The Portable Retirement Gratuity Fund (PRGF) was at the fore of discussions, today, during a meeting in Port Louis which the Minister of Social Integration, Social Security, and National Solidarity, Mr Ashok Kumar Subron, and Junior Minister of the Ministry, Mr Kugan Kuvalayan Parapen, had with trade union federations and confederations.
The meeting with trade union representatives was a crucial platform to address current challenges and foster renewed dialogue as regards the timely payment of a gratuity to a worker in the private sector upon his retirement or demise. Union leaders presented several proposals, including clarifying institutional responsibilities, revising the legal framework, and safeguarding the sustainability of the PRGF.
The meeting was held in the wake of the Cabinet decision taken on 23 May 2025 for the setting up an Interministerial Committee to examine the terms and conditions for payment of the indemnities provided for in the PRGF. The main objective is to ensure that workers receive fair and prompt payment when they retire or pass away.
At a press conference following the meeting, the Minister gave an overview of the PRGF. He recalled that the PRGF was established following the proclamation of the Workers' Rights Act 2019 adding that the purpose of the PRGF is to provide for the payment of a gratuity on retirement or death of a worker, irrespective of the number of employers with whom the worker may have worked during his career span.
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The PRGF came into operation on 01 January 2020 and applies to all workers, including self-employed individuals, except public sector officers, expatriates, workers covered by the Statutory Bodies Pension Funds Act, workers covered by a private pension fund, and workers drawing a monthly basic salary of more than Rs 200,000.
Minister Subron further said that for each eligible worker, employers should make contributions into the PRGF at a rate of 4.5% of monthly remuneration. The monthly remuneration has been defined as the sum of the monthly basic wage, productivity bonus, attendance bonus and payment for extra work performed, he said.
He also underscored the legal obligation under Section 102(3) of the Workers' Rights Act which requires an employer to provide a return to the Mauritius Revenue Authority (MRA) when a worker's employment is terminated or dies before retirement. This return needs to include specific details about the worker, like their National Identity Card Number, employment start date, and termination or death date.
Mr Subron expressed concern that from January 2022 to 30 May 2025, only 2,090 cases have been processed out of the 10,026 cases received. A total of 7,936 workers have not yet received their retirement benefits, he stated. Among the 7,936 cases, 1,111 are being processed at the level of the Ministry of Social Integration, Social Security, and National Solidarity; 2,572 cases are pending at the MRA and employers of 4,253 workers have not submitted the required information to the MRA, he said.
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In light of these delays, Minister Subron informed that he proposes the setting up of an Interministerial Committee comprising himself, Junior Minister Parapen, the Minister of Labour and Industrial Relations, the Junior Minister of the Ministry of Finance, and a representative of the MRA. The objective, he underlined, is to ensure that workers benefit from the PRGF adding that the Committee will also devise medium- and long-term solutions to that end.
He reiterated his commitment to maintaining and enhancing the PRGF, emphasising that legislative amendments would be considered where necessary.
Minister Subron called on Business Mauritius to play an active role in ensuring that private sector employers comply with their obligations to contribute to the PRGF. He also expressed his intention to meet with Business Mauritius in the coming weeks to further discuss the way forward.
