Employer of Record in Mauritius

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in another country. If you want to hire someone in Mauritius but don't have a legal entity there, an EOR is a practical solution. The EOR handles all the HR tasks like payroll, taxes, benefits, and compliance with local labor laws. This allows you to focus on managing your employee's day to day work. Using an EOR like Rivermate simplifies your expansion into Mauritius.

How an Employer of Record (EOR) Works in Mauritius

Using an EOR in Mauritius is a straightforward process. Here is how it generally works:

1. You Find the Talent. You identify the candidate you want to hire in Mauritius.
2. The EOR Hires Them. The EOR legally employs the person on your behalf. They draft a locally compliant employment contract and handle the onboarding process.
3. They Manage HR and Payroll. The EOR takes care of all payroll, tax withholdings, and social security contributions according to Mauritian law.
4. You Manage the Work. Your new employee works for your company, and you manage their daily tasks and projects.
5. Ongoing Compliance. The EOR ensures that all aspects of the employment relationship remain compliant with Mauritius's labor laws.

Benefits of Using an EOR for Hiring in Mauritius

Using an EOR to hire in Mauritius gives you a significant advantage. It allows you to enter the market and build a team quickly without the time and expense of setting up a local company. This reduces your legal risks and administrative workload, letting you focus on your business goals.

• Faster Market Entry. Hire employees and start operations in Mauritius in a fraction of the time it would take to establish a legal entity.
• Compliance Assurance. EORs are experts in local labor laws, ensuring you avoid legal mistakes with contracts, taxes, and benefits.
• Cost Savings. Avoid the high costs associated with setting up and maintaining a legal entity in a new country.
• Simplified Operations. Offload complex HR and payroll tasks to a dedicated provider, freeing up your internal resources.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Mauritius includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Mauritius.

Hiring in Mauritius is an attractive option for many companies, thanks to a diverse economy with strong sectors like tourism, finance, and information technology. The island nation has a vibrant job market for both local and international talent. Understanding the local employment landscape is key to successfully building your team.

Employment contracts & must-have clauses

When you hire employees in Mauritius, a written employment contract is essential. It clarifies expectations and ensures you comply with local laws. While verbal agreements can exist, a written document is always the best approach.

Your employment contracts should include these key clauses:

• Parties' Details: Names and addresses of both the employer and the employee.
• Start Date: The official commencement date of employment.
• Job Details: The employee's job title and a clear description of their duties.
• Place of Work: The primary location where the employee will work.
• Working Hours: The expected hours of work.
• Pay: The employee's salary, how often they'll be paid, and the payment method.
• Leave: Details on annual leave, sick leave, and other leave entitlements.
• Termination: The notice period required for termination by either party.
• Probation Period: If applicable, the details of the probationary period.

Probation periods

A probation period helps you and your new employee decide if the role is a good fit. In Mauritius, the maximum probation period is typically:

• Six months for most employees.
• One year for managerial, executive, or professional roles.

During probation, you can terminate the contract with a shorter notice period, often seven days. However, you still need a valid reason related to the employee's performance or conduct.

Working hours & overtime

The standard workweek in Mauritius is 45 hours. This can be structured as:

• 9 hours per day for a 5-day workweek.
• 8 hours on five days and 5 hours on one day for a 6-day workweek.

Any work done beyond these standard hours is considered overtime. Overtime pay is calculated at 1.5 times the employee's regular hourly rate. If an employee works on a public holiday, the overtime rate is double the standard hourly rate.

Public & regional holidays

Mauritius observes a number of public holidays each year. Some are fixed, while others have dates that change annually. For 2025, the public holidays are:

Hiring contractors in Mauritius

Hiring independent contractors can be a flexible way to access specialized skills. However, it's important to understand the difference between a contractor and an employee to avoid misclassification risks.

An independent contractor typically:

• Works on a project basis.
• Has control over their own work hours.
• Can work for multiple clients.
• Is responsible for their own taxes.

Misclassifying an employee as a contractor can lead to significant penalties, including back payment of taxes and benefits. An Employer of Record (EOR) can help you mitigate this risk. An EOR acts as the legal employer for your workers, ensuring compliance with local labor laws and correctly classifying your team members. This allows you to focus on your business while the EOR handles the complexities of local employment.

In Mauritius, handling compensation and payroll means navigating a clear set of rules. You need to understand the standard pay schedules, mandatory contributions, and tax obligations. Staying compliant is straightforward when you know the basics of how money moves from you to your employees. It’s all about getting the details right to ensure everyone gets paid correctly and on time.

Payroll cycles & wage structure

Most companies in Mauritius pay their employees on a monthly basis. You should ensure that salaries are paid by the last working day of the month.

A key feature of the wage structure is the mandatory 13th-month bonus. You must pay this to any employee who has been with your company for all or part of the year. This bonus is equal to one-twelfth of the employee's earnings for the year.

Overtime & minimums

The standard work week in Mauritius is 45 hours. You can schedule this as five 9-hour days or spread it across six days. Any work you ask an employee to do beyond these standard hours is considered overtime.

• Overtime Pay: You must pay employees 1.5 times their regular hourly rate for any overtime hours worked.
• Minimum Wage: As of January 1, 2025, the national minimum wage is MUR 17,110 per month.
• Salary Compensation: In addition to the minimum wage, you must pay a salary compensation of MUR 610 per month to employees earning a basic salary up to MUR 50,000 per month.

Employer taxes and contributions

As an employer, you are responsible for several contributions on behalf of your employees. These are calculated based on your employee's salary and are paid to various government funds.

Employee taxes and deductions

You must also withhold certain taxes and contributions directly from your employees' salaries. The main deduction is for income tax, known as Pay As You Earn (PAYE), along with social security contributions.

The income tax brackets are structured as follows:

• 0% on the first MUR 500,000
• 10% on the next MUR 500,000
• 20% on the remainder of chargeable income

In Mauritius, you'll find a range of employee benefits and leave entitlements shaped by law and local custom. The system provides a solid foundation of mandatory leave and benefits. Many employers also offer extra perks to attract and keep the best talent. This creates a comprehensive package for employees.

Statutory leave

Mauritius law provides several types of paid leave for employees.

• Annual Leave After one year with the same employer, full-time employees get 20 days of paid annual leave. An extra 2 days are also granted. If you have worked for the same employer for 5 straight years, you are entitled to an additional 30 days of vacation leave.
• Sick Leave You are entitled to 15 working days of paid sick leave per year after 12 months of continuous service. You can accumulate up to 90 days of sick leave. For absences longer than three consecutive days, you need to provide a medical certificate.
• Maternity Leave Female employees receive 16 weeks of paid maternity leave. At least eight of these weeks must be taken after childbirth. If a mother has multiple babies from the same pregnancy or a premature baby, she is entitled to an additional two weeks of paid leave.
• Paternity Leave Fathers are entitled to four consecutive weeks of paid paternity leave.
• Special Leave The law also provides for special paid leave for certain life events. You can take:
  • 6 working days for your first marriage.
  • 3 working days for the marriage of a son or daughter.
  • 3 working days for bereavement.

Public holidays & regional holidays

Mauritius observes several public holidays each year. If a public holiday falls on a working day, it is a paid day off.

Typical supplemental benefits

In addition to the legally required benefits, many employers in Mauritius offer extra perks to stay competitive.

How an EOR can help with setting up benefits

An Employer of Record (EOR) simplifies the process of setting up employee benefits in Mauritius. Instead of navigating complex local laws and market practices on your own, an EOR handles it all for you.

An EOR ensures you comply with all mandatory benefits from day one. They manage everything from payroll and social security contributions to ensuring your employees receive the correct leave entitlements. This saves you time and reduces the risk of non-compliance.

An EOR also has deep knowledge of the local market. They can advise you on what supplemental benefits are common in your industry to help you attract and retain top talent. By leveraging their expertise, you can create a competitive benefits package without the administrative burden.

Let's walk through what terminating and offboarding an employee in Mauritius involves. The process is guided by the Workers' Rights Act 2019, which sets clear rules for employers. You need a valid reason to end an employment contract, such as the employee's conduct, performance, or for economic reasons. Following the correct legal steps is key to a smooth and compliant exit. This protects both you and your employee.

Notice Periods

When you decide to terminate an employment contract, you must provide the employee with a written notice. The length of this notice period depends on how long the employee has worked for you.

Your employment agreement can specify a longer notice period, but it cannot be shorter than these legal minimums.

Severance Pay

In Mauritius, you are required to pay severance in specific situations, like when a termination is for economic reasons or is considered unjustified. You are not generally required to pay severance if you terminate an employee for reasons related to their misconduct or poor performance.

The amount of severance pay is calculated based on the employee's length of service. For each year of employment, the payment is equal to three months' wages.

How Rivermate Handles Compliant Exits

Navigating employee exits in another country can be complex. We are here to make it simple and ensure you stay compliant with Mauritian law.

• Guidance: We walk you through every step of the termination process.
• Documentation: We prepare all the necessary legal documents, including the written notice of termination.
• Calculations: We accurately calculate final pay, including any required severance, to ensure your employee receives everything they are entitled to.
• Communication: We can help manage communication with the employee to ensure a professional and respectful offboarding experience.

Our goal is to handle the complexities so you can focus on your business. We make sure every termination is managed correctly and in full compliance with local laws.

Getting a visa or work permit in Mauritius involves a few key steps. The type of permit you need depends on your work and how long you plan to stay. For anyone who is not a citizen of Mauritius, you will need the right documents to legally work in the country. The main permit for foreign professionals is the Occupation Permit, which combines the right to work and live in Mauritius. For other types of work, a standard Work Permit might be necessary. The government has also introduced options like the Premium Visa for remote workers who earn their income from outside Mauritius.

Employment visas & sponsorship realities

An Employer of Record (EOR) can be your legal employer in Mauritius. This means the EOR handles payroll, taxes, benefits, and, most importantly, sponsors work visas for employees. This is a practical route if your company doesn’t have a legal entity in Mauritius. An EOR simplifies the process by managing the application and ensuring everything meets local requirements.

Here’s a breakdown of the common permits an EOR can typically sponsor:

• Occupation Permit (OP): This is for professionals, investors, and self-employed individuals. It's a combined work and residence permit. As your legal employer, an EOR can sponsor the Professional category of the OP.
• Work Permit: This permit is for foreign nationals employed by a company in Mauritius. An EOR can apply for this on your behalf.

While an EOR can sponsor most work permits for employees they legally employ, they generally cannot sponsor:

• Investor or Self-Employed Occupation Permits: These permits are tied to personal investments or freelance work, which falls outside the scope of a typical EOR employment relationship.
• Visas for individuals not employed by the EOR's client: An EOR's sponsorship is directly linked to the employment relationship they manage.

The most practical route for working in Mauritius is to secure a job with a company that will sponsor your permit. If that company uses an EOR, the EOR will handle the sponsorship process for you.

Business travel compliance

If you are visiting Mauritius for short-term business activities, you will likely need a business visa. For many nationalities, you can get a business visa on arrival. This visa allows you to attend meetings, conferences, and training.

Here are the key things to know about business travel:

• Duration: A business visa is typically granted for up to 120 days in a calendar year, but your first stay cannot be longer than 90 days.
• No Paid Work: You cannot earn a salary from a Mauritian source while on a business visa.
• Requirements: When you arrive, you will likely need to show the immigration officer:
  • A valid passport
  • Proof of a return flight
  • Evidence of accommodation
  • Sufficient funds for your stay
  • A letter from a local company explaining the purpose of your visit

Always check the latest visa requirements for your specific nationality before you travel.