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# [MAYOTTE] LODEOM Law Takes Effect: End of a 15-Year Exception for Businesses
- URL: https://businessoi.media/en/mayotte-la-lodeom-entre-en-vigueur-fin-dune-exception-de-15-ans-pour-les-entreprises-en/
- Published: 2026-07-21T02:49:57.000Z
- Updated: 2026-07-21T02:49:57.000Z
- Description: Since July 1, 2026, LODEOM finally applies to Mayotte — 15 years after the other French overseas departments. A major change for businesses, but practical complexities are mobilising employer groups.
- Author: Emmanuel TAOCHY
- Tags: La Réunion, emploi, Finances publiques, Revue matinale, #en

**Since July 1st, 2026, the LODEOM law for Economic Development of France Overseas Territories has applied to Mayotte. The island, excluded from the scheme since its adoption in 2009, finally joins the other French overseas departments (DROM) in benefiting from employer payroll tax exemptions. A major step forward, but one accompanied by practical complexities that are mobilising employers.**

## Fifteen Years of Exception: Its Over

Guadeloupe, Martinique, French Guiana and Réunion have benefited from LODEOM since 2009\. Mayotte, which became a DROM in 2011, had remained excluded — an anomaly finally corrected by the decree of February 11, 2026\. The scheme provides for progressive employer contribution exemptions depending on company size, business sector, and turnover level. Mahorais businesses can now access a regime similar to that in force in Réunion.

## A Delicate Choice Between Two Regimes

The complexity lies in the coexistence of the old regime (RGDU) and the new one (LODEOM). The two cannot be combined: each employer must choose the most advantageous for each employee, based on sector, company size, turnover, and salary. Payroll software does not yet automate this optimisation — an error can generate either excess contributions or an over-exemption requiring subsequent correction. The CSSM social security fund organised a webinar on July 9th, and an official simulator will be available by end of October 2026.

## Mixed Reception from Business Associations

Eleven Mahorais employer organisations have expressed reservations. The scales applied to Mayotte are deemed less favourable than those of French Guiana, despite the convergence towards overseas standards. In a post-Chido context where Mayotte economy is rebuilding — imports rose 26% in 2025, reaching an unprecedented level of 300 million euros — businesses had been hoping for more ambitious fiscal support.

## Why It Matters

Mayotte is France poorest overseas territory. The entry into force of LODEOM represents an essential social and economic convergence tool. By reducing labour costs, it can stimulate hiring in a rebuilding economy, reduce informal employment, and improve the competitiveness of local SMEs. The quality of implementation will determine whether this reform is an accelerator or yet another broken promise.