Since July 1, 2026, the LODEOM (Law for the Economic Development of Overseas Territories) has been officially in force in Mayotte. For businesses on the island, this means potentially significant employer social contribution exemptions — provided they navigate two distinct regimes and make the right choices before the end of October.
What does LODEOM concretely change?
LODEOM introduces a system of employer social security contribution exemptions, applicable to all companies with an establishment in Mayotte. Three different scales apply depending on:
- The sector of activity (certain priority sectors benefit from more favourable rates);
- The company headcount;
- The turnover;
- The individual salary of the employee concerned.
The stated objective is to reduce labour costs for companies operating in a post-cyclone Chido environment that remains difficult, with high supply costs and fragile infrastructure.
LODEOM or RGDU: the HR choice to make now
The subtlety of this scheme lies in its coexistence with the RGDU (General Reduction in employer contributions for Overseas Territories), in force since January 2026. The two regimes are distinct and cannot be combined for the same employee. However, a single company can apply RGDU for some employees and LODEOM for others.
This dual option requires HR and finance managers to decide employee by employee, based on individual circumstances (salary level, contract type, sector). An official simulator will be made available by CSSM by end-October 2026 to help employers estimate exemption amounts. In the meantime, CSSM held an explanatory webinar on July 9, 2026.
Reconstruction under budget pressure
LODEOM's entry into force comes in a difficult economic context for Mayotte. The island is still in a reconstruction phase following Cyclone Chido at the end of 2024. The government promised €674 million for reconstruction in 2026, as part of a 2026-2031 five-year strategy. These funds are subject to national budget arbitrations, a persistent source of uncertainty for economic operators.
For its part, BGE Mayotte supported 1,560 people in 2025, including 360 businesses and micro-enterprises and 72 social economy organisations. Its net result returned to breakeven (+€3,305), after a deficit year in 2024. The organisation aims to strengthen its support for social economy structures in 2026, an active sector in Mayotte's economic fabric.
Why this matters
For Indian Ocean economic decision-makers operating in Mayotte or considering investment there, LODEOM represents a concrete opportunity to reduce payroll costs in a still-fragile environment. But it requires careful analysis at the level of each position. The key: make the right choices before the simulator goes live, to make the most of the scheme from H2 2026 onwards.