Working in Monaco

Monaco is known as a famous playground for the wealthy, famous and powerful individuals. With its wide range of gambling and entertainment centres that cater to the well-heeled locals and tourists, its no wonder why expatriates find it enticing to seek employment in this small, yet successful country.

Nestled in the French coast of the Mediterranean Sea is Monaco, a nation famed for its warm climate, five-starred resorts and gigantic casinos. Tourism has always been one of the foundations of this country’s economy whereas this sector mainly caters to the rich. During the recent years, Monaco also shifted its gears to banking and became one of the major banking centres in the region. Expats from all over the world are not just attracted to move here for employment purposes but also for the reason that Monaco has no income tax and minimal business tax.

The Local Job Market

The economy of Monaco is mostly dependent on commerce, finance and tourism – three major industries that the country is developing continuously. This country has an estimated labour force of 50,580 – majority of which are working in the three leading sectors mentioned above. Although Monaco is relatively small in terms of land area, the country’s economy is surprisingly diverse – from financial services, tourism, real estate and services, to construction and retail. These industries are also the major providers of employment in Monaco, especially the tourism and financial sectors.

Average Salary and Work Hours

Monaco is one of the countries that have the highest minimum wages whereas the current minimum monthly salary is USD 2,168 which is 5% higher than in France. In fact, only 16% of the employees in Monaco are earning a minimum wage, and the rest of the employed population enjoy an above average salary.

Monaco has a standard work week of 39 hours per week or a maximum of ten hours per day. All employees are entitled to 13 public holidays and five weeks of paid annual leave every year. Workers are also given a 5% “prince’s bonus.” 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.

The Monegasque Work Culture

Monaco has almost the same business etiquette with France. It is mostly based on mutual respect and courtesy. Trust is also important among the locals and expat can earn it by displaying proper behaviour in the work environment. Punctuality is a must so make sure to always arrive on time especially if it the first meeting or an important business transaction.

Avoid putting them under pressure or using tactics that will make them feel like they are being rushed. Dress codes should be conservative and business smart. Avoid being too friendly or asking questions about their personal lives because the Monegasques are known for separating their professional life from their personal life.

Income Tax and Social Security

Foreign nationals may be pleased to know that all workers in Monaco enjoy a tax-free salary. The government does not levy any form of income tax, but employers and employees are required to contribute to the social security system. Rates range from 10% to 14% of the worker’s gross salary, which is then added to by contributions from the employer. The Caisse de Compensation des Services Sociaux (CCSS) or Social Security Department for Employees administers health, disability, death, maternity and paternity benefits. It also provides family and social allowances such as:

• Back-to-school allowance
• Housing allowance
• Education allowance
• Christmas Bonus
• Holiday cheques
• Nursery Vouchers