The PRGF is not an administrative detail. It is a monthly employer contribution that must be factored in as soon as a company hires in Mauritius, as it affects payroll, HR budget and compliance.
For an employer, the real issue is simple: knowing which employees trigger contributions, how to calculate the base, and then when to declare and pay to the MRA. The official rules change, so the latest version should always be checked before any payroll is processed.
The PRGF in a nutshell
The Portable Retirement Gratuity Fund is the Mauritian scheme that requires employers to finance a retirement contribution for certain workers. MRA PRGF official page specifies that the monthly return and payment are made electronically, at the latest at the end of the month following the one for which the contribution is due.
Every employer is required to pay PRGF contributions at the rate of 4.5 % of the monthly remuneration of each worker.
In other words, under the general scheme, the PRGF is an employer contribution, not a payroll deduction. It is therefore a cost to be factored in from the company's creation and to be included in payroll processing each month.
Who is affected by the employer's contribution?
The official MRA guide states that the PRGF applies to workers in full-time, part-time, or casual employment, including during the probationary period, as well as those performing atypical work. It applies from the month of commencement of employment.
Calculation basis taken into account by the MRA
| Payroll element | Treatment for PRGF | Point of vigilance |
|---|---|---|
| Basic monthly salary | Taken into account | The MRA guide includes it in the monthly remuneration. |
| Productivity bonus | Taken into account | It is one of the elements explicitly mentioned by the MRA. |
| Attendance bonus | Taken into account | It is included in the official database. |
| Work or overtime | Taken into account | The MRA cites it in the remuneration used for the calculation. |
The MRA's reporting file also distinguishes between base salary, allowances, commission, and total remuneration on which the PRGF is calculated. In practice, this means that the payroll settings must be consistent with the items actually submitted to the administration. (mra.mu)
For illustrative purposes only, if the salary considered is 40,000 MUR, the employer's contribution would be 1,800 MUR. This type of example helps with budgeting, but it does not replace verifying the exact payroll items.
Which employees are excluded from the PRGF?
The MRA lists several exclusion cases. There is no PRGF to pay, for example, for a worker under 16 years of age, a public or local officer, an employee whose basic monthly salary exceeds Rs 200,000, a worker covered by a private pension scheme approved by the FSC, or a non-Mauritian or migrant worker.
The guide also includes apprentices governed by law, certain individuals in public training programs, and workers whose pension rights already fall under specific statutory schemes. In borderline cases, the best approach is to verify the contractual status, pension plan, and payroll records before finalizing the agreement.
If your project in Mauritius is part of a larger undertaking, the PRGF (Regional Planning and Development Plan) must be considered in conjunction with the rest of the tax and social security framework. For example, you can cross-reference this topic with... our guide to Mauritian taxation in 2026, with The overview of retirement, visas, budget and health in Mauritius, or even with Practical points regarding French pensions paid in Mauritius.
How to calculate the PRGF contribution rate at 4.5 %?
The general rate indicated by the MRA is 4.5 % of the monthly remuneration. The guide specifies that the calculation basis includes the basic monthly salary, productivity bonus, attendance bonus, and overtime pay.
The same guide also mentions transitional provisions for certain SMEs for the period 2022 to 2024, before the application of the 4.5% reference rate (%). For payroll in 2026, you should therefore rely on the official, up-to-date version and, if in doubt, have the settings validated by an accountant.
In practice, an expatriate company recruiting in Mauritius must consider the total cost of ownership. The total cost of ownership (TCO) is added to the salary structure and must be integrated into the business plan from the outset, especially if you are launching your business at the same time as your relocation.
Declare and pay the MRA contribution
There MRA PRGF guide This indicates that the employer submits a monthly return and pays the contribution electronically. The deadline is, in principle, the end of the month following the month for which the PRGF is due.
The MRA system works with the Employer Registration Number, the password assigned by the administration, and, depending on the case, a screen entry or a CSV file. The logic is simple, but it requires clean payroll, accurate employee data, and an internal calendar that anticipates the due date.mra.mu)
For an employer based in Mauritius, best practice involves finalizing three points before the first payroll cycle: each employee's job title, the calculation basis used, and the monthly filing procedure. If you have a specific situation, it's best to have it confirmed by a payroll professional or the MRA (Mauritius Revenue Authority).
PRGF and business creation in Mauritius
For an expatriate entrepreneur, the PRGF (Provisional Cost of Goods Sold) is not simply a form to fill out; it's a recurring cost to factor into cash flow. If you're starting a business, reading about Mauritian taxation in 2026 helps to frame the entire project, while this guide to retirement in Mauritius completes the reflection for a broader starting point.
In all cases, accurate payroll calculations, accounting, and legal matters should be entrusted to a professional when the situation deviates from the norm. This is the best way to avoid reporting errors or incorrect settings from the very first hire.
FAQs about PRGF in Mauritius
What is the PRGF in Mauritius and who pays the membership fee?
The PRGF, or Portable Retirement Gratuity Fund, is an employer-sponsored retirement contribution for certain workers in Mauritius. The MRA requires a monthly deposit and electronic payment. Under the general scheme, the cost is therefore borne by the company and not deducted from the worker's salary. The key for the employer is to identify the employees concerned, calculate the correct contribution base, and meet the monthly deadline.
Does the PRGF apply if the employer already has an approved private pension plan?
No, for this employee, if the employer contributes to a private pension plan approved by the FSC, the MRA indicates that they are not required to contribute to the PRGF. In practice, this must be correctly reported in the monthly return, and perfect consistency must be maintained between the contract, the pension plan, and the payroll. In the event of a change of plan, the verification must be repeated before the month in question.
How do I calculate the PRGF rate at 4.5 % and what is the basis for calculation?
The general rate is 4.5% of the monthly salary. The MRA guide specifies that this salary includes the basic monthly salary, productivity bonus, attendance bonus, and overtime pay. The MRA reporting file also distinguishes several payroll categories, demonstrating that proper payroll configuration is essential to avoid errors in the calculation or basis of calculation.
When and how must the employer declare and pay the PRGF?
The monthly return and payment are made electronically to the MRA, generally before the end of the month following the month for which the contribution is due. The administration uses e-Filing access with the employer's ERN and password. For larger volumes, the MRA also offers a CSV file submission option.
Which employees are excluded from the PRGF, particularly foreign workers?
The MRA guide specifically excludes non-Mauritian or migrant workers, those under 16, certain public employees, employees earning above the basic monthly ceiling set by the MRA, and those already covered by a recognized retirement or pension scheme. For employers, the critical point is to avoid confusing contractual status, immigration status, and pension coverage, as these three elements can lead to different treatment.
And now ?
If you are setting up a company or recruiting in Mauritius, anticipate the PRGF (Profit-Sharing and Financial Management Plan) from the outset when planning your payroll and social budget. To structure your setup, you can also browse EXPAT MAURITIUS, which supports visa, relocation, real estate and business creation projects in Mauritius with a personalized approach and a free assessment.
