NPF / NSF Contributions - Mauritius Revenue Authority (2024)

FAQs

How is NSF calculated in Mauritius? ›

National Savings Fund (NSF)

Employers are required to contribute 2.5% of remuneration to the NSF and to pay a monthly levy of 1.5% of basic salaries and wages of every employee.

It provides for payment of a lump sum(contributions + accrued interest) at retirement age. Every employer (public, private or para-statal) has a legal obligation to contribute 2.5% of the total basic prescribed wage of each of his employees aged between 18 and retirement age.

A self-employed shall, at his option, pay electronically to the Director-General the total amount of CSG payable in respect of a financial year, in advance, not later than 31 July, which shall be applicable as from financial year 2022 / 2023.

An employee earning a basic wage or salary NOT exceeding MUR 50,000 in a month contribute 1.5% of their basic wage. An employee earning a basic wage or salary exceeding MUR 50,000 in a month must contribute 3% of their basic wage.

Budget 2022-23 – Old age pension: increase from Rs 1000 to Rs 2000 – Mauritius News.

In the Budget Speech 2022/2023, it was announced that a direct monthly Income Allowance of Rs 1,000 will be paid by the Government of the Republic of Mauritius to eligible employees and self-employed individuals for the months of July 2022 to June 2023.

Remuneration on which NPF and NSF are payable. ​​​ Minimum and Maximum basic wage on which Contributions to the National Pensions Fund (NPF) & National Savings Fund (NSF) are payable.

The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial. Minimum pension presently is Rs. 9000 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 1,25,000) per month. Pension is payable up to and including the date of death.

The majority of these pensions are defined benefit schemes. This means that your pension is based on your pay/salary at retirement or an average of your pay while you were in the scheme and the number of years you have been in the scheme.

Eligibility for Negative Income Tax

A Mauritian Citizen. An employee whose basic salary is less than or equal to Rs 9,900 per month, provided that his total earnings (excluding travelling) in that month does not exceed Rs 20,000.

How is tax calculated on salary in Mauritius? ›

The tax on chargeable income is calculated at the rate of 10% for an individual having an annual net income not exceeding Rs. 700,000 and 12.5% for an individual having an annual net income exceeding Rs. 700,000 but less that Rs. 975,000.

PAYE = (Total tax payable – total rebates) / 12

Let's look at an example: Sipho is 29 years old and in 2017/2018 tax year earns a fixed monthly salary of R20 000. His provident fund contributions total R2000 per month and he receives a R1000 monthly travel allowance.

Social Contribution payable for the month

A Self-employed individual may opt to compute his net income with respect to a month on the basis of one twelfth of the net income of the preceding financial year, provided the Self-employed has been operating during the corresponding 12 months.

The fund is compulsory in respect of all citizen employees of the public and private sector. The rate of contribution from citizen employees is 1% of the basic salary and that from employers is 2.5% of the basic salary of each employee.

Employees who derive emoluments (excluding exempt emoluments and statutory end-of-year bonus), and basic retirement or widow's pension, not exceeding Rs. 50,000 in aggregate in a month, and who are not self -employed.

A monthly pension of Rs 600 - Rs 1000 depending upon the state share of the pension.

13.31 (i) The amount of pension is computed at the rate of 1/690th of pensionable emoluments on retirement for every month of pensionable service, subject to a maximum of 460/690th.

(a) Contributions are payable in respect of an employee as from the age of 18 up to the normal retirement age of 65.

NPF and NSF contributions are payable at the prescribed rate on an employee's basic wage/salary. Basic wage/salary includes yearly salary compensation but excludes bonus and any other allowance paid in cash or given to the employee in kind.

The National minimum wage payable to full time employee for the calendar year ending 31 December 2022 has been revised as follows: For an employee of a Non-Export Enterprise - Rs 10,575. For an employee of an Export Enterprise – Rs 9,875.

Is CSG applicable on bonus? ›

As per the MRA, CSG is applicable on the basic salary component of the end of year bonus of the employee.

The National Pension System (NPS) is being administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA) set up under PFRDA Act, 2013.

The purpose of the PRGF is to provide for the payment of a gratuity on retirement or death of a worker, irrespective of the number of employers with whom the worker may have worked during his career span. The PRGF has come into operation on 01 January 2020. It applies to all workers, including self-employed.

Any retirement pension not exceeding the Income Exemption Threshold (IET) in respect of Category A payable to a citizen of Mauritius who is not resident in Mauritius. An employee whose emoluments do not exceed Rs 25, 000 per month is an exempt person and is not subject to tax deduction under the PAYE System.

Once a Government servant has rendered the minimum qualifying service of twenty years, pension shall be paid at 50% of the emolument or average emoluments received during the last 10 months, whichever is more beneficial to him.

The minimum retirement age for service retirement for most members is 50 years with five years of service credit. The more service credit you have, the higher your retirement benefits will be. There are three basic types of retirement: service, disability, and industrial disability.

After the child or children cease to be eligible for family pension under this rule, such family pension shall become payable to the surviving judicially separated spouse of the deceased Government servant till his or her death or remarriage, whichever is earlier.

It's currently between 5.5% and 12.5% of your pensionable pay.

A typical multiplier is 2%. So, if you work 30 years, and your final average salary is $75,000, then your pension would be 30 x 2% x $75,000 = $45,000 a year. That $45,000 becomes your guaranteed lifetime income.

Pension increase. 2022's 3.1% increase to pensions is based on the Consumer Price Index (CPI) on 30 September in the previous year. The government's Pensions Increase (Review) order tells public-sector pension schemes like ours how much we should increase pensions by. you get a spouse's, partner's or child's pension.

How is lump sum calculated in Mauritius? ›

The minimum lump sum payable to an employee whose employers have contributed to the PRGF, on retirement or to his or her heirs at death, is computed as follows: an amount equivalent to 15 days of final remuneration for every period of 12 months in which the employee was in continuous employment; and.

Solidarity Levy (SL)

An individual whose leviable income exceeds 3 million rupees is liable to a solidarity levy which is calculated at the rate of 25% of the leviable income in excess of 3 million rupees.

The rate applicable is: - 25% of the cumulative excess; or - 10% of the cumulative emoluments (excluding any lump sum payable by way of commutation of pension or of death gratuity), whichever is the lower.

Every employer is required to pay PRGF contributions at the rate of 4.5% of the monthly remuneration of each worker.

To qualify for lump sum retirement benefit, a member is at least 60 years old (or 55 years old, if an underground mineworker) for optional retirement, or 65 years old (or 60 years old, if an underground mineworker) for technical retirement, and has paid less than 120 monthly contributions.

To retire in Mauritius, you have to meet the following criteria: You have reached the retirement age of 50 years or above. You must transfer a minimum monthly amount of $1,500 or an annual transfer of at least $18,000 (or the equivalent in a convertible foreign currency) to a local bank account in Mauritius.

Payable to a widow whose late spouse had contributed to the National Pensions Fund (NPF). (i) Maximum Monthly CWP = 20 x average annual number of pension points x value of one pensions point, divided by 12. (ii) The CWP is reduced to two-third of this amount after one year if the widow has no dependent child.

In general, the solidarity surcharge equals 5.5% of your income tax and will only be charged if your earnings exceed the tax free threshold.

The solidarity tax credit is a refundable tax credit for low- and middle-income families. Since it is based on your situation on December 31 of the previous year, the amount of your credit for the period from July 2022 to June 2023 will be based on your situation on December 31, 2021.

Leviable income is defined as chargeable income received by an individual including any dividend. The leviable income does not include any lump sum by way of commutation of pension or by way of death gratuity or as consolidated compensation for death or injury, and paid –

What is the minimum wage in Mauritius 2022? ›

The National minimum wage payable to full time employee for the calendar year ending 31 December 2022 has been revised as follows: For an employee of a Non-Export Enterprise - Rs 10,575. For an employee of an Export Enterprise – Rs 9,875.

You must pay your PAYE bill to HM Revenue and Customs ( HMRC ) by: the 22nd of the next tax month if you pay monthly. the 22nd after the end of the quarter if you pay quarterly - for example, 22 July for the 6 April to 5 July quarter.

How is PAYE worked out? If you earn over the personal allowance pay cap, you'll be charged 20%, 40% or 45% of your earnings, depending on whether you fall under a basic rate, higher rate, or additional rate tax band. This is determined based on your annual income.

The Portable Retirement Gratuity Fund (PRGF) is a fund which is established under the Mauritius Workers' Rights Act 2019 for the purpose of providing for the payment of a gratuity on the death or retirement of an employee, while recognizing the employee's terms of service irrespective of the number of employers served.

Gratuity is a cash benefit provided by an employer to an employee for the services rendered to the organisation. The employee is paid at retirement, resignation, layoff, or termination, provided the employee has completed five years of continuous services before leaving the organisation.

If termination of employment by an employer is justified, the severance allowance payable to the employee is normally equal to one quarter of a month's wages for each 12 months of service, and if unjustified, 3 months wages for each 12 months of service.