As your company grows, you’ll have to create benefits plans to attract and recruit talent in new countries. Between varying labor laws and market standards, this process can be challenging in an unfamiliar market, but adhering to these best practices will help you create a competitive employee benefits plan in Mauritius.
Guaranteed benefits in Mauritius
Benefits plans are a great way to support your company’s growth. By prioritizing employee wellness initiatives, companies can improve morale in the workplace, resulting in higher productivity levels and lower turnover rates.
Before you consider fringe benefits, companies should first think about the provisions required by law. For example, in Mauritius, employees are entitled to 10 days of paid leave to care for a sick child, parent, or grandparent. Other statutory benefits include:
- Paid annual leave
- Paid sick leave
- Paid maternity leave
- National pension and savings contributions
On the recruitment side, benefits can make your business stand out in the labor market. Job seekers will see the provisions you’re offering and feel more inclined to apply for your open roles. Potential fringe benefits include:
- Company cars
- Housing allowances
- Meal vouchers
- Holiday bonuses
- Tuition reimbursement
- Health insurance
Mauritius benefits management
Benefits plans need to strike a balance between the company’s financial resources and employees’ needs. With research and planning, you can create a program that supports your workers without overextending your budget.
1. Consider your financial resources.
Take time to assess your revenue and create a budget for your benefits packages. When determining a budget, consider your goals and how your benefits may help you achieve them. For instance, if you aspire to have a high retention rate, you may opt for a smaller workforce with more generous benefits packages.
2. Research the labor market.
You can only be competitive in the labor market if you understand what other companies offer. Research different businesses in the area to learn about industry standards and expectations for companies of your size.
Workers are another key aspect of the labor market. Learn about what local employees want from employers by conducting interviews or distributing surveys. With benefits catering to employee needs, you’re more likely to attract new hires.
3. Develop your benefits plan.
With everything you’ve learned, you can find the balance between your resources and employees’ needs. Start by allocating your budget toward required benefits, then distribute your remaining funds to the provisions you learned about in your research.
You might choose to create a plan similar to your competition or create unique packages that make your business stand out.
Average cost of benefits
Every company spends a different amount on benefits depending on location, industry, and size, making an average cost impractical in terms of planning. You should determine a benefits budget unique to your company.
Consider basing your budget on a percentage of your revenue so your benefits can scale with your business. With this approach, you can keep your spending in check, scale your benefits with your company, and maintain compliance as you grow.
How to calculate benefits
Many benefits calculations are straightforward. For example, if you choose to provide a transportation stipend, you can set a monthly amount for every worker. For required benefits, like pension fund contributions, calculations can be more complex.
Collectively, employers and employees are required to contribute 9% of earnings to the national pension fund. Employees must pay 3% of their paycheck, and employers must contribute 6% on their behalf. Employers should factor these contributions into payroll processing.
How are employee benefits taxed in Mauritius?
As a rule, fringe benefits are considered taxable income. Employers should factor them in when applying tax deductions to employee paychecks. There are 2 exceptions to this taxation rule.
Firstly, pensions and retiring allowances are not taxable benefits. Secondly, if the Director-General approves a scheme for an employee’s medical expenses, these provisions are also nontaxable.
Employee health benefits
Taxes fund the healthcare system in Mauritius, making public institutions free to all residents. However, there are private facilities that receive more funding and can offer more specialized care. Private care often comes with high costs. Employers are not required to provide health insurance schemes, but they may choose to provide private coverage as a supplemental benefit.
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