hiring employees in Mauritius, our local consultants are at your disposal with support in employment and payroll. This can imply the computation of the aforementioned taxes, their withholding, generation of pay checks, and salary deposits in employees’ accounts.
Apart from these, we are also at your disposal with company formation solutions in Mauritius.
Do not hesitate to contact us if you need support in payroll in Mauritius.
