The Cabinet approved the payment of a 14th month bonus for employees in both the public and private sectors during its meeting on 13 December 2024. This initiative has been formalised under the Special Allowance Bill No. XX of 2024 and applies to employees with a monthly basic salary of up to MUR 50,000.

 Eligibility for the 14th Month Bonus

All employees who have been in continuous employment for the entire or part of 2024 are entitled to this special allowance, including:

• Workers under apprenticeship contracts
• Part-time employees
• Atypical and shared employees
• Employees working from home
• Service providers

 Exclusions:

The following categories are not eligible for the special allowance:

• Job contractors
• Consultants
• Self-employed workers
• Participants in government or public-private training programmes
• Employees with a monthly basic salary exceeding MUR 50,000

Payment of the 14th Month Bonus

The special allowance is equivalent to one month's basic salary for employees who have been continuously employed with the same employer and are still employed as of 31 December 2024. For employees who worked part of the year but remain employed as of 31 December 2024, the allowance will be prorated based on the months worked.

Payment Schedule:

The allowance will be paid in two equal instalments:

• First instalment: By the last working day of December 2024.
• Second instalment: By the last working day of January 2025.

 Alternatively, employers and employees may agree to spread the payment over four equal instalments, provided the first payment is made in December 2024.

For employees with multiple employers:

Each employer will contribute a proportional share based on the salary they pay the employee.

Additional Notes:

Employees entitled to end-of-year bonuses or gratuities under the Workers’ Rights Act 2019, the End of Year Gratuity Act, or relevant Remuneration Regulations will still receive the special allowance in addition to any other bonuses or allowances.

Funding the 14th Month Bonus

A financial assistance scheme has been established to support small and medium-sized enterprises (SMEs), exporting companies, and other specified employers in paying the special allowance.

Payroll Impact

The Social Contribution and Social Benefits Act 2021 will be amended to exclude the special allowance from the definition of basic wage or salary.

Further details regarding the impact on other statutory contributions, such as PAYE, National Savings Fund (NSF), HRDC Training Levy, and Portable Retirement Gratuity Fund (PRGF), are yet to be clarified.

Further updates will be provided once the Act is enacted.