Official Notice on the Implementation of the Contribution Sociale Généralisée (CSG) in Mauritius
On 22 September 2020, the Mauritius Revenue Authority (MRA) issued an official communication to inform all relevant stakeholders about the introduction of a new social contribution system known as the Contribution Sociale Généralisée (CSG). This notice details the scope, applicable categories, contribution rates, and procedural instructions for compliance with this legislative change, which aims to modernize and streamline social security contributions in Mauritius.
Context and Scope of the CSG Implementation
The CSG replaces the previous system of contributions to the National Pension Fund (NPF) as of September 2020. The transition marks a significant shift towards a participative and collective approach to social contributions, aligning with broader social policy objectives. The last contribution to the NPF was payable for August 2020, with the final payment deadline set for 30 September 2020. From October 2020 onwards, all contributions are to be made under the new CSG framework.
This reform affects a wide range of contributors, including private and public sector employees, self-employed individuals, and domestic workers. The new system aims to ensure sustainable financing of social services while simplifying the contribution process through electronic procedures managed by the MRA.
Who Is Affected by the CSG?
The CSG applies to:
- Employees in the private sector earning a monthly basic wage or salary not exceeding Rs 50,000, who are subject to deductions from their wages.
- Employees in the private sector earning above Rs 50,000, who contribute at a higher rate.
- Public sector employees, with contributions based on their salary brackets.
- Domestic workers earning up to Rs 3,000 in aggregate per month from one or more employers.
- Self-employed individuals, who are required to pay a fixed monthly contribution of Rs 150.
It is important for all employers, employees, and self-employed persons to understand their respective obligations under the new system to ensure compliance and avoid penalties.
Key Points of the CSG Contribution Rates and Payment Procedures
Contribution Rates
| Category of Employee | Rate on Employee’s Basic Wage | Rate on Employer’s Contribution |
|---|---|---|
| Private sector employee earning ≤ Rs 50,000 | 1.5% | 3% |
| Private sector employee earning > Rs 50,000 | 3% | 6% |
| Public sector employee earning ≤ Rs 50,000 | Not applicable | 4.5% |
| Public sector employee earning > Rs 50,000 | Not applicable | 9% |
| Domestic worker earning ≤ Rs 3,000 | Not applicable | 3% |
| Self-employed individual | Rs 150 per month | |
Payment and Submission Deadlines
Employers are required to deduct the applicable contribution from employees’ wages and remit the total amount, including the employer’s share, to the MRA electronically. The submission and payment must be completed on or before the end of the following month.
For the month of September 2020, the deadline has been extended to 30 November 2020, to facilitate the transition to the new system. Penalties for late submissions include a 10% surcharge and interest at 1% per month or part thereof.
Electronic Submission Procedures
Employers will utilize the MRA’s online portal, accessible via the official website, for submitting their CSG returns. The submission process requires the use of the same Employer Registration Number (ERN) and password previously used for NPF contributions, ensuring continuity and security. The digital platform is designed to simplify compliance and promote transparency in social contribution management.
Additional Information and Support
For further guidance or clarification regarding the CSG system, employers and self-employed individuals are encouraged to contact the MRA Helpdesk during working hours at +230 207 6000 or via email at paye@mra.mu. The MRA also provides updates and resources through its official website, www.mra.mu.
This official notice underscores the Mauritian government’s commitment to enhancing social security mechanisms through modernized, participative, and efficient contribution systems, aligning with international best practices and national development goals.
