By law, the country has between 30 and 150 days to organise elections after the prime minister dissolves parliament.
The country, a popular tourist destination and one of Africa’s most stable nations, holds elections every five years, with the last one in 2014.
Jugnauth who is also finance minister will seek another term as leader of the Mouvement Socialiste Militant.
He had in 2017 succeeded his father Anerood Jugnauth, who was prime minister, president or opposition leader from 1976 before stepping down in 2016 at age 86.
The island nation of 1.3 million inhabitants, considered one of Africa’s most stable democracies, won independence from Britain in 1968.
Its economy is based on tourism, financial services and exports of sugar and textiles.