PRGF - Implementation of the Portable Retirement Gratuity Fund

Payroll Mauritius remains at the forefront of legal updates for your payroll. If your current payroll software does not include these features, we invite you to create an account with Payroll Mauritius to find out how you can use the Payroll Mauritius tool for your needs.

Workers' Rights Act 2019 by its Notice No. 39 of 2020 sets out the terms as to the obligation for Mauritian companies to provide a mandatory pension plan for its Employees (the PRGF) as from 1 January 2020.

The Cabinet has nevertheless decided on a memorandum for its implementation for the first 3 months of the year 2020 (January, February and March).

In summary, in order to be eligible for the Portable Retirement Gratuity Fund, an Employee must be in the private sector and must have a monthly basic salary of less than Rs 200,000, be a Mauritian national (foreign workers are not concerned, except partially in case of death or retirement) and must be a worker whose retirement benefits are payable under the Statutory Bodies Pension Fund Act or under a private pension scheme.

Thus, the company may choose to contribute to the MRA or to a private pension fund (FSC-approved) provided that the contribution rate is at least equal to the requirements set by the Mauritius Revenue Authority.

If the Company operates outside the sectors providing services as an accountant or accounting firm, actuary, architect, lawyer, solicitor, solicitor's attorney, engineer, surveyor, legal consultant, medical or paramedical professional, construction project manager, real estate appraiser, quantity surveyor and tax advisor, or their representatives (in which case the single rate of 4. 5% contribution rate will be directly applicable), 4 contribution thresholds are already provided for, depending on the Company's turnover:

  • Less than Rs 2 million
  • More than Rs 2 million and less than Rs 10 million
  • More than Rs 10 million and less than Rs 50 million
  • More than Rs 50 million

For these thresholds, a progressive contribution rate (between 2.1% and 4.2%) is set up according to the contribution period (calendar years 2020, 2021 and 2022) with a 3-year objective of a single contribution rate of 4.5%.

Payroll Mauritius is already ready for this implementation by generating the monthly PRGF file in CSV format expected for E-Filling

The table below summarizes the expectations for the implementation of the PRGF within the company.

Source: Business Mauritius -