How to Hire and Pay Employees in Réunion Island: A Step-by-Step Guide for Global Employers

Réunion Island might already be on your radar—a strategic bridge between Africa, Asia, and Europe. And if you’re eyeing talent there, you’re not alone. The island is home to a bilingual workforce and offers access to the EU labor market, all with tropical views. But hiring in Réunion isn’t quite plug-and-play.

While it shares labor laws with France, Réunion has its own local twists that can trip you up if you’re not prepared. This guide walks you through how to hire and pay employees in Réunion—without getting tangled up in red tape.

Understand labor laws and employment basics in Réunion Island

Let’s say you just found the perfect product designer in Saint-Denis. You’re ready to send the offer letter, but you’re not registered in France. What now?

Know the essential local labor laws

Start with the basics: employees in Réunion work 35 hours per week, and overtime kicks in with higher pay. The minimum wage, €11.88 per hour gross as of 2025, matches France’s rate. And while national labor laws apply, local costs and customs still matter when setting compensation.

You’ll also need to follow strict rules around employee protections. Fixed-term contracts (CDD) are tightly regulated. If you want to end an employment contract, you’ll need a justifiable reason that is backed by a process. Otherwise, you could be looking at legal claims.

Employees must be registered with the French social security system, which covers health, retirement, and unemployment. It’s generous—but also adds complexity if you’re not used to the French model.

For all the fine print, France’s Code du travail is your north star.

Clarify work permits and eligibility

Hiring from within the EU? Easy. EU and EEA citizens can work in Réunion without a permit.

If you’re hiring talent from elsewhere, you’ll need a work permit before they arrive. This usually takes 1-3 months, and the permit has to be approved before your employee boards a flight.

Make sure the visa or residence status covers work in overseas territories, not just mainland France. Local labor authorities may also ask for proof that you tried hiring locally first.

Structured steps to hiring employees in Réunion Island

Hiring in Réunion works best following a step-by-step process. Here’s what that looks like:

1. Write a locally compliant job post.
2. Advertise on regional platforms like Domemploi or Pôle emploi Réunion.
3. Run interviews and verify eligibility.
4. Kick off the work permit process if needed.
5. Create a contract in French that checks all legal boxes.
6. Register the hire with URSSAF and social systems.
7. Set up payroll and benefits from day one.

Navigate the recruitment and selection process

Local hiring channels matter. While LinkedIn may work, most local employers post on Réunion-specific platforms. Interviews are typically formal, and candidates are expected to provide extensive documentation.

Job offers should clearly outline pay, hours, benefits, and start date. Transparency builds trust—and keeps you compliant.

Prepare employment contracts according to local standards

In France (and Réunion), employment contracts must be written and in French. No exceptions.

They should include:

• Job title and responsibilities
• Salary and work hours
• Contract type (CDI or CDD)
• Benefits, leave, and notice period

You’ll also need to file a Pre-employment Declaration (DPAE) with URSSAF at least eight days before the employee starts.

Practical payroll and compliance: Paying employees in Réunion

Payroll isn’t just about getting money into your employee’s bank account. In Réunion, it’s about handling dozens of moving parts: payslips, deductions, filings, and deadlines.

Here’s what a typical month looks like:

• 1st–5th. Finalize worked hours and calculate gross pay
• 5th–10th. Generate payslip and deduct contributions
• 10th–15th. Submit reports to URSSAF and pay social charges
• End of month. Pay employee

Choose safe and efficient payment methods

If you have a local entity, paying through a French bank is standard. But if you don’t, things get complicated. Digital platforms like Wise can move euros, but they won’t help you comply with French labor laws.

That’s where a global payroll provider or Employer of Record (EOR) comes in handy. They can handle payments, social charges, payslips, and filings—all in one platform.

Understand employer payroll contributions and local taxes

Employers in Réunion contribute around 40–45% of gross salary to cover:

• Health coverage
• Retirement
• Unemployment insurance
• Family benefits

All of this gets reported to URSSAF. Income tax is withheld directly from pay. Payslips must be detailed and kept on file for five years.

And good news if you’re investing long-term: France offers tax incentives under its Zone Franche d’Activité Outre-Mer program.

Managing ongoing employment: benefits, reporting, and HR best practices

Once you’re up and running, make sure you stay in step with ongoing requirements.

Plan and offer required benefits

All employees in Réunion are entitled to:

• Five weeks of paid vacation
• Public holidays
• Health coverage
• Sick and parental leave

You’re also expected to conduct annual reviews and keep HR policies up to date. Set reminders for monthly and yearly reports, leave tracking, and contribution reviews.

Tips, resources, and using EOR support for hiring success

It pays to stay organized. Start by bookmarking URSSAF and Service-Public.fr for up-to-date forms and calendars.

And if you want to skip the setup and complexity, consider an Employer of Record (EOR). An EOR acts as the legal employer on your behalf. They handle contracts, payroll, benefits, social contributions, and local compliance. You stay in charge of your team’s day-to-day work—but the EOR deals with the legal side.

It’s the fastest way to hire in Réunion without opening an entity or learning French tax law.

Get it right from day one

Hiring in Réunion isn’t out of reach—but it’s also not something you want to wing. The key is to understand what’s required, follow each step, and work with experts who know the territory.

Use checklists. Ask local authorities when in doubt. And consider leaning on a partner who’s done this before.

How Pebl makes hiring in Réunion simpler

Pebl is already an EOR in Reunion. That means you can hire in Réunion without the overhead of setting up a local company. We manage contracts, payroll, benefits, taxes, and compliance from day one.

Whether you’re hiring one designer or an entire team, our employer of record service gives you everything you need to stay compliant and competitive.

We’ll handle the complexity so you can focus on growing your business. Let’s chat about where to start.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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