Every year, when France’s Social Security Financing Bill (PLFSS) is reviewed, the contribution exemptions provided by LODEOM (the law for the economic development of French overseas territories) are at the heart of the debate.
In late 2025, the government was considering cutting these exemptions by roughly €350 million. In response to concerns raised by overseas economic stakeholders about rising labour costs and job losses, elected officials and professional organisations mobilised.
In November 2025, the French National Assembly ultimately voted to keep the LODEOM exemptions in place. The subject remains sensitive, however, and could evolve in the coming years.
In that context, a senatorial mission will travel to Saint-Martin from 23 to 25 March to evaluate the social-contribution exemption schemes that apply in the overseas territories and their impact on the local economy.
What is LODEOM?
LODEOM allows businesses in Saint-Martin and Saint-Barthélemy to benefit from an exemption on employer social-security contributions, except for those related to workplace accidents and occupational illnesses.
Three rate brackets exist depending on company size and activity:
- companies with fewer than 11 employees (all sectors)
- companies in strategic sectors (construction, tourism, food service, agriculture, industry, technology, etc.)
- companies with fewer than 250 employees in certain high-value-added sectors
Full information is available at: legisocial.fr