Home Employers NPF / NSF

NPF / NSF Contributions and Training Levy

  1. Obligation to pay contributions
  2. Contribution Rates
  3. Remuneration base for computation of contributions & levy
  4. Contributions payable in respect of employees having attained retirement age
  5. Submission of Returns & Payment of contributions
  6. Modes of Payment
  7. Surcharges
  8. Additional Informations

  1. Obligation to pay contributions

    Every employer is required to pay to the Director-General of the Mauritius Revenue Authority (MRA) in respect of every month and in respect of every employee aged below retirement age, who works during that month, the amount of contributions payable to the National Pension Fund, National Savings Fund and Training Levy under the Human Resource Development Act.

    Contributions should be paid as from the month in which an employee starts working even on part-time basis.

     

  2. Contribution Rates
    1. NPS Contribution

       

      Insured Person Employee share Employer share Govt.
      Every prescribed employee in the Sugar Industry 3% 10.5% -
      Every other prescribed employee (higher rate) 5% 8.5% -
      An employee in domestic service or an agricultural worker earning remuneration not exceeding Rs 3000 * - 6% 3%
      Every other employee other than a public officer or an employee entitled to pension under pension law 3% 6% -
      Every self-employed or non-employed or prescribed person approved by Minister contribute in multiples of Rs 5 not below Rs 150 and not exceeding Rs 885 for a month - - -

       

      * : An employee in domestic service or an agricultural working whose renumeration does not exceed Rs 3000, does not pay the employee share of contribution. That share is paid by the government.

       

    2. NSF Contribution

      Employee & Employer share of contributions are 1 % and 2.5% respectively

       

    3. HRDC Training Levy

      Every employer should pay levy at the rate of 1.5 % of the total basic wage or salary of its employees other than a household worker.

     

  3. Remuneration base for computation of contributions & levy

    NPF and NSF are payable on an employee’s basic wage or salary as prescribed in a remuneration order, award or agreement. Basic salary includes yearly salary compensation but excludes any allowance paid in cash or kind. Contributions are payable on basic salary subject to the floors and ceilings as given in the table below:


      MINIMUM WAGE MAXIMUM WAGE
    Pay period For private Household employees For other employees For all employees
    Daily 63 100 654
    Weekly 380 601 3922
    Fortnightly 759 1202 7844
    Half Monthly 823 1303 8498
    Monthly 1645 2605 16995

    An insured person or his employer or both may opt to pay a contribution on a wage greater than the maximum subject to prior approval of the Minister.

    Levy is also payable on the basic salary of an employee except that the above ceilings do not apply.

     

  4. Contributions payable in respect of employees having attained retirement age

    An employee’s retirement age and final retirement age are 65 years and 70 years respectively. However, employees born in July 1953 and prior period have an earlier retirement age and final retirement date as set out in the 9th schedule of National Pensions Act.

    Contributions and levy payable are as follows:

    1. NPF
      a. Employee has reached retirement age and has not elected to receive Contributory Retirement Pension NPF contributions ( both employer & employee shares) are payable in respect of that employee until he/she elects to receive his contributory retirement pension or reaches final retirement age, whichever is earlier.
      b. Employee has reached retirement age and has elected to receive Contributory Retirement Pension NPF Contribution (employer share only) is payable in respect of that employee until he ceases to be employed or he reaches final retirement age, whichever is earlier.
      c. Employee has reached Final Retirement Age No NPF contribution is payable in respect of an employee who has attained final retirement age.

       

    2. NSF

      No NSF contributions are payable in respect of an employee after he has reached retirement age (65 years).

       

    3. LEVY

      No Training Levy is payable in respect of an employee after he has attained final retirement age (70 years).

       

     

  5. Submission of Returns & Payment of contributions
    1. Monthly return

      Every employer should submit a monthly return in respect of each insured person. The due date for return and payment of contributions is 20 days after the end of the month for which the contribution is payable. Where return and payment are made electronically the due date is one month after the end of the month for which the contribution is payable.

       

    2. Annual return

      An individual employing a person in domestic service or a member of the National Assembly employing a constituency clerk or a driver, or both (who is or are paid out of public funds) may submit an annual return & pay contribution on an annual basis. Where an annual return is required to be submitted, the due date is one month after the end of year. The due date for payment of contributions is 20 days after the end of June. Then the return along with payment for June shall be made at the same time.

       

    3. Portage Bill

      Where employer employs an insured person who is a seaman whose remuneration is computed by reference to a portage bill the due date for submission of return & payment of contribution is one month and 20 days after the end of the pay period for which the contribution is payable.

     

  6. Modes of Payment
    1. Direct Debit

      MRA strongly recommends employers to use the Direct Debit facility put in place to pay their PAYE, NPF/NSF contributions, HRDC Training Levy and the Recycling Fee (RCF) directly from their bank account. Employers should fill-in a Direct Debit Form downloadable from MRA website to avail themselves of such facility. The form duly filled-in, and signed by authorised signatories, should reach the MRA at least 15 days before the due date for payment.

       

    2. Cash / Cheque

      Payment may be made by cash or by cheque at MRA's cash counters, Ehram Court, Port Louis, from Monday to Friday (09 00 to 15 30). While effecting payment, please ensure that you have your PAYE Employer Registration Number (ERN) and a copy of your acknowledgement confirmation.

      Cheques drawn to the order of the Director General MRA crossed "MRA A/C" or "Account Payee Only" may be sent by post. Please write your name, PAYE Employer Registration Number (ERN) the amount corresponding to PAYE, NPF/NSF contributions, HRDC Training Levy and the month on verso of cheque. The cheque should reach the MRA Headquarters, Ehram Court, Port Louis not later than 20 days after the end of the month in which tax was withheld.

     

  7. Surcharges
    1. Surcharge on late payment of contributions

      Where an employer fails, within the prescribed time, to pay to the Director-General the whole or part of any contributions payable, he shall pay a surcharge at the rate of 5 % for each month or part of the month during which any contributions remained up to a maximum of 100%. No surcharge is applicable where it is less than Rs 50 (now proposed Rs 100).

      Where the unpaid contribution for NPF is less than Rs 120, no surcharge is applicable unless the percentage of the unpaid contribution to total contribution payable is greater than 10%.

      When payment facilities are granted to en employer for payment of outstanding contributions through an agreement, no surcharges are applicable as from the date of agreement. If the agreement is not complied with, the agreement will lapse and surcharges will restart to apply as from the date it lapses.

       

    2. Surcharge on late submission of returns

      Where an employer other than a person who employs an employee in domestic service fails to submit return within the due date, he shall be liable:

      1. in the case of a monthly return:

        a surcharge of 1 % of the total contributions payable for NPF up to a maximum of Rs 200, per day up to a maximum of Rs 20,000 or the amount of contribution payable per the return (i.e. 100%). The minimum surcharge applicable is Rs 500 (i.e even for 1 day).

      2. in the case of an annual return:

        a surcharge Rs 500 per day up to a maximum of Rs 50,000. The minimum surcharge applicable is Rs 5,000 (i.e even for 1 day).

       

    3. Religious and Charitable Institutions

      No surcharge (late payment & Late submission) is applicable for Religious, Charitable Institutions and Diplomatic Missions.

     

  8. Additional Informations
    1. Direct Debit Form
    2. Circular Letter to employers
    3. Leaflet on One-Stop Shop for employers to pay Taxes & National Pension Contributions