Learn about mandatory and optional employee benefits in Reunion
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.
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.
Reunion adheres to the national French retirement system. Employers and employees contribute a portion of the salary towards retirement pensions.
Mandatory contributions are made towards unemployment benefits. Eligible employees can receive benefits for a specific period if they lose their job involuntarily.
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.
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 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.
The CGSS typically covers:
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:
Employers are not required to provide a mutuelle, but some may offer it as part of their employee benefits package.
The retirement system in Reunion is a multi-pillar system, combining a mandatory public plan with options for private savings.
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.
To supplement the public pension, employees can participate in voluntary supplementary retirement plans. These plans come in two main types:
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.
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.
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