Mauritius: Portable Retirement Gratuity Fund (PRGF)
The Portable Retirement Gratuity Fund (PRGF) is a fund which is
established under the Mauritius Workers’ Rights Act 2019 for the
purpose of providing for the payment of a gratuity on the death or retirement
of a worker, while recognizing the worker’s terms of service irrespective of
the number of employers served.
Contribution Base and Rates
The applicable rate of contribution
varies from 2.1% to 4.5% of monthly remuneration depending on an employer’s
annual turnover and categories of employees. Where the employer’s rate of
contribution is less than 4.5%, the government funds the difference between
that rate and 4.5%. Small and Medium Enterprises (“SME”) will pay PRGF at a
lower rate for the first three years based on the annual turnover of the SME.
The "monthly
remuneration", for the purpose of the PRGF, is defined as the sum total of
the monthly basic wage, any productivity and attendance bonus, and any payment
for extra work performed.
Contribution for Current Services
Due to the COVID19 Pandemic, the
obligation to submit monthly PRGF returns and make payment of contribution was
suspended for the period from 1 January 2020 to 31 December 2021. There
was no obligation for an employer to pay PRGF during this period although
PRGF came into operation as from 1 January 2020. An employer who does not
maintain an approved private pension scheme, has now an obligation to
contribute to PRGF as from the month of January 2022. Both the return and the
payment are required to be completed electronically on or before the end of the
month following the month in which the PRGF is payable.
Contribution for Past Services- Cessation
of employment
PRGF for past services is applicable
in case a worker has ceased to be employed in these circumstances: “Termination
of employment, Resignation, Death, Retirement or Change in employment”.
In the event of the above, if a
worker has ceased to be employed as from January 2020, the employer is required
to submit a "PRGF Exit Statement" to the MRA within one month
of the occurrence and effect the appropriate payment into the PRGF in respect
of that worker.
- Existing
employees
The MRA has recently clarified that
employers who, for months prior to January 2022:
- have
submitted PRGF returns and paid PRGF for some months; or
- who
have not paid PRGF for any of the months,
shall also be deemed to form part
of “Past Services”. The employer may submit a “PRGF Past Services” return
and pay the PRGF contribution for months prior to January 2022 in respect of
workers who remain in employment from January 2020 to date with the same
employer.
In respect of what employees should
employers contribute to the PRGF?
All employees except:- public
officers, local government officers and those who derive retirement
benefits under the Statutory Bodies Pension Funds Act
- those
whose retirement benefits are payable in accordance with a private pension
scheme licensed by the Financial Services Commission
- non-citizens
- those
earning more than MUR 200,000 in monthly basic salary
Employees who are not eligible to
join the PRGF remain entitled to a retirement gratuity paid by their employer,
subject to having been in the continuous employment of that employer for at
least 12 months (as under the previous legislation). The gratuity is computed
based on 15 days’ remuneration per year of employment with that employer,
subject to certain deductions which can be made in case the employer
contributed to a private pension scheme for the benefit of that employee or
granted other gratuity or retirement benefit to the employee.