Mauritius appeals to entrepreneurs for a variety of reasons. In various categories, including trading across borders, social and political stability, excellent governance, economic equality, and ICT growth, the island is ideal for conducting business amongst African countries. Reliant on the growth of the sugar, textile, finance, communication, and real estate industries, Mauritius has a strong legal and business framework that it uses to entice the most interesting foreign markets and investments.
With the aid of the Mauritian government, which has significantly upgraded and modernized the sugar and textile enterprises, Mauritius is regarded as one of the region’s wealthiest countries with one of the highest levels of per capita income. As one of several African nations designated as a commercial hub, Mauritius is also able to expand its economy through the use of free trade zones, businesses and financial services, communication and information technology, and seafood production and exports. Through public-sector services in numerous industries, the government continues to be active in the economy.
The country’s location between Asia and Africa proves to be an added advantage for entrepreneurs, and it is the ideal platform to engage in both regions. Companies and people wishing to trade in and out of Mauritius will find a welcoming atmosphere. It provides clear benefits regarding weather, security, accessibility, and health for businesses and their families and a perfect living environment for individuals who migrate to Mauritius.
Even though Mauritius provides several benefits to ease business, it is not entirely straightforward. To set up or expand business in Mauritius, you need to consider aspects including hiring skilled and talented staff, payroll, complying with labor employment acts, etc. To uncomplicate the procedure, a Mauritius EOR can help.
Collaborating with a worldwide PEO like Multiplier can help you accelerate your company’s growth. Our experts assist with new employee orientation, payroll processing, and ensuring perfect compliance with all applicable legislation and requirements in the nation.
Why Use a Mauritius PEO?
Due to the fact that Mauritius is a tax haven, it might be difficult for businesses to establish themselves there without inviting unwelcome tax authorities and bank inspections. The labor rules in Mauritius might be complicated, thus starting a division or subsidiary office in Mauritius might not be the most effective option for employing personnel because it’s time-consuming and costly.
Hiring Professional Employer Organization (PEO) or Employer of Record (EOR) is a more efficient and practical choice, particularly when launching a company in a competitive nation. It saves time and money for businesses to focus on other goals.
PEO like Multiplier handles all workers’ human resource department, insurance, payroll, and tax obligations, letting the new employees and headquarters teams concentrate on your company’s objectives. In addition, collaborating with PEO in Mauritius will provide your employees with the most incredible benefits in complying with the Mauritius labor law act.
Mauritius PEO Costs
The cost of a PEO in Mauritius depends on the services offered. You can negotiate charges with your Mauritius PEO partner during early talks.
For any contractual or employment system that Multiplier runs, it has a simple costing framework with fixed rates. Here, we offer PEO services at an affordable budget of $300 per month onwards. You can also utilize services provided by Multiplier to manage freelancers. Employers can onboard and pat their freelancers globally at $40 per month.
Furthermore, the rate stays unchanged regardless of a rise in your employee’s income or incentive. As a result, you can manage your finances without worrying about unexpected PEO costs. When collaborating with a Mauritius EOR company like Multiplier, everything is upfront, and there are no hidden costs.
How to Hire in Mauritius?
Mauritius has a large pool of skilled and talented candidates, you’ll still need to put forth the effort to recruit the proper specialists for your company.
Many Mauritian businesses use recruitment services to fill available positions. If you decide to do so, make sure the organization you hire is capable of delivering the desired outcomes. Some agencies charge exorbitant fees for recruiting.
One way to get past the limitations of the recruiting process is to partner with a worldwide PEO like Multiplier.
If you plan to hire an employee on your own, the employers must understand the essential employment policies:
Mauritius Employment contract
Workers and management have employment agreements. Wages, job title, working conditions, contract duration, incentives, working time, probationary period, place of employment, and travel compensation must be included. As per Section 8 of the Employment Rights Act (2008), documented details of employment agreements must consist of facts such as the worker’s gender, birth date, job characteristics, and more.
The standard working week of an employee in Mauritius shall consist of 45 hours of work which excludes breaks and meals. Here, a worker must work 5 days a week with 6 hours of work. Eight hours of labor per day is the standard work schedule. Staff who work six days per week mustn’t be required to work over five hours on any of those days and therefore must be reimbursed for eight hours. As a result, Mauritius has a proper structure for employee working hours.
Before doing overtime work, staff should receive a 24-hour prior notice. Following 90 hours of labor in a fortnight, people are entitled to overtime, compensated at 1.5 times their usual wage. On Sundays and holidays, overtime pay is twice the standard hourly rate.
The Minimum Wage in Mauritius is the minimum amount an employee can lawfully be compensated for their labor. Most nations have legal minimum wage employers must pay all employees.
- The Mauritian minimum pay rate is MUR 607 a week for unskilled labor inside the Export Processing Zone (EPZ) and MUR 794 a week for untrained manufacturing workers outside the EPZ.
- It is determined by the state by industry and adjusted annually indexed to inflation.
- Moreover, the new monthly minimum income is MUR 10,575 for employees engaged in the non export enterprise. For export enterprise employees, the monthly minimum wage increased to MUR 9,875 from MUR 9,375.
There are several internationally and regionally recognized national holidays in Mauritius. Mauritius celebrates the below 14 significant holidays:
- New Year’s Day
- Thaipoosam Cavadee
- Abolition of Slavery
- Spring Festival of China
- Maha Shivratri
- National Day
- Labor Day
- Ganesh Chaturthi
- All Saint’s day
- Indentured Labor Arrival
- Employees who have worked with the same employer for more than 12 months are entitled to 20 working days of annual leave.
- Every employee shall also get 2 days’ leave yearly in addition to the specified annual leave.
- Those who remain employed with the same employer for six consecutive months and have been present all working days are entitled to one-day annual leave for each subsequent month up to the 12th.
- Employees get 15 working days of sick leave.
- They can accumulate sick leave to a maximum of 90 working days.
- Employees working with the same employer for six consecutive months get one sick leave for each subsequent month up to the 12th month.
- Employees who take leave for more than 3 days must provide a medical certificate supporting their leave of absence.
- Women employees are entitled to 14 weeks of paid maternity leave, provided at least 7 weeks of maternity leave will be taken during or after confinement.
- If she’s been working for more than 12 months, she can claim maternity allowance within 7 days of confinement.
- Those who have miscarriages are entitled to 3 weeks of paid leave.
- Female employees who gave birth to a stillborn child are entitled to 14 weeks of paid leave.
- Women who adopt a child aged less than 12 months are entitled to 14 weeks of paid leave.
In Mauritius, male employees whose spouse has been employed for more than 12 months are eligible for paternity leave.
- Paternity leave is granted to fathers of infant babies for five days.
- Those who have worked for less than 12 months can also use 5 days of unpaid paternity leave.
You must open a Mauritius branch before setting up a Mauritius payroll. The procedure could take several months, depending upon the type of organization you select and how you want to integrate. On the other hand, Multiplier can assist you in setting up a Mauritius payroll in a few days. We’ll onboard people for you and compensate them via our legal payroll as the Employer of Record, so you don’t have to worry about trying to master every individual payroll rule.
Taxation in Mauritius
Employees and employers have to make contributions to social security.
Contribution by employee
Contribution by employer
Less than MUR 50,000
1.5% of their basic salary
3% of the employee’s basic salary
More than MUR 50,000
3% of their basic salary
6% of the employee’s basic salary
Employers also have to pay a levy of 2.5% to the National Savings Fund (NSF) and 1.5% of the basic salary to every employee.
Termination/severance in Mauritius
Every agreement entered within a specified period terminates on the last day of the period agreed upon. Employers can also cancel the employment contract by providing a reason for termination with the following written or verbal notice:
- If you’ve been working for more than three years, you’ll have to give three months’ notice.
- If you have less than three years on the job, you must give at least 14 days’ notice well before the end of the month if you are paid in 14-day periods, or at minimum one pay interim if you are paid in much less than 14-day interim.
Employees are eligible for severance pay only after completing 12 months of service. In Mauritius, it is calculated based on the employee’s three months’ salary per year with the same employer. It can vary depending on their length of employment, cause of termination, and pay period.
As per the act, there is no severance pay for non-citizen employees under fixed-term contracts.
Expanding internationally involves complicated procedures like government-authorized rules and regulations employers must comply with. This is where employers can use EOR services to manage business expansion and onboard talented and skilled employees.
Multiplier’s EOR solution can help you with most of your onboarding and payroll requirements. By establishing formal documented employment agreements in Mauritius, our Mauritius EOR professionals may assist speed up your recruiting process.
Our Mauritius PEO Simplifies Your Expansion
- Manage and run international payrolls.
- Provide employees with perks and insurance that are reasonable in their local area.
- Manage spending and compensation claims with ease.
- No local entity is required to be 100% compliant with the law.
- Transparency and utmost accuracy
- There are no transaction fees or hidden costs.
Consult our PEO Mauritius experts immediately if you want to know more about our solutions.