Here is the essential information to work in Monaco
The Principality of Monaco, its tax advantages, its full employment and its flourishing economy attract many foreign workers. Indeed, the country's economic dynamism continually generates the creation of new job offers within Monegasque companies. On the Côte d'Azur, Monaco is undoubtedly a highly coveted employment pool.
The benefits of working in Monaco
In addition to political stability, the living environment and the attractive economy of the country, the Principality of Monaco offers many privileges to its employees as well as to companies. These benefits relate to salaries, social benefits or pensions.
A higher minimum wage in Monaco
According to the Monegasque Institute of Statistics and Economic Studies (IMSEE), the Principality of Monaco has 58,087 active employees, in the public and private sectors. In 2021, the Principality has 6,308 private sector companies that employ. Among private sector employees, only 1.8% are Monegasque nationals. This is partly explained by the low number of Monegasques (9,611 registered in 2021).
Of the 98.2% of employees in the Principality who are not of Monegasque nationality, 79.8% are French who live in France. If these people prefer to work in the Principality, it is partly for a higher salary than in France. Indeed, the Monegasque SMIC amounts to 1,786.33 euros gross against 1,645.58 euros gross in the neighboring country.
In addition, many sectors of activity are recruiting abundantly, such as hotels and restaurants. These sectors offer job offers with very good salaries and a permanent employment contract. However, since the reopening of living places, such as restaurants, after the global epidemic, companies have struggled to find motivated and qualified staff.
Health and security
An employee with a Monegasque work permit contributes to the Monegasque social security system, whether on a fixed-term or permanent contract. These social contributions are automatically deducted from the gross salary of the employee who will receive a net salary minus these charges. Part of the contributions are directly amortized by the employer of the company. Thus, an employee in the Principality has the right to sickness and maternity insurance benefits, regardless of their place of residence.
In addition, the spouse and children of the insured also benefit from rights to social security benefits if they reside in the Alpes-Maritimes department, with some exceptions. This significantly improves the standard of living of these families, who can thus benefit from the Monegasque health system and affiliated services.
Regarding temporary workers, they are also eligible for Monegasque social security if they can prove 120 hours of work per month in the company. Due to the labor shortage, temporary job offers continue to multiply even if the responses remain moderate. The profiles sought in these offers mainly concern restaurants, hotels or any other place requiring seasonal profiles.
In proportion to the Monegasque salary, which is higher than in neighboring countries, the retirement pension is also higher. The Monegasque employee contributes each month for his retirement thanks to a system of points which are allocated to him monthly according to his gross income. Thus, in the Principality pensions are generally 35 to 110% higher than in France. At this level, it is interesting for a French person to work in a company in the Principality.
However, the Monegasque pension is only paid if you have worked in the Principality for at least 10 years. Otherwise, for temporary workers for example, the contributions paid during your activity in the Principality can be reimbursed by compiling a file and making a request. French and Italian employees can claim payment of a Monegasque pension if they have worked at least 13 months in a company in Monaco or if they have carried out a professional activity for 10 years between Monaco and France or Monaco and Italy.
Work in Monaco to be exempt from tax
Even if the tax policy of Monaco is famous for not levying income tax, unfortunately this only concerns workers residing in the Principality. Indeed, employees, even on permanent contracts, whose residence is not established in Monaco are subject to the legislation in force in their country. At the level of the French, for example, these are deducted directly at source by the French administration. In response to these agreements, the Principality has signed international agreements to avoid double taxation.
The solution to no longer pay income tax is to transfer his residence to the Principality. For more information on this subject, see our article on tax in Monaco.
How to work in Monaco
The work permit in Monaco
Any person, member of the European Union, having an identity card, a Monegasque residence permit or a passport is authorized to work in the Principality of Monaco. As far as non-EU nationals are concerned, they must imperatively have a valid residence permit, issued by the Prefecture of the Alpes-Maritimes.
To exercise a professional activity in a company in the Principality, it is essential to have a work permit. This step occurs when the employer submits the application for authorization to hire to the Employment Service. In response to obtaining this work permit, the employee will be able to benefit from his right to social benefits.