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Hiring in Reunion

Hiring employees compliantly in Reunion means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Reunion so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Reunion; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in Reunion? Contact us about our International EOR Service

Labor Laws in Reunion

Employment laws in Reunion are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Reunion employment laws and Reunion policies here.

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Holidays in Reunion

Reunion celebrates twelve national public holidays as well as additional public holidays that vary by state:

New Year’s Day 1st January
Easter Monday 13th April
Labor Day 1st May
Victory Day 8th May
Ascension Day 21st May
Whit Monday 1st June
National Day 14th July
Assumption Day 15th August
All Saints' Day 1st November
Armistice Day 11th November
Abolition Day 20th December
Christmas Day 25th December

 

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Reunion Salary and Wages

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13th/14th Month Salary in Reunion

  • Department of French Department of French

Income Tax in Reunion

  • Réunion is considered a part of France for tax purposes, and the French tax system generally applies, with some modifications and exceptions. 
  • Residents are taxed on worldwide income; Non-residents are subject to tax only on Réunion-source income.
  • There is no definition of taxable income. 
  • The most important categories of income are: 
    • Employment income (including income from prior employment) 
    • Business income 
    • Agricultural income 
    • Professional income (income from “non-commercial” activities, e.g. from the legal and medical professions, and income from activities not classified into any other category)
    • Income from activities performed by certain managers controlling family companies or limited partnerships 
    • Income from immovable property 
    • Investment income (income from movable property) 
    • Capital gains.
  • The rates on ordinary income for resident individuals are progressive from 0% to 45%.
  • Tax rates for 2023 are as follows:-

Taxable income (EUR)

Rate

Up to 10,777

0%

10,778 to  27,478

11%

27,479 to 78,570

30%

78,571 to 168,994

41%

Over 168,994

45%
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Social Security in Reunion

  • The contributions are shared between employer and employee; on average the employer's share of contributions represents 45% of the gross salary.
  • For 2022, the employee’s share of French social contributions represents approximately 20% to 23% of the remuneration. However, since the contributions are assessed using various ceilings, the average rate will decrease as the gross salary increases.

Contribution

Group 1083

Social Security Contribution
Employer Group 1083 45%
Employee Group 1083 20% to 23%
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Immigration Reunion

  • Visas are not required by foreigners from the UK, USA, Australia, Canada and other EU countries
  • To enter Reunion, passports with 6 months’ validity are required by individuals from the aforementioned nations
  • EU nationals only require passports/ID cards to be valid for the duration of the stay
  • Nationals from countries that require a visa can apply for a Schengen visa to enter Reunion
  • Reunion Island, French overseas department, is not a member of the Schengen area.
  • For the holder of Schengen visa, the entrance in overseas departments/territories is possible only if the visa label contains the name of the overseas department/territory destination: "Valid for Reunion Island".
  • Chinese, Indian, South African and Mozambique nationals no longer need a visa for stays of up to 15 days.
  • The overseas departments of France are generally subjected to the same visa requirements as France
Need assistance hiring in Reunion? Contact us about our International EOR Service

Type of Visa/Permit

Documentation

Validity

Eligibility

Schengen Visa
  • Valid passport
  • Completed visa application form
  • Ongoing and return ticket
  • Passport size photos

90 days
  • Foreigners may apply for a Schengen visa if the label permits them for short visits to Reunion

Short Stay Visa
  • Visa application form
  • Work permit (business travel)
  • Passport
  • 3 standardized passport size photos
  • Evidence of sufficient financial means
  • Proof of a guarantee of repatriationto the foreign national’s usual place of residence.
  • Proof of insurance

90 days
  • This type of visa is generally issued for tourism, business trips or family visits, short training programmes, internships, conferences and corporate meetings, or to engage in remunerated activities (whatever the form), not exceeding 90 days.
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Value Added Tax (VAT) in Reunion

  • Réunion operates a VAT system that is similar to the EU system, but with certain adaptations. 
  • Metropolitan France, the other overseas departments and EU member states are deemed to be export territories with regard to Réunion, in the same way as third countries. 
  • The following rates are applicable:
  • VAT in Reunion Island is 8.5%.

VAT

Standard Rate

Group 1083

8.5%
Reduced Rate Group 1083 2.1%
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Payments And Invoicing

  • The tax year is the calendar year
  • Married persons file a joint tax return, with no option to file separately after the year of marriage or before divorce
  • Income tax returns must be filed in May after the end of the tax year
  • Late payments and late filings are subject to a 10% penalty
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Payroll Accrual in Reunion

Country Accruals Additional Information

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Description

Uses France guidelines

Accrued Benefits in Reunion

Christmas Bonus %

French department

  
Christmas Bonus Over Vacations %

French department

  
Severance per Year%

French department

  
Vacations %

French department

  
Notice %

French department

  
Christmas Bonus Over Notifications %

French department

  
Vacations Plus %

French department

  

Total percentage of Salary (yearly)

French department

 

Why use Global Expansion to hire in Reunion

Establishing a branch office or subsidiary in Reunion can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Reunion labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Reunion law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Reunion. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Reunion Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

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