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Population
Réunion is a French overseas department in the Indian Ocean with about 868,000 inhabitants (as of 2023). The population is ethnically diverse, composed of descendants of African slaves, Indian indentured laborers, European colonists, and Chinese immigrants.
Capital
The capital of Réunion is Saint-Denis, the largest city on the island and its economic, cultural, and administrative center.
Economic Power
The economy of Réunion is mainly based on services, the public sector, trade, and tourism. Agriculture, especially sugarcane cultivation, and fishing also play roles. The island faces high unemployment and is heavily dependent on French subsidies and EU funding. The GDP per capita is significantly below the French average.
Culture
Réunion’s culture is a mix of African, Indian, European, and Chinese influences. This diversity is reflected in music, cuisine, religious practices, and traditional festivals. Popular music genres like Séga and Maloya, often associated with the history of slavery, are important elements of local culture.
Currency
Réunion uses the Euro (€) as its official currency, as it is a French overseas territory.
Health Insurance and Social Security System
Réunion is integrated into the French social security system. Healthcare and social security are at the same level as in mainland France, covering healthcare, unemployment benefits, pensions, and family allowances. Both employees and employers contribute to the social security system.
Costs for Employers
Employer social contributions in Réunion are similar to those in France, including contributions to health insurance, pension, unemployment insurance, and other social benefits. The total employer burden can amount to about 40-45% of gross salary.
Salaries and Bonuses
Salaries on Réunion are comparable to those in France, though the cost of living is higher due to the island’s dependence on imports. Employees may receive annual bonuses, often regulated by collective agreements or individual contracts.
Payroll
Payroll on Réunion follows French standards, including all statutory deductions for taxes and social security contributions. Employers must carefully manage payroll to comply with all required contributions and deductions.
Public Holidays
Réunion has a mix of French and local holidays. Key holidays include:
- New Year’s Day
- Labor Day (May 1)
- Bastille Day (July 14)
- Assumption Day (August 15)
- All Saints’ Day (November 1)
- Christmas (December 25)
- Local holidays such as the Day of the Abolition of Slavery.
Working Hours
The regular working week is 35 hours, as in mainland France. The same regulations for overtime, breaks, and rest periods apply.
Vacation
Employees are entitled to at least 25 paid vacation days per year. Additionally, there are paid public holidays. In some sectors, additional leave is granted through collective agreements.
Incapacity for Work
Employees are entitled to sick leave, with compensation provided by the health insurance system and social security. Employers may be required to continue paying wages for a certain period during illness.
Termination/Severance Pay
Terminations must comply with French labor laws, which include strict rules on the grounds for dismissal and procedures.