Home Employers NPF / NSF

NPF / NSF Contributions and Training Levy

  1. Obligation to pay contributions
  2. Contribution Rates
  3. Wages or salaries on which contributions & levy are payable
  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 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:

    1. An employee who has not attained the age of 18;
    2. An employee who has attained the final retirement age (70 years); and
    3. A non-Mauritian citizen employee of an export manufacturing enterprise in respect of his first 2 years of employment.

     

  2. Contribution Rates
    1. 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 170 and not exceeding Rs 990 for a month - - -

       

    2. NSF Contribution

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

       

    3. 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.

     

  3. 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 2018)
    MINIMUM WAGE MAXIMUM WAGE
    Private Household employees (only) Employees in other sectors
    Daily 65 103 672
    Weekly 391 618 4,032
    Fortnightly 782 1,237 8,063
    Half Monthly 848 1,340 8,735
    Monthly 1,695 2,680 17,470

     

    An employee or his employer or both may opt to pay a contribution on a wage /salary which is greater than the maximum, subject to prior approval of the Minister.

     

    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.

     

  4. 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)

    1. NPF
       DetailsContribution 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.
      b. 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.
      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 who has reached retirement age whether or not the employee receives Contributory Retirement Pension (CRP).

       

    3. 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).

       

     

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

      Every employer is required to submit a monthly return giving the details of each employee, whether or not contributions are payable. The due date for the submission of the 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 who has not submitted monthly return 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 30th September following the end of the financial year.

       

    3. 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.

     

  6. Modes of Payment
    1. Direct Debit

      Employers are strongly recommended 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. 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, employers are required to specify their Employer Registration Number (ERN) and produce a copy of their acknowledgement confirmation of the return sent electronically.

      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, Employer Registration Number (ERN) the amount corresponding to 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 respect of which contributions are payable.

     

  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 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%.

       

    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:

        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).

      2. 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.

        

  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