Employer of Record in Mauritius

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Mauritius if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Mauritius below, to avoid any compliance issues.

Employment Contract Requirements

In Mauritius, employment contracts are drafted in either English or French, with the option for bilingual content. These contracts are required to be in written form and necessitate the signatures of both parties involved. Essential components in the contracts include:

• Job Description
• Length of Employment
• Payment Terms
• Termination Conditions

Onboarding Process

We can help you get a new employee started in Mauritius quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Mauritius

The standard workweek is 45 hours, either distributed as 9 hours per day over five days or 8 hours per day over six days.

Overtime in Mauritius

Any work beyond the standard 45 hours per week in Mauritius qualifies as overtime, and it is compensated at a rate of 150% of the regular hourly salary.

Probation Period in Mauritius

The typical probation period in Mauritius ranges from one to six months, with many contracts specifying a duration of three to six months . The exact length should be clearly outlined in the employment contract.

Mauritian law does not prescribe a maximum probation period. However, the Workers’ Rights Act 2019 mandates that the notice period for terminating an employment contract is at least 30 days, regardless of the probation status.

Employers are required to provide a mid-probation performance review. Failure to conduct this review and to extend the probation period appropriately can lead to claims of unfair dismissal if termination occurs after the probation period has lapsed.

Hiring in Mauritius means navigating local labor laws, mandatory employee benefits, payroll taxes, and strict employment regulations. These requirements aren’t always intuitive, especially if your team lacks in-country legal or HR expertise. An Employer of Record steps in as the legal employer for your hires, managing all compliance-related responsibilities. This includes issuing locally compliant contracts, registering employees with relevant authorities, processing payroll, and handling social security contributions and taxes in line with national laws.

By handing over these complexities to an EOR, your business avoids costly compliance errors and the time required to master local employment standards. You can focus on growing your team and operations while trusting that the legal and administrative foundation is solid. Whether you're making one strategic hire or building out an entire team, the EOR keeps you compliant, removes guesswork, and reduces the risk of legal or financial penalties, without requiring you to open a legal entity or maintain a local HR team.

Managing payroll in Mauritius requires careful attention to the country's unique tax structure and contribution requirements. Employers must navigate the CSG system, which replaced the previous pension scheme in 2020, alongside NSF contributions and progressive income tax withholding through PAYE.

Key compliance areas include monthly submissions due by the 20th of each following month and mandatory provisions for the 13th-month salary bonus. Penalties for non-compliance can be significant, with monthly surcharges of 5% (up to 100%) for late payments.

Using payroll management software can help employers consolidate payroll data and stay compliant in Mauritius by automating calculations, generating required reports, and ensuring timely submissions to authorities, ultimately reducing the risk of errors and penalties while streamlining the entire payroll process.

As of January 1, 2025, the national minimum wage in Mauritius is set at MUR 17,110 per month, representing a 3.7% increase from the previous rate of MUR 16,500 per month.

Running payroll in Mauritius is complex, especially when you're hiring without a local entity. Local laws determine everything from tax withholdings and reporting deadlines to benefit contributions and currency requirements. Missteps can lead to fines, payment delays, or unhappy employees. An Employer of Record takes this burden off your plate by handling the full payroll process. Acting as the legal employer, the EOR ensures you remain compliant with all payroll-related obligations, while still allowing you to manage your team’s day-to-day work and performance.

Key Ways an EOR Supports Payroll in Mauritius:

• Compliance Assurance: Ensures payroll aligns with local tax laws, labor regulations, and statutory deadlines.
• Payroll Processing & Tax Management: Calculates salaries, applies correct tax withholdings, and submits required reports.
• Benefits & Social Security Contributions: Manages employer obligations for pensions, health insurance, and other legal entitlements.
• Contract Generation & HR Administration: Drafts compliant employment contracts and supports onboarding, terminations, and HR tasks.
• Currency Payments: Issues timely salary payments in local currency, ensuring employees are paid accurately and on time.

In Mauritius, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, paying fees, and meeting specific eligibility criteria. The key visa types include the Occupation Permit (OP), Work Permit, Permanent Resident Permit, and Premium Visa.

Employers must ensure compliance with local labor regulations, demonstrate the unavailability of local candidates, and provide formal employment contracts when sponsoring foreign employees. Additionally, Mauritius offers a Premium Travel Visa for digital nomads and remote workers, enabling them to live and work in the country for up to one year (with option to renew) while conducting business activities remotely.

Mandatory Leave Entitlement in Mauritius

The annual leave entitlement in Mauritius is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Mauritius

Public holidays might change if they fall on a weekend; the government decides whether to move them to a weekday or not. Some religious holidays determined by the lunar cycle will be confirmed closer to the date.

Paid Time Off in Mauritius

Any full-time employee working continuously with the same employer for 12 consecutive months is entitled to 20 working days of paid annual leave by the employer.

Maternity Leave In Mauritius

Effective June 7, 2024, female employees get 16 weeks of paid maternity leave. A maternity allowance of Rs 2,000 p/month is granted for the mother, for a duration of nine months from the third trimester of pregnancy. A special 2-week additional maternity leave is provided for multiple births or premature births. Female employees adopting a child under 12 months old are entitled to 14 weeks of fully paid leave.

Paternity Leave In Mauritius

Effective June 7, 2024, fathers are entitled to 4 consecutive weeks of paid paternity leave.

Sick Leave In Mauritius

Employees are entitled to up to 15 days of paid sick leave. To be eligible, an employee must have worked for one year, but if no absences occurred within the first 6 months, they become eligible for sick leave after 6 months of employment. The sick leave is fully paid by social security.

Parental Leave In Mauritius

Mauritius does not have a separate shared parental leave policy.

Marriage Leave

Employees are granted six days of paid leave to celebrate and attend to matters related to their own first marriage.

Bereavement Leave

In the unfortunate event of the passing of a direct relative, employees are entitled to three days of paid leave to cope with grief and attend related arrangements and ceremonies.

Administering employee benefits in Mauritius requires more than just offering a standard package. Local labor laws often mandate specific entitlements, from health insurance to paid leave, and the rules can change without warning. Mauritius also has unique standards for what an attractive, competitive benefits package looks like. For businesses without in-country expertise, meeting these obligations and expectations can quickly become risky and expensive. An Employer of Record acts as your compliance partner, ensuring all benefits are provided according to the latest legal requirements and without administrative strain on your internal team.

Beyond compliance, an EOR brings clarity and consistency to a process that’s often complex and fragmented. They handle enrollments, ensure accurate employer contributions, manage communications with local providers, and keep everything properly documented. This means employees get what they’re entitled to, and you avoid the headache of navigating benefits systems in a foreign market. Whether you're hiring one person or building a larger team, an EOR provides a clear, dependable structure that lets you offer competitive benefits without taking on unnecessary risk or workload.

Termination Process in Mauritius

In Mauritius, employee contracts can be terminated for just cause, including reasons such as:

• Negligence
• Misconduct
• Poor performance
• Fraud
• Business needs (economic, technological or structural grounds)

Notice Period in Mauritius

In accordance with the Workers Rights Act (WRA) in Mauritius, the statutory notice period requires employers to provide a minimum of 30 days' notice before dismissing an employee. However, it's common for employment contracts to specify longer notice periods.

Severance in Mauritius

Employees are entitled to severance pay based on their length of service and the reason for termination. If an employer lets go of an employee without a good reason and the employee has worked for at least a year, the worker can ask for severance pay. The amount is three months' pay for each year of service.