Guide to employment, payroll and benefits in

Monaco

Rivermate offers complete payroll, benefits and compliance services for

Monaco

01. Overview

Last updated: 

August 19, 2021

Currency
Euro
Capital
Monaco
Ease of doing business
Language
French
Population
39242
GDP growth

02. Grow your team in

Monaco

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Monaco

, particularly if you don't have established local relationships. You can hire employees in

Monaco

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Monaco, officially the Principality of Monaco, is a federal city-state and microstate in Western Europe, located on the French Riviera near the Italian region of Liguria. It is bordered to the north, east, and west by France, and to the south by the Mediterranean Sea. The principality has a population of 38,682 people, 9,486 of whom are Monégasque nationals; it is widely regarded as one of the most expensive and wealthy places on the planet. The official language is French, but Monégasque, Italian, and English are spoken and understood by a sizable population. It is the world's second smallest sovereign state, after Vatican City, with an area of 2.1 km2. It is the world's most heavily populated sovereign state, with 19,009 people per square kilometer. Monaco has a land boundary of 5.47 kilometers and the world's shortest coastline of 3.83 kilometers, with a range ranging from 1,700 to 349 meters. The state's highest point is 161 meters above sea level, reached through a narrow path known as Chemin des Révoires on the slopes of Mont Agel in the Les Révoires ward. The principality is about 15 kilometers from the Italian border. Larvotto/Bas Moulins, with a population of 5,443, is the most populous ward. Monaco's land mass has grown by 20% as a result of land reclamation. It was just 1.974 km2 in size in 2005. Prince Albert II is the head of state of the principality, which is ruled by a kind of constitutional monarchy. Despite being a constitutional king, Prince Albert II wields enormous political power; the Minister of State is the head of government. The officeholder may be a Monégasque or a French resident, and the monarch consults with the French government before making a decision. Since 1297, the House of Grimaldi has dominated Monaco with only minor interruptions. The Franco-Monégasque Treaty of 1861 recognized the state's sovereignty, and Monaco became a full United Nations voting member in 1993. Monaco's defense is the responsibility of France, despite its independence and separate foreign policy. Monaco does, however, maintain two small military units. The founding of the state's first casino, the Monte Carlo Casino, as well as a railway link to Paris, sparked economic growth in the late 19th century. Monaco's mild climate, beautiful scenery, and gambling facilities have all led to the principality's reputation as a wealthy tourist destination. Monaco has become a major banking center in recent years, and it has attempted to diversify its economy by focusing on services and tiny, high-value-added, non-polluting industries. The state has no income tax and low business taxes, earning it a reputation as a tax haven. With real estate values approaching €100,000 per square metre in 2018, over 30% of the population is a millionaire.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Employers may discharge employees for a variety of reasons, including redundancy, incompetence, economic concerns, physical health, and disciplinary action. Collective bargaining agreements may include provisions that exceed these minimums, such as prolonged notice periods or bigger severance compensation.

Notice period

After six months of employment, an employee is entitled to one month's notice of termination. They require two months after two years. If an employee is terminated without cause, they are entitled to a severance payment equal to their daily wage for each month of seniority.

Severance pay

If an employer discharges an employee for reasons such as misconduct, the employee is entitled to the standard French severance, which is 25% of monthly pay for each year of service. Employees with more than 11 years of service receive 33% of their monthly pay.

Probation period

A probationary period is limited to three months by law. The parties may contract for a shorter duration, with the option of renewal, and up to a maximum of three months.

07. Working hours

General

The standard workweek is 39 hours, but an employee may work up to 47 hours per week without being paid overtime for time worked beyond the statutory hours. Employees may work a maximum of 10 hours per day, including overtime, and may only exceed that limit with permission from the Labor Inspector.

Overtime

Employees earn a 25% wage increase for the first eight hours of overtime and 50% for subsequent hours. If an employee is scheduled to work two consecutive 10-hour shifts, they must have at least ten hours of rest between shifts.


Regulations governing working hours also include provisions for women. They are not permitted to work in factories or workshops between the hours of 10 p.m. and 5 a.m., unless they hold a management position.

08. Minimum wage

General

The national minimum wage in Monaco is €10.15 per hour, but this figure may fluctuate according on the collective agreements in effect.

09. Employee benefits

General

Employers are liable for employee compensation if a worker is injured on the job. Monaco also has a public healthcare system funded by social security payments.

If an employee is unable to work owing to a long-term sickness, they may receive half of their income from the social fund. Registered workers may also get free healthcare if they have worked 120 hours in the previous month or 200 hours in the preceding quarter.

Employment regulations do not specify any mandatory perks or incentives, but these terms may vary based on collective bargaining agreements.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Monaco

to hire a team takes time, money, and effort. The labor law in

Monaco

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Monaco

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Monaco

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Monaco

via our Employer of Record / PEO solution.

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