Payroll and Benefits Guide Guadeloupe
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| 13.0% (or 7.0% reduced) | Health / maternity / disability / death |
| 8.55% | Old-age pension (basic capped ≤PASS) |
| 2.02% | Old-age pension (uncapped) |
| 4.7% (T1), 12.9% (T2) | Supplementary pension (AGIRC-ARRCO) |
| 3.45% / 5.25% | Family allowances |
| 4.0% | Unemployment insurance |
| 1–7% (avg ~3%) | Work accidents / disease |
| 0.10% / 0.50% | FNAL (housing) |
| 0.55–1.0% | Training / apprenticeship |
| 40-45% | Total Employer Costs |
| Employee Payroll Contributions | |
| 6.90% | Old-age pension (basic capped ≤PASS) |
| 0.40% | Old-age pension (uncapped) |
| 3.2% (T1), 8.6% (T2) | Supplementary pension (AGIRC-ARRCO) |
| 4.7% (T1), 12.9% (T2) | Supplementary pension (AGIRC-ARRCO) |
| 9.20% (on 98.25% base) | CSG |
| 0.50% (on 98.25% base) | CRDS |
| 0.30% | Solidarity autonomy |
| 20-23% | Total Employee Costs |
Income tax
Resident Individuals – Progressive Annual Rates (2025)
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Up to €10,225 → 0%
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€10,226 – €26,070 → 11%
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€26,071 – €74,545 → 30%
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€74,546 – €160,336 → 41%
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Above €160,336 → 45%
Non-Resident Individuals
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Flat 30% on French/Guadeloupe-sourced income, unless modified by a tax treaty.
PAYE Withholding (Prélèvement à la Source)
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Employers deduct income tax monthly from salaries.
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Deduction is based on a personalized rate (provided by the tax authority) or a neutral/default rate.
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Amounts withheld are remitted directly to the French tax administration.
Employer taxes
Working Hours
General
Standard legal working week is 35 hours per week
Overtime
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Maximum Ordinary Hours: The legal standard work week is 35 hours (Article L3121-27). Any hour worked beyond 35 hours per week is considered overtime (heures supplémentaires).
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Absolute Maximums (Daily/Weekly): Employees generally cannot work more than:
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10 hours per day.
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48 hours in a single week (absolute maximum, with minor exceptions).
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44 hours per week, averaged over any 12 consecutive weeks.
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Annual Overtime Cap (Contingent Annuel): Overtime is legally capped at 220 hours per calendar year per employee, unless a Collective Bargaining Agreement (CBA) or company agreement sets a different amount.
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Exemptions: Senior managerial and executive positions (Cadres Dirigeants) are typically exempt from the statutory working hours and overtime provisions.
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Time Recording: Employers are legally obligated to record employees’ working hours, including overtime, for compliance purposes.
Mandatory Overtime Pay Rates
Overtime must be compensated either through pay (at a premium rate) or equivalent compensatory rest (Repos Compensateur de Remplacement – RCR), as determined by a CBA or company agreement.
In the absence of a CBA or agreement, the Labour Code mandates the following minimum premium rates:
| Hours Worked (Beyond 35/week) | Minimum Premium Rate (Supplement) | Total Pay Rate | Notes |
| $36 to $43/hour (The first 8 hours of overtime) | +25% of the regular hourly wage. | 125% | Applies when no agreement is in place. |
| $44 hour and beyond | +50% of the regular hourly wage. | 150% | Applies to any further overtime hours worked in the week. |
Note on Agreements: A CBA can stipulate a lower premium rate than the statutory rate above, but the rate can never be less than a 10% premium on the regular wage.
Compensation for Exceeding the Annual Quota
If an employee works overtime hours beyond the annual quota (220 hours by default), the employer must provide additional compensation known as Mandatory Compensatory Rest (Contrepartie Obligatoire en Repos – COR), in addition to the standard overtime pay or rest compensation:
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50% of the hours worked beyond the quota, for companies with 20 employees or less.
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100% of the hours worked beyond the quota, for companies with more than 20 employees.
Payroll
Monthly, wages must be paid by the last working day of each month.
13th Salary
This is not mandatory under French/Guadeloupe law.
Leave
Annual Leave (vacation)
An employee is entitled to 3 2.5 days per month worked, i.e., 30 working days (5 weeks) per year after one year of service.
Public Holidays
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 8 May 2026 | Friday | Victory Day (WWII) | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday (Pentecost) | Standard holiday |
| 27 May 2026 | Wednesday | Abolition Day | Standard holiday |
| 14 July 2026 | Tuesday | Bastille Day | Standard holiday |
| 15 August 2026 | Saturday | Assumption Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 11 November 2026 | Wednesday | Armistice Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
In Guadeloupe, sick leave allowance is paid after a 3-day waiting period at about 50% of average salary (capped), with employer top-ups possible by seniority or agreements.
Maternity Leave
Maternity leave in Guadeloupe is set at 16 weeks, divided into six weeks before the birth and ten weeks after. This may extend to 26 weeks for a third child and even longer for multiple births, with pay provided by Social Security at 100% of the average salary within contribution caps.
Paternity Leave
Fathers are entitled to 25 consecutive calendar days of paternity leave, or 32 days in the case of multiple births, and the leave must be taken within six months following the birth.
Parental Leave
Either parent may take parental leave until the child reaches the age of three. This leave is unpaid by the employer, although parents may be eligible for family allowances from the state.
Bereavement Leave
Employees are entitled to at least three days of paid leave in the event of the death of a spouse, partner, parent, or child, and this entitlement may extend up to eight days in the case of the death of a child.
Childcare Leave
There is no separate statutory childcare leave in Guadeloupe. Parents generally rely on parental leave, annual leave, or unpaid leave to manage childcare responsibilities.
Employer taxes
Termination
Termination Process
Termination of employment contracts in Guadeloupe is regulated by the French labor code, which sets out strict procedures to ensure fairness and legal compliance. A contract may end through resignation initiated by the employee, dismissal for misconduct or incapacity, redundancy due to economic reasons, mutual agreement between the parties, or the natural expiry of a fixed-term contract. In the case of dismissals, the employer is required to provide written notice, clearly state the reasons, and follow a formal process that includes a preliminary meeting with the employee. For economic redundancies, additional obligations apply: employers must consult with employee representatives, notify the labor authorities, and, in some cases, implement redeployment or social support measures before termination can proceed. Failure to comply with these procedures may render the dismissal unfair or abusive, exposing the employer to damages, reinstatement orders, or increased severance obligations under the labor code.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Salaries must be paid at regular intervals, typically monthly, in keeping with French labour law and the specific overseas-department adaptation. | On termination, all wages and entitlements (unused leave, notice pay, etc.) must be paid according to French law. A specific fixed universal “within X days” deadline is not clearly cited in the sources for Guadeloupe. | Wages must be paid in monetary form. While bank transfer is common in practice, sources do not clearly state that payment must be made into a bank account in all cases under Guadeloupe law. |
Notice Period
Notice periods vary according to the employee’s role. Workers and clerical staff must receive at least one month’s notice, while supervisors and managers must receive three months’ notice. Employers may opt to pay compensation in lieu of notice.
Severance Pay
Employees with at least eight months of service who are dismissed for reasons other than serious misconduct are entitled to severance pay. The statutory entitlement is one quarter of a month’s salary per year of service for the first ten years, and one third of a month’s salary for each year thereafter, although collective agreements may provide more favorable terms.
Probation Period
Probationary periods depend on the employee’s position. They can last up to two months for workers and employees, three months for supervisors and technicians, and four months for managers and executives. In most cases, probation may be renewed once.
Immigration
As an EU region, Guadeloupe allows EU, EEA, and Swiss nationals to work without a permit. Non-EU nationals, however, must obtain both a residence permit and a work permit before beginning employment. Work permits are generally valid for one year and renewable, with processing times ranging from four to eight weeks depending on the prefecture. Employers are responsible for initiating the application process before the employee arrives.
Minimum Wage
Guadeloupe applies the French national minimum wage (SMIC). As of January 2025, the rate is €11.89 per hour, equivalent to €1,801.84 per month for a full-time 35-hour work week.
MINIMUM WAGE (PER MONTH)
VAT
Guadeloupe applies a reduced VAT regime with a standard rate of 8.5%, reduced rates of 2.1% and 1.75% for certain goods, and exemptions/0% for others; VAT returns are generally filed monthly, due by the 19th of the following month.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 8 May 2026 | Friday | Victory Day (WWII) | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday (Pentecost) | Standard holiday |
| 27 May 2026 | Wednesday | Abolition Day | Standard holiday |
| 14 July 2026 | Tuesday | Bastille Day | Standard holiday |
| 15 August 2026 | Saturday | Assumption Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 11 November 2026 | Wednesday | Armistice Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Questions & Answers