Located in the Indian Ocean and off the coast of Africa, Mauritius includes several islands. This beautiful setting is perfect for your company to expand and set up a subsidiary. However, you also have to follow several steps to ensure success, from examining your Mauritius payroll options to hiring the right employees. G-P can make a difference with our Employer of Record solution. With us, you won’t have to set up a subsidiary or your payroll, and we can help you start working in a matter of days.
Taxation Rules in Mauritius
Employers have to worry about their own contributions and those from employees. For example, employees and employers contribute to the Contribution Sociale Generalisee (CSG), which replaced the National Pensions Fund (NPF) as of September 2020:
- Non-public sector employee, salary under MUR 50,000: Employers – 3%, Employees – 1.5%
- Non-public sector employee, salary over MUR 50,000: Employers – 6%, Employees – 3%
- Public sector employee, salary under MUR 50,000: Employers – 4.5%
- Public sector employee, salary over MUR 50,000: Employers – 9%
Employers are also required to contribute 2.5% to the National Savings Fund, and 1.5% for the HRDC levy.
Mauritius Payroll Options for Companies
You can choose from four main Mauritius payroll options:
- Internal: If you operate a large company and want to truly commit to Mauritius, instituting an internal payroll is a great option. However, you’ll have to hire a full HR team and make sure you have the budget to support a large payroll.
- Remote: Another option is to add your employees in Mauritius to your internal payroll at your parent company. Each set of employees will be under different payroll regulations.
- Mauritius payroll processing company: You can also work with a Mauritius payroll processing company to outsource your payroll. However, if you do, you’ll still be held liable for matters of compliance.
- G-P: G-P provides the ultimate Mauritius payroll outsourcing service. We can handle your payroll and take on matters of compliance, which means you can focus on growing your company.
How to Set Up a Payroll in Mauritius
Before you can set up your Mauritius payroll, you have to establish a subsidiary in the country. Depending on what type of entity you choose and where you want to incorporate, the process could take weeks or months. Instead, G-P can help you set up your Mauritius payroll in a matter of days. As the Employer of Record, we’ll hire employees to work for you and pay them through our compliant payroll, so you won’t have to face the stress of trying to learn every single payroll regulation.
We generally recommend drafting entitlement and termination terms in an employment contract before you set up your Mauritius payroll. The country permits fixed-term contracts, which can be terminated with three months’ verbal or written notice if an individual is employed for more than three years. Fewer than three years of service requires different notice periods. Employees are typically entitled to get severance pay based on their length of service, the reason for the termination, and their pay interval.
Payroll Processing Company in Mauritius
G-P can take the stress out of figuring out how to establish payroll in Mauritius. Contact us today to learn more about our services.