The end-of-year bonus in Mauritius: rules and how to calculate it

The end-of-year bonus (often still called the 13th-month pay) is a statutory payment for most employees in Mauritius under the Workers’ Rights Act 2019, section 54. It is easy to underpay by using the wrong base or missing a deadline.

How much is it?

One twelfth of the worker’s earnings for the calendar year. “Earnings” is wider than basic salary: it includes basic wages, overtime, pay for public holidays and extra work, commission, productivity payments and other sums paid for work done on top of the basic wage.

When is it paid?

• 75% at least 5 clear working days before 25 December.
• The balance by the last working day of the year.

Worked example

An employee’s earnings for the year are Rs 360,000. The bonus is Rs 360,000 ÷ 12 = Rs 30,000. Of this, 75% (Rs 22,500) is paid at least 5 clear working days before 25 December, and the balance of Rs 7,500 by the last working day of the year.

Who is covered?

• A worker whose monthly basic wage is Rs 100,000 or less is covered by this bonus. Above that level a different law, the End of Year Gratuity Act 2001, applies.
• Workers in a sector whose Remuneration Regulations already provide for their own bonus are outside the statutory bonus.
• A worker who resigns with less than 8 months of service is not entitled to the bonus. Workers who are dismissed, retire or finish a contract are paid their share for the time worked.

Tax on the bonus

The bonus is taxable. It is not taxed as an ordinary month multiplied by 12, which would overcharge: the correct method is to tax the extra yearly income it adds. See how PAYE is calculated. CSG applies to the bonus too.