Mauritius is introducing a new pension fund system that could help spur the homecoming for some Mauritian diaspora. The government describes this new system, the Contribution Sociale Généralisée (CSG), as “fair, equitable and sustainable for (the) economy.”
The CSG will ensure an additional guaranteed monthly income for citizens above the 65 years normal retirement age. Besides regular employees, the new pension fund system will also cover self-employed individuals.
The CSG replaces the National Pension Fund (NPF) which charged higher contributions from both the employees and the employers. The CSG cut contribution of employees earning up to MUR50,000 to 1.5 per cent from the NPF’s 3 per cent. The new system also cut the employers’ contribution to 3 per cent from 6 per cent.
Mauritius revamps its pension fund system for a more equitable and sustainable track.
The CSG contribution was cut to 3 per cent from 5 per cent for employees earning over MUR50,000 monthly. The contribution of employers in this higher monthly salary bracket was cut to 6 per cent from 8.5 per cent .
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Higher take-home pay
The CSG, effective September 1, 2020, results in a higher take-home pay for employees. It also lowers companies’ payroll costs, thus contributing to better operational stability amidst the Covid-19 economic slowdown.
The CSG will start payments of its retirement benefits in July 2023. Meanwhile, the benefits will continue to all employees who have previously contributed to the NPF.
The new CSG would be applicable to migrants from the island returning under the Mauritian Diaspora Scheme. Those registering under scheme can choose from two categories:
Professional: an individual with a valid contract of employment in a local company and relocating to Mauritius.
Self Employed: a person bringing into Mauritius his/her own trade, business or profession as registered under the rules and regulations of the “Individual” category in the Registrar of Companies.
Senior citizen non-contributory benefits
Mauritian diaspora returning to the island can also look forward to non-contributory programmes providing benefits for its senior citizens. These benefits include basic pensions for Mauritian citizens from age 60.
High quality residences specifically developed for active seniors and retirees are also now available in Mauritius. Starting May 2019, the Economic Development Board allowed such projects under the Property Development Scheme (PDS).
Promoters not only can construct new residential buildings exclusively for seniors. They can also convert an existing building under PDS for this purpose. This is so provided that there are at least 25 residential units in the new development or an existing building. Foreigners and Mauritian diaspora are eligible to purchase in PDS projects.
Seniors aged 50 and over have a PDS just right for them—the Le Domaine de Grand Baie of 2Futures. AEGIDE DOMITYS, the leader in serviced seniors’ residences in France, is partner of 2Futures in this project. Coupled with the government’s new pension fund system, plotting a Mauritian diaspora homecoming here indeed looks sweeter.
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