Employer Tax Contributions

Tax Type	Rate	Base
Contribution Sociale Généralisée (CSG)	3% (up to MUR 50,000 monthly basic wage) / 6% (exceeding MUR 50,000 monthly basic wage)	Basic wage/salary
National Savings Fund (NSF)	2.5%	Basic wage/salary
Human Resource Development Council (HRDC) Training Levy	1.5%	Total basic wage or salary (excluding household workers)
Pay As You Earn (PAYE)	Progressive rates (0% to 20%)	Employee's emoluments

Filing & Compliance

• Monthly PAYE and CSG/NSF returns and payments are due by the end of the month following the period the tax was withheld or contributions accrued.
• Annual Return of Employees (ROE) and Annual Tax Deduction at Source (TDS) Return for the income year ending June 30 should be submitted electronically on or before August 15.
• Employers must provide each employee with a Statement of Emoluments and Tax Deduction on or before August 15.

Employee tax deductions in Mauritius for 2025 are determined by the Income Tax Act and are subject to change based on the annual budget.

Key Tax Aspects for Employees in Mauritius

• Tax Rates and Thresholds: Mauritius employs a progressive tax system with varying rates and thresholds. It's important to refer to the latest official Mauritius Revenue Authority (MRA) resources for the most up-to-date figures.
• PAYE (Pay As You Earn): Employers in Mauritius are responsible for deducting income tax from employee salaries monthly through the PAYE system. The deducted amount is directly remitted to the MRA.
• Tax Deductions: Employees can claim various deductions, lowering their taxable income. These include deductions for dependents (spouse, children, and bedridden next of kin), contributions to approved pension schemes and retirement funds, and specific investments like rainwater harvesting systems.
• Employee Declaration Form (EDF): Employees use this form to declare their dependents and eligible deductions to their employer. The employer then uses the EDF information to correctly calculate PAYE deductions.
• Statement of Emoluments and Tax Deductions: Employers are legally obligated to provide employees with an annual statement by August 15th detailing earnings and tax deducted during the previous income year.

Specific Deductions and Reliefs

• Dependents: Specific deduction amounts are defined for each dependent. Certain limitations apply based on the dependent's income.
• Additional Deduction for Children in Private Schools: MUR 60,000 per child is deductible for expenses related to children attending fee-paying private schools.
• Additional Deduction for Higher Education: A substantial deduction of MUR 500,000 (up to four dependents) is available for children pursuing undergraduate or postgraduate courses.
• Household Employee Wages: Deductions for wages paid to household employees are capped at MUR 30,000. For married couples, the combined deduction cannot exceed this amount.
• Rainwater Harvesting Systems: The cost of investing in a rainwater harvesting system during the income year can be fully deducted.

Employer Responsibilities & Deadlines

• Employer Registration: All employers must register with the MRA within 14 days of hiring their first employee.
• PAYE Remittance: Employers are responsible for timely remittance of deducted PAYE amounts to the MRA.
• Special Allowance 2024: This specific allowance, designed for lower-income employees, has its own set of regulations, deadlines, and reporting requirements. Refer to official government resources for the most current details.

Important Considerations

• Residency: Tax residency status impacts eligibility for certain deductions and reliefs.
• Annual Budget Changes: Tax laws and regulations can be revised annually during the budget presentation. Staying updated with the latest from the MRA is essential.
• Professional Advice: Consulting a tax professional is highly recommended for personalized guidance and ensuring compliance.

Please note that this information is current as of February 5, 2025, and may be subject to change.