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Hiring in Monaco

Hiring employees compliantly in Monaco means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Monaco so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Monaco; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in Monaco? Contact us about our International EOR Service

Labor Laws in Monaco

Employment laws in Monaco are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Monaco employment laws and Monaco policies here.

Employee Probation Period

  • The duration of a probationary period is as follows: -
    • 6 working days for staff paid by the hour
    • 1 month for staff paid on a monthly basis.

Annual Leave in Monaco

  • The employee has the right to 2.5 working days of paid leave per month of actual work completed.
  • The period of the leave must not exceed 30 days.
  • Part-time employees have the right to the same number of days as full-time employees.
  • The number of days of paid leave increases according to length of service in the same company. Employees have the right to:
    • Two additional working days after 20 years of service in the same company
    • Four additional working days after 25 years of service in the same company
    • Six additional working days after 30 years of service in the same company
  • The total number of days accumulated in this way must not exceed 36 days.

Holidays in Monaco

Monaco celebrates twelve national public holidays as well as additional public holidays that vary by state:

New Year’s Day 1st January
Saint Dévote's Day 27th January
Easter Monday 13th April
Labor Day 1st May
Ascension Day 21st May
Whit Monday 1st June
Corpus Christi 11th June
Assumption of Mary 15th August
All Saints' Day 2nd November
National Day of Monaco 19th November
Feast of the Immaculate Conception 8th December
Christmas Day 25th December

 

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Maternity Leave Monaco

  • Women are allowed 16 weeks’ maternity leave in Monaco, for the third child, maternity leave is 26 weeks. 
  • An allowance is paid during maternity off-time. 
  • A pregnant employee is not obliged to reveal her pregnancy until the time she wishes to take maternity leave. 
  • Notification can be by made verbally or by letter.

Paternity Leave Monaco

  • You can take paternity leave of:
    • 12 consecutive calendar days for a single birth
    • 19 calendar days for multiple births
    • 19 calendar days if there are already two or more other children in the household
  • You can take the whole or part of this leave.

Sick Leave in Monaco

  • Days taken as sick leave do not qualify as paid leave, unless there are contractual provisions to the contrary.  
  • Days of absence for sick leave must not be deducted from the annual leave.

Working Hours in Monaco

  • Monaco has a standard work week of 39 hours per week or a maximum of ten hours per day.

Overtime in Monaco

  • If there is a request from the employer, an employee in Monaco can render overtime work which should not exceed 48 hours per week. 
  • Workers should be paid 25% for the first eight hours and 50% for any subsequent hours of overtime.

Termination of Employment in Monaco

  • Employees are entitled to a notice period and severance pay upon termination of employment if they meet certain conditions
  • Notice period is as follows: -
    • 1 month of notice period if length of service is more than 6 months but less than 2 years with the same employer
    • 2 months of notice period if length of service is more than 2 years with the same employer
  • To qualify for a statutory redundancy payment, you must have been continuously employed for at least two years.
  • The amount of severance pay is as follows:-
    • 1/4 of the monthly salary for each year of service for the first 10 years
    • 1/3 of the monthly salary for each year of service for the first 11 years

Notice Period in Monaco

  • Notice period is as follows: -
    • 1 month of notice period if length of service is more than 6 months but less than 2 years with the same employer
    • 2 months of notice period if length of service is more than 2 years with the same employer

Severance in Monaco

  • To qualify for a statutory redundancy payment, you must have been continuously employed for at least two years.
  • The amount of severance pay is as follows:-
    • 1/4 of the monthly salary for each year of service for the first 10 years
    • 1/3 of the monthly salary for each year of service for the first 11 years

Monaco Salary and Wages

Accurately estimate your costs when employing in Monaco in 2023. Includes base salary, dependents, benefits, taxes, social contributions, and payroll costs. Monthly or yearly calculation period.

The calculator for Monaco is coming soon, development in progress.

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13th/14th Month Salary in Monaco

  • No
  • There is no evidence that there is a statutory requirement to pay the 13th or 14th month salary.
  • The labour code refers to governmental employees.

Income Tax in Monaco

  • Monegasque nationals and foreign nationals residing in Monaco, with the exception of French nationals, who are regulated by the 1963 bilateral tax treaty between France and Monaco, are not liable for income tax. 
  • However, the absence of income tax for individuals only relates to activities carried out and persons who are genuinely established in Monaco. 
  • Foreign-source income is subject to the domestic rules of the state in which the source of the income is located and is not subject to Monegasque tax.
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Social Security in Monaco

  • Individuals’ social security taxes are withheld monthly by employers. 
  • Monegasque social security tax contributions are due on compensation, including bonuses and benefits in kind, earned from performing an activity in Monaco and paid in Monaco. 
  • However, this rule may be modified by a social security totalization agreement. 
  • The total charge for 2018 (the 2019 rates will be available in October 2019) is approximately 10% to 14% (depending on retirement fund contributions and level of remuneration) of gross salary for employees and 28% to 40% for employers. 
  • Some of the contributions are levied on wages up to certain ceilings. 
  • The following are the rates of these contributions and the amounts of the ceilings for 2018 (the 2019 rates and ceilings will be available in October 2019): 
    • Sickness contribution and family allocation: employee share of 0% and employer share of 15.05% (monthly ceiling of EUR8,600) 
    • Basic state pension contribution: employee share of 6.55% and employer share of 8.03% (monthly ceiling of EUR4,896) 
    • Unemployment contribution: employee share of 2.40% and employer share of 4.05% (monthly ceiling of EUR13,508)

Contribution

Employer

Employee

Sickness Contribution and Family Allocation

15.05%

-

Basic State Pension Contribution

8.03%

6.55%

Unemployment Contribution

4.05%

2.4%

Immigration Monaco

  • All foreign nationals - that is, non-Monegasques - are required to obtain a work permit (Permit de travail) before they take up any job in Monaco. 
  • They also need to get a new permit if they change position or employer.
  • It is the responsibility of the employer to help their employee obtain a work permit. 
  • Recruitment must be agreed by the Service de l'Emploi. 
  • When a job vacancy comes available the employer must contact the Service de l'Emploi, which then has four days to come up with an employee from Monaco or the surrounding area. 
  • Under Monegasque law local people with the same qualifications have priority. 
  • If a candidate within these criteria cannot be found, the employer may then propose its own candidate.
  • To obtain a work permit the employee must submit their contract of employment stamped by the employment service, along with proof of residence and personal identification to the Service de l'Emploi. 
  • If the employee lives in Monaco, a valid Monegasque residence permit is required. 
  • If resident in France, a French identity card or valid residence permit that authorises him to work is necessary.
  • The Employee also has to have an annual medical examination at the Office de la Médecine du Travail 
Need assistance hiring in Monaco? Contact us about our International EOR Service

Type of Visa/ Permit

Documentation

Validity

Eligibility

Work Permit

  • completed application form
  • a valid passport
  • recent passport pictures
  • police clearance forms
  • travel itinerary
  • proof of property ownership in Monaco or rental lease
  • visa fees
  • documents supporting your reason for the application, for example marriage certificate, authorized work contract, proof of sufficient means to live in Monaco without work, etc.
  • a letter of appointment (in the form of an undertaking of employment stamped by the Employment Service, in order to obtain a residence permit issued by the Department of Public Safety)
  • the agreement of the Department of Public Safety as well as the Occupational Health Office are necessary to obtain a work permit (for employees that are unknown in the Principality or who have stopped working for a period of 6 months)

N/A

  • All foreign nationals - that is, non-Monegasques - are required to obtain a work permit (Permit de travail) before they take up any job in Monaco. 
  • Under Monegasque law local people with the same qualifications have priority. 
  • If a candidate within these criteria cannot be found, the employer may then propose its own candidate.
  • To obtain a work permit the employee must submit their contract of employment stamped by the employment service, along with proof of residence and personal identification to the Service de l'Emploi. 

Residence Permit

  • Original and photocopy of passport
  • Original or Certified copy of Birth Certificate (if applicable)
  • Original or Certified copy of Marriage Certificate (if applicable)
  • Original Police Clearance Certificate
  • Original Bank Reference Letter (Not older than 6 month)
  • Evidence of Business Background
  • Evidence of Health Insurance
  • Proof of ownership or rental housing
  • Evidence of Residential Address

1 year (renewable up to 3 years)

  • To obtain a residence permit you must:
  • Have accommodation in Monaco, being the owner of a house or apartment or being the director or unit holder of a company which owns a house or apartment or renting a house or apartment (lease contract minimum of 12 months).
  • Have sufficient financial resources, this requirement is fulfilled making a deposit in a Monegasque bank. Most banks do require initial deposits from €500,000 to €1,000,000 to open an account.
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Value Added Tax (VAT) in Monaco

  • For the purposes of VAT Monaco is part of the European Union.
  • The Principality adopts the French system for collection.
  • The local name for VAT in Monaco is “Taxe sur la valeur ajoutée” (TVA).
  • There are basically 4 VAT rates in Monaco:
    • Standard VAT rate is 20%
    • Reduced VAT rates are 10% and 5.5%

VAT

Standard Rate

Group 1083

20%

Reduced Rate Group 1083 10%
Reduced Rate Group 1083 5.5%
Reduced Rate Group 1083 0%

Mandatory Benefits in Monaco

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, maternity leave, paternity leave, overtime pay, severance pay and 13th month pay.
  • Statutory benefits also include social security benefits
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Mandatory Benefits overview

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Paternity Leave

  • Overtime Pay

  • Severance Pay

  • 13th month pay

  • Social Security Benefits

Payroll Accrual in Monaco

Country Accruals Additional Information

Social Security 7.5%
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Description

Gainfully employed persons, including self-employed persons earning at least US$10,000 a year or with at least one employee (small businesses).Voluntary coverage for self-employed persons earning less than US$10,000 a year.

Exclusions

  • Casual employees who work less than one week in any calendar month and family labor.
  • Special systems (individual retirement plans) for some types of government employees.

Payroll Accruals Additional Information

    Employment Accruals
Annual Leave The employee has the right to 2.5 working days of paid leave per month of actual work completed.
The period of the leave must not exceed 30 days.
This equals 8.22% (30/365 days) of annual income
Maternity Leave Women are allowed 16 weeks’ maternity leave in Monaco, for the third child, maternity leave is 26 weeks. This equals 30.76% (16/52 weeks) of annual income
Paternity Leave Fathers can take paternity leave of:
  • 12 consecutive calendar days for a single birth
  • 19 calendar days for multiple births
  • 19 calendar days if there are already two or more other children in the household
This equals 3.28% (12/365 days) of annual income
Overtime If there is a request from the employer, an employee in Monaco can render overtime work which should not exceed 47 hours per week. Workers should be paid 25% for the first eight hours and 50% for any subsequent hours of overtime. Normal hourly rate is around 26.5 EUR. Overtime is paid at an additional 6.6 EUR
Severance To qualify for a statutory redundancy payment, one must have been continuously employed for at least two years. Statutory redundancy pay is calculated with reference to one’s number of completed years’ service.
  • 1.5 weeks’ pay for each year in which employees were 41 years old or above
  • style="text-align:left;"1 weeks’ pay for each year in which employees were over 22 but under 41 years’ old
  • 0.5 weeks’ pay for each year in which employees were under 22 years’ old
This equals 1.92% (1/52 weeks) of annual income
13th Month 13th month pay in the form of a 5% “prince's bonus” is mandatory in Monaco This equals 5% of annual income
Social Security Employers must make the following social security contributions: - Sickness Contribution and Family Allocation 15.05%; Basic State Pension Contribution 8.03%; Unemployment Contribution 4.05%. This equals 27.13% of annual income

Accrued Benefits in Monaco

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

Employees are entitled to severance pay that equals to 25% of their monthly salary (2.08% of annual salary)

2.08%
Vacations %

Employees are entitled to 24 days of annual leave (6.59% of annual salary)

6.59%
Notice %

Employees are entitled to 30 days of notice period for one year of service or more (8.24%)

8.24%
Christmas Bonus Over Notifications % 0%
Vacations Plus % 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per anum are equal to 17%

17%

Why use Global Expansion to hire in Monaco

Establishing a branch office or subsidiary in Monaco can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Monaco labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Monaco law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Monaco. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Monaco Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

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