Services for Contribution

*NSF (National Saving Fund) - Provide  payment of a lump sum to every employee on his retirement at the age of 60 or earlier, or on his death.

  Who contributes to the NSF 

-Every employer has to pay monthly in respect of every employee an amount of 2.5 per cent of the basic wage or salary of every employee, aged between 18 and 60.

-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 60 who works under either a full time or a part time contract of service.

The fund does not cover a non-citizen of Mauritius.

Returns 

Submitted at the end of each financial year together with the (i) name of employee (ii) number of his/her National Identity Card  (iii) the amount of contributions paid in relation to the employee during the financial year.

NSF Lump Sum

  B.   Retirement on Medical Grounds

To an employee who has retired from employment on or after attaining the age of 45 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.

  C.  Redundancy

     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 window or widower or child - an affidavit establishing the heirs of the deceased employee together with the civil status documents to be produced.

E. 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

1.                  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.

2.                 Employers to register

Employers are required to register within 14 days from start of business.  As from the 1^st October 2006, all business operators who are registered with the Registrar of businesses would be automatically registered. 

3.        Contributions  and Training levy payable

3.1      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

            Share                            Share

(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.

·   Methods of Calculating Contributions

Employers may calculate contributions payable in any one of the following ways:-

•     The Exact Percentage Method.

            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.

•        The Contributions Table Method.

3.2     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.

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.

3.3      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 aged between 18 and 60

          Non-citizens are not covered under the Scheme.

4.         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

4.2             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).

4.3             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.

4.4             Submission of Returns

                As from July 2002, employers should submit a monthly return of contributions payable in respect  to  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.

• Employers with 50 or more employees are required to submit their monthly returns and effect payments electronically.

• Employers with fewer than 50 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).

4.5             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.

4.6             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.

5.      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.

5.1            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.

5.2             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.

5.3           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.