Employer of Record Monaco
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Unrivalled Employer of Record Service in Monaco designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Monaco. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
Employer of Record in Monaco
A Brief Guide to Monaco
Monaco is a small, independent city-state located on the French Riviera in Western Europe. Known for its luxurious lifestyle, stunning Mediterranean coastline, and world-famous events like the Monaco Grand Prix, the country attracts tourists and high-net-worth individuals alike. Monaco is a constitutional monarchy, governed by the House of Grimaldi and the Principality’s Parliament. While it’s not a member of the European Union, Monaco maintains a close relationship with the EU and France, using the Euro as its official currency.
2.02 square kilometers
Monaco, Monte Carlo, La Condamine, Fontvieille
Business Culture in Monaco
In Monaco, business culture values professionalism, punctuality, and respect for hierarchy. Business attire is generally formal, and meetings often begin with some small talk before getting down to business. Decision-making tends to be top-down, and building trust is important in Monegasque business dealings.
Proper business etiquette, such as exchanging business cards and addressing individuals by their titles, is customary. Success in Monaco’s business culture requires adaptability, respect, and a focus on relationship-building.
Payroll and Taxes
Payroll and Taxes in Monaco
There is no statutory requirement to pay a 13th/14th month in Monaco.
In Monaco, there is no personal income tax for residents, except for French nationals who are still subject to French income tax. Employers are responsible for social insurance contributions, which cover healthcare, pensions, and other social benefits.
Monaco does not levy income tax on its residents, with the exception of French nationals:
Social Insurance (CCSS)
Pension and Healthcare
Monaco has a state pension system funded by social insurance contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
- Employees: 6.65%
- Employers: approx. 8.07%
Healthcare in Monaco
Monaco’s public healthcare system, called Caisse de Compensation des Services Sociaux (CCSS), provides comprehensive medical services to its residents, including primary care, specialist services, hospital care, prescription medications, dental care, maternity care, and mental health services. The CCSS aims to ensure equal access to essential healthcare services for all residents, regardless of their financial status or geographical location.
Both employees and employers contribute to the system through a percentage of their salaries. This mandatory contribution is collected by the Monegasque tax authorities and allocated to the healthcare system.
Employment Law in Monaco
Monegasque employment law is governed by various pieces of legislation, including:
- The Labour Code
- Social Security Law
- The Civil Code
- Specific regulations for different sectors
Employment Contracts: Monegasque employment contracts can be either written or oral, but it is recommended to have a written contract to avoid disputes. The contract should include essential information such as duration of employment, working hours, salary, and termination notice periods.
Working Hours: The standard maximum working time in Monaco is 39 hours per week, or 7 hours and 48 minutes per day. Overtime work is regulated, with compensation for extra hours.
Leave: Employees in Monaco are entitled to various types of leave, including paid annual leave (minimum of 30 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Overtime: In Monaco, overtime work is regulated by law and collective agreements. In general, Monegasque law stipulates that overtime pay should be at least 1.5 times the regular hourly wage for the first eight hours of overtime work per week and 2.0 times the regular hourly wage for additional hours of overtime work.
Termination: Termination of employment in Monaco requires proper notice, which varies depending on the length of employment. Employers can terminate an employee’s contract if there is a just cause, such as poor performance, misconduct, or redundancy. Employers must provide a written explanation for the termination based on just cause. Unjustified termination can lead to claims for damages or reinstatement.
Notice: Both employers and employees must give a notice before terminating an employment contract. The notice period varies depending on the employee’s length of service. Generally, the notice period ranges from 15 days to three months.
Severance Pay: Employees may be entitled to severance pay if they are terminated due to redundancy, restructuring, or other reasons that are not related to their performance or behavior. Severance pay is typically not provided in cases of termination due to misconduct, resignation, or the end of a fixed-term contract. The amount of severance pay an employee is entitled to often depends on their length of service with the employer. In Monaco, employees must have worked for a minimum of one year to qualify for severance pay, and the amount increases with the number of years of service.
Work Permits in Monaco
The immigration process in Monaco is organized and systematic, similar to most countries worldwide. Prospective immigrants usually need to apply for a specific visa or residency permit that corresponds to their reasons for relocating, such as work, education, or joining family members.
Monaco offers several types of work permits for foreign nationals who wish to work in the country. The specific type of work permit required depends on the applicant’s qualifications, the nature of the job, and the intended duration of the stay. Some of the main types of work permits in Monaco include:
- Long-term Work Permit: This permit is designed for individuals who have specialized skills or qualifications that are in high demand in Monaco. Applicants must have a valid job offer from a Monegasque employer and must meet certain educational and professional requirements.
- Temporary Work Permit: This permit is issued for short-term employment and is generally valid for up to 12 months. Temporary work permits are typically granted for seasonal work, internships, or other temporary job opportunities.
- Family Reunification Work Permit: Foreign nationals who are married to or in a registered partnership with a Monegasque citizen or a person with a permanent residence permit may be eligible for a work permit through family reunification. This permit allows the holder to work in Monaco without restrictions.
Citizens of European Union (EU) countries generally do not need a work permit to work in Monaco, as they benefit from the freedom of movement within the EU. However, they are required to register with the local Monegasque authorities if they plan to work and stay in Monaco for more than three months.
Monaco Public Holidays
New Year’s Day
Saint Devota’s Day
All Saints’ Day
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Monaco Employer of Record Benefits
When you choose Agility EOR to expand in Monaco, we guarantee an Employer of Record Service tailored to the needs of your business