NPF / NSF Contributions and Training Levy
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Guide to Employers on Pension Contributions (NPF / NSF and Training Levy)
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Contributions payable in respect of employees having attained retirement age
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Obligation to pay contributions
Every month, every employer is required to submit to the Director-General of the Mauritius Revenue Authority (MRA) a statement giving the details of every employee who was employed during the preceding month and pay the amount of contributions in accordance with the National Pensions Act, National Savings Fund Act and Human Resource Development Act.
Contributions are payable as from the month in which an employee takes up employment whether on a part-time or full time basis and whether on probation or not.
No contribution is payable in respect of:
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An employee who has not attained the age of 18;
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An employee who has attained the final retirement age (70 years); and
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A non-Mauritian citizen employee of an export manufacturing enterprise in respect of his first 2 years of employment.
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NPF Contribution
Insured Person Employee share Employer share Government share 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 whose remuneration from all his employers does not exceed Rs 3,000, is not required to pay the employee share of contribution which will be paid by the government. - 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 may contribute in multiples of Rs 5 not below Rs 200 and not exceeding Rs 1,135 for a month - - - -
NSF Contribution
Employee & Employer share of contributions are 1 % and 2.5% respectively
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HRDC Training Levy
Every employer is required to pay levy at the rate of 1.5 % of the total basic wage or salary of its employees other than a household worker. For period from July 2019 to June 2020, an employer is required to pay levy at the rate of 1% for employees whose total basic wage or salary does not exceed Rs 10,000.
For periods from 1 July 2020 to 30 June 2021, every employer shall, in respect of every employee, pay a training levy of 1%.
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Wages or salaries on which contributions & levy are payable
NPF and NSF are payable at the prescribed rate on an employee’s basic wage/salary. Basic wage/salary includes yearly salary compensation but excludes bonus and any other allowance paid in cash or given to the employee in kind. The minimum and maximum basic wage/salary on which contributions are payable are given in the table below:
Pay period INSURABLE SALARY (Effective as from 01 July 2020) MINIMUM WAGE MAXIMUM WAGE Private Household employees (only) Employees in other sectors Daily 74 118 765 Weekly 447 705 4,592 Fortnightly 893 1,410 9,185 Half Monthly 968 1,528 9,950 Monthly 1935 3,055 19,900 Levy is also applicable on the basic wage / salary of an employee. However, the above ceilings do not apply and the employer is required to calculate the levy payable on the full basic wage / salary payable.
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Contributions payable in respect of employees having attained retirement age
For pay periods August 2018 onwards, an employee’s retirement age is 65 years and his final retirement age is 70 years.
For pay periods July 2018 and prior periods, the retirement age and final retirement age are based on the month in which the employee was born. (Click here for details)
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NPF
Details Contribution Payable a.
Employee has reached retirement age and is not in receipt of Contributory Retirement Pension (CRP).
NPF contributions ( both employer & employee shares) are payable in respect of that employee until he/she elects to receive his Contributory Retirement Pension (CRP) or reaches final retirement age, whichever is the earlier.
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Employee has reached retirement age and receives 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 the earlier.
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Employee has reached Final Retirement Age
No NPF contribution is payable in respect of an employee who has attained final retirement age.
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NSF
No NSF contributions are payable in respect of an employee who has reached retirement age whether or not the employee receives Contributory Retirement Pension (CRP).
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LEVY
No Training Levy is payable in respect of an employee after he has attained final retirement age. Where an employee has not reached final retirement age, training Levy is payable whether or not the employee receives Contributory Retirement Pension (CRP).
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Submission of Returns & Payment of contributions
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Monthly return
Every employer is required to submit a monthly return electronically giving the details of each employee, whether or not contributions are payable. Both the return and payment should be made electronically and the due date is one month after the end of the month for which the contribution is payable.
The returns and payments for the months of May and November should be effected 2 days, excluding Saturdays and public holidays, before the end June and December each year, respectively.
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Annual return
An individual employing a person in domestic service who has not submitted any monthly return in a financial year may submit an annual return and pay contribution on an annual basis. The last date for the submission of the return and payment of contributions is 31 July following the end of the financial year.
However, the employer is required to submit a quarterly statement for all their household employees in respect of each quarter of the financial year, at latest one month after the end of the quarter.
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Contributions in respect of seamen
Where an employer employs a person who is a seaman and whose remuneration is not paid on a monthly basis, the due date for submission of return and payment of contribution is one month and 20 days after the end of the pay period for which the contribution is payable.
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Direct Debit
Employers are required to use the Direct Debit facility put in place by the MRA in collaboration with the Bank of Mauritius for payment of contributions directly from their bank account when they are submitting their return electronically through MRA website. Employers should fill-in a PLACH Direct Debit Mandate 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.
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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 unpaid up to a maximum of 100%. No surcharge on NPF and NSF is applicable where it is less than Rs 50.
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%.
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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:
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in the case of a monthly return:
to a surcharge of 1 % of the total contributions payable for NPF up to a maximum of Rs 200, per day. The maximum surcharge applicable for a return is Rs 20,000 or the amount of contribution payable (i.e. 100%), whichever is the lesser. The minimum surcharge applicable is Rs 500 (i.e even for 1 day).
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in the case of an annual return:
to a surcharge of Rs 500 per day. The minimum surcharge applicable is Rs 5,000 (i.e even for 1 day). The maximum surcharge applicable for a return is Rs 50,000.
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