Employer of Record in Mauritius
Mauritius, a tropical island nation in the Indian Ocean, offers a favorable business climate for international companies.
With a highly educated population and a literacy rate exceeding 91.9%, Mauritius boasts a skilled workforce.
The country's commitment to education and skills development has positioned it as an attractive destination for businesses seeking talent.
An Employer of Record (EOR) in Mauritius is a third-party organization that becomes the legal employer of your workforce in the country.
The EOR manages essential HR and payroll in Mauritius while ensuring compliance with local labor laws.
With an EOR, you can hire and manage your workforce in Mauritius without establishing a legal entity. It helps to calculate employee costs and provides efficient solutions for companies expanding their operations into the Mauritian market.
You can easily manage international business challenges and the potential expenses of hiring and managing employees there.
Partnering with a reputable Employer of Record in Mauritius can be a strategic decision for businesses seeking to expand their operations in the country.
A Mauritius EOR helps you navigate the complexities of local labor laws, and optimize your HR processes.
Mauritius at a Glance
Capital: Port Louis
Official Languages: English and French
Population: 1.3 million
Currency: Mauritian rupee (MUR)
GDP: USD 12.95 billion
Group: Developing economy
According to reports, 47,398 students enrolled in part-time and full-time graduate programs in Mauritius as of December 2018. This also included the number of students enrolled in Distance education courses. More than 46% of the population aged 20-24 years in Mauritius had enrolled for some of the other types of tertiary education.
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Talk to an expertHow to Hire Employees in Mauritius
Expanding your business in Mauritius is a complicated process that requires multiple document submissions to the concerned local authorities.
To hire employees in Mauritius easily there are majorly two ways:
- Set Up an Entity
- Setting up a local entity in Mauritius refers to establishing a formal business infrastructure in the country.
- Majorly there are three types of entities you can opt for
- Domestic Companies (DC): Versatile for local operations, allowing non-residents to hold shares. Ideal for businesses engaging in trade, investment, and consultancy.
- Global Business Companies (GBC): Licensed by the FSC, GBCs can operate locally and internationally. If they meet substance requirements, they benefit from double taxation treaties and reduced tax rates.
- Mauritius Authorized Companies (MAC): Non-resident for tax purposes, MACs enjoy exemptions from corporate income, capital gains, and withholding tax, making them ideal for international business or investment holding.
- Hiring Employees via EOR
Understanding and implementing local laws is difficult at many stages when trying to expand your business overseas.
This is where a Mauritius Employer of Record (EOR) comes into play.
It simplifies your hiring process by handling payroll, HR tasks, and legal compliance, so you don't have to go through setting up a local entity.
Skuad EOR
Skuad works with an internal team of HRs, Benefit Professionals, International Lawyers, and Accountants to provide services better than other employers of record companies in Mauritius.
We will inform you about the latest updates in compliance, tax, and laws while managing all HR requirements from our end.
As a company looking to expand in a foreign country, you outsource the task of searching for the best candidates from the knowledge workers of that country to us.
We take the responsibility of searching for candidates meeting the required profile, performing drug and aptitude screening of the selected candidates, and completing their onboarding procedures.
Book a demo to understand the process of outsourcing your HR responsibilities.
Onboarding & Agreements
What is onboarding
Onboarding is the process of welcoming new employees into a company.
It covers everything from introductions to training on job roles and the company's values.
As a company hiring, you need a well-designed onboarding program. It sets the stage for how new hires will feel, how productive they will be, and how long they will stay.
How to successfully onboard
- Create a welcoming environment: Make sure the new hire’s workspace is ready and welcoming. Introduce them to the team and provide any tools or resources needed to settle and understand the company culture.
- Provide thorough training: Offer training that covers the role and includes an introduction to the company’s values and culture.
- Assign a mentor: Pair new hires with a mentor who can help them adjust, answer questions, and guide them through company life.
- Set clear expectations: Clearly explain their job duties, performance goals, and the support available to them.
- Regular check-ins: Schedule frequent one-on-one meetings to discuss progress, address concerns, and offer feedback.
- Gather feedback: Ask new employees for feedback on their onboarding experience.
- Use different learning tools: Mix things up with videos, hands-on training, and written materials to engage new employees in ways that suit their learning style.
- Discuss professional development: Talk about long-term goals during onboarding to give new hires a clear path for growth within the company.
Types of employment agreements
Employment contracts in Mauritius are drawn of two kinds:
- Contracts of indeterminate duration: Also known as indefinite contracts, these contracts are signed between the employer and employee without mentioning a specific date of contract expiry. If either party—employer or employee—wishes to terminate these kinds of contracts, they should do so only after following the mandated procedures.
- Contracts of determinate duration: Also known as the employment of fixed duration, the employee and employer agree on a specific duration of employment in which the former is expected to perform non-recurring work. These types of employees are appointed:
- For short-term or seasonal job
- As a terminated employee’s replacement
- For training
- Under a special contract
The written employment agreement in Mauritius must mention the duration of the contract, the special skills required, and the tasks that need to be performed in the said duration.
If these conditions are not met, the worker and the employer cannot enter a fixed-term contract following the law.
As per the employment contract law in Mauritius, a part-time employee must not be discriminated against when compared to a full-time employee.
The employer must design the employment contract in a way that the contract of a full and part-time employee is similar. If by any chance, a vacancy occurs for a full-time position, an employer must give priority to a temporary or part-time worker working on the same grade.
For overtime compensation, a part-time employee can be paid less than a full-time employee if the total number of hours worked is not more than the number of hours worked by a full-time employee at a similar position excluding the latter’s leave and overtime duration.
Book a demo to understand the operations of Skuad in terms of compliance and payroll management of part-time and full-time employees.
Onboarding checklist
Pre-Onboarding Preparation | Joining Day Preparation |
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You can schedule a two-way feedback meeting with the new hire to discuss their onboarding process and how they are performing.
Types of Visas In Mauritius
Work visa in Mauritius is issued by an international Mauritian diplomatic mission in different countries or the Immigration Office.
An Immigration Officer interviews a foreign employee to verify their eligibility to transit or enter Mauritius.
Even after a foreigner receives a visa to Mauritius, they only receive permission to travel up to any one of the entry ports in Mauritius. From there, the Mauritius Immigration Officer will consider the financial situation of the person to permit them to stay in the country for a specific number of days.
The people listed below are exempted from a Mauritian visa.
- Children or stepchildren of Mauritian residents
- Diplomatic passport holders (Exception: Such passports issued by the governments of Yemen, Nigeria, Afghanistan, Sudan, and Algeria)
- People who wish to stay in Mauritius only for the duration of their vessel’s stay
- Spouse of a Mauritian citizen
Listed below are the types of work visas and other visas in Mauritius.
- Tourist visa: A foreigner is permitted to tour the country without performing any business activities with this visa.
- Transit visa: A transit visa is valid for a maximum of three days as it allows a visitor to enter a port in Mauritius before moving to any other country.
- On-arrival visa: Visitors from countries where people are allowed to take on-arrival visas can get it from their port of entry in Mauritius.
- Temporary worker visa: A visitor can briefly work with this work visa in Mauritius.
- Student visa: An international student can study at a college in Mauritius.
- Spousal visa: These visas are provided to the spouses of Mauritian citizens.
- Business visa: This visa is provided for participating in work or business-related activities for a short term in Mauritius.Save yourself the worry of Mauritius work visa requirements as Skuad sponsors the work visas of your international employees. Learn more.
Work Permits
An employer must pay MUR 700 as the processing fee for an application for a work permit in Mauritius.
After the application of the Mauritius work permit for foreigners is approved by the respective authorities, the employer must pay an annual amount as prescribed by Mauritian law to ensure that the work permit of their employee does not get suspended.
Skuad helps your employees in getting a Mauritian work permit without a job offer.
Talk to our experts to understand the process of work permit sponsorship.
Taxes
A tax year in Mauritius starts on July 1 and ends on June 30. The table below details Mauritius payroll taxes and other social securities charges in the country.
Employer tax obligations |
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Social security contributions |
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Employee tax deductions |
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VAT |
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Dividends |
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Payroll tax |
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Compliance
If you’re looking to hire employees in Mauritius, the employment terms and conditions will be governed by Wages Regulations.
Any employee that would be working for more than one month at an employer’s company, must have signed a written contract with the terms and details of employment explicitly mentioned in them. This contract must be submitted to the supervising officer within a month.
As an employer, you have to ensure that while hiring, you are compliant with the following employment laws:
- Workers' Rights Act 2019
- This act protects employees' basic rights, covering working conditions, wages, and terminations.
- It applies to different types of employment, including full-time, part-time, and fixed-term contracts.
- Employment Relations Act
- This law manages the relationship between employers and employees.
- It includes rights for collective bargaining and outlines how disputes can be resolved.
- It also provides guidelines for forming trade unions and ensuring employee representation.
- Minimum Wage Regulations
- Mauritius has a national minimum wage that is regularly updated to ensure fair pay for workers.
- Mauritius has a national minimum wage that is regularly updated to ensure fair pay for workers.
- Employment Contracts
- Employees must have a written contract stating their job duties, salary, working hours, benefits, and termination conditions.
- Employers who violate the Workers' Rights Act may face hefty fines of up to MUR 25,000 and imprisonment for up to two years. They can also face similar penalties if they fail to pay workers fully or make false record entries.
IP protection
In Mauritius, Intellectual Property (IP) protection is an important consideration as it protects and trademarks all proprietary information. When hiring in Mauritius, you need to ensure employees are abiding by:
- Industrial Property Act 2019
- Copyright Act 2014
These ensure that you own the authorship of all the work done by any employee you hire in Mauritius. You should also include clauses in the employment contract defining ownership of IP created during employment.
Payroll
As per Mauritius payroll rules, you can pay employees in two ways:
- Pay employees in Mauritius directly
- Pay with Employer of Record in Mauritius
Now, when you pay directly, the process can be tricky and difficult. You can use cash, cheque, or direct bank transfer. However, while doing so, you must comply with Mauritian labor law, handle payroll deductions and manage the benefits offered.
The best way to process this is to pay via an Employer of Record in Mauritius like Skuad.
It provides payroll outsourcing in Mauritius for companies of every size that wish to expand their business operations in the country.
By partnering with us, you can ensure compliance with local regulations and payroll management of your employees according to the country's updated employment laws.
Benefits & Compensation
An employer must provide the following employee benefits in Mauritius:
- Medical: There are several employee health benefits in Mauritius because every employer who employs more than ten employees must make the required arrangements for the health and safety of employees. Suppose an employee meets with an accident or becomes sick at work. In that case, the employer must bear the expenses of conveying the employee to the nearest hospital along with a co-employee appointed by the employer.
- Breaks: Employers must allow employees one hour of a break for every four consecutive hours of work every working day. The employees must also have a 20-minute tea break, which can be taken straight or broken down into 10 minutes each throughout the day.
- Tools: An employer must provide the tools required to complete the work assigned to the employees. These tools must be replaced as necessary to improve work efficiency.
- Transportation: If an employee stays more than 3 kilometers from the physical workplace, the employer must either pay for their conveyance or arrange free transport. However, the employer must provide an allowance equal to the corresponding bus fare if the employee travels through transport.
Worker Rights
As Mauritius holds 13th place in the ease-of-doing-business index of 2021, expanding your business in Mauritius is uncomplicated.
Instead of categorizing employees based on blue and white, the government of Mauritius classifies the type of employees based on their salary.
All the Mauritius employment laws apply to employees earning MUR 50,000 or less without any exceptions.
However, only special provisions apply to employees earning over MUR 50,000. The employer and the employee can mutually decide to include additional benefits in a written agreement.
Working hours in Mauritius | 45 hours per week, 9 hours per day for five days in a week, or eight hours per day for six days in a week. It can also be agreed otherwise, contractually. |
Minimum wage |
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Specific labor laws | A few Mauritius Labor Laws that regulate the working conditions of the employees -
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Overtime |
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Overtime compensation |
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Severance pay |
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Working conditions |
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Anti-discrimination laws/acts |
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Health & Safety |
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End of year Bonus in Mauritius |
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Remote & Hybrid Work
Remote & hybrid work has become a popular option for businesses looking to expand globally, and Mauritius offers an ideal location for hiring remote talent. With increasing digital connectivity, you can easily hire employees based in Mauritius.
The country offers Self-Employed Occupation permits to individuals working as freelancers in the country.
This permit is valid for 10 years and is renewable. Individuals interested in working remotely as freelancers in the country can opt for this permit and reside there.
However, to get this permit, individuals need to fulfill the following criteria:
- They must provide a minimum investment of USD 35,000 in professional activity.
- They must provide two letters of intent from potential clients.
Such individuals will also be subject to Mauritius's income tax regulation. They must pay the Mauritian government 10-15% of their income (depending on their annual income) as income tax.
Flexitime work
- An employer must notify the employee at least 48 hours prior if they want the worker to work flexibly.
- An employee can also request such working arrangements, but the employer can disapprove the request on reasonable grounds.
- The employer must notify the employee in writing within 21 days of receiving the request for the approval status.
Technology and infrastructure requirements
- A stable and high-speed internet connection is essential for smooth communication, video conferencing, and access to cloud-based tools.
- Remote workers need secure systems, including VPNs, firewalls, and encryption, to protect company data and prevent unauthorized access.
- Employers should provide essential equipment like laptops, monitors, and other tools for their remote workers.
- Employers must adhere to the Data Protection Act (DPA) when providing employees with a remote work environment. This ensures the lawful processing of employee data.
Salary
When hiring in Mauritius, salary calculations are typically based on a monthly structure. Employers must clearly state the basic salary in the employment contract.
- Full-time employees' monthly salary is agreed upon and paid at the end of each month.
- For part-time employees, the daily rate is calculated based on a standard 26-day work month. This makes it easy to adjust compensation according to the days worked.
You must also know the personal income tax of the employees as well. As of 1 July 2023, the personal income tax rates in Mauritius are as follows:
Chargeable Income (MUR) | Tax Rate (%) |
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0 – 390,000 | 0% |
390,001 – 430,000 | 2% |
430,001 – 470,000 | 4% |
470,001 – 530,000 | 6% |
530,001 – 590,000 | 8% |
590,001 – 890,000 | 10% |
890,001 – 1,190,000 | 12% |
1,190,001 – 1,490,000 | 14% |
1,490,001 – 1,890,000 | 16% |
1,890,001 – 2,390,000 | 18% |
2,390,001 and above | 20% |
Managing salary calculations can be complex, especially when dealing with varying work schedules, and part-time employees.
This is where Skuad's Salary Calculator Tool can simplify the process by providing an overview.
Skuad automates salary computations, ensuring accuracy and compliance with Mauritian labor laws, saving you time and effort while managing Mauritius payroll efficiently.
Leave Policy
Let’s take a look at the leave policies in Mauritius that employees are obligated to get:
Annual Leave:
Employees who have completed at least 12 months of service are entitled to annual leave as follows:
- 20 days annual leave and an additional leave of 2 days.
- An employer must refund the annual leaves an employee does not take if the employer and employee have contractually agreed upon it. However, they can rule that an employee must take half of the annual leave.
Entitlement | Explanation |
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Sick Leave in Mauritius |
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Vacation Leave |
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Special Leave | The Mauritius Workers’ Rights Act 2019 offers special leave for important life events, including wedding leave and bereavement leaves.
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Maternity leave | 14 days of paid leave on full pay.
If an employee has been working for at least one year at the same company, she receives a one-time allowance of MUR 3,000 from her employer. This amount is paid after furnishing a valid medical certificate within seven days of confinement.
An employee who has worked for an employer for one year consecutively can take up to 14 weeks of leave on full pay on adopting a child younger than 12 months old. For this, the employer must provide a certified copy of the court order and the birth certificate of the adopted child. |
Paternity leave | An employee working for more than 12 months with an employer can get up to five days of leave by providing a written statement mentioning that he lives in the same house as his spouse and a medical certificate. An employee can take leave without pay in Mauritius if the employee has worked for the employer for less than 12 months consecutively. |
Skuad helps your company with employment in Mauritius. From drawing employment contracts to managing Mauritius payroll and taxes, our professional team of lawyers and HRs will improve your efficiency by allowing you to focus on your daily business operations. Learn more by getting in touch with us.
Background Checks
Conducting background checks becomes essential when hiring in Mauritius.
This helps ensure that the employees hired meet the necessary qualifications while complying with labor law.
Here are some key aspects of background checks in Mauritius
Employment Verification
- Employers often conduct employment verification to confirm the accuracy of a candidate’s job history.
- It typically includes checking the roles held, the duration of employment, and the reasons for leaving each position.
- The benefit of employment verification in Mauritius is that it ensures that the candidate’s experience aligns with the requirements of the role they are applying for.
- It helps employers know about any potential discrepancies or red flags in the candidate’s resume.
- By verifying past employment, employers gain confidence that the candidate is transparent about their career journey.
Educational Verification
- Educational verification involves confirming that a candidate has the degrees and qualifications they claim to have obtained.
- Employers typically reach out to academic institutions to verify the completion of specific courses, certifications, or degrees.
- An educational verification step is a crucial step, particularly for roles that require specialized knowledge or technical expertise. It ensures that the candidate meets the educational standards necessary for the position.
- In some cases, employers may also verify additional qualifications, such as professional licenses or memberships in relevant industry bodies.
Criminal Record Checks
- Criminal record checks are a common practice to assess potential risks related to trust and safety in the workplace.
- Employers can review a candidate’s criminal history, especially for positions involving financial responsibilities, access to sensitive information, or working with vulnerable populations.
- Conducting a criminal history check ensures that the candidate does not pose any security threats or risks to the company, its employees, or customers.
- In some industries, such as healthcare or education, this verification is mandatory as part of the hiring process.
Reference Checks
- Reference checks allow employers to speak directly with a candidate’s previous supervisors or colleagues to gather insights into their work performance and behavior.
- During these conversations, employers learn about the candidate’s strengths, work ethic, teamwork, and how they handled responsibilities in their past roles.
- Reference checks can also provide information on how well the candidate fits within different work environments. This way employers can determine if they will be a good cultural fit for the team. These checks are often one of the final steps before extending a job offer.
Credit Checks
- For positions involving financial oversight or responsibilities, such as handling transactions or managing budgets, credit checks are sometimes performed.
- Employers review the candidate’s credit history to assess their financial responsibility and trustworthiness.
- A poor credit history may indicate financial instability or risk, which could be a concern for roles with significant monetary responsibilities.
- However, credit checks are conducted with care, ensuring compliance with legal regulations and privacy standards, and are only used for positions where financial reliability is critical.
Termination & Offboardings
When an employer and employee decide to end the employment contract in Mauritius, it becomes ineffective from the mutually decided date.
A worker can claim that their employment agreement has been terminated by the employer when:
- The employer fails to pay monthly remuneration as promised
- The employer treats the employee in a bad manner
- The employer forces the employee to sign a resignation letter
Probation period
- The standard probation period in Mauritius ranges from one to three months.
- It depends on the terms agreed upon by the employee and employer signing the employment contract.
- During this period, both parties analyze the work environment and performance to decide if it meets their requirements.
Termination of employment
Termination of employment in Mauritius through a series of strict procedures. The minimum period of notice for terminating an employee is one month unless stated otherwise in the employment contract.
If a tribunal or court determines that an employee was terminated for an unjustified reason, the court will reward the employee based on the calculated amount.
An employer can suspend an employee for poor performance or misconduct. No notice is required for such dismissals. However, the employer must note that dismissals based on poor performance can be made only when the following conditions are met.
- The employee has received at least seven days’ notice to answer the allegations against them.
- The employer has exhausted every possible option other than the employee's termination.
Similarly, the following conditions must be met for terminating an employee based on misconduct.
- Within ten days of learning about an employee’s alleged misconduct, the employer informed the employee.
- The employee has been given seven days’ notice to answer the allegations made against them.
- The employer has tried every other course of action possible.
If the employer wishes to reduce the number of employees working under them or close the establishment, the employer must notify the following authorities.
- Recognized trade union if there exists one
- Trade union with representational status
- If there is no trade union, as mentioned above, an employee selected as the employees' representative must be considered.
Cultural Considerations
Consider the following Mauritius people and culture aspects when hiring in the country:
- Cultural diversity
Mauritius has a rich blend of cultural communities, including Creole, Indo-Mauritian, Sino-Mauritian, and Franco-Mauritian groups.
Each group brings its customs, languages, and traditions, widely respected across the country and in workplaces.
It’s important to be mindful of religious practices and cultural holidays like Diwali, Eid, and Christmas, as these are often observed with family celebrations and public events.
You should accommodate and respect these holidays when scheduling work. Embracing this diversity can also bring unique perspectives and foster inclusivity within your team.
- Different communication styles
Mauritians tend to communicate in a more indirect manner, especially in formal settings.
They often prefer to avoid confrontation, so feedback might not always be given openly or directly.
Subtle cues, such as tone of voice or body language, may convey more than spoken words. As an employer or manager, it’s important to be patient and perceptive to understand underlying concerns or issues.
Encouraging open dialogue in a safe, respectful work environment can help bridge this communication style and assist in clearer conversations.
- Workplace hierarchy
Mauritian workplaces highly value respect for authority and seniority. This respect is a core part of Mauritius cultural norms.
Employees generally look up to senior management and expect clear guidance from those in leadership roles.
While this traditional hierarchy is valued, modern workplaces in Mauritius are slowly shifting towards more inclusive decision-making processes.
As a manager and employer, you must balance respect for authority with openness to new ideas from all levels. This leads to a more motivated and engaged team.
- Punctuality
While punctuality is appreciated, Mauritius has a more laid-back attitude compared to stricter Western standards.
It’s common for meetings or events to start a little later than scheduled, and some flexibility is generally acceptable.
That said, arriving slightly early or on time is still encouraged, especially in formal business settings.
You should remain understanding of this relaxed approach to time while promoting punctuality as part of workplace professionalism.
Professional Employer Organization (PEO)
Hiring the right people and compensating them properly forms an integral part of your business expansion in Mauritius. But ignorance of the local law leaves a lot of room for error which can result in heavy penalties.
To safeguard from this, companies can opt to engage the services of a Professional Employer Organization (PEO) or Employers of Record (EOR). Even though you can outsource your HR requirements to both PEO and EOR organizations, understanding the minor differences between the two will help you choose better.
A PEO acts as a co-employer, wherein it manages all the HR-related functions such as setting up the payroll, processing the compensation and other benefits, handling all the tax-related compliances, etc. However, you, as a company, will hold the allied liabilities and responsibilities.
On the other hand, an EOR is a complete payroll outsourcing that provides all the services offered by a Professional Employer Organization Mauritius, and in addition, it becomes the legal employer of all the employees on your payroll. This means that they are responsible for compliance with the regulations and liable for non-compliance as well.
PEOs are suitable for companies looking for a long-term payroll partner, whereas EOR services are more suitable for companies looking for HR solutions for a quick international expansion.
Conclusion
Expanding your business operations in the subtropical island of Mauritius is valuable from a strategic and maritime perspective. Skuad's highly interactive platform makes outsourcing your HR and compliance requirements easy.
Skuad’s Mauritius Employers of Record (EOR) solution is perfect for companies looking to expand into the country without setting up an entity. Employ, pay, and manage a team of employees in Mauritius without any hassles.
Skuad’s solution will take care of all employment-related functions such as onboarding and training, compliance issues, payroll management, taxation, probation, and termination. An otherwise arduous task that requires a grasp of the local culture, laws, regulations, and business practices, becomes simple with Skuad.
Use Skuad’s international network to hire in Mauritius. Our professionals ensure your business's compliance with local laws, payroll management, and tax handling without the need for an entity.
Connect with us to experience a highly efficient HR management system.
FAQs
1) What is an employer of record in Mauritius?
An Employer of Record in Mauritius hires employees and manages HR tasks like payroll, taxes, compliance, and social security contributions for foreign businesses without a local entity.
2) Do I need to establish a local entity abroad to employ staff in Mauritius?
It’s one way to hire employees in Mauritius; however, using an Employer of Record is a more efficient way to employ staff in Mauritius.
3) What is the difference between an employer of record and a PEO?
Both EOR and PEO help companies manage their global team, but an EOR becomes the legal employer of the distributed workforce while a PEO serves as a co-employer with shared responsibilities.
4) What are the sources of employment law in Mauritius?
The primary sources of employment law in Mauritius are the Workers' Rights Act and various regulations and guidelines issued by the Ministry of Labor, Industrial Relations, Employment, and Training. These laws govern employment contracts, working conditions, wages, benefits, termination procedures, and dispute resolution.
5) What is the 13th month salary in Mauritius?
The 13th month salary in Mauritius, often referred to as the end-of-year bonus, is a mandatory payment for employees. According to the Workers' Rights Act 2019, employers are required to pay a 13th month salary to their employees, which is equivalent to one-twelfth of their annual earnings. Click here to calculate the cost of employment in Mauritius.
One platform to grow your global team
Hire and pay talent globally, the hassle-free way with Skuad
Talk to an expertEmployer of Record in Mauritius
Mauritius, a tropical island nation in the Indian Ocean, offers a favorable business climate for international companies.
With a highly educated population and a literacy rate exceeding 91.9%, Mauritius boasts a skilled workforce.
The country's commitment to education and skills development has positioned it as an attractive destination for businesses seeking talent.
An Employer of Record (EOR) in Mauritius is a third-party organization that becomes the legal employer of your workforce in the country.
The EOR manages essential HR and payroll in Mauritius while ensuring compliance with local labor laws.
With an EOR, you can hire and manage your workforce in Mauritius without establishing a legal entity. It helps to calculate employee costs and provides efficient solutions for companies expanding their operations into the Mauritian market.
You can easily manage international business challenges and the potential expenses of hiring and managing employees there.
Partnering with a reputable Employer of Record in Mauritius can be a strategic decision for businesses seeking to expand their operations in the country.
A Mauritius EOR helps you navigate the complexities of local labor laws, and optimize your HR processes.
Mauritius at a Glance
Capital: Port Louis
Official Languages: English and French
Population: 1.3 million
Currency: Mauritian rupee (MUR)
GDP: USD 12.95 billion
Group: Developing economy
According to reports, 47,398 students enrolled in part-time and full-time graduate programs in Mauritius as of December 2018. This also included the number of students enrolled in Distance education courses. More than 46% of the population aged 20-24 years in Mauritius had enrolled for some of the other types of tertiary education.
How to Hire Employees in Mauritius
Expanding your business in Mauritius is a complicated process that requires multiple document submissions to the concerned local authorities.
To hire employees in Mauritius easily there are majorly two ways:
- Set Up an Entity
- Setting up a local entity in Mauritius refers to establishing a formal business infrastructure in the country.
- Majorly there are three types of entities you can opt for
- Domestic Companies (DC): Versatile for local operations, allowing non-residents to hold shares. Ideal for businesses engaging in trade, investment, and consultancy.
- Global Business Companies (GBC): Licensed by the FSC, GBCs can operate locally and internationally. If they meet substance requirements, they benefit from double taxation treaties and reduced tax rates.
- Mauritius Authorized Companies (MAC): Non-resident for tax purposes, MACs enjoy exemptions from corporate income, capital gains, and withholding tax, making them ideal for international business or investment holding.
- Hiring Employees via EOR
Understanding and implementing local laws is difficult at many stages when trying to expand your business overseas.
This is where a Mauritius Employer of Record (EOR) comes into play.
It simplifies your hiring process by handling payroll, HR tasks, and legal compliance, so you don't have to go through setting up a local entity.
Skuad EOR
Skuad works with an internal team of HRs, Benefit Professionals, International Lawyers, and Accountants to provide services better than other employers of record companies in Mauritius.
We will inform you about the latest updates in compliance, tax, and laws while managing all HR requirements from our end.
As a company looking to expand in a foreign country, you outsource the task of searching for the best candidates from the knowledge workers of that country to us.
We take the responsibility of searching for candidates meeting the required profile, performing drug and aptitude screening of the selected candidates, and completing their onboarding procedures.
Book a demo to understand the process of outsourcing your HR responsibilities.
Onboarding & Agreements
What is onboarding
Onboarding is the process of welcoming new employees into a company.
It covers everything from introductions to training on job roles and the company's values.
As a company hiring, you need a well-designed onboarding program. It sets the stage for how new hires will feel, how productive they will be, and how long they will stay.
How to successfully onboard
- Create a welcoming environment: Make sure the new hire’s workspace is ready and welcoming. Introduce them to the team and provide any tools or resources needed to settle and understand the company culture.
- Provide thorough training: Offer training that covers the role and includes an introduction to the company’s values and culture.
- Assign a mentor: Pair new hires with a mentor who can help them adjust, answer questions, and guide them through company life.
- Set clear expectations: Clearly explain their job duties, performance goals, and the support available to them.
- Regular check-ins: Schedule frequent one-on-one meetings to discuss progress, address concerns, and offer feedback.
- Gather feedback: Ask new employees for feedback on their onboarding experience.
- Use different learning tools: Mix things up with videos, hands-on training, and written materials to engage new employees in ways that suit their learning style.
- Discuss professional development: Talk about long-term goals during onboarding to give new hires a clear path for growth within the company.
Types of employment agreements
Employment contracts in Mauritius are drawn of two kinds:
- Contracts of indeterminate duration: Also known as indefinite contracts, these contracts are signed between the employer and employee without mentioning a specific date of contract expiry. If either party—employer or employee—wishes to terminate these kinds of contracts, they should do so only after following the mandated procedures.
- Contracts of determinate duration: Also known as the employment of fixed duration, the employee and employer agree on a specific duration of employment in which the former is expected to perform non-recurring work. These types of employees are appointed:
- For short-term or seasonal job
- As a terminated employee’s replacement
- For training
- Under a special contract
The written employment agreement in Mauritius must mention the duration of the contract, the special skills required, and the tasks that need to be performed in the said duration.
If these conditions are not met, the worker and the employer cannot enter a fixed-term contract following the law.
As per the employment contract law in Mauritius, a part-time employee must not be discriminated against when compared to a full-time employee.
The employer must design the employment contract in a way that the contract of a full and part-time employee is similar. If by any chance, a vacancy occurs for a full-time position, an employer must give priority to a temporary or part-time worker working on the same grade.
For overtime compensation, a part-time employee can be paid less than a full-time employee if the total number of hours worked is not more than the number of hours worked by a full-time employee at a similar position excluding the latter’s leave and overtime duration.
Book a demo to understand the operations of Skuad in terms of compliance and payroll management of part-time and full-time employees.
Onboarding checklist
Pre-Onboarding Preparation | Joining Day Preparation |
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You can schedule a two-way feedback meeting with the new hire to discuss their onboarding process and how they are performing.
Types of Visas In Mauritius
Work visa in Mauritius is issued by an international Mauritian diplomatic mission in different countries or the Immigration Office.
An Immigration Officer interviews a foreign employee to verify their eligibility to transit or enter Mauritius.
Even after a foreigner receives a visa to Mauritius, they only receive permission to travel up to any one of the entry ports in Mauritius. From there, the Mauritius Immigration Officer will consider the financial situation of the person to permit them to stay in the country for a specific number of days.
The people listed below are exempted from a Mauritian visa.
- Children or stepchildren of Mauritian residents
- Diplomatic passport holders (Exception: Such passports issued by the governments of Yemen, Nigeria, Afghanistan, Sudan, and Algeria)
- People who wish to stay in Mauritius only for the duration of their vessel’s stay
- Spouse of a Mauritian citizen
Listed below are the types of work visas and other visas in Mauritius.
- Tourist visa: A foreigner is permitted to tour the country without performing any business activities with this visa.
- Transit visa: A transit visa is valid for a maximum of three days as it allows a visitor to enter a port in Mauritius before moving to any other country.
- On-arrival visa: Visitors from countries where people are allowed to take on-arrival visas can get it from their port of entry in Mauritius.
- Temporary worker visa: A visitor can briefly work with this work visa in Mauritius.
- Student visa: An international student can study at a college in Mauritius.
- Spousal visa: These visas are provided to the spouses of Mauritian citizens.
- Business visa: This visa is provided for participating in work or business-related activities for a short term in Mauritius.Save yourself the worry of Mauritius work visa requirements as Skuad sponsors the work visas of your international employees. Learn more.
Work Permits
An employer must pay MUR 700 as the processing fee for an application for a work permit in Mauritius.
After the application of the Mauritius work permit for foreigners is approved by the respective authorities, the employer must pay an annual amount as prescribed by Mauritian law to ensure that the work permit of their employee does not get suspended.
Skuad helps your employees in getting a Mauritian work permit without a job offer.
Talk to our experts to understand the process of work permit sponsorship.
Taxes
A tax year in Mauritius starts on July 1 and ends on June 30. The table below details Mauritius payroll taxes and other social securities charges in the country.
Employer tax obligations |
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Social security contributions |
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Employee tax deductions |
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VAT |
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Dividends |
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Payroll tax |
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Compliance
If you’re looking to hire employees in Mauritius, the employment terms and conditions will be governed by Wages Regulations.
Any employee that would be working for more than one month at an employer’s company, must have signed a written contract with the terms and details of employment explicitly mentioned in them. This contract must be submitted to the supervising officer within a month.
As an employer, you have to ensure that while hiring, you are compliant with the following employment laws:
- Workers' Rights Act 2019
- This act protects employees' basic rights, covering working conditions, wages, and terminations.
- It applies to different types of employment, including full-time, part-time, and fixed-term contracts.
- Employment Relations Act
- This law manages the relationship between employers and employees.
- It includes rights for collective bargaining and outlines how disputes can be resolved.
- It also provides guidelines for forming trade unions and ensuring employee representation.
- Minimum Wage Regulations
- Mauritius has a national minimum wage that is regularly updated to ensure fair pay for workers.
- Mauritius has a national minimum wage that is regularly updated to ensure fair pay for workers.
- Employment Contracts
- Employees must have a written contract stating their job duties, salary, working hours, benefits, and termination conditions.
- Employers who violate the Workers' Rights Act may face hefty fines of up to MUR 25,000 and imprisonment for up to two years. They can also face similar penalties if they fail to pay workers fully or make false record entries.
IP protection
In Mauritius, Intellectual Property (IP) protection is an important consideration as it protects and trademarks all proprietary information. When hiring in Mauritius, you need to ensure employees are abiding by:
- Industrial Property Act 2019
- Copyright Act 2014
These ensure that you own the authorship of all the work done by any employee you hire in Mauritius. You should also include clauses in the employment contract defining ownership of IP created during employment.
Payroll
As per Mauritius payroll rules, you can pay employees in two ways:
- Pay employees in Mauritius directly
- Pay with Employer of Record in Mauritius
Now, when you pay directly, the process can be tricky and difficult. You can use cash, cheque, or direct bank transfer. However, while doing so, you must comply with Mauritian labor law, handle payroll deductions and manage the benefits offered.
The best way to process this is to pay via an Employer of Record in Mauritius like Skuad.
It provides payroll outsourcing in Mauritius for companies of every size that wish to expand their business operations in the country.
By partnering with us, you can ensure compliance with local regulations and payroll management of your employees according to the country's updated employment laws.
Benefits & Compensation
An employer must provide the following employee benefits in Mauritius:
- Medical: There are several employee health benefits in Mauritius because every employer who employs more than ten employees must make the required arrangements for the health and safety of employees. Suppose an employee meets with an accident or becomes sick at work. In that case, the employer must bear the expenses of conveying the employee to the nearest hospital along with a co-employee appointed by the employer.
- Breaks: Employers must allow employees one hour of a break for every four consecutive hours of work every working day. The employees must also have a 20-minute tea break, which can be taken straight or broken down into 10 minutes each throughout the day.
- Tools: An employer must provide the tools required to complete the work assigned to the employees. These tools must be replaced as necessary to improve work efficiency.
- Transportation: If an employee stays more than 3 kilometers from the physical workplace, the employer must either pay for their conveyance or arrange free transport. However, the employer must provide an allowance equal to the corresponding bus fare if the employee travels through transport.
Worker Rights
As Mauritius holds 13th place in the ease-of-doing-business index of 2021, expanding your business in Mauritius is uncomplicated.
Instead of categorizing employees based on blue and white, the government of Mauritius classifies the type of employees based on their salary.
All the Mauritius employment laws apply to employees earning MUR 50,000 or less without any exceptions.
However, only special provisions apply to employees earning over MUR 50,000. The employer and the employee can mutually decide to include additional benefits in a written agreement.
Working hours in Mauritius | 45 hours per week, 9 hours per day for five days in a week, or eight hours per day for six days in a week. It can also be agreed otherwise, contractually. |
Minimum wage |
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Specific labor laws | A few Mauritius Labor Laws that regulate the working conditions of the employees -
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Overtime |
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Overtime compensation |
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Severance pay |
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Working conditions |
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Anti-discrimination laws/acts |
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Health & Safety |
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End of year Bonus in Mauritius |
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Remote & Hybrid Work
Remote & hybrid work has become a popular option for businesses looking to expand globally, and Mauritius offers an ideal location for hiring remote talent. With increasing digital connectivity, you can easily hire employees based in Mauritius.
The country offers Self-Employed Occupation permits to individuals working as freelancers in the country.
This permit is valid for 10 years and is renewable. Individuals interested in working remotely as freelancers in the country can opt for this permit and reside there.
However, to get this permit, individuals need to fulfill the following criteria:
- They must provide a minimum investment of USD 35,000 in professional activity.
- They must provide two letters of intent from potential clients.
Such individuals will also be subject to Mauritius's income tax regulation. They must pay the Mauritian government 10-15% of their income (depending on their annual income) as income tax.
Flexitime work
- An employer must notify the employee at least 48 hours prior if they want the worker to work flexibly.
- An employee can also request such working arrangements, but the employer can disapprove the request on reasonable grounds.
- The employer must notify the employee in writing within 21 days of receiving the request for the approval status.
Technology and infrastructure requirements
- A stable and high-speed internet connection is essential for smooth communication, video conferencing, and access to cloud-based tools.
- Remote workers need secure systems, including VPNs, firewalls, and encryption, to protect company data and prevent unauthorized access.
- Employers should provide essential equipment like laptops, monitors, and other tools for their remote workers.
- Employers must adhere to the Data Protection Act (DPA) when providing employees with a remote work environment. This ensures the lawful processing of employee data.
Salary
When hiring in Mauritius, salary calculations are typically based on a monthly structure. Employers must clearly state the basic salary in the employment contract.
- Full-time employees' monthly salary is agreed upon and paid at the end of each month.
- For part-time employees, the daily rate is calculated based on a standard 26-day work month. This makes it easy to adjust compensation according to the days worked.
You must also know the personal income tax of the employees as well. As of 1 July 2023, the personal income tax rates in Mauritius are as follows:
Chargeable Income (MUR) | Tax Rate (%) |
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0 – 390,000 | 0% |
390,001 – 430,000 | 2% |
430,001 – 470,000 | 4% |
470,001 – 530,000 | 6% |
530,001 – 590,000 | 8% |
590,001 – 890,000 | 10% |
890,001 – 1,190,000 | 12% |
1,190,001 – 1,490,000 | 14% |
1,490,001 – 1,890,000 | 16% |
1,890,001 – 2,390,000 | 18% |
2,390,001 and above | 20% |
Managing salary calculations can be complex, especially when dealing with varying work schedules, and part-time employees.
This is where Skuad's Salary Calculator Tool can simplify the process by providing an overview.
Skuad automates salary computations, ensuring accuracy and compliance with Mauritian labor laws, saving you time and effort while managing Mauritius payroll efficiently.
Leave Policy
Let’s take a look at the leave policies in Mauritius that employees are obligated to get:
Annual Leave:
Employees who have completed at least 12 months of service are entitled to annual leave as follows:
- 20 days annual leave and an additional leave of 2 days.
- An employer must refund the annual leaves an employee does not take if the employer and employee have contractually agreed upon it. However, they can rule that an employee must take half of the annual leave.
Entitlement | Explanation |
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Sick Leave in Mauritius |
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Vacation Leave |
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Special Leave | The Mauritius Workers’ Rights Act 2019 offers special leave for important life events, including wedding leave and bereavement leaves.
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Maternity leave | 14 days of paid leave on full pay.
If an employee has been working for at least one year at the same company, she receives a one-time allowance of MUR 3,000 from her employer. This amount is paid after furnishing a valid medical certificate within seven days of confinement.
An employee who has worked for an employer for one year consecutively can take up to 14 weeks of leave on full pay on adopting a child younger than 12 months old. For this, the employer must provide a certified copy of the court order and the birth certificate of the adopted child. |
Paternity leave | An employee working for more than 12 months with an employer can get up to five days of leave by providing a written statement mentioning that he lives in the same house as his spouse and a medical certificate. An employee can take leave without pay in Mauritius if the employee has worked for the employer for less than 12 months consecutively. |
Skuad helps your company with employment in Mauritius. From drawing employment contracts to managing Mauritius payroll and taxes, our professional team of lawyers and HRs will improve your efficiency by allowing you to focus on your daily business operations. Learn more by getting in touch with us.
Background Checks
Conducting background checks becomes essential when hiring in Mauritius.
This helps ensure that the employees hired meet the necessary qualifications while complying with labor law.
Here are some key aspects of background checks in Mauritius
Employment Verification
- Employers often conduct employment verification to confirm the accuracy of a candidate’s job history.
- It typically includes checking the roles held, the duration of employment, and the reasons for leaving each position.
- The benefit of employment verification in Mauritius is that it ensures that the candidate’s experience aligns with the requirements of the role they are applying for.
- It helps employers know about any potential discrepancies or red flags in the candidate’s resume.
- By verifying past employment, employers gain confidence that the candidate is transparent about their career journey.
Educational Verification
- Educational verification involves confirming that a candidate has the degrees and qualifications they claim to have obtained.
- Employers typically reach out to academic institutions to verify the completion of specific courses, certifications, or degrees.
- An educational verification step is a crucial step, particularly for roles that require specialized knowledge or technical expertise. It ensures that the candidate meets the educational standards necessary for the position.
- In some cases, employers may also verify additional qualifications, such as professional licenses or memberships in relevant industry bodies.
Criminal Record Checks
- Criminal record checks are a common practice to assess potential risks related to trust and safety in the workplace.
- Employers can review a candidate’s criminal history, especially for positions involving financial responsibilities, access to sensitive information, or working with vulnerable populations.
- Conducting a criminal history check ensures that the candidate does not pose any security threats or risks to the company, its employees, or customers.
- In some industries, such as healthcare or education, this verification is mandatory as part of the hiring process.
Reference Checks
- Reference checks allow employers to speak directly with a candidate’s previous supervisors or colleagues to gather insights into their work performance and behavior.
- During these conversations, employers learn about the candidate’s strengths, work ethic, teamwork, and how they handled responsibilities in their past roles.
- Reference checks can also provide information on how well the candidate fits within different work environments. This way employers can determine if they will be a good cultural fit for the team. These checks are often one of the final steps before extending a job offer.
Credit Checks
- For positions involving financial oversight or responsibilities, such as handling transactions or managing budgets, credit checks are sometimes performed.
- Employers review the candidate’s credit history to assess their financial responsibility and trustworthiness.
- A poor credit history may indicate financial instability or risk, which could be a concern for roles with significant monetary responsibilities.
- However, credit checks are conducted with care, ensuring compliance with legal regulations and privacy standards, and are only used for positions where financial reliability is critical.
Termination & Offboardings
When an employer and employee decide to end the employment contract in Mauritius, it becomes ineffective from the mutually decided date.
A worker can claim that their employment agreement has been terminated by the employer when:
- The employer fails to pay monthly remuneration as promised
- The employer treats the employee in a bad manner
- The employer forces the employee to sign a resignation letter
Probation period
- The standard probation period in Mauritius ranges from one to three months.
- It depends on the terms agreed upon by the employee and employer signing the employment contract.
- During this period, both parties analyze the work environment and performance to decide if it meets their requirements.
Termination of employment
Termination of employment in Mauritius through a series of strict procedures. The minimum period of notice for terminating an employee is one month unless stated otherwise in the employment contract.
If a tribunal or court determines that an employee was terminated for an unjustified reason, the court will reward the employee based on the calculated amount.
An employer can suspend an employee for poor performance or misconduct. No notice is required for such dismissals. However, the employer must note that dismissals based on poor performance can be made only when the following conditions are met.
- The employee has received at least seven days’ notice to answer the allegations against them.
- The employer has exhausted every possible option other than the employee's termination.
Similarly, the following conditions must be met for terminating an employee based on misconduct.
- Within ten days of learning about an employee’s alleged misconduct, the employer informed the employee.
- The employee has been given seven days’ notice to answer the allegations made against them.
- The employer has tried every other course of action possible.
If the employer wishes to reduce the number of employees working under them or close the establishment, the employer must notify the following authorities.
- Recognized trade union if there exists one
- Trade union with representational status
- If there is no trade union, as mentioned above, an employee selected as the employees' representative must be considered.
Table of Content
- Employer of Record in Mauritius
- Mauritius at a Glance
- How to Hire Employees in Mauritius
- Onboarding & Agreements
- Types of Visas In Mauritius
- Work Permits
- Taxes
- Compliance
- Payroll
- Benefits & Compensation
- Worker Rights
- Remote & Hybrid Work
- Salary
- Leave Policy
- Background Checks
- Termination & Offboardings
- Cultural Considerations
- Professional Employer Organization (PEO)
- Conclusion
- FAQs
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