Is Your Business Struggling? MRA Could Be of Some Help

In an effort to help struggling businesses maintain their competitiveness following the recent rise in the National Minimum Wage and determination of salary compensation for 2024, the Mauritius Revenue Authority (MRA) will provide financial assistance.

The specific support will vary depending on the size and nature of the enterprise, according to a Cabinet decision made on 29th December 2023.

Export-oriented and manufacturing enterprises servicing the local market with an annual turnover below Rs100 million will receive a monthly amount of Rs2,000 for each full-time employee earning the National Minimum Wage, along with an end-of-year bonus.

Additionally, these businesses will be granted an amount equivalent to the 2024 salary compensation, ranging from Rs1,500 to Rs2,000 per month per employee.

Small and medium-sized enterprises (SMEs) with an annual turnover of up to Rs100 million and manufacturing enterprises with an annual turnover between Rs100 million and Rs500 million will receive slightly less financial support.

Full-time employees earning the National Minimum Wage will be eligible for a monthly amount of Rs1,000, including an end-of-year bonus, and an amount equivalent to the 2024 salary compensation.

Non-Governmental Organisations (charitable institutions and religious bodies) will also benefit from financial assistance, with full-time employees earning the National Minimum Wage receiving a monthly amount of Rs1,000, an end-of-year bonus, and an amount equivalent to the 2024 salary compensation.

Other businesses facing financial difficulties due to the minimum wage increase can apply for financial aid, which will be evaluated on a case-by-case basis.

The MRA will begin making payments in January 2024. Amendments to the Income Tax Act and the repeal of the Workers’ Rights (Payment of Special Allowance 2023) Regulations 2023 will facilitate these measures, effective from 1st January 2024.

Source: Cabinet Papers