Mauritius Implements Fixed Salaries Every 5 Years in Private Sector

The recent announcement by the Minister of Labour, Soodesh Callichurn, has sparked attention as it introduces significant changes to salaries in the private sector in Mauritius.

Under this new system, salaries will be fixed every five years, aligning with the current model utilized in the civil service through the Pay Research Bureau.

To implement this reform, an amendment has been made to the Workers Rights Act, empowering the National Wage Consultative Council and the National Remuneration Board to determine salaries based on job positions in the private sector.

From March 2024 onwards, employees holding the same position, regardless of their industry, will receive equal salaries.

This means that all drivers, regardless of the sector they work in, will be entitled to identical remuneration.

This change will impact approximately 30 sectors in Mauritius.

While the move has received a warm reception from trade unions, economist Amit Bakhirta said such a decision will be difficult to implement.

Ajay Beedasee, President of SME Chambers said all companies “cannot all be put in the same basket”.