Following the introduction of the Prime a l’Emploi” Scheme in the Finance Act, whereby a monthly allowance of up to Rs 15,000 will be provided for the first year of employment of only 10,000 youths aged between 18 and 35 years and women aged up to 50 years, MEXA organized a working session with the MRA to discuss on the procedures for application and the conditions attached.

Below are the main salient points discussed:

The Scheme

• The first 10,000 eligible employees taking employment during the period starting 1 July 2022 to 30 June 2023, the MRA shall pay to an eligible employer an allowance equivalent to the lower of the basic wage or salary of the employee for the month or Rs 15,000 rupees, from the month in which he is employed and the next consecutive 11 months of employment.
• Employer is required to safeguard the employment of the employee for a period of at least 3 years.
• The deadline to register to the scheme is end of November 2022

Eligible Employee

• An individual (Mauritian citizen or resident only) who is employed on a full-time basis by an eligible employer;
• Aged above 18 years but: not above 35 years of age, in the case of a male; and not above 50 years of age, in the case of a female.
• An individual who was not employed for a period of at least 6 months prior to the date on which he/she takes employment with an eligible employer;
• The basic wage or salary payable to the individual does not exceed 50,000 rupees in a month; and An individual who is not undergoing training or a household employee.

Eligible Employer

• Private sector only (company, societé, association, trust, etc)

Application to join the scheme

• An eligible employer shall apply electronically to the Director-General for an approval in respect to its eligible employee within 15 days from the date the employee takes up employment.
• Where the applicable conditions are met, approval is given by the MRA instantly on the website.

Application for payment of the “Prime à L’Emploi”

• Employers to submit a monthly electronic application electronically to the MRA and provide the details of the approved employees who were employed under the scheme during that month.
• Monthly application for payment is required to be made within 3 months from the end of that month.
• Employers are required to be compliant with their obligations under the Social Contribution and Social Benefits Act 2021, the National Savings Fund Act, the Human Resource Development Act and Part VIII of the Workers’ Rights Act 2019.

Refund of Allowance by employer

• Where an employer has benefited from an allowance for a particular month and fails to pay the basic wage or salary – the employer should refund the allowance for that month and will not receive same for the subsequent month.
• Allowance received in excess of the amount to which the employer is entitled or has provided false, incorrect, incomplete or inaccurate information.
• When an employee in respect of whom an allowance has been paid has not worked for the employer to whom the allowance has been paid
• Termination of employment of an eligible employee before the end of the period of 3 years

Offences

• A fine not exceeding 50,000 rupees and to imprisonment for a term not exceeding 2 years.

Members present made a request that a notification be sent by MRA to the employer when payment is effected to the company’s bank account.

Hence, MEXA has directed the request of members to MRA for consideration.