News Flash 30 July 2024 – MAURITIUS – Finance Bill 2024, Minimum Wage and NSF Contributions

JULY 2024 – MAURITIUS
THE FINANCE BILL 2024, MINIMUM WAGE AND NSF CONTRIBUTIONS
It is important that employers note the following:

Publication of the Finance (Miscellaneous Provisions) Bill, 2024
Following the Mauritian Budget Speech delivered on 13 June 2024, the Finance (Miscellaneous
Provisions) Bill 2024 was published on 12 July 2024.

The purpose of the bill is to implement the measures announced in the 2024–2025 Budget
Speech and to address related, supplementary and incidental matters.

Tax measures
Here are the key tax measures that will be implemented, starting 1 July 2024:

• Tax deduction for private school fees: Parents with children enrolled in full-time
  education at fee-paying private schools will be eligible for an income tax deduction of
  up to Rs 60,000 per child per year.
• Charitable donations: The income tax deduction for donations to charitable institutions
  has increased from Rs 50,000 to Rs 100,000 per year.
• Expenditure on carers: Individuals can claim a deduction of up to Rs 30,000 for the cost
  of employing a carer for their parents or grandparents.
• Exemption threshold for retiring or severance allowance: The tax exemption for a lump
  sum received as a pension, retiring allowance or severance allowance under the
  Workers’ Rights Act 2019 has increased from Rs 2.5 million to Rs 3 million.
• Compensation: Starting from 1 January 2024, compensation paid by the Government
  or a public sector body for losses directly or indirectly suffered due to natural disasters
  will be exempt from tax.
• Interest income: Interest income from bonds issued by public sector companies to
  finance infrastructure projects will be exempt from income tax, provided the bond is
  approved as exempt by the Minister of Finance, Economic Planning and Development.
• Allowances paid to individuals under a government financial assistance scheme will be
  exempt from tax.
• No changes to personal tax rates, personal reliefs or deductions for dependents were
  announced.

Amendment of the Workers’ Rights Act
The bill also proposed, among others, the following changes to the Workers’ Right Act 2019:

• • The right to disconnect during unsocial hours means the ability to disengage from work
    and work-related communications (including emails, telephone calls, video calls or
    other means of sending and receiving messages) when not working. These “unsocial
    hours” are defined as (i) between 1 p.m. on Saturday and 6 a.m. on the following
    Monday, and (ii) between 10 p.m. on a weekday and 6 a.m. on the following day.
  • Vacation leave: A worker continuously employed with the same employer for at least
    5 consecutive years is entitled to up to 30 days of vacation leave for every such period.
    This legislation has been in effect since 2019, so workers employed since then may be
    eligible for vacation leave in October 2024. This applies to workers earning no more
    than MUR 600,000 in annual basic salary.
    Further provisions regarding vacation leave are as follows:
    o The leave must be for a minimum of 6 consecutive days.
    o A worker must apply for vacation leave at least 3 months in advance, except in
    special circumstances.
    o An employer must approve the application unless there are reasonable business
    grounds, such as (a) the inability or impracticability to reorganise the working
    arrangements of existing workers, and (b) a detrimental effect on the ability to
    meet customer demand.
  • Work from home in extreme weather conditions.
  • Time off in lieu of remuneration for overtime.
  • Maternity/paternity leave:
    o Maternity leave will increase from 14 to 16 weeks with full pay, with at least 8
    weeks taken after confinement.
    o An additional 2 weeks of paid leave will be provided for mothers of twins,
    triplets, multiple births or premature babies.
    o Paternity leave will increase from 5 days to 4 weeks. Any adverse treatment of
    workers on maternity or paternity leave that impairs career development or
    promotion opportunities will be considered unlawful discrimination.
  • Childcare facilities:
    o In 2023, legislation required employers with over 250 workers to provide free
    childcare for children under 3, either on-site or within one kilometre. The new
    Bill proposes removing this location requirement and delegating authority to
    the Minister of Labour to regulate the provision of these facilities.

To view the Finance (Miscellaneous Provisions) Bill 2024, follow the link.

Minimum wage and the National Savings Fund (NSF) contributions
The Minister of Finance, Economic Planning and Development announced an increase to the
minimum wage in his Budget Speech. This has an effect on the NSF contributions.

With effect from 1 July 2024, the minimum and maximum basic wage or salary on which
contributions to the NSF are payable are as follows:

To view the Budget Speech 2024/2025, follow the link.