Mauritius PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Mauritius to companies planning to enter the Mauritius market or hire local/expat employees in this country.

The common approach requires establishing a subsidiary in Mauritius.  However, our team allows you to set up the operations in Mauritius within days hence save time and expenses.  WeHG would take into employment job-seekers on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Mauritius fast facts

Population, million: 1
Land area: 2,040 km²
Capital: Port Louis
Local currency: Mauritian rupee (MUR)

GDP per capita:$ 25,029
GDP in currency:$ 31.705

Mauritius, island country in the Indian Ocean, located off the eastern coast of Africa. Physiographically, it is part of the Mascarene Islands. The capital is Port Louis. Mauritius lies about 500 miles (800 km) east of Madagascar in the Indian Ocean. Its outlying territories are Rodrigues Island, situated about 340 miles (550 km) eastward, the Cargados Carajos Shoals, 250 miles (400 km) northeastward, and the Agalega Islands, 580 miles (930 km) northward from the main island. Mauritius also claims sovereignty over the Chagos Archipelago (including Diego Garcia), some 1,250 miles (2,000 km) to the northeast, although this claim is disputed by Britain.

Hiring, Negotiating and Doing Business in Mauritius

Necessity of written employment contract

It is legally required to put a strong writing employment contract in place in Mauritius, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Mauritius should always state the salary and any compensation amounts in Mauritian rupee rather than a foreign currency.

Different forms of engagement: employment, contracting, work with private entrepreneur

Mauritius does not recognise the concept of blue-collar and white-collar workers. The distinction is rather based on the salary of the employees. In the event of a worker (ie, someone whose monthly basic salary is MUR50,000 or less), the whole of the Act is applicable inasmuch as any provision that the employer undertakes must not be less favourable than the provisions stipulated in the Act. However, for those employees earning monthly basic salary of more than MUR50,000, only certain sections of the Act are applicable and most of the benefits can be contractually agreed, notwithstanding the provisions of the Act.

The provision applicable to all employees includes discrimination, equal remuneration for work of equal value, restrictions on deductions from salary, juror’s leave, leave to participate in international sports, maternity and paternity leaves, termination of agreement and severance payment, Portable Retirement Gratuity Fund and violence at work.

There are also some specific remuneration orders for certain specific categories of workers which aim to give additional benefit/protection to those workers.

Mauritius Employment Contract

Types of employment agreements

The two most prominent types of contracts are: contracts of determinate duration; and  contracts of indeterminate duration.

A fixed-term contract is entered into between the worker and the employer for a specified period of time for specific temporary and non-recurring work, in respect of seasonal and short-term work, for the replacement of another worker on approved leave or suspended, for the purposes of providing training or for a specific training contract. The contract must be in writing and must specify the special skills required, the specific tasks to be performed and the duration thereof. In respect of workers, it is not possible to enter into a contract of determinate duration unless the conditions stated above are satisfied. For employees, it is possible to have a contract of determinate duration on the terms that may be mutually agreed between the parties.

Contracts of indeterminate duration are contracts which are entered into between the worker and the employer which do not have any specific timeframe. Should the employer wish to terminate the agreement, it can only be done after having followed the procedures as provided for under the Act.

Mauritius working hours

In general, the working day should not exceed 8 hours, and if the employee works 6 days in a week, one of those days should not exceed 5 hours and the worker should be compensated for 8 hours.

Overtime

The Act introduces some changes in the calculation of overtime pay. Subject to any other enactment, where the worker is required to work on 6 days in a week, the normal working week consists of 8 hours on any 5 days of the week and 5 hours on any other day of the week. Where the worker is required to work 5 days in a week, the working week consists of 9 hours on any 5 days of the week.

Whereas previously overtime was, in general, payable after 90 hours’ work in a fortnight, under the Act, overtime becomes payable after normal day’s work in a day.

Vacation leave in Mauritius

Employees are generally entitled to 20 days of paid annual leave.

Mauritius Maternity Leave

Female employees are generally entitled to 12 weeks of paid maternity leave, 6 weeks to be taken before the birth and 6 after. She is entitled to full pay if she has been employed for more than 12 months.

Fathers are entitled to 5 days of paid paternity leave.

Mauritius Severance Laws

Fixed term contracts are permitted.

Employment contracts may be terminated with verbal or written notice as follows:

• If employed for more than 3 years: 3 months’ notice
• Less than three years of service: if paid at intervals of at least 14 days, then at least 14 days of notice before the end of the month, or if paid in less than 14 day intervals, at least one interval of pay.

In general, employees are entitled to severance pay based on length of service, reason for termination, and interval of pay.

Mauritius Tax

Employees contribute 3% of their wages to the National Pension Fund and 1% to the National Solidarity Fund.

Employers contribute 6% of monthly wages to the National Pension Fun, 2.5% to the National Solidarity Fund, and 1.5% for the HRDC levy. The amounts are subject to a wage cap.

Health Insurance Benefits in Mauritius

Employees are generally entitled to 21 days of paid sick leave per year.

Mauritius has a public/private healthcare system.

Additional Benefits in Mauritius

Common benefits include:

• Company car
• Housing allowance
• School fees

Employees are generally entitled to an end of year bonus equal to 1/12 their regular salary.

General market practice benefits/additional allowances

There are many benefits of doing business in Mauritius.  Mauritius is recognised as a unique investment destination for investors.  Investors has the benefits of no capital gains tax, no with holding tax, no capital duty on issued capital, confidentiality of company information, exchange liberalisation and free repatriation of profits and capital.  These attributes  qualify Mauritius as a first choice for investors.

In addition, Mauritius is a treaty based jurisdiction with a substantial network of double taxation avoidance treaties and investment promotion and protection agreements.  Furthermore, Mauritius is known as an International Arbitration Centre.  The International Arbitration Act offers the incorporation of arbitration clauses in the constitution of Global Business companies based in Mauritius.

Mauritius Holidays

Mauritius celebrates 14 public holidays:

• New Year’s Day
• Abolition of Slavery
• Chinese Spring Festival
• Maha Shivaratree
• National Day
• Ougadi
• Tamizh Puttaandu
• Labor Day
• Eid-Ul Fitr
• Assumption of the Blessed Mary
• Ganesh Chaturthi
• Diwali
• Arrival of Indentured Laborers
• Christmas

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.