Official Notice on the Portable Retirement Gratuity Fund (PRGF) in Mauritius
This official communication from the Mauritius Revenue Authority (MRA), dated 23 February 2022, provides essential information regarding the implementation and operational details of the Portable Retirement Gratuity Fund (PRGF). This notice is aimed at employers and self-employed individuals, clarifying their obligations, the contribution process, and the applicable rates for the fiscal year starting January 2022.
Objective and Scope of the PRGF
The primary purpose of the PRGF is to establish a portable retirement benefit scheme that facilitates the accumulation of retirement gratuity contributions for employees and self-employed persons. The scheme is designed to enable contributors to transfer their gratuity benefits across different employment sectors or periods of self-employment, thereby promoting financial security during retirement.
This notice emphasizes the legal obligation of employers to contribute to the PRGF from January 2022 onwards and outlines the procedures for contribution submission and payment. It also highlights the eligibility criteria, exceptions, and specific procedures for self-employed individuals wishing to contribute to the fund.
Legal and Administrative Framework
The PRGF is governed under the statutory provisions set forth by the Mauritius Revenue Authority, operating within the legal framework established by the Mauritius Revenue Authority Act and relevant employment laws. Employers are mandated to comply with the contribution requirements, which are integrated into the broader social security and retirement benefits system managed by the MRA.
Key Provisions and Contributions
Contributors and Exemptions
- Employers are required to contribute at a rate of 4.5% of each employee’s monthly remuneration.
- Self-employed individuals may also voluntarily contribute to the PRGF on a monthly basis.
- Contributions are not applicable to certain categories of employees, including:
- Public officers or local government employees;
- Employees covered under statutory pension schemes or private pension schemes approved by the Financial Services Commission (FSC);
- Migrant workers or non-citizens of Mauritius;
- Employees earning more than Rs 200,000 per month.
Contribution Rates and Duration
Employers must contribute 4.5% of the employee’s monthly salary. For Small and Medium Enterprises (SMEs), a reduced rate applies during the first three years starting from January 2022, with the difference financed by government seed capital. The specific contribution rates for SMEs are determined based on the previous year's annual turnover, details of which are available on the MRA website.
Procedures for Submission and Payment
Contributions to the PRGF must be submitted electronically via the Mauritius Revenue Authority’s online platforms. Employers are required to file their PRGF return and make payments on or before the 28th of the month following the contribution period, in this case, for January 2022, by 28 February 2022.
Electronic Submission
The MRA provides dedicated facilities for the submission of PRGF returns and payments through its official website and the Mauritius Network Services (MNS) platform. Employers are encouraged to utilize the online services to ensure compliance and facilitate timely processing.
Mode of Payment
Payments must be made via the Direct Debit facility, which has been established in collaboration with the Bank of Mauritius. This arrangement allows employers to authorize direct deductions from their bank accounts, streamlining the payment process and reducing administrative burdens.
Additional Information and Support
Employers and self-employed individuals seeking further guidance can consult the MRA website at www.mra.mu, contact the MRA Helpdesk at +230 207 6000 during working hours, or email the MRA at headoffice@mra.mu. Detailed instructions and updates regarding the PRGF are regularly posted on the official portal to ensure all contributors are well-informed of their obligations and the procedures involved.
This notice underscores Mauritius’s commitment to enhancing social security through structured retirement benefits and digital service delivery, aligning with national efforts to modernize administrative processes and promote financial inclusion.
