Mauritius | Special Allowance Act 2024 Promulgated

Mauritius | Special Allowance Act 2024 Promulgated

The Mauritius Special Allowance Act was enacted on the 20th of December 2024 and came into effect on 21 December 2024. This new legislation introduces a Special Allowance (14th-month bonus) for employees earning a monthly basic salary of up to MUR 50,000.

 

Eligible Employees

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 Details

The special allowance to be paid by employers 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 number of months worked.


The allowance must 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 can agree to spread the payment over four equal instalments, provided the first payment is made in December 2024.


Payroll Impact

The special allowance will be treated as follows:

  • Subject to income tax under the cumulative PAYE system and included in taxable emoluments for the relevant month.
  • Exempt from:
    • Contribution Sociale Généralisée (CSG).
    • National Savings Fund (NSF).
    • HRDC Training Levy.
    • Portable Retirement Gratuity Fund (PRGF)


Financial Assistance

Small and Medium Enterprises (SMEs), exporters, and other eligible employers can access financial assistance via the Mauritius Revenue Authority (MRA) website. For more information, click here.


    • Related Articles

    • Mauritius | 14th Month Bonus (Special Allowance)

      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 ...

    • Mauritius- Finance Act 2024 Promulgated

      On 26th of July 2024, the President of the Republic of Mauritius, Prithvirajsing Roopun, signed the Finance Act 2024 into law, bringing the following changes to the Income Tax Act affecting payroll into effect: Exempt Income • The exempt threshold ...

    • Kenya | Relocation Allowance

      Relocation allowance is treated as a taxable emolument except where the allowance is a reimbursement of actual costs incurred by the employee in relocating to a new work location. Relocation Costs are not specifically mentioned in the Kenyan Income ...

    • Namibia | Income Tax Amendment Act, 2024 Promulgated

      The Income Tax Amendment Act, 2024 was approved by Parliament and published in Government Gazette 8442 on 16 September 2024. The updated tax rates, detailed in paragraph 1 of Schedule 4 to the Income Tax Act, 1981, will be effective starting 1 March ...

    • Mauritius | How do I ensure the Portable Retirement Gratuity Fund calculates?

      Employers are required to pay a gratuity or a retirement allowance to long-standing employees on their retirement or death as a lump sum. This is a statutory obligation on an employer, and this was previously provided for under s.49 and s.49A of the ...