Mauritius: Employer contributions to retirement fund required for January 2022

Obligation to contribute to a portable retirement gratuity fund for January 2022

Obligation to contribute to a portable retirement gratuity fund for January 2022

Employers that do not maintain an approved private pension scheme now have an obligation to contribute to a portable retirement gratuity fund (PRGF) for the month of January 2022.

Previously, the PRGF contribution obligation was suspended because of coronavirus (COVID-19) pandemic. 

Overview

  • The PRGF was established under the Mauritius Workers’ Rights Act, 2019 for the purpose of providing for the payment of amounts on the death or retirement of a worker.
  • Employers are required to remit PRGF contributions at the rate of 4.5% of the monthly remuneration paid to each worker.
  • The monthly remuneration, for the purpose of the PRGF, is defined as the sum total of the monthly basic wage, any productivity and attendance bonus, and any amount paid for extra work performed.
  • However, small and medium enterprises (SMEs) pay PRGF at a lower rate for the first three years based on the annual turnover of the SME.

Update

  • In response to the pandemic, the obligation to submit monthly PRGF returns and make contribution payments was suspended for the period beginning 1 January 2020 through 31 December 2021.
  • Accordingly, there was no obligation for an employer to pay PRGF for the period 2020-2021 (although PRGF was operational as from 1 January 2020).
  • An employer that does not maintain an approved private pension scheme now must contribute to PRGF as from the month of January 2022. Both the return and the payment are required to be made electronically on or before the end of the month following the month in which the PRGF is payable.
  • The employer must submit, no later than 15 July of every year, an annual PRGF return containing the names and dates of births of the employed workers as of 30 June of that year.

Read a January 2022 report [PDF 362 KB] prepared by the KPMG member firm in Mauritius 

 

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