Following complaints received by the Department regarding the non-payment of gratuity on retirement for time served, the Department wishes to clarify that from October 2019, gratuity is payable to workers who retire, due to age, permanent disability as a result of an industrial accident, for medical reasons or in the event of death, under the PRGF in accordance with Part VIII of the Workers’ Rights Act. As a result of an amendment to the Workers’ Rights Act in the Finance Act 2022, an employee may now retire after completing 436 months of service.
Gratuity at retirement payable in 2 installments:
An employer is obliged under section 95 of the Workers’ Rights Act to pay directly to a worker, on the date of retirement, an amount calculated on the basis of 15 days’ remuneration per year of service, i.e. from the date of entry of the worker to the month preceding the month in which the employer pays the PRGF contribution on behalf of the worker to the Mauritius Revenue Authority. The balance of the gratuity is paid by the Ministry of Social Security, which is the administrator of the PRGF.
Workers who have not been paid their gratuity at retirement by their employers for their past services can complain to their local Labour office.
The Ministry wishes to point out that any employer who fails to pay a worker his gratuity is committing an offence and is liable, on conviction, to a fine of not less than Rs 50,000 and not more than Rs 150,000 and to imprisonment for a term not exceeding 12 months.
