Mauritius Announces 2024 Special Allowance Payment Support

Overview of the Financial Assistance Payment for Special Allowance 2024 in Mauritius

The Mauritius Revenue Authority (MRA) has issued an official notice regarding the extension of financial support to specific categories of employers for the payment of the Special Allowance in 2024. This initiative is part of the government's ongoing efforts to mitigate economic challenges and support employment sectors affected by recent developments. The notice, identified by the code CommuniqueFA120225, provides essential details on eligibility, application procedures, and the scope of the financial assistance.

Context and Purpose of the Notice

This notice informs employers about the continuation and expansion of financial aid aimed at reimbursing part of the Special Allowance paid to employees. The Special Allowance, which is a supplementary remuneration component, is targeted at certain sectors and organizations that are deemed critical for social and economic stability. The government’s decision reflects its commitment to supporting vulnerable sectors and ensuring that employees receive financial support amid fluctuating economic conditions.

Who Is Eligible for the Financial Assistance?

The extension of this financial aid targets specific categories of employers, which include:

• Charitable institutions
• Non-Governmental Organizations (NGOs) registered with the National Social Inclusion Foundation
• Registered religious bodies
• Trade unions
• Enterprises with a turnover not exceeding Rs 750 million for the assessment year 2023/2024, operating in the following sectors:
  • Business Processing Outsourcing (BPO)
  • Security or cleaning services
  • Construction industry

Employers falling within these categories are eligible to receive financial assistance, provided they meet the criteria outlined by the MRA. The assistance aims to cover the full amount of the Special Allowance paid to employees, especially when the enterprise faces specific financial constraints.

Criteria for Financial Assistance Eligibility

The level of support depends on the financial performance of the enterprise, specifically its accounting profit or loss for the assessment year. The criteria are as follows:

• If the enterprise has an accounting loss or if its profit would be reduced by more than 50% after accounting for the increase in the National Minimum Wage, Salary Compensation 2024, and the Special Allowance, it is eligible for a full reimbursement of the Special Allowance paid to employees.
• If the profit reduction is less than 50% but more than 10%, the enterprise is eligible for a 50% reimbursement of the Special Allowance paid.

It is important to note that the financial assistance applies only to full-time employees of the eligible enterprises.

Application Process and Submission of Claims

Employers wishing to benefit from this support must submit their application electronically via the MRA official website, www.mra.mu. The process involves:

1. Accessing the online portal using the Employer Registration Number (ERN) and password.
2. Submitting a Special Allowance 2024 return within the month following the payment to employees. This return must detail the employees and the amounts paid.

Employers are advised to ensure accurate and timely submission to facilitate the processing of their claims. The MRA will review applications and credit the eligible amount directly into the employer’s bank account.

Further Information and Support

For additional clarification or assistance, employers can contact the MRA Helpdesk during working hours at the phone number +230 207 6000. The MRA also provides comprehensive guidance and updates on its official website, www.mra.mu.

References and Organism of Reference

This notice is issued by the Mauritius Revenue Authority, the primary body responsible for tax administration and fiscal policy implementation in Mauritius. The guidance aligns with the legal framework established under the PSC Act 1955 and the broader fiscal policies designed to support employment and economic stability during the 2024 fiscal year.

Employers are encouraged to monitor official communications from the MRA for updates and ensure compliance with the application procedures to benefit from this government support initiative.