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Population:
Monaco has approximately 39,000 residents (as of 2023). A large portion of the population consists of foreigners, especially French and Italians, as many people move to Monaco to benefit from its tax advantages. The native Monegasques make up about 20% of the population.
Capital:
Monaco does not have a formal capital as it is a city-state. The political and cultural center of the country is in the region of Monaco-Ville, which is located on a rock (Le Rocher) and includes the old town.
Economic Strength:
Monaco has a very strong economy despite being a small city-state. The main economic sector is tourism, followed by financial services and real estate. Monaco is also known for its tax advantages, making it an attractive location for wealthy individuals and businesses. Additionally, the state is famous for hosting the prestigious Monaco Grand Prix and the Monte Carlo Casino.
Culture:
Monaco’s culture is heavily influenced by French culture, with Italian influences also present. Monaco is known for its opera, ballet performances, and the renowned Monte Carlo Ballet. Art and music are central to cultural life, and the principality hosts numerous cultural events each year, including the Monte Carlo Jazz Festival. The Catholic religion plays a significant role, and many traditional festivals have a religious background.
Currency:
Monaco uses the Euro (EUR) as its official currency, even though it is not a member of the European Union. This is regulated by an agreement with France.
Health and Social Insurance System:
Monaco has a well-developed social insurance system based on the French model. Employees and employers contribute to health insurance, pension insurance, and other social insurances. The health insurance covers both employees and their families, providing access to high-quality healthcare. The system also includes unemployment benefits and disability insurance.
Employer Costs:
Employers in Monaco are required to pay social security contributions for their employees, which are organized similarly to France. Employer contributions to social security amount to about 30% to 40% of the gross salary, depending on the industry and the employee’s employment status.
Salaries and Bonuses:
Salaries in Monaco are generally higher than in many other European countries, particularly in the financial services and tourism sectors. An average monthly salary can range from about 3,000 to 4,000 euros gross, while highly qualified professionals, especially in finance and real estate, earn significantly more. Bonuses are common in Monaco and may be tied to the performance of the employee or the company, especially in the financial sector.
Payroll:
In Monaco, payrolls must clearly indicate gross wages, net payments, and all deductions such as taxes and social security contributions. There is no personal income tax in Monaco, which is a significant advantage for the residents of the country. However, deductions for social security and pension insurance are made, similar to the system in France.
Public Holidays:
- Monaco has 12 public holidays, including:
- New Year’s Day (January 1st)
- Easter Monday (varies)
- Labor Day (May 1st)
- Assumption Day (August 15th)
- National Day (November 19th, the Prince’s Day)
- Christmas (December 25th)
On these days, employees generally have the day off unless there are specific business requirements.
Working Hours:
The legal working hours in Monaco are 39 hours per week, similar to France. Overtime is compensated with a premium, which is usually 25% to 50% of the regular hourly rate, depending on the number of overtime hours worked.
Vacation:
Employees in Monaco are entitled to at least 30 paid vacation days per year. This entitlement can increase with the length of service. Additionally, employees are entitled to extra paid days if they work overtime.
Sick Leave:
In case of illness, the employee must inform their employer and provide a medical certificate if the illness lasts longer than three days. Employees are entitled to continued payment during sick leave, which is partially covered by the employer and partially by social insurance. The entitlement to continued payment may vary depending on the length of service and the type of contract.
Termination/Severance Pay:
Notice periods in Monaco are similar to those in France and depend on the length of service. Generally, the notice period is one month but can be extended up to three months for long-term employees. Severance pay is usually granted in cases of redundancies or after long-term service and is based on the number of years worked in the company.
Overall, Monaco offers very favorable working conditions, a high quality of life, and attractive tax advantages, making it a popular location for international companies and highly qualified professionals.