The year 2024 brought significant changes for businesses in Mauritius, including increases of the basic minimum salary, adjustments to salary relativity, and the introduction of the 14th-month bonus. To further support businesses during this time, the Mauritius Revenue Authority (MRA) introduced the Special Allowance 2024 program. This initiative provides financial assistance to eligible employers, helping them cover the cost of a special allowance for their employees who have been in continuous employment throughout 2024.

What is the Special Allowance 2024?

Implemented by the Mauritius Revenue Authority (MRA), the Special Allowance 2024 provides financial aid to eligible businesses to help cover the cost of a mandatory special allowance for their employees. This initiative, enacted under the Special Allowance Act 2024, applies to all employees who have been with an employer for the whole or any part of 2024.

Who Qualifies?

Employers:

• Export Oriented Enterprises (EOEs)

• Small and Medium Enterprises (SMEs) with a yearly turnover not exceeding Rs 100 million for the 2023-2024 assessment year.

• Businesses that began operations on or after July 1, 2023, and are either EOEs or have an expected annual turnover of no more than Rs 100 million.

Employees:

• Full-time employees with a December 2024 basic monthly salary of Rs 50,000 or less.

• Full-time employees who left their jobs before December 2024, but whose last monthly basic salary was Rs 50,000 or less.

Calculating the Financial Support

The MRA provides financial support to eligible employers based on how the special allowance impacts their accounting profit. Here’s a simplified breakdown:

Full Allowance:

Employers may receive an allowance equal to the Special Allowance if their 2023/2024 accounting profit shows a loss or would decrease by over 50% after factoring in:

• The National Minimum Wage and Salary Compensation increase from January 2024.
• The Special Allowance for 2024.
• Financial support under section 150EB of the Income Tax Act 1995.

Partial Allowance:

Employers may receive 50% of the Special Allowance if their 2023/2024 accounting profit would decrease by more than 10% but less than 50% after considering the same factors listed above.

How to Apply:

To apply for the Special Allowance 2024 financial support, follow these steps:

1. For monthly instalment payments, submit a return for each month the allowance is paid

2. Submit a one-time application through the MRA website (www.mra.mu)

3. Provide your bank account details for receiving the financial support

4. Use your Employer Registration Number (ERN) as user ID and the MRA-allocated password to submit the application

5. After paying the allowance to employees, submit a “special allowance 2024” return to the MRA by the end of the following month

Essential Requirements:

• Be a registered employer.
• Submit the Special Allowance 2024 return for all eligible employees.
• Submit the Income Tax return for the 2023-2024 assessment year.

Special Considerations for New Businesses:

Businesses that began operations on or after July 1, 2023, may have different requirements for providing financial information. Refer to the MRA website for detailed instructions.

Need Assistance?

• Email: Contact the MRA at fsu@mra.mu for application support.
• Help Desk: Call the MRA Help Desk at 207 6000 during office hours (08:45 to 16:30) on weekdays.

Stay Informed:

Employers are encouraged to take advantage of this program to support their employees and maintain their operations during these challenging times. Remember to submit your application and required returns on time to ensure timely receipt of the financial support.

This guide provides a general overview. Always refer to the official MRA website for the latest information and specific requirements. By staying informed and utilizing available resources, businesses can navigate the Special Allowance 2024 effectively and ensure both they and their employees receive the appropriate support.