Mauritius is a small, upper-middle-income island economy known for a highly literate and multilingual workforce. Formerly dominated by sugar agriculture, the country is now diversified into tourism, manufacturing, financial services, and ICT.

The labor force consists of around 600,000 people, with both a large public sector and private industries. Public-sector employees pay no personal pension contributions, so their employers carry higher rates; but private workers share pension and other contributions with their employers. Employers must register with the Mauritius Revenue Authority (MRA) and withhold tax from employee pay, remitting it monthly to the government.

A small portion of payroll tax also goes into the National Savings Fund and a training levy. Mauritius’s tax system is well-established, and employers must be aware of the structure when hiring locally or seconding employees. Our expert guide on doing business in Mauritius covers all you need to know about the business environment in the country.

What is Payroll Tax in Mauritius?

Mauritius does not have a separate payroll tax in the way some countries do; instead, it has social contributions on wages (often called CSG or HRDC levy) and PAYE. Under recent law, contributions to the National Pensions Fund (NPF) were replaced by the Contribution Sociale Généralisée (CSG). 

Employer and Employee Responsibilities

Every employer must register with the MRA and utilize the PAYE system, i.e, deducting income tax and employee social contributions at the time wages are paid, and remitting those amounts to the MRA by the end of the following month. Employers must also file monthly electronic returns for PAYE, CSG, and NSF on all staff. Failure to withhold or pay on time leads to penalties, which include a 5% surcharge plus interest on late PAYE.

Employees must provide each employer with an Employee Declaration Form (EDF) every year to claim personal allowances and reliefs. This form lists dependents, reliefs, mortgage interest, etc., so the employer can compute the correct PAYE. Employees bear the cost of their share of CSG and NSF, which is deducted from pay along with income tax. If a person has multiple incomes, they usually give one EDF to one employer or reconcile taxes through an annual return. 

Non-resident foreign workers are taxed only on Mauritius-earned income. A foreigner working abroad for a Mauritian company who doesn’t live in Mauritius is not required to pay Mauritian tax on foreign earnings. However, salary paid into Mauritius for a Mauritian working overseas is subject to PAYE.

Breakdown of Employer and Employee Contributions

CSG

Employee Category Monthly Wage Threshold (MUR) Employee Contribution Employer Contribution Total Contribution
Private-sector employees Up to 50,000 1.5% 3.0% 4.5%
Private-sector employees Above 50,000 3.0% 6.0% 9.0%
Public-sector employees Up to 50,000 0% 4.5% 4.5%
Public-sector employees Above 50,000 0% 9.0% 9.0%
Domestic service employees Up to 3,000 0% 3.0% 3.0%

Once salary crosses MUR 50,000, the higher rates apply to the entire basic wage, not just the excess. CSG also applies to the end-of-year bonus, which is calculated separately from the monthly salary.

Non-citizens who are not tax residents in Mauritius are exempt from CSG. A tax resident is present in Mauritius for 183 days or more in an income year. Employers must review residency status each year to apply the rule correctly.

NSF

The NSF provides a lump-sum payout on retirement, death, or redundancy.

Contribution Type Rate
Employer contribution 2.5% of the basic wage
Employee contribution 1.0%

Unlike CSG, NSF has a wage ceiling. Non-citizens working in export manufacturing businesses are also exempt from NSF contributions for their first two years of employment.

HRDC Training Levy

To fund national skills development.

Contribution Type Rate Payer
Statutory contribution 1.5% of total basic wages Employer only

Employers can recover up to 75% of approved training costs through refunds. The levy is a kind of “use-it-or-lose-it” fund and rewards active investment in employee training.

Portable Retirement Gratuity Fund (PRGF)

PRGF ensures private-sector workers receive a gratuity even if they change employers. Under the old system, changing jobs meant losing this benefit.

Contribution TypeRate
Statutory contribution4.5% of monthly remuneration

Remuneration includes productivity and attendance bonuses. Several groups are excluded:

  • Employees earning more than MUR 200,000 per month do not contribute.
  • Non-citizens and migrant workers are exempt.
  • Employees already covered by a Financial Services Commission-approved private pension scheme are also excluded.
  • SMEs with a turnover below MUR 50 million benefit from reduced rates up to 4.5% over three years, with the government subsidizing the difference through seed capital.

Industry-Specific Tax Rates

Most sectors follow the standard payroll rules above, but a few industries have special conditions:

Export Manufacturing/EPZ

Companies in the Export Processing Zone that hire foreign workers get relief. Foreign nationals pay no pension contributions for the first two years of their contract.

Sugar Industry

Under the old NPF system, sugar sector employees and employers paid higher rates (employee 3%, employer 10.5%). Since the 2020 reform, sugar firms now also pay CSG at the standard rates above.

Income Tax for Employees

Mauritius uses a Progressive PAYE system for individual income tax. Employers deduct tax on wages at source; the employee’s annual tax is then reconciled via a tax return or EDF.

Annual Chargeable Income (MUR)Tax Rate
Up to 500,0000%
500,001 – 1,000,00010%
Above 1,000,00020%

Fair Share Contribution

Mauritius introduced a new levy for high-income individuals with annual net income above MUR 12 million. This income measure includes dividends. The contribution rate is 15%. The tax base is chargeable income plus domestic dividends. The measure only applies for three years from July 1, 2025. This levy replaces the earlier Solidarity Levy, which charged 25% on income above MUR 3 million. 

EDF and Tax Reliefs

The EDF is how employees claim deductions and reliefs before tax is calculated. Dependents qualify for relief.
  • The deduction starts at MUR 110,000 for one dependent, MUR 190,000 for two dependents, up to MUR 355,000 for four or more dependents. Retirees, disabled persons, and unmarried children in full-time education also qualify as dependents
  • Education relief applies to children in fee-paying private schools, up to MUR 60,000 per child.
  • Taxpayers may claim interest relief on a home mortgage up to MUR 25,000 of interest paid.
  • Employees may deduct up to MUR 25,000 for medical insurance premiums.
  • Interest relief applies to interest paid on secured housing loans.
  • Green investment relief applies to spending on solar energy units or electric vehicle chargers.

Car Benefit Taxation

The 2025 finance regulations increased the taxable values to reflect inflation and environmental policy.

Vehicle CategoryTaxable Monthly Benefit (MUR)
Cars up to 1,600cc12,000
Cars 1,601–2,000cc13,500
Cars above 2,000cc15,000
Electric vehicles13,500
High-end vehicles (value above MUR 5 million)Up to 35,000

An employee who is not resident in Mauritius gets no personal allowances or deductions.

Self-Employed/Freelancers

Independent contractors and sole proprietors file annual tax returns on net business income. They pay the same individual tax rates on profits, and they are also subject to social contributions.

Corporate Taxation

Setting up a legal entity in Mauritius brings additional tax responsibilities. These apply whether or not the company employs local staff. Any business choosing incorporation must account for the costs upfront.

  • Corporate Income Tax (CIT): The standard CIT rate is 15%. Companies that export goods benefit from a reduced rate of 3%.
  • Global Business Companies (GBCs): GBCs are taxed at the headline 15% rate. However, they may claim an 80% partial exemption on specific foreign-source income, which includes foreign dividends and interest. After the exemption, the effective tax rate drops to 3%.
  • Corporate Social Responsibility (CSR): Profitable companies must contribute 2% of chargeable income to a CSR Fund to support approved social or environmental programs.
  • Corporate Climate Responsibility (CCR) Levy: Companies with a turnover above MUR 50 million must pay 2% of chargeable income to fund national climate and sustainability initiatives.
  • Value Added Tax (VAT): The standard VAT rate is 15%. Under the 2025/2026 Budget, companies must register once their annual turnover exceeds MUR 3 million.
  • Fair Share Contribution (Corporate): The Fair Share Contribution targets companies with a turnover above MUR 24 million. This contribution is separate from personal income-based fair share rules.
    • Standard-rate companies pay 5% of chargeable income.
    • Companies taxed at the reduced 3% rate pay 2% instead.
  • Qualified Domestic Minimum Top-up Tax (QDMTT): In 2025, Mauritius implemented a 15% minimum effective tax. It applies to multinational groups with global revenue above EUR 750 million. The goal is alignment with OECD global minimum tax standards. Groups falling under this rule must top up local taxes to meet the 15% floor.

Remote People Payroll Outsourcing

Managing Mauritius payroll in-house can be tricky. Remote People offers a full payroll outsourcing solution to simplify this. Our team of experts can set up Mauritius payroll on your behalf, handling MRA registration, monthly filings, and all tax and social security payments on time. 

We automatically deduct the correct PAYE and contributions from salaries, submit the electronic monthly return, and ensure compliance with all deadlines. Companies can therefore enjoy peace of mind knowing that their Mauritius payroll is handled by local experts. 

We also provide a free Global Payroll Calculator, an online tool that estimates take-home pay and employer costs in Mauritius. Employers and individuals can use it to get instant payroll cost estimates. By outsourcing payroll to Remote People, you avoid the administrative burden and risk of mistakes in Mauritian payroll compliance.

International Recruitment & PEO Services

In addition to payroll, Remote People offers international recruitment and Mauritius PEO (Professional Employer Organization) services. If you need to hire Mauritian talent, our International Recruitment Agency service can source and screen candidates, arrange interviews, and guide you through Mauritian labor laws. 

Once employees are hired, we can act as the co-employer via our PEO arrangement. Through our global PEO network, Remote People handles employee onboarding, local contracts, and ongoing HR support. We manage benefits, payroll, taxes, and compliance, letting you focus on the core business.

Mauritius Employer of Record

Setting up a legal entity in Mauritius creates friction for many international companies. The process involves incorporation, company secretaries, annual filings, and continuous payroll compliance. That overhead rarely makes sense when the goal is to hire a small team or test the market.

Our Mauritius Employer of Record service removes that barrier. We hire local employees on your behalf and manage payroll end-to-end. We calculate and remit all statutory deductions. We issue compliant employment contracts that meet Mauritian labor law. We also administer benefits, including medical insurance, leaves, and the mandatory 13th-month bonus.

You simply direct and manage the employees’ day-to-day work, while we manage everything behind the scenes. With pricing at $199 per employee per month, our model scales cleanly as your team grows and keeps costs predictable. We combine local expertise with global scale, delivering a smooth experience for both employers and staff.