Mauritius
Finance Act 2025 amending the Income Tax Act 1995
Impact date: Income Year 1 July 2025 New Personal Income Tax Rates
For individuals, the first MUR 500,000 of chargeable income is tax-free. The next MUR 500,000 is taxed at 10%, and any income above MUR 1,000,000 is taxed at 20%.
Exempt Person
The definition of “exempt person” in section 2 of the ITA is amended to increase the monthly emoluments threshold from MUR 30,000 to MUR 38,462.
Removal of Personal Reliefs and Deductions
The following personal reliefs and deductions have been removed from income year starting on 1 July 2025:
- Deduction of wage paid to a household employee under section 27D
- Relief for adoption of animals under section 27K and
- Angel investor allowance under section 28
Finance Act 2025 amending the Non-Citizens (Employment Restriction) Act 1970
Impact date: 9 August 2025 except for section 4(7)(b) which will be fixed by Proclamation. Application or renewal of work permit
Pursuant to section 4(1) Non-Citizens (Employment Restriction) Act 1970 (NCERA), in addition to making an application or renewal for a work permit through NELS, applicants or current holders of such permits may do so through such digital platform as may be prescribed.
Electronic or card work permit
Section 4(7)(a) of the NCERA now clarifies that work permits may be in electronic or card version.
Combined work and residence permit
Pursuant to the new section 4(7)(b) of the NCERA, the Director-General of Immigration will now provide a combined work and residence permit to every holder of a work permit who is issued with a non-citizen residence permit upon their arrival in Mauritius.
Further amendments from the Finance Act 2025
Impact date: 9 August 2025 Fair Share Contribution
An individual must pay the Fair Share Contribution at the rate of 15% of the leviable income in excess of 12,000,000 MUR under new section 16C of the ITA.
Deduction for Dependent Child with a Disability
Section 27(6B) is amended to extend tax treatment provisions to a bedridden child as well as a bedridden next of kin by ensuring that:
- Benefits derived by the bedridden next of kin or a child under the National Pensions Act or the Social Contribution and Social Benefits Act 2021 shall be excluded from their net income calculation
- Such benefits shall not be included in the net income of the person claiming the deduction for the dependent
This amendment broadens the tax exemption to cover both bedridden next of kin and a child receiving these benefits.
Financial assistance for payment of salary compensation 2025
Section 150ED is introduced to provide monthly financial support for payment of the Salary Compensation 2025 as follows:
- MUR 610 monthly per eligible employee of a charitable institution, an NGO, a religious body or a trade union and
- Depending on the profitability of the enterprise, a maximum of MUR 610 or MUR 305 per eligible employee of:
- An SME, an Export-Oriented Enterprise, a bus operator or light rail operator providing public transport and
- An enterprise operating in the Business Process Outsourcing, Security, Cleaning Services or Construction sectors, having a turnover not exceeding MUR 750 million in the year of assessment 2023-2024
This assistance will be payable during the period of January 2025 to June 2025.
Finance Act 2025 amending the Economic Development Board Act 2017
Impact date: 9 August 2025 The Economic Development Board Act 2017 has been amended to revise the criteria for occupation permits (including a general investor, an alternative investor category, a professional pass and a self-employed person), residence permits for retired non-citizens and permanent residence permits.
Finance Act 2025 amending the Economic Development Board Act 2017
Impact date: 9 August 2025 The Economic Development Board Act 2017 has been amended to revise the criteria for occupation permits (including a general investor, an alternative investor category, a professional pass and a self-employed person), residence permits for retired non-citizens and permanent residence permits.
Finance Act 2025 amending the Private Pension Schemes Act 2012
Impact date: 9 August 2025 Approval of sponsoring employer
A new section 29B has been added to the Private Pension Schemes Act 2012 to provide that:
- No private pension scheme should accept a sponsoring employer without the prior approval of the FSC and
- An application for such approval should be made in such manner as the FSC may determine and should be accompanied by:
- Such information and documents as the FSC may require and
- Such fees as may be specified in the FSC rules
Employer implications/action needed Prospective sponsoring employers should follow the prescribed application process. No action is required for existing sponsoring employers.
Employer risk N/A
Economic and Financial Measures (Miscellaneous Provisions) Act 2025 amending the Workers’ Rights Act 2019
Impact date: 9 August 2025 Leave to care for spouse
Section 47A of the Worker’s Rights Act 2019 now grants a worker, earning a monthly basic salary of MUR 50,000 or less, paid leave to care for their spouse.
Such leave was initially available to a worker to care for their child (biological or adopted), their parents or grandparents, or the parents or grandparents of their spouse.
To qualify for this entitlement, the worker must inform their employer and provide such information as required under the Workers’ Rights Act 2019, including the medical certificate of the spouse if the worker is absent for more than three consecutive days.
Finance Act 2025 amending the Immigration Act 2022
Impact date: To be fixed by proclamation. Eligibility for residence permit
The Immigration Act 2022 (IA) requires the Director-General of Immigration to issue a combined work and residence permit to any work permit holder who is granted a non-citizen residence permit under section 8 of the IA.
Residence permit for retired non-citizen
Section 10 of the IA now allows retired non-citizens to apply for a residence permit to the Director-General of Immigration through the NELS platform, accompanied by such fee as applicable. Completeness of applications will now be checked by the EDB and the Passport and Immigration Office.
Eligibility for permanent residence permit
The provisions relating to permanent residence permits for non-citizens have been revised under section 11 of the IA to expand eligibility, clarify conditions, and adjust validity periods.
Eligibility for occupation permit
The provisions relating to occupation permits for non-citizens have been revised under section 12 of the IA to expand eligibility, clarify conditions, and adjust validity periods.
Eligibility for short-term
Amendments have been made under section 13 of the IA:
- A non-citizen may now apply directly to the Director-General of Immigration for a short-term occupation permit (not exceeding nine months) to work in Mauritius
- The requirement to apply through the EDB has been removed
Annual Fee
The amended section 15 of the IA introduces a new requirement for employers. Specifically, it mandates that every employer who employs a non-citizen worker shall pay an annual, non-refundable prescribed fee to the Director-General of Immigration for each non-citizen worker employed. This fee is in addition to other statutory obligations and applies per non-citizen worker.
Employment Relations (Amendment) Act 2019 (ERAA)
Impact date: To be fixed by proclamation. The way in which the Board makes recommendations for the review of pay and the definition of a worker has been amended and awaits implementation. Once in force, the Board will have to make its recommendations to the Minister for the review of pay and grading structures on an occupational basis every five years and will have to take, as baseline, the rate of wages prescribed in the Wages Regulations in force.
For the purposes of section 28(f) of the ERAA, a worker means:
- A worker whose basic wage or salary is at a rate not exceeding MUR 30,000/- in a month or
- A person who has been awarded a bachelor’s degree, recognized by the Higher Education Commission
However, the definition of worker excludes:
- A public officer, a local Government officer or a worker of a statutory body
- A job contractor
- 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
Section 28(f)(6) of the ERAA has been revised given the new definition of a worker and states that “worker”, subject to subsection (1A), has the same meaning as in the Workers’ Rights Act 2019.
Employer implications/action needed Once these new provisions come into force, employers will need to ensure that their pay review processes are compliant, including payment of the minimum prescribed wages. Employers should also note the amended definition of worker and how, or if, this affects the rights of workers they engage.
Employer risk N/A
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