Looking to hire in Monaco? You may be wondering how much it will cost you to hire an employee in the principality. Let’s discuss the required and optional costs associated with hiring a Monegasque employee as well as average salaries.
Hire from Monaco
Hiring from Monaco will give you access to a highly-educated and experienced workforce with a range of skills. You’ll be tapping into a whole new talent pool, unrestricted by your company’s primary location.
Monaco is one of Europe's most affluent countries. As such, it boasts a well-developed infrastructure and specialized training programs that yield well-prepared talent.
Monaco also has high personal data protection standards, making it ideal for companies seeking security solutions for their customer's information.
Required costs of hiring
When it comes to hiring an employee in Monaco, there are a few important costs to consider.
Minimum Wage
Salaries are of course, crucial when considering hiring abroad. The minimum wage in Monaco is €11.27 (about USD 12.20) per hour or €1,904.63 (about USD 2,061) per month. That said, salaries for skilled professionals can be significantly higher and vary according to skills and experience.
When it comes to salaries for employees in Monaco, the gross average salary for full-time workers ranges from €2,457 (USD$ 2,682) to €7,872 (USD$ 8,594) per month.
The industries that tend to have higher salaries are IT, technology, and & development, and leasing. In these industries, salaries All of these have average gross salaries that fall between €5,000-€6,000 per month (USD $5,458-6,550).
Managerial positions in any of these fields can bring salaries up to €8,000-€9,000 per month (USD $8,733-9,825). The industries hiring the most, however, are tourism, finance, and insurance.
Paid Time Off and Other Leaves
In addition to the minimum wage, employers must offer 2.5 paid leave days per month worked and observe 12 public holidays. This adds at least 30 days of annual leave per year.
Annual paid leave increases alongside the length of service in the same company. Employees gain two more days of paid leave after 20 years of service, four more days after 25 years of service, and six more days after 30 years of service.
Women are entitled to 16 weeks of maternity leave and 26 weeks for their third child. They can access a daily maternity benefit that amounts to 90% of their average gross daily salary, covered by Monaco’s maternity insurance.
Expecting fathers can also take paternity leave. Paternity leave can last up to 12 calendar days for a single birth and 19 calendar days for multiple births or for households with two or more children. Similar to maternity leave, fathers have to apply to Caisses Sociales de Monaco to receive a daily paternity benefit equal to 90% of their salary.
Adoption leave is a maximum of eight weeks for one child and ten weeks if the household already has two dependent children or in the case of multiple adoptions. Adoption leave can be split between both parents. Parents can receive the benefits separately or concurrently. Once again, parents must apply for this benefit at Caisses Sociales de Monaco and receive 90% of their regular pay.
Sick leave does not qualify as paid leave in Monaco. It must be negotiated into contractual provisions or collective bargaining agreements.
Social Contributions and Taxes
Social contributions from the employer can range from 24% to 30% of an employee’s salary. Employers contribute 15% to sickness and family allocations, 8% to basic state pensions, and 4% to unemployment insurance. Monaco is a tax haven and employees do not get taxed on their income.
Severance Pay
The payment amount is primarily determined by the collective bargaining agreement, ensuring that it does not fall below the minimum legal dismissal indemnity in France. As of September 27, 2017, this minimum indemnity is set at 25% of the monthly gross salary for up to ten years of seniority, increasing to one-third of the monthly salary thereafter.
Optional Costs of Hiring
When hiring an employee in Monaco, employers have the option of providing additional benefits to their staff. These are not mandatory, but they can be beneficial for both the employer and the employee. Less significant than the salary, these costs can add up and should be budgeted for when hiring employees in Monaco.
It’s common for employers to offer health plans to their employees in Monaco. These plans cover a range of medical expenses such as doctor visits, pharmaceuticals, and even hospitalization. The cost varies by coverage, and scope. Generally speaking, health plans tend to range from €100 to €200 per month (USD 118-236).
Fitness memberships are another popular perk in Monaco. Many gyms offer discounted rates for corporate memberships, which usually range from €40 to €80 per month (USD 47-94).
Other perks that employers may choose to offer include transportation allowances (such as public transport passes or parking fees) or meal allowances (for restaurants or cafes). Transportation allowances generally range from €50 to €150 per month (USD 59-177). Employers could also offer to cover training courses for learning and development.
Estimated Costs with Borderless
When considering the cost of hiring an employee in Monaco, employers must factor in the minimum wage, paid leave, and pension contributions. They should also consider optional perks such as health plans, fitness memberships, transportation allowances, and meal allowances.
When all these costs are added up, it can amount to approximately €3,849 (USD 4200) a month for one employee, based on a minimum wage. This figure varies depending on factors such as job type and position responsibilities, so employers must be aware of this when budgeting for hiring employees in Monaco.
Keeping track of all these costs can be confusing. EOR providers like Borderless can help you hire talent from Monaco. Book a demo today!
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
