CSG replacing the National Pension Fund in Mauritius
Effective from 1 September 2020, contribution to the National Pension Fund (“NPF”) has been abolished and replaced by the Contribution Sociale Genéralisée (“CSG”). Pursuant to the Contribution Sociale Genéralisée Regulations 2020 (“CSG Regulations”), every participant is liable to CSG every month. Contribution to CSG is calculated as follows:
1 “domestic service” means employment in a private household and includes employment as a cook, driver, gardener, garde malade or maid.
Participant means a person:
i. who enters into, or works under an agreement or a contract of apprenticeship, other than a contract of apprenticeship regulated under the Mauritius Institute of Training and Development Act, whether by way of casual work, manual labour, clerical work, or otherwise, and however remunerated;
ii. employed on a part-time or full-time basis, whether in a position which is of permanent nature or on a contract of fixed duration; and
- a public sector employee;
- a share worker as defined in the Workers’ Rights Act 2019;
- a non-citizen employee;
- a person employed in the domestic service;
- a person aged 65 and above;
- a person performing atypical work as defined in the Workers’ Rights Act 2019;
- an executive director of a company;
- a self-employed; but
- does not include
- a non-citizen employee employed by an export manufacturing enterprise who has resided in Mauritius for a continuous period of less than 2 years, including any period of absence which does not exceed 9 consecutive weeks or during which he maintains a residence in Mauritius;
- a non-citizen holding a work permit and employed by a foreign contractor engaged in the implementation of a project which is funded by a foreign State up to not less than 50% of the estimated project value, from grant or concessional financing, as the Minister may determine;
- a person taking part in a training scheme set up by the Government or under a joint public-private initiative with a view to facilitating the placement of jobseekers in gainful employment;
- a non-executive director of a company
CSG Reporting Obligations
Penalty under CSG
It is the obligation of the employer or the self-employed, as the case may be, to retain both participant’s and employer’s CSG contributions and remit same to the MRA.
A penalty of 10% applies on any unpaid CSG. The penalty is capped at a maximum of 25% of the amount of the additional CSG claimed under an assessment.
Any unpaid CSG is also subject to interest of 1% per month or part of the month during which the CSG remains unpaid.
An employer is not entitled to recover any arrears of CSG, penalty and interest subsequently paid to the MRA from the participant.
Cessation of business
Written notice should be submitted to the MRA where an employer becomes aware that he will cease to carry on any trade, business or occupation, whether voluntarily or otherwise, giving particulars of the cessation date.
The employer should submit its monthly or annual CSG return and pay any CSG or penalty payable with 15 days from cessation date.