Running payroll in Mauritius involves more than calculating salaries. Every employer must withhold MRA PAYE at 15%, deduct and remit CSG contributions, contribute to the Portable Retirement Gratuity Fund, pay the HRDC levy and manage the statutory end-of-year bonus by December. This guide covers the complete Mauritius statutory payroll cycle – from gross-to-net calculation through to the annual MRA employer return due by 30 June.
Quick facts: Mauritius statutory payroll
- MRA PAYE is a flat 15% on chargeable income above the income exemption threshold; due by end of following month
- CSG contributions are tiered by salary level; employer and employee rates differ below and above MUR 50,000 per month
- PRGF replaces the traditional end-of-service gratuity for eligible employees
- HRDC levy is 1% of the monthly payroll bill; employer-only
- Statutory end-of-year bonus (approximately one-twelfth of annual earnings) must be paid by December
- Annual MRA employer return is due by 30 June each year
Step 1 – Calculate Gross Pay
Gross pay includes basic salary plus all cash allowances (housing, transport, meals), the taxable value of benefits in kind and any commission or variable pay in the month. The end-of-year bonus accrues throughout the year and is paid in December. Minimum wage in Mauritius is MUR 16,500 per month.
Step 2 – Apply Statutory Deductions
| Deduction | Rate | Notes |
|---|---|---|
| CSG (employee) | 1.5% on basic wage up to MUR 50,000/month; 3% above | Employee-borne; employer deducts and remits |
| MRA PAYE | 15% on chargeable income above IET | Income exemption threshold varies by employee category |
Step 3 – MRA PAYE Calculation
Chargeable income is gross pay minus CSG employee contribution, minus approved pension contributions and minus the employee’s applicable Income Exemption Threshold (IET). The IET varies by category (single, married, with dependants). PAYE is 15% of chargeable income – a flat rate with no progressive bands. The employer withholds PAYE from each employee’s salary and remits it to the Mauritius Revenue Authority (MRA) by the end of the following month.
Step 4 – Employer Contributions
| Contribution | Rate | Notes |
|---|---|---|
| CSG (employer) | 3% on basic wage up to MUR 50,000/month; 6% above | Employer cost; remitted monthly with employee CSG |
| PRGF | Per applicable schedule for eligible employees | Employer-only; remitted monthly |
| HRDC levy | 1% of monthly payroll | Employer-only; remitted to HRDC monthly |
Step 5 – Issue Payslips
The WRA 2019 requires employers to provide every employee with a payslip at the time of payment showing gross pay, all deductions, net pay and the pay period. Payslips may be issued digitally.
Step 6 – File and Remit by Month-End
MRA PAYE and CSG contributions are remitted to the MRA by the end of the month following the payroll month. PRGF contributions and the HRDC levy are remitted monthly. Missing these deadlines triggers MRA penalty notices and interest charges.
Step 7 – End-of-Year Bonus
The statutory end-of-year bonus under the WRA 2019 is approximately one-twelfth of the employee’s annual earnings. It must be paid by December each year. Late or non-payment is a breach of the WRA 2019.
Step 8 – Annual MRA Employer Return
By 30 June each year, employers must file the annual MRA employer return covering the income year (1 July to 30 June) for all employees. The return reconciles total PAYE deducted against total chargeable income for each employee.
Mauritius Payroll Key Dates
| Obligation | Deadline |
|---|---|
| MRA PAYE monthly remittance | End of following month |
| CSG monthly remittance | End of following month |
| PRGF monthly contribution | Monthly |
| HRDC levy | Monthly |
| End-of-year bonus | December each year |
| Annual MRA employer return | 30 June |
Why Companies Choose Africa Deployments Ltd for Mauritius Payroll
- All employees processed in one monthly cycle with correct IET application and WRA 2019-compliant payslips
- MRA PAYE, CSG, PRGF and HRDC levy all filed and remitted before each monthly deadline
- End-of-year bonus managed and paid in December as part of Africa Deployments Ltd’s annual payroll calendar
- Annual MRA employer return filed by 30 June without client involvement
Frequently Asked Questions
What is the income exemption threshold in Mauritius?
The IET is an annual deduction that reduces chargeable income before the 15% rate applies. The MRA publishes IET amounts annually – they vary by employee category (single, married, with dependants). Africa Deployments Ltd applies the correct IET for each employee based on their declaration.
Does the HRDC levy entitle employers to any benefit?
Yes. Employers who remit the 1% HRDC levy can access levy-funded training for their staff through HRDC schemes, including sector-specific skills development programmes for ICT and financial services employers.
Is there a monthly minimum PAYE payment?
No. In months where an employee’s income does not exceed their prorated IET, PAYE due may be nil. The employer must still file the monthly MRA return in nil-tax months.
About Africa Deployments Ltd
Registered Company Name: Africa Deployments Ltd
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Website: mauritiusdeployments.com
Mauritius payroll compliance requires monthly execution across MRA PAYE, CSG, PRGF and HRDC, plus the annual December bonus and 30 June MRA return. Africa Deployments Ltd manages the full cycle for employers of all sizes.
Reviewed by: Africa Deployments Compliance Team
