PRGF Mauritius Guide 2026: Employer Rules & MRA Filing

The PRGF was birthed from a need to protect the mobility of the Mauritian workforce. Historically, if an employee left a firm after 10 years, they often lost their rights to a retirement gratuity. Under the PRGF, the 'portability' aspect means the credit follows the employee.

As of 2026, the fund is managed by the MRA, which collects contributions and transfers them to the Treasury for investment. It applies to all employees in the private sector, including those employed by NGOs and SMEs, provided they are not already covered by a superior private pension scheme registered with the Financial Services Commission (FSC). For employers, this means every employee—whether full-time, part-time, or on a fixed-term contract—generally falls under the PRGF umbrella unless specific exemptions apply.

In 2026, the standard PRGF contribution rate remains 4.5% of the employee's monthly remuneration. It is important to note that 'remuneration' includes the basic wage plus any productivity bonus or attendance bonus, but typically excludes overtime and non-recurrent bonuses unless otherwise specified in the contract of employment.

For Small and Medium Enterprises (SMEs) with an annual turnover below MUR 50 million, specific transitionary measures may still apply or have been integrated into the current social security framework. However, the general rule is that the 4.5% is an employer-only cost; there is no deduction from the employee's salary for PRGF. Effectively, this increases the cost of employment by 4.5% over the base remuneration, which must be factored into your annual budgeting. Anexa.mu and Payroll.mu provide automated tools to help you track these costs accurately throughout the financial year.

One of the most complex aspects of the PRGF is the 'Past Services' liability. When PRGF was introduced, employers became liable to pay for the years of service an employee had already completed before January 2020.

Employers have three main options for handling past service:

1. Pay the full amount to the MRA upon the termination or retirement of the employee.
2. Pay the amount to the MRA at any time before the employee leaves.
3. Pay the amount to the MRA in installments (if such options are officially extended by the MRA).

The calculation for past services is based on the last drawn salary of the employee. This means the longer you wait to settle past service liabilities, the more expensive they become as salaries rise due to inflation and annual increments. At Payroll.mu, we recommend businesses conduct a 'Past Service Valuation' every two years to understand their potential exit liabilities.

Compliance with PRGF is not just about paying the money; it's about accurate reporting. Every month, employers must submit a PRGF Return via the MRA e-Filing platform. This return must list all eligible employees, their basic salary, and the 4.5% contribution amount.

Failure to include an eligible employee or under-reporting remuneration can lead to heavy penalties. Furthermore, when an employee leaves your company (whether through resignation, retirement, or redundancy), you must submit a 'Ceasation of Employment' notification and ensure all PRGF contributions—including any unpaid past services—are settled immediately. This is where many businesses stumble, resulting in disputes at the Ministry of Labour. Using a dedicated payroll solution like Payroll.mu ensures that these filings are generated automatically, reducing human error.

Under the Workers' Rights Act, certain employees are exempt from PRGF. These include:

• Employees whose retirement benefits are provided for under a private pension scheme that provides benefits at least equivalent to the PRGF.
• Non-citizens of Mauritius (except for specific bilateral agreements).
• Employees who earn above a certain threshold (if specified by the latest regulations of 2026).
• Public sector employees covered by different legislative frameworks.

It is critical to vet your private pension schemes. If your internal scheme provides less than 4.5% or has restrictive vesting rules, you may still be liable for the difference under PRGF. Consulting with experts at Anexa.mu can help you perform a 'Gap Analysis' to ensure your private pension meets the legal equivalence required by the MRA and the Ministry of Labour.

In 2026, the integration of PRGF with the Contribution Sociale Généralisée (CSG) and the National Savings Fund (NSF) is seamless within the MRA's digital ecosystem. However, for the business owner, the total 'social cost' of an employee must be understood.

Between CSG (employer portion), NSF (1.5%), and PRGF (4.5%), an employer is looking at a significant percentage above the basic salary in statutory contributions. Effective HR management requires a payroll system that doesn't just calculate these, but also provides monthly reports for cash flow planning. At QuickFocus.biz and Payroll.mu, we provide integrated dashboards that show you exactly how much is being accrued for PRGF compared to your actual monthly payouts, ensuring no surprises when an employee retires.