News FlashesJanuary 23, 2020

CRS News Flash 23 January 2020 – MAURITIUS – Portable Retirement Gratuity Fund



It is important that employers note the following:

Additional information regarding the new Portable Retirement Gratuity Fund

Proclamation No. 45 of 2019 was published to fix the effective date of the New Worker’s Right Act 2019 as at 24 October 2019.

The new Workers’ Right Act 2019 replaced the Employment Rights Act 2008.

The new Act brought changes, including but not limited to:

  • The definition of a worker;
  • End-of-year bonuses; and
  • Additional leave types.

These became effective on 24 October 2019.

Portable Retirement Gratuity Fund:

The idea of a Portable Retirement Gratuity Fund (PRGF) was introduced to recognise the terms of service of an employee, irrespective of the number of employers for whom the employee has worked.

It should be noted that although Proclamation 45 of 2019 stated the effective date for the PRGF as 1 January 2020, Cabinet postponed the entry into force of the PRGF until 1 April 2020, as many companies might not be ready to implement this in time.

Employers are advised to make provision for the payment of PRGF as from 1 January 2020, as the implications of the legal authorisation are not clear. It could relate to the timing of the payments only.

The regulations regarding the application of the PRGF and the contribution rate are yet to be published.

An update will be circulated as soon as the information is available.


Contact our legislation team at if you require any additional information.
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