Portable Retirement Gratuity Fund (PRGF)

Portable Retirement Gratuity Fund (PRGF)

Following the enactment of the Workers’ Rights (Portable Retirement Gratuity Fund) (Amendment) Regulations 2020, employers are required to submit, as from the month of January 2022, a monthly PRGF return and effect payment in respect of PRGF contributions to the Mauritius Revenue Authority (MRA).

However, there are some exceptions to the PRGF such as:

1. A worker who has not attained the age of 16.
2. A public officer or a local government officer.
3. A worker who draws a monthly basic wage or salary of more than Rs. 200,000.
4. A worker for whom the employer is contributing to a private pension scheme approved by the Financial Services Commission (FSC).
5. A worker whose retirement benefits are payable under the Statutory Bodies Pension Funds Act or the Sugar Industry Pension Fund Act.
6. A person under a contract of apprenticeship regulated under the Mauritius Institute of Training and Development Act.
7. 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.
8. A non-Mauritian citizen worker or a migrant worker.

With regards to employers who are contributing to a private pension scheme approved by the FSC for their employees, the Finance (Miscellaneous Provisions) Act 2022 mentioned that employers should provide an actuarial certificate to the Ministry of Labour to certify that the share of the employer’s rate of contribution to the private pension scheme is not less than 4.5% of the monthly remuneration of the employee for exemptions from contribution to the PRGF.

Failing to submit an actuarial certificate entails a liability on conviction to a fine ranging from MUR 50,000 to MUR 150,000 and to imprisonment for a term not exceeding 12 months.

For more information, we invite you to contact our Business Development Team by email at bd@juristax.com or call them on + 230 465 55 26.