Certain employees in Mauritius who worked in 2024 can look forward to extra relief from the rising cost of living in the form of a 14th-month pay bonus.
Employer Action Code: Act
In the run-up to the November 2024 general election in Mauritius, both the ruling party and the opposition endorsed providing a 14th-month bonus for certain employees in the public and private sectors to ease cost-of-living concerns. The opposition party won the election handily and, as one of its first measures, endorsed legislation — the Special Allowance Act 2024 (SAA) — requiring employers to pay covered staff (as defined by the act) a 14th-month bonus based on 2024 employment. This second fixed annual bonus is in addition to the mandatory 13th-month bonus that applies to all staff. The act took effect on December 20, 2024.
Key details
From an employer's perspective, the main provisions of the SAA include:
- Full- and part-time employees who earn a monthly basic salary of up to 50,000 Mauritian rupees and were employed on December 31, 2024, are generally entitled to a 14th-month bonus. Certain types of staff, such as trainees and contractors, are ineligible. For individuals who worked for more than one employer in 2024, the responsibility to pay the bonus is shared among the employers proportionally.
- Bonuses for covered staff who were employed during the full calendar year without gaps longer than 28 days should equal their December base salary (additional regularly paid allowances and other payments are excluded). Bonus amounts for shorter periods of employment are reduced pro rata and include employment terminated for any reason, for reason of retirement, death, or resignation (provided the person was continuously employed for at least eight months). Bonuses are taxable as normal employment income, subject to social security contributions.
- Bonuses may be paid in between two and four installments, with the first payment due in December 2024. The payment schedule must be either mutually agreed upon or payable in four installments between December 2024 and March 2025. Small employers and newly established companies (as defined by the SAA) may apply for government reimbursement of up to 50% of the costs incurred (subject to certain conditions).
Employer implications
Employers should review the SAA and identify eligible current and former staff for payment. While the SAA only applies to 2024 employment for covered staff, it is unclear if the government intends to extend the bonus program in the future. The 13th-month bonus was first introduced in 1975 as a temporary measure for the sugar industry and, over time, became a statutory entitlement for all workers.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
