In Reunion, a French overseas department, French social security plays a significant role in providing mandatory employee benefits. Both employers and employees contribute to the system, ensuring a comprehensive social safety net.

Healthcare

Reunion falls under the French National Health Insurance (CnamSS). Both employers and employees contribute to CnamSS, which provides reimbursements for medical expenses, hospitalization, maternity care, and medication.

Retirement

Reunion adheres to the national French retirement system. Employers and employees contribute a portion of the salary towards retirement pensions.

Unemployment Insurance

Mandatory contributions are made towards unemployment benefits. Eligible employees can receive benefits for a specific period if they lose their job involuntarily.

Family Benefits

Social contributions fund family allowances, providing financial support to families with children. Employees are also entitled to paid maternity and paternity leave.

In Reunion, beyond the mandatory benefits, employers can offer a variety of optional benefits to attract and retain talent.

Health and Wellness

• Supplemental Health Insurance: Many employers in Reunion offer top-up health insurance plans that go beyond basic coverage provided by the national system. This can help employees cover dental, vision, or other medical expenses.
• Wellness Programs: Companies may offer on-site fitness facilities, gym memberships, or sponsor employee participation in sports activities to promote a healthy lifestyle.

Financial Security

• Daycare Assistance: Employers may offer subsidies or vouchers to help employees cover childcare costs, a significant expense for many families.

Work-Life Balance

• Flexible Work Arrangements: This could include telecommuting options, compressed workweeks, or flextime schedules, allowing employees to manage work-life balance more effectively.
• Additional Paid Time Off: Some companies provide extra vacation days or personal leave days beyond the legal minimum, allowing employees more time for rest and relaxation.

Other Perks

• Professional Development: Employers may offer tuition reimbursement or sponsor employees to attend conferences or workshops, enhancing their skills and marketability.
• Free or Discounted Services: Companies might provide free meals, gym memberships, or discounts on products or services relevant to employees' needs.

In Reunion, health insurance is a requirement for all residents, including employees. The system is bifurcated into public health insurance and complementary health insurance.

Public Health Insurance

Public health insurance is managed by the "Caisse Générale de la Sécurité Sociale (CGSS)". It covers a significant portion of medical expenses in Reunion. Employees contribute to the CGSS through payroll deductions. The CGSS reimburses a percentage of medical costs, depending on the type of care and the employee's situation.

• Employees are automatically enrolled in the CGSS upon starting employment.

The CGSS typically covers:

• Hospitalization
• Doctor visits
• Medication
• Maternity care

Complementary Health Insurance (Mutuelle)

Most employees in Reunion opt for complementary health insurance, also known as a "mutuelle", due to the partial coverage by the CGSS. Mutuelle policies can be obtained from private insurance companies and help cover the remaining costs not reimbursed by the CGSS.

Benefits of a Mutuelle:

• Reimbursement for co-payments and deductibles on CGSS-covered expenses
• Coverage for expenses not covered by the CGSS, such as dental care or vision care

Employers are not required to provide a mutuelle, but some may offer it as part of their employee benefits package.

Finding a Mutuelle

• Many private insurance companies offer mutuelle plans in Reunion.
• French labor unions often have negotiated discounted rates for mutuelle coverage for their members.

The retirement system in Reunion is a multi-pillar system, combining a mandatory public plan with options for private savings.

Public Pension Plan (Régime Général)

The mandatory public pension plan, managed by the "Caisse Nationale d'Assurance Vieillesse (CNAV)", provides a basic retirement income for all employees in France, including those in Reunion. Contributions are made through payroll deductions, with both employers and employees contributing a percentage of wages.

The CNAV provides a pension based on earnings and years of contributions. The retirement age for the full state pension is gradually increasing but is currently 62 years old with a minimum contribution period.

Supplementary Retirement Plans (Retraite par Capitalisation)

To supplement the public pension, employees can participate in voluntary supplementary retirement plans. These plans come in two main types:

• Empresa Group Retirement Savings Plans (PERCO): Offered by employers, PERCO plans allow employees to make pre-tax contributions that are deducted from their salary. Employers may also contribute to the plan. These contributions grow tax-deferred and are typically taxed upon withdrawal at retirement.
• Individual Retirement Savings Plans (Madelin): Available to self-employed individuals and some professions, Madelin plans offer similar tax advantages to PERCO plans.

Supplementary plans allow employees to save more for retirement and potentially achieve a higher income replacement ratio. Tax benefits on contributions can encourage saving for the future.

Choosing a Supplementary Plan

Consider factors like investment options, fees, and contribution limits when choosing a supplementary plan. Seek professional financial advice to determine the best plan for your individual circumstances.