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spay:hrmsprocguide:hrmsprgf_prerequisites [2021/12/21 18:47]
mclement 		spay:hrmsprocguide:hrmsprgf_prerequisites [2026/05/20 01:46] (current)
mclement
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===== MRA PRGF Contribution Rates  ===== ===== MRA PRGF Contribution Rates  =====
-Employers are required to pay PRGF contributions at the rate of 4.5 % of the monthly remuneration of each worker. However, Small and Medium Enterprises (SME) will pay PRGF at a lower rate for the first three years, the difference being met by Government from a seed capital earmarked for that purpose. The PRGF rate, applicable on monthly remuneration, is based on the annual turnover of the SME.+Employers are required to pay PRGF contributions at the rate of 4.5 % of the monthly remuneration of each worker. The PRGF rate, applicable on monthly remuneration, is based on the annual turnover of the SME. Visit the website of the MRA for more information.
-On filing the PRGF monthly return, the employer is required to select the annual turnover in which it falls from the following list:+====== Prerequisites for PRGF Returns on Sicorax HRMS Payroll ======
-    Not more than Rs 2 million +Sicorax HRMS Payroll automatically updates the PRGF Contribution Rate to 4.5% for all companies. Before exporting the PRGF Returns from Sicorax HRMS Payroll, it is compulsory to update the below before performing payroll calculation of the month.
-    More than Rs 2 million but not more than Rs 10 million +
-    More than Rs 10 million but not more than Rs 50 million +
-    More than Rs 50 million+
-Where MRA already has the information about the annual turnover, the selection will be preset.+After payroll calculation is performed, Sicorax HRMS Payroll will automatically calculate the PRGF contribution for the selected employees based on the Monthly Remuneration, where Monthly Remuneration is defined as the total sum paid monthly to a worker made up of:
-====== Prerequisites for PRGF Returns on Sicorax HRMS Payroll ====== +  *  the monthly basic wage 
- +  *  any productivity bonus 
-Before exporting the PRGF Returns from Sicorax HRMS Payroll, it is compulsory to update the below before performing payroll calculation of the month. After payroll calculation is performed, Sicorax HRMS Payroll will automatically calculate the PRGF contribution for the selected employees based on the Monthly Remuneration, where Monthly Remuneration as defined by the MRA is the monthly basic wage, payment for extra work performed and any productivity bonus and attendance bonus paid to a worker.+  *  any attendance bonus and 
 +  *  any payment for extra work performed
The following must be updated before performing payroll calculation: The following must be updated before performing payroll calculation:
   
-  *  Company PRGF Rate (Small and Medium Enterprises (SME) ONLY) +  *  Employees PRGF Contribution flag and Pension scheme flag
-  *  Employees PRGF Contribution flag +
  *  Payments & Deductions PRGF mapping   *  Payments & Deductions PRGF mapping
-===== Update Company PRGF Rate (Small and Medium Enterprises (SME) ONLY) ===== 
-Sicorax HRMS Payroll automatically updates the PRGF Contribution Rate to 4.5% for all companies. However, for Small and Medium Enterprises (SME), you must manually insert the Company PRGF Rate as per the below instructions.+===== Automatic Employee PRGF Contribution Flag (for new recruits) =====
-**Note:** __As per MRA requirement, after a specific number of years this special rate is not applicable. Therefore, you must manually set the company PRGF Rate to zero therefore, the normal PRGF Contribution Rate of 4.5% will automatically apply.__ +To auto-activate employee's PRGF Flag while creating new recruits, follow the steps below:
- +
-{{:spay:hrmsprocguide:hrmscompanysme.png|}} +
- +
-  *  Step 1: Go to Payroll/Settings/Parameters +
- +
-  *  Step 2: Click Company Tab +
- +
-  *  Step 3: Insert PRGF Contribution Rate % as per MRA requirement +
- +
-  *  Step 3: Click Save +
- +
-===== Automatic Employee PRGF Contribution Flag (for new recruits) =====+
{{:spay:hrmsprocguide:hrmsprgfcontributionnewrecruit.png|}} {{:spay:hrmsprocguide:hrmsprgfcontributionnewrecruit.png|}}
-To auto-activate employee's PRGF Flag while creating new recruits, follow the steps below: 
  *  Step 1: Go to Payroll/Settings/Parameters   *  Step 1: Go to Payroll/Settings/Parameters
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  *  Step 4: Click Save   *  Step 4: Click Save
-===== Update Employees PRGF Contribution flag (in bulk) =====+===== Update Employees PRGF Contribution flag and Pension Scheme flag (in bulk) =====
-To update employees PRGF flag in bulk, use the steps below. (__As per MRA's requirement, employees Pension scheme flag must also be updated__).+To update employees PRGF flag and Pension Scheme flag in bulk, use the steps below. (__As per the MRA's requirement, employees Pension scheme flag must also be updated__).
  *  Employee PRGF Flag, if activated, indicates that the employer contributes to the PRGF for the employee   *  Employee PRGF Flag, if activated, indicates that the employer contributes to the PRGF for the employee
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  *  Step 6:On the Excel file, update columns PRGF Flag and Pension Scheme Flag for the respective employees   *  Step 6:On the Excel file, update columns PRGF Flag and Pension Scheme Flag for the respective employees
-  * **Pension Scheme Flag** with values Y (YES) or N (NO) - Where Y indicates that the retirement benefits of the employee are payable under the Statutory Bodies Pension Funds Act; or in accordance with a private pension scheme.+  * **Pension Scheme Flag** with values YES or NO - Where YES indicates that the retirement benefits of the employee are payable under the Statutory Bodies Pension Funds Act; or in accordance with a private pension scheme.
-  * **PRGF Flag** with values Y (YES) or N (NO) - where Y indicates that the employer contributes to the PRGF for the employee. +  * **PRGF Flag** with values YES or NO - where YES indicates that the employer contributes to the PRGF for the employee.
- +
-**However, the PRGF contribution is applicable to all workers of the private sector, excluding:** +
-  * (i)  A worker drawing a basic wage of more than Rs200,000 a month; +
-  * (ii)  A migrant worker or a non-citizen; and +
-  * (iii) A worker whose retirement benefits are payable under the Statutory Bodies Pension Fund Act or in accordance with a private pension scheme +
-  +
-To help you with the above flags, please find below some possible values:- +
- +
-  *  **A worker drawing a basic wage of more than Rs200,000 a month** +
-__//Pension Scheme flag (Yes) PRGF flag (No)//__ or __//Pension Scheme flag (No) PRGF flag (No)//__ +
-  *  **A migrant worker or a non-citizen ** +
-__//Pension Scheme flag (Yes) PRGF flag (No)//__ or __//Pension Scheme flag (No) PRGF flag (No)//__ +
-  *  **Retirement benefits of the employee are payable under a Private pension scheme** +
-__//Pension Scheme flag (Yes) PRGF flag (No)//__ +
-  * **Retirement benefits of the employee are payable under the Statutory Bodies Pension Funds Act** +
-__//Pension Scheme flag (Yes) PRGF flag (No)//__ +
-  * **Retirement benefits of the employee are payable neither under Private pension scheme nor under Statutory Bodies Pension Funds Act** +
-__//Pension Scheme flag (No) PRGF flag (Yes)//__+
  *  After the Excel file is updated, Save and close the file   *  After the Excel file is updated, Save and close the file
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  *  Step 3: Click Next (to update PRGF flag and employees Pension scheme flag for the next employee)   *  Step 3: Click Next (to update PRGF flag and employees Pension scheme flag for the next employee)
 +
 +===================== Criteria for No PRGF Contribution =====================
 +
 +As per the MRA PRGF guide of March 2022, No PRGF contribution is applicable to the following:
 +
 + *  ** (a) A worker who has not attained the age of 16; **
 +      *  Based on the employee's date of birth, the payroll system automatically caters for no PRGF contribution hence, employee will automatically not appear on the Monthly PRGF Return
 +
 + *  ** (b) A public officer or a local government officer; **
 +      *  On the masterfile, the payroll user must deactivate employee's PRGF flag hence, no PRGF contribution will be calculated and employee will not appear on the Monthly PRGF Return
 +*  ** (c) A worker who draws a monthly basic wage or salary of more than Rs. 200,000; **
 +      *  Based on the employee's monthly basic wage or salary, the payroll system automatically caters for no PRGF contribution hence, employee will automatically not appear on the Monthly PRGF Return
 +
 +*  **  (d) A worker for whom the employer is contributing to a private pension scheme approved by the Financial Services Commission (FSC); **
 +      *  On the masterfile, the payroll user must deactivate employee's PRGF flag and activate employee's Pension Scheme flag hence, no PRGF contribution will be calculated. However, only for the first month, the employee will automatically appear on the Monthly PRGF Return with  remuneration zero and PRGF amount zero and value 'Y' (yes) for private pension scheme
 +
 + *  ** (e) A worker whose retirement benefits are payable under the Statutory Bodies Pension Funds Act or the Sugar Industry Pension Fund Act; **
 +      *  On the masterfile, the payroll user must deactivate employee's PRGF flag hence, no PRGF contribution will be calculated and employee will not appear on the Monthly PRGF Return
 +
 + *  **  (f) A person under a contract of apprenticeship regulated under the Mauritius Institute of Training and Development Act; **
 +      *  On the masterfile, the payroll user must deactivate employee's PRGF flag hence, no PRGF contribution will be calculated and employee will not appear on the Monthly PRGF Return
 +
 + *  ** (g) A person taking part in a training scheme set up by the Government or under a joint public-private initiative with a view to facilitating the placement of jobseekers in gainful employment; **
 +      *  On the masterfile, the payroll user must deactivate employee's PRGF flag hence, no PRGF contribution will be calculated and employee will not appear on the Monthly PRGF Return
 +
 + *  ** (h) A non-Mauritian citizen worker or a migrant worker;  **
 +      *  On the masterfile, the payroll user must deactivate employee's PRGF flag and deactivate Citizen Flag on Employee's EDF hence, no PRGF contribution will be calculated and employee will not appear on the Monthly PRGF Return
 +
 + *  ** Note: PRGF Contributions are payable as from the month in which a worker takes up employment whether on a part-time, full time or casual basis and whether on probation or not. PRGF contributions are also payable for a person performing atypical work as well; **
 +      * On the masterfile, the payroll user must activate employee's PRGF flag hence, PRGF contribution will be calculated and employee will appear on the Monthly PRGF Return
===== Update Payments & Deductions PRGF mapping ===== ===== Update Payments & Deductions PRGF mapping =====
-To update the payments & deductions which are related to the PRGF, follow the below steps.+It is compulsory to update the mapping of all payments & deductions which are related to the PRGF and which are based on the Monthly Remuneration, where monthly remuneration is defined as the total sum paid monthly to a worker made up of: 
 + 
 +  *  the monthly basic wage 
 +  *  any productivity bonus 
 +  *  any attendance bonus and 
 +  *  any payment for extra work performed, follow the below steps.
-  * **For queries on PRGF payments & deductions grouping, please call the MRA**+  * **For queries on PRGF payments & deductions mapping, please call the MRA**
{{:spay:hrmsprocguide:hrmsmonthlyprocprgfupdatepd.png|}} {{:spay:hrmsprocguide:hrmsmonthlyprocprgfupdatepd.png|}}
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  * Step 5: Click save   * Step 5: Click save
-__It is compulsory to repeat steps 4 to 5 for all payments & deductions which are related to the PRGF__. You will find below additional illustrations for Commission and Allowances and Severance Allowance. Concerning Severance Allowance. (__As per the MRA, this is the amount already paid to worker as severance allowance/compromise agreement excluding PRGF contributions under Sec 71(1) (c) of WRA__)+  * ** __It is compulsory to repeat steps 4 to 5 for all payments & deductions which are related to the PRGF__ * **. You will find below additional illustrations for: 
 +  * Commission and  
 +  * Allowances and  
 +  * Severance Allowance  
 +  * Concerning Severance Allowance. (__As per the MRA, this is the amount already paid to worker as severance allowance/compromise agreement excluding PRGF contributions under Sec 71(1) (c) of WRA__)
{{:spay:hrmsprocguide:hrmspdmappingprgfpayrollitem.png|}} {{:spay:hrmsprocguide:hrmspdmappingprgfpayrollitem.png|}}

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