MAURITIUS Law and Practice Contributed by: Sameer Tegally, Sonia Xavier and Ashvan Luckraz, Venture Law
10.2 Employee Compensation In Mauritius, employee compensation encompasses various components, including the following. Minimum Wage The national minimum wage payable to a worker is for all workers (except part-time workers), including those employed in an export enterprise, a national monthly minimum wage of MUR17,110. The national minimum wage for a worker of an export enterprise shall include any housing allowance, food allowance, and any fixed monthly remuneration in cash guaranteed for work performed during normal scheduled working hours and not reduced for author - ised absences. It shall not include any variable pay component. End-of-Year Bonus Employees who remain in continuous employment with the same employer throughout the year are enti - tled to an end-of-year bonus. This bonus is calculated as one-twelfth of the employee’s annual earnings and is paid in two instalments: 75% not later than 5 clear working days before 25 December, and the remaining balance by the last working day of the year. For employees earning a monthly basic salary exceed - ing MUR100,000, the end-of-year bonus is governed by the End of Year Gratuity Act 2001. This Act stipu - lates that the bonus be based on one-twelfth of the December basic salary multiplied by the number of months of continuous employment that year. Government Compensation The government intervenes to adjust remuneration and allowances, considering factors such as infla - tion and the cost of living. The specific rates for these adjustments may vary from year to year. Pensions All employers must contribute to their employees’ retirement pensions. They may do so through a pri - vate pension plan approved by the FSC or pay into the Portable Retirement Gratuity Fund (PRGF) set up under the Act. Employers are required to pay PRGF contributions at the rate of 4.5% of each worker’s monthly remuneration.
In the context of acquisitions, change of control, or other investment transactions in Mauritius, employ - ee compensation is commonly addressed through a thorough review of existing employment contracts. The investor will then decide whether to maintain all the employees in their position with their acquired rights and years of service or agree with the former owner on the termination of all contracts or some of the contracts, with the payment of all the termination compensations by the owner prior to the acquisition, change of control or investment, so that the employ - ees who remain post-transaction will be under a new contract of employment. 10.3 Employment Protection In Mauritius, employees retain all their rights and con - ditions of work upon an acquisition, change of control, or other investment transaction, unless termination of their initial contract of employment has occurred (see previously in 10. Employment and Labour ). Any uni - lateral modification of their contracts can be construed as a breach of contract and warrant compensation by the employer. The employee’s consent is crucial if there is to be any amendment to their employment contract. As a rule, collective bargaining is not required for the completion of an acquisition or investment transac - tion unless an existing collective agreement specifi - cally requires it. 11. Intellectual Property and Data Protection 11.1 Intellectual Property Considerations for Approval of FDI Intellectual property (IP) tends to be secondary in screening FDI in Mauritius. 11.2 Intellectual Property Protections Mauritius has established a comprehensive legal framework for IP protection, governed by key legisla - tion such as: • the Industrial Property Act 2019; • the Industrial Property Regulations 2022; and • the Copyright Act 2014.
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