Facilitate the integration of youth and women in the labor market. With this in mind, the government is moving ahead with a new budget system; A work bonus. When will the measurement be effective? What will be the terms of this process? What will be the impact on the labor market? Feedback item.
Since the Covid-19 epidemic hit the country, its consequences in the labor market have been inevitable. Despite state funding to secure jobs through the Wage Assistance Scheme and the Self-Employment Assistance Scheme, about 33,500 Mauritius lost their jobs between 2020 and 2021. According to Mauritius, the unemployment rate stood at 9.1% This statistic challenges and requires the introduction of a monthly employment bonus of Rs 15,000 for the first year of employment for 10,000 young people aged 18 to 35 and women aged 50 and above.
Relevant authorities have informed us that negotiations are underway to finalize the terms of this measurement. But one thing is for sure. This measure should be effective by January 2023. “We are studying two options for paying wages. Either the salary will be paid to the employers and then they will pay the employees or the salary will be paid directly to the employees’ account.
The goal of this measure is to facilitate the reintegration of women into the world of work. “Very, women do not return to their jobs after motherhood. And a few years later, when they want to go back to work, they no longer have the same opportunity. That way, the bonus will encourage companies to hire these women, ”she said. It is good to know that job bonus is one of the demands of private companies.
The government will guarantee the payment of salaries to the employees for a period of one year through employment bonus. However, strict conditions will be attached to the measure to ensure that employers do not dismiss these employees after one year of service. Moreover, the finance minister himself has made it clear that measures will be taken to prevent any misuse. According to our cross-check, if a company does not hire permanent employees, it will have to pay the government for the full bonus paid for one year.
Possibility to pay more for companies
There will be no specific sector for the benefit of employment bonus. “Moreover, this question is part of our discussion. We are in the process of studying which sectors are most affected by labor shortages and where bonus recruitment can be encouraged, ”they say. The manufacturing sector, for example, is currently facing a severe labor crisis. But young people do not want to work in this sector. As a result, even if the employment bonus is paid, it will not necessarily solve the problem of manpower shortage in the manufacturing industry. On the other hand, there is a strong demand for employment in the financial services sector.
“In this context, employment bonus can motivate companies to hire young people. But a young graduate may not agree to work for a monthly salary of Rs 15,000. In this way, companies will be able to benefit from bonuses and pay young employees for their skills and their diploma, “explained the authorities. For example, if a young man earns Rs 20,000 per month, he will benefit from a government bonus of Rs 15,000. And his employer will contribute the difference, i.e. 5,000
Youth Employment Program
One of the purposes of introducing employment bonus is to eliminate the youth employment program established in 2013. Through this program, employers spend half of the stipends and training provided to these young people. Refunds have been abused by companies in the past, according to authorities. “So the system needs to be regulated,” we argue.
Maya Shewanath, president of SME Chambers: “Taking a risk if employees are not productive”
The President of SME Chambers welcomed the move regarding employment bonus. According to him, “it will relieve companies that need labor, but do not have the capacity to hire.” However, he said the measurement included risk. “Some employees may take advantage of this bonus and may not respect the employer’s order. Because they know the government pays them. Besides, if these employees are not productive, we can’t finish them. Also, we will have to hire them after one year, ”he said.
Riaz Chuttu, from CTSP: “A first step, but not enough”
A spokeswoman for the Confederation of Private Sector Workers (CTSP) said the potential of women in the work world was underestimated. “For years, CTSP has been fighting to better integrate women into the labor market,” she said. He said it was encouraging that the government had come up with a targeted approach. “The employment bonus is the first step towards the reintegration of women in the world, but it is not enough. We must come up with specific training to enable these women to improve, ”she said.
Lavana Irana, housewife: “I am inspired to re-enter the labor market”
Lovena Iranah, a mother of two, aged 5 and 3, welcomed the job bonus. “I had to quit my job to take care of the little ones. But now, I am ready to re-enter the labor market, “said the housewife In fact, she worked in the hotel sector before her marriage. Seven years ago, he quit his last job. Now, he says he is more motivated to look for a job. For her, the bonus, which also applies to women, will make her job search easier.
Dylan Dial, 20: “There will be more job offers now”
Athlete Dylan Dial is looking for a job that will allow him more time to train. “Today, it is very difficult to find a job that is flexible at work and that allows me to play sports,” he explained. However, he thinks that there will be more offers with job bonus. “Suddenly, I can choose a job that does not jeopardize my ambition as an athlete.”