Talent can be everywhere. French overseas departments like Guadeloupe, Martinique and Reunion Island are particularly popular with remote employees.
Hiring remote employees in Guadeloupe, Martinque and Reunion Island
French overseas departments are not only characterized by their distance to mainland France. They also have social, cultural, political and economic particularities.
French overseas departments (DOM)
Overseas departments, in French referred to as ‘département d’outres mer’ short DOM (also ‘départements et régions d’outre-mer’ short DROM) are territorial authorities. They have the same capacity as departments and regions of mainland France, in French referred to as ‘Métropole’ commonly known as European France.
As of today, 5 overseas departments DOMs exist: Guadeloupe, Martinique, French Guyana, Reunion Island and Mayotte.
Payroll for employers established in French overseas departments
Some payroll-related particularities apply to French overseas departments. Notably, a specific exemption on social contributions, referred to as LODEOM
LODEOM exemption for employers established in Guadeloupe, Guyana, Martinique or Reunion Island
The LODEOM exemption applies to employers established in Guadeloupe, Guyana, Martinique and Reunion Island. This exemption is somewhat similar to the RGCP exemption for employers established in mainland France. Both essentially consist of a reduction of French employer social contributions and payroll taxes for lower paid staff.
Yet, the specific exemption LODEOM is more complex. The LODEOM exemption varies based on the specifics of the company: sector of activity, staff headcount, turnover and location.
Employers established in mainland France can benefit from an exemption RGCP for employees earning less than 1.6 times the French minimum salary SMIC, with a full exemption applying to employees earning the French minimum salary.
Employers with less than 11 employees established in Guadeloupe, Guyana, Martinique or Reunion Island, can benefit from an exemption LODEOM for employees earning less than 2.2 times the French minimum salary SMIC, with the full exemption applying to employees earning up to 1.3 times the French minimum salary.
Payroll for remote employees in French overseas departments
Payroll-related specifics like the exemption LODEOM apply to employers established in Guadeloupe, Guyana, Martinique and Reunion Island.
For employers established in a foreign country, outside of France, with remote employees in French DOMs, the ‘standard’ French contributions and payroll taxes apply. As for all foreign employers, the social body URSSAF Strasbourg is competent.
My Payroll Pro France specializes in providing French payroll services to small and medium sized companies. We assist companies with remote employees in France, including French overseas departments like Guadeloupe, Martinique and Reunion Island.