Under The Social Contribution and Social Benefits Act 2021, social contributions (CSG) shall apply on the prescribed end-of-year bonus.

The CSG payable on the end-of-year bonus shall be computed separately from the contributions payable on the monthly basic wage/salary. The CSG on the end-of-year bonus shall be calculated the same way it is calculated in a regular month, the same rates and limits shall apply.

The Mauritius Revenue Authority has confirmed that the monthly CSG contribution should be based on just the basic salary/wage, excluding any other income.

The calculation for the monthly CSG contributions should be based on the basic salary only. However, Employers can redefine the CSG basis in case employees receive allowances that qualify as basic salary under the other specified legislation.

See the definition of “remuneration” as per the Social Contribution and Social Benefits Act 2021:

This is effective 01 September 2021

Please contact your Business Partner for assistance with the changes that need to be applied to the system.