Understanding market competitive salaries is crucial for both employers and employees in Reunion. Competitive compensation attracts and retains top talent, while also ensuring a fair wage for the work performed.

Factors Influencing Market Competitive Salaries

Several factors influence what constitutes a competitive salary in Reunion:

• Job Title and Responsibilities: The specific role and its associated duties significantly impact salary expectations. Managerial or highly specialized positions typically command higher salaries compared to entry-level roles.
• Experience and Qualifications: Employees with extensive experience and relevant qualifications can expect higher salaries. Certifications, professional licenses, and advanced degrees can further increase earning potential.
• Company Size and Industry: Larger companies and those in high-growth industries generally offer more competitive salaries to attract skilled workers.
• Location: Cost of living can vary across different regions in Reunion. Salaries may be higher in areas with a higher cost of living.
• Education and Language Skills: Educational attainment and fluency in French, the primary language of business in Reunion, can influence salary offers.

Researching Competitive Salaries

To research market competitive salaries in Reunion, consider the following:

• Salary Surveys: International organizations like Mercer or Towers Watson conduct regular salary surveys that provide benchmarks for various positions across different industries and locations, including Reunion.
• Government Resources: The Ministry of Labor in Reunion publishes information on average salaries for different professions.
• Job Boards: Many online job boards in Reunion list salary ranges alongside job postings. This can provide valuable insights into current market rates for specific roles.

Reunion, an overseas department of France, has a unique system regarding minimum wage. Unlike mainland France with a nationally mandated minimum wage (SMIC - Salaire Minimum Interprofessionnel de Croissance), Reunion does not have a statutory minimum wage.

Collective Bargaining Sets the Minimum Wage

In Reunion, minimum wages are established through a process of collective bargaining agreements. These are negotiated between employers' organizations and trade unions. These agreements, known as "Accords Professionnels Interprofessionnels (API)", define minimum salary levels (called le minimum garanti or guaranteed minimum) for various sectors and professions across the island.

The legislative framework for these collective bargaining agreements in France, which also applies to Reunion, is established by Articles L. 2231-1 et seq. of the French Labor Code (Code du travail).

Importance of Researching Current Minimum Wage

Due to the absence of a single national minimum wage, the minimum wage for a specific role can vary depending on the industry and the applicable collective bargaining agreement.

To find the most recent minimum wage information for a particular profession in Reunion, you can reach out to relevant employer organizations or trade unions in your industry. They can provide details on the applicable collective bargaining agreement and the corresponding minimum wage.

Additionally, The Direction de l'Economie, de l'Emploi, du Travail et des Solidarités (DEETS), a department within the French Ministry of Labor responsible for labor affairs in Reunion, might offer resources or guidance on finding minimum wage information.

Reunion, a French overseas department, offers a unique compensation landscape that blends French metropolitan practices with local regulations. Here's a breakdown of some common bonuses and allowances you might encounter as an employee in Reunion:

Mandatory Bonuses

• 13th Month Pay (Gratification de fin d'année): This mandatory bonus, equal to one month's salary, is typically paid in December. It's calculated based on gross salary earned throughout the year.

Performance-Based Bonuses

• Performance Bonus (Prime de rendement): This variable bonus rewards employees for exceeding targets or achieving specific goals set by the company.

• Profit-Sharing Bonus (Intéressement): Companies can distribute a portion of their profits to employees based on a pre-determined agreement.

Benefits and Allowances

• Meal Vouchers (Tickets Restaurant): These vouchers allow employees to purchase meals at a discounted rate at participating restaurants.

• Transportation Allowances (Indemnités kilométriques): Companies may reimburse employees for work-related travel expenses, including mileage for personal vehicles.

• Housing Allowances (Allocation logement): Employees, especially those with low income, may qualify for government-funded housing assistance.

• Company Retirement Plans (Plan d'épargne d'entreprise): Some companies offer employer-sponsored retirement savings plans with potential matching contributions.

• Important Note: This is not an exhaustive list, and the availability and specifics of these bonuses and allowances can vary depending on the company, industry, and collective bargaining agreements.

In Reunion, payroll cycles are governed by French metropolitan labor laws, with some local adaptations.

Frequency of Payment

The most prevalent payroll cycle in Reunion is monthly, where employees typically receive their salaries by the end of the month following the one worked. A less common, but still possible, payroll cycle is bi-monthly, where employees receive salaries twice a month. The specific pay frequency should be outlined in the employment contract, adhering to minimum legal requirements.

Methods of Salary Payment

The most common method for receiving salaries in Reunion is electronic bank transfer directly into the employee's account. Along with the salary transfer, employees are legally entitled to receive a payslip detailing their gross and net pay, deductions, and any allowances.

Other Considerations

If the designated payday falls on a public holiday, the salary should be paid on the last working day before the holiday. Overtime work, exceeding the legal workweek limit (usually 35 hours), must be compensated at an increased rate, as defined by the employment contract or collective bargaining agreement. It's important to note that collective bargaining agreements in certain sectors may have specific provisions regarding payroll cycles or overtime pay.