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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:
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 https://www.mra.mu/index.php/eservices1/corporate/prgf.
The table below summarizes the expectations for the implementation of the PRGF within the company.