What is the average salary in Monaco depending on your situation and sector of employment?
The benefits of working in Monaco
In the minds, Monaco is a small paradise on earth where money and champagne flow freely. But what is it really? Focus on the standard of living and the benefits of Monegasque citizens and international workers.
For many, working in the Principality comes with a long list of privileges and opportunities. But do you really earn more money when you are employed in Monaco?
Minimum wages applied in Europe
Among the Member States of the European Union, 22 apply a monthly minimum wage. Yet the figures show that Europe is split into two groups highlighted by the gap in minimum wages.
On the one hand, 15 of them apply a minimum wage below €800. For the most part, they are the last to have joined the European Union in the 2000s. Among them, we find mainly Eastern countries including Bulgaria, Romania, Hungary, the Czech Republic and Slovenia.
Then, the remaining 7 apply a minimum wage of more than €1,400 per month, such as Ireland, Luxembourg, Germany and Belgium.
SMIC in France
France is one of these 7 countries that are considered to be the leaders of the European continent. Since January 1, 2022, the amount of the monthly gross minimum wage in France is €1,603.12 on the basis of 35 hours worked per week, i.e. an hourly basis of €10.57.
But what about Monaco where the cost of living is higher and where rents can reach exorbitant prices?
The minimum wage in Monaco
Although the Principality is not part of the European Union, it is integrated into the European economic system. Thus, Monaco also applies a minimum interprofessional growth wage, as does France. In Monaco, the SMIC amounts to €1,786.33 gross on the basis of 39 hours worked per week, i.e. an hourly rate of €10.57.
Despite an hourly rate equal to that of France, Monaco does well thanks to the many large companies established there. Thus, the Rock offers more qualified positions with proportionally higher remuneration. As a result, the median gross salary is 2,450 euros in Monaco compared to 1,797 euros in France, according to the president of the Federation of Monegasque Companies (FEDEM).
Social security contributions
Salaries are expressed in gross because these are subject to several charges, which differ from one state to another. These cover, among other things, health insurance, old-age insurance and unemployment insurance. Once these expenses are subtracted, we obtain the net salary that the employee will receive.
Social security contributions in France
In France, the amount of compulsory social contributions is on average 22% of the salary received by the employee before deduction of charges.
Social security contributions in Monaco
In Monaco, the regulations on these contributions set the amount of payroll costs at 12.5%. This favorable rate influences the minimum net hourly wage, which is 16% higher than that paid in France.
Thus, we see that France collects more contributions; At equal gross salary, the most interesting salary is that of Monaco.
The advantages of working in the Principality
Working in Monaco has many advantages for foreign workers. Among other things, the political stability of the territory, its international profile with 139 nationalities, and of course its unequaled Mediterranean climate.
However, foreign workers primarily target the financial aspect, including higher wages and tax exemption for its residents.
Nevertheless, there are many other benefits for a Monegasque worker, for example:
The Principality of Monaco is considered to be the most dynamic employment pool on the Côte d'Azur. Despite its small size, Monaco recruits, employs and creates work. According to government figures, more than 1,000 jobs are created each year.
Indeed, the limit of 2km² and 39,000 inhabitants affects local recruitment. The diversity of business sectors and the demand for skilled labor explain this search for talent outside the borders.
We will see in the last part of this article which sectors of activity are recruiting in the Principality.
A majority of European countries have social security for employees. In the Principality, the social coverage governed by the Caisses Sociales de Monaco (CSM) is more advantageous than in the neighboring States. The reimbursement rate for medical care is set at 80% compared to 70% in France. Expenses can even be covered at 100% for civil servants and state agents.
On the other hand, the rates applied by doctors are regulated by social security. Thus, the health professional must invoice a fixed sum according to the family quotient of the patient, determined by all the income of the family.
Another privilege of working in Monaco concerns pensions. Indeed, pensions are much higher there than in France. According to Philippe Ortelli, President of the FEDEM, pensions are 35 to 110% higher in Monaco for an equivalent career and salary.
However, retirement from Monaco is really profitable when your entire career is spent there.
In addition, the retirement age is set at 65 compared to 62 in France. However, it is possible to anticipate retirement from the age of 60 and without reduction, with a simple written request.
Employees insured with the CCSS benefit from family aid that is significantly higher than that received in France. Among other things, we find prenatal allowances, family allowances and the schooling bonus (schooling in Monaco).
Thus, the Principality remains a highly attractive center thanks to numerous financial advantages for international workers.
Sectors recruiting in Monaco
As mentioned earlier, Monaco struggles to recruit locally, particularly due to its small population. As a result, many private companies hire foreign workers with international profiles. Among the skills required by recruiters are, among others, languages, versatility, international experience and expertise.
Focus on the sectors of activity that are recruiting in 2022 in Monaco:
The financial sector is predominant in the Principality for the benefit of wealthy residents and non-residents. In 2020, the Commission for the Control of Financial Activities (CCAF) listed 29 banks spread over the territory of 2km², totaling 129 billion euros deposited.
For this reason, banks are constantly recruiting private bankers, banking lawyers and computer security engineers.
Other players in the Monegasque financial center also target profiles of accountants, management controllers, auditors or even corporate lawyers.
Legal professions are in high demand by private companies in the Principality, but also by the State. Among these professions, corporate lawyers specializing in various fields such as business law, maritime law and contract law.
In recent years, the country has bet on a general digital transition, both at the institutional level and at the level of Monegasque companies. For this reason, the digital professions recruit on a large scale. Especially since the local workforce is almost non-existent according to the labor management.
Among the professions that recruit, we find developers, digital engineers, information security managers and project managers.
Many other sectors are struggling to find competent and available staff. These include personal assistance, construction, hotels and restaurants.
However, many trades are already over-represented in the territory and local competition will slow down the hiring of foreign workers. Communication, tourism, events, osteopathy, real estate and yachting are among the industries that recruit the least.
Thus, to conclude this article, we will emphasize that working in the Principality is indeed an advantage for people belonging to the surrounding geographical areas. Both in terms of salaries and in terms of the many ancillary interests (social security, pensions, quality of life).
In addition, companies are actively looking for certain very specific profiles such as jobs in the financial, legal and digital sectors.