Mr Deputy Speaker, Sir, the population will recall that despite the difficult economic situation that we inherited, Government introduced in December last year the Special Allowance 14th month bonus for some 420,200 employees from both the private and public sectors as well as a one-month allowance to every pensioner, widow, orphan and disabled person in Mauritius. The Special Allowance Act 2024 provides for a one-off payment of a special allowance to employees drawing a monthly basic salary not exceeding Rs50,000 or equivalent to one- month basic salary. As far as employees who have been in continuous employment for only part of the year, the employee or his legal representative is entitled to a special allowance on a pro rata basis in line with section 3 (3) of the Act. Special allowance, Mr Deputy Speaker, Sir, is payable as follows –

72 “In two equal instalments where – (i) the first instalment is paid not later than on the last working day of December 2024, and (ii) the last instalment is paid on the last working day of January 2025. Or alternatively, in case there is an agreement between the employer and an employee, the payment can be done in not more than four instalments.” Mr Deputy Speaker, Sir, since the enactment of the Special Allowance Act in December last year, I am informed as at end of February 2025, 1,503 complaints in relation to non- compliance with the Special Allowance Act were received from employees against 321 employers comprising 291 companies and 30 individual employers. Regarding part (a) of the question, the main reason put forward by employers for non- compliance is financial constraint faced by them. Mr Deputy Speaker, Sir, the Act does provide that the Director General of the Mauritius Revenue Authority can provide financial assistance in connection with the payment of special allowance to qualifying export enterprises, qualifying SMEs and other employers falling within a category as may be prescribed. There has been a regulation in February 2025, the Income Tax (Financial Assistance for Payment of Special Allowance) Regulations 2025 where the category of eligible companies for refund has been set out and they include – (a) Charitable institutions; (b) Non-Government Organizations (NGOs) registered with the National Social Inclusion Foundation; (c) Registered Religious bodies; (d) Trade Unions; and (e) Enterprises other than export enterprise or SMEs, whose turnover for the Year of Assessment 2023/2024 does not exceed Rs750 million and who are operating in the following sectors – (i) Business Processing Outsourcing (BPO); (ii) Security or Cleaning Services, and (iii) Construction Industry.

73 In addition, Mr Deputy Speaker, Sir, financial support has been extended to enterprises in the transportation sector facing financial difficulties to pay the special allowance. I have been informed by the MRA that 10,570 eligible employers have employed for the financial assistance, out of which, 8,677 employers have submitted a special allowance return 2024. Payments have already been effected to 8,041 compliant employers for a total amount of Rs1, 052, 051,539. However, Mr Deputy Speaker, Sir, I have to stress that one of the problems which the eligible employers are facing when making a claim to the MRA is that under the provisions of the law, the employer is required to pay the special allowance and then claim a refund from the MRA. Now, there are a number of employers who are not paying the special allowance and making claims for refund by the MRA. That is what is causing delay. So, even though they may be eligible to get the refund because they have not paid the special allowance, MRA is not giving them the money back. As regards part (b) of the question, on 15 January 2025, my Ministry received complaints from 12 Indian workers to the effect that they have not been paid the special allowance 2024 by Brilliant Cleaning Services Ltd. They had also not been remunerated for November and December and did not receive end of year bonus. After the intervention of officers of my Ministry, their outstanding salaries have been settled. However, the company is yet to pay them their end of year bonus and their special allowance. On 28 March 2025, the company agreed to pay the outstanding amount in three instalments, on 10 April, 10 May and 10 June 2025. On 10 March 2025, the Chemin Grenier Labour Office received a complaint from 16 local employees of Brilliant Cleaning Services Ltd – the same company – for non-payment of special allowance. When contacted, the Director informed my Ministry that payment could not be effected due to acute financial constraint. I am informed by the MRA that although Brilliant Cleaning Services Ltd is eligible to apply for the refund through MRA, they have not done so, so far. Concerning part (c) of the question, Mr Deputy Speaker, Sir, investigation is ongoing by enforcement officers of my Ministry with regard to those cases where special allowance has not been paid when due. As at February 2025, out of 1,503 complaints received, only seven cases were rejected, 41 cases withdrawn by employees and 151 cases were settled. The settled cases represent a total amount of Rs2.6 m. recovered on behalf of workers after the

74 intervention of officers of my Ministry. The remaining cases are still under investigation by my Ministry. I wish to highlight that any employer who fails to comply with the provision of the Special Allowance Act shall commit an offense, and shall on conviction be liable to a fine not exceeding Rs5,000. 91 cases against six employers have already been referred to the Prosecution Unit of my Ministry in order for criminal action to be taken against them. Before lodging the information at the Industrial Court, my Ministry has liaised with the Mauritius Revenue Authority to confirm whether these employers are eligible for financial assistance and have received the financial assistance. The reply from the MRA is awaited. Allow me to assure the House and workers of this country that criminal action will be taken against all those employers who are not eligible to financial assistance and who are still not complying with the provisions of the Special Allowance Act. Thank you.

Yes, hon. Member?

I thank the hon. Minister for his answer. I would like to ask the hon. Minister if the refund is related to CSG compliance.

I do not know the mechanism which the MRA is doing, whether it is using the funds of CSG to pay it or otherwise. I am only informed that the MRA refunds all the amount of money that is being paid by qualifying employers as required under the Special Allowance Act Regulations.

Okay, next question, the hon. Third Member for Port Louis South and Port Louis Central! ᠎PUBLIC HOSPITALS – RADIOLOGY SERVICES – OUTSOURCING