Services for Contribution
||Collection of contribution and refund of contribution overpaid|
||Application and Processing of lumpsum (refund of contribution paid to NSF)*|
|PRO (Public Relation Office -Social Security Information Services)
||Information regarding all services|
*NSF (National Saving Fund) - Provide payment of a lump sum to every employee at retirement age or earlier, or on his/her death.
Who contributes to the NSF
-Every employer and employee/s of the private sector pays a monthly contributions representing 2.5% and 1% (total of 3.5%) respectively of the basic wage or salary of every employee, aged between 18 and retirement age subject to the prescribed ceiling
-Employers having in their employment household workers must also contribute to the National Savings Fund.
Who is covered by the NSF
Every employee both in private and public sector aged between 18 and retirement age who works under either a full time or a part time contract of service.
NSF Lump Sum
A. Retirement on Ground of Age
(a) to an employee who has retired at the retirement age.
(b) to an employee who has retired from employment before attaining 60 years and the retirement is on ground of age as provided for under the Labour Act, a Pension Law, or under a Renumeration Order.
B. Retirement on Medical Grounds
To an employee who has retired from employment on medical grounds duly certified by a Government Medical Officer or a Medical Practitioner in the regular service of the employer. A letter of retirement from the employer together with a copy of the medical certificate must be produced.
To an employee who has lost his employment or has retired, on, or after attaining the age of 45, as a result of closure of business or enterprise or any reduction of workforce. A letter stating the ground of retirement from the employer must be produced.
D. Death of the employee
The NSF lump sum is also payable where an employee dies before reaching
retirement age. Lump sum is payable to
(a) widow/widower of the deceased employee. - Photocopy of the marriage certificate and death certificate should be produced.
(b) Child/children of the deceased employee if there is no widow or widower - an affidavit sworn by the heirs to be produced.
(c) The legal personal representative(s) of the deceased employee if there is no widow or widower or child - an affidavit establishing the heirs of the deceased employee together with the civil status documents to be produced.
A lump sum is paid to foreign workers at the expiry of their contract of employment and when they return back to their country.
F. Lump sum is payable only in case of retirement or death which occurred after 01.07.94 and where NSF contributions have been paid on behalf of the employee after 01.07.94.
Brief to Employers on NPF, NSF & Training Levy
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.
2. Contributions and Training levy payable
2.1 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 Remuneration Order, award or agreement, or where the employer pays a higher rate or salary, the higher salary, excluding allowances
Rates of Contribution Employee’s Employer’s 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 employer's share of 6%,where the aggregate salary in
a month is equal to less than 3000 rupees.
· Methods of Calculating Contributions
Employers may calculate contributions payable in :-
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.
2.2 Training Levy
This is a scheme established for the purpose of developing human skills.
Rate payable Feb 1989 to Jan 2009 - 1%
As from Feb 2009 - 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.
2.3 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 together with 1% of the employee share aged between 18 and 65
3. The following applies to all the 3 Schemes (NPS, NSF, Levy)
4.1 Keeping of records
Employers are required to keep wage records containing the following particulars in respect of their employees:
(i) the National Identity Number
(ii) the insurable salary
(iii) the contributions payable
3.2 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).
3.3 Mode of Payment
As from 01/01/2018, The Mauritius Revenue Authority is responsible for collection of National Pensions, National Savings Fund and Training Levy (HRDC) Contributions and returns.
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.
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.
4. 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 are 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.
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.
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.
4.2 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.
4.3 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.