Employers
Brief to Employers on NPF, NSF & Training Levy

Introduction
The National Pensions Scheme (NPS) has been introduced since 1976. It is based on a two-tier system in which Government finances payment of the universal basic pensions whilst earnings–related contributory benefits are paid to insured persons or their dependents, on basis of contributions paid to the scheme by the insured persons and their employers.

Employers to register
Employers are required to register within 14 days from start of business. As from the 1st October 2006, all business operators who are registered with the Registrar of businesses would be automatically registered if he/she has declared to be employing at least one employee.
 
Contributions and Training Levy payable
 
  • National Pensions Scheme (NPS)
Employers should pay contributions on insurable wage or salary as per rates below.
Note : Insurable wage or salary is the basic wage or salary as prescribed in the Renumeration Order, award
or agreement, or where the employer pays a higher rate or salary, the higher salary, excluding
allowances
 
 
Rates of Contribution
Employee’s Share
Employer's Share
Total
(a)
Standard Rate
3%
6%
9%
(b)
Higher Rate
5%
8.5%
13.5%
(c)
Prescribed Rate
3%
10.5%
13.5%
  •  
  • Most employers pay at the standard rate.
  • Higher rate is payable on application by both employees and employers subject to approval of the Minister.
  • Prescribed rate is applicable to millers and planters having 100 acres of land or more under sugar cane cultivation.
  • Employers of private household and individual agricultural one pays only the employers share of 6%,where the aggregate salary in a month does not exceed Rs 3000

 

Methods of calculating contributions
Employers may calculate contributions payable by:
  • The Rounded Method (rounding up or rounding down to the nearest rupee). Employer’s share and employee’s share should be calculated separately and rounding applied.
 
Training Levy
This is a scheme established for the purpose of developing human skills.
As from February 1989, employers are required to pay one per cent (1%) on each employee’s basic wage or salary excluding overtime, bonuses and allowances.As from February 2009, the rate is 1.5%.
This fee is payable in respect of all workers who are insured persons under the NPS and aged between 18 and 65. Employees of charitable institutions and private secondary schools are exempted. Workers in domestic services are excluded.
National Savings Fund (NSF)
The NSF was set up under the National Savings Fund Act 1995. It provides for payment of a lump sum(contributions + accrued interest) at retirement age. Every employer (public, private or para-statal) has a legal obligation to contribute 2.5% of the total basic prescribed wage of each of his employees aged between 18 and retirement age.
Employees of Private Sector have to contribute an additional 1% (NSF) as from february 2009.
Non-citizens are covered under the Scheme as from Feb 2009.
 
The following applies to all the 3 schemes (NPS, NSF, Levy)
 
Keeping of records
Employers are required to keep wage records containing the following particulars in respect of their employees:

1. the National Identity Number
2. the insurable salary
3. the contributions payable
 
Prescribed time limit to effect payments
  • Employers are required to pay the amount of contributions and levy each month not later than 20 days after the end of the month for which they are due. Where payments are made electronically, they should be made at latest by the end of the month, following the month for which they are due.
  • Employers should pay all contributions and training levy to the National Pensions Fund(NPF).

 

Mode of Payment
 
Payments to the NPF may be effected through any one of the following ways:
(i)  by cash at the Cashier’s Office, R. Seeneevassen Building, NPF, P.Louis.
(ii)  by money orders/cheques crossed to the order of National Pensions Fund;
(iii) electronically.
(iv) As from 1st January 2018 all returns (monthly or annual) and payments of contribution to the NPF/NSF and HRDC Levy should be  effected at the Mauritius Revenue Authority at Ehram Court, Port Louis.
 
Submission of Returns
  • As from July 2002, employers should submit a monthly return of contributions payable in respect of all insured persons (except private household employees) in their employment together with the payment. Annual returns are submitted in favour of private household employees only and members  of the National Assembly.
  • Employers with 25 or more employees are required to submit their monthly returns and effect payments electronically.
  • Employers with fewer than 25 employees may submit their monthly returns electronically or on floppy disks or they may submit their returns on Forms provided by the Ministry : CC 19(a) and CC19(b).

 

Surcharges
Surcharges are payable on both late payment of contributions and levy and on late submission of monthly returns.
On late payment of contributions and levy, each month a surcharge of 5% on the amounts payable, or part thereof, becomes due. These surcharges may accrue up to 100% of the amounts payable.
On late submission of monthly return, the rate of surcharge for each day of lateness is 1% of total NPF contributions payable for that month or Rs200, whichever is the lesser. The minimum amount of surcharge is Rs500 and the maximum is Rs20,000.
 
Offences
Any person who fails to submit returns and effect payments within the prescribed time limit, or to register as an employer shall commit an offence and may on conviction be liable to a fine not exceeding rupees fifty thousand (Rs 50,000) and to imprisonment for a term not exceeding 12 months.
 
Procedures in case of work related accident
The Industrial Injury Branch operates within the framework of the National Pensions Scheme (NPS). It became operational in August 1979. Work-injury benefits are financed by the National Pensions Fund.
Industrial Injury Benefits are payable to an insured person suffering injury caused by an accident arising out of and in the course of his employment or by a prescribed occupational disease. In case of death, payments ate made to the dependants.
Insured person means those in whose favour contributions are being paid to the National Pensions Fund.However, those who are between the age of 15 and 18 are also covered though contributions are not payable on their behalf.
 
Entitlements
 
Benefits for Temporary Total Incapacity
The employer is required to pay full remuneration during the first two weeks of temporary total incapacity for work. The NPS pays an industrial injury allowance equivalent to 80 per cent of the insurable wage as from third week of incapacity. Insurable wage means the basic wage excluding overtime pay and other allowances, and is subject to the prescribed minimum and maximum remuneration on which contributions are payable.
 
Benefits for Permanent Incapacity
An injured person is entitled to a disablement pension or where applicable to a lump sum when the work-injury or occupational disease results in a permanent disability.
 
Benefits for Survivors/Dependents
A Survivor’s pension is payable to the spouse of an employee who dies as a result of an industrial accident. A monthly pension equivalent to 1/2 the insurable wage of the deceased is payable.
A widower must be disabled for at least 60 per cent for a period of 12 months or more in order to qualify for this pension.
Where there is no widow, an orphan’s industrial injury pension is payable. A dependant’s pension is also payable to a relative living in the household and was dependent on the earnings of the deceased.
 
Other Allowances
An employee qualifying for industrial injury allowance or disablement pension is also entitled to:-
  • an allowance for Constant Personal Attendance
  • refund of medical expenses for urgent treatment at private clinic up to a maximum of Rs 4,000.
  • refund for provision or replacement of artificial aids.
  • refund for repairing or replacing damage to natural teeth (artificial dentures)
  • refund of clothing or spectacles worn at time of accident
  • refund for travelling expenses to attend medical treatment.
  •  
Responsibilities of the employer
  • First-Aid treatment and conveyance for medical treatment of the employee who has suffered industrial injury.
  • Maintain an accident book (particulars same as in Form Bin 17). Record minor/severe industrial accidents. Accident book to be kept for a period of at least three years.
  • Complete notification of accident (Form Bin 17) within three weeks from date the employee has suffered industrial accident.
  • Pay injured employee his first two weeks’ remuneration.
  •  
Responsibilities of the employee/dependants
  • Inform employer of the industrial accident.
  • Note names of witnesses to the accident.
  • Follow medical treatment and produce medical certificates.
  • Apply for the benefit within the time limit (at latest six months from date of accident, date of death, date expenses incurred).
  • Inform the Industrial Injury Branch if ever work has been resumed by the employee before expiry of the medical certificate.