Payroll and Benefits Guide Monaco
Last updated: Jul 08, 2025
Contribution
| Employer Payroll Contributions | |
| 15.05% | Sickness and Family Contribution (CCSS), with a contribution ceiling of 9,600 EUR monthly. |
| 8.03% | Basic State Pension (CAR), with a contribution ceiling of 6,028 EUR monthly. |
| Varies | Supplementary Pension (CMRC), the contribution rate depends on the income tranche; the employer covers 60% and the worker covers 40% of the contribution. |
| 4.05% | Unemployment Insurance, , with a contribution ceiling of EUR 15,700 monthly. |
| 27.13% + 60% of CMRC | Total Employer Cost |
| Employee Payroll Contributions | |
| 6.55% | Basic State Pension (CAR), with a contribution ceiling of 6,028 EUR monthly. |
| 2.40% | Unemployment Insurance, , with a contribution ceiling of EUR 15,700 monthly. |
| Varies | Supplementary Pension (CMRC), the contribution rate depends on the income tranche; the employer covers 60% and the worker covers 40% of the contribution. |
| 8.95% + 40% of CMRC |
Total Employee Cost |
| Income Tax | |
|
0%
|
No income tax is applied on Residents, except French nationals who pay income tax according to French tax rules.
|
Employer taxes
Working Hours
General
The standard working week in Monaco consists of 35 hours per week, 8 hours per day, Monday to Friday. However, the legal maximum working hours are up to 39 hours per week.
Overtime
| Aspect | Regulation Details |
| Maximum Ordinary Hours | The legal standard work limit is 39 hours per week (typically 8 hours per day). Some formal sources reference a 35-hour week, but 39 hours is the benchmark for overtime calculation. |
| Overtime Threshold | Any hours worked beyond the 39-hour standard work week are considered overtime. |
| Daily Overtime Cap | The actual daily working hours, including overtime, must not exceed 10 hours, except with authorization from the Labour Inspector. |
| Absolute Maximum Weekly Hours | Total working time, including overtime, is strictly limited to:
|
| Annual Overtime Cap | There is no explicit statutory annual cap (like 150 or 200 hours) cited across current governmental sources. The limits are managed by the strict daily and weekly caps (10 hours/day, 48 hours/week). |
| Consent | Overtime is generally worked at the request of the employer. |
| Exemptions | Senior managerial and executive positions are typically exempt from these regulations. |
Mandatory Overtime Pay Rates
Overtime compensation is mandatory and is calculated as a minimum premium percentage of the employee’s regular hourly wage. The premium increases after the first eight hours of weekly overtime.
| Hours Worked (Beyond 39/week) | Minimum Premium Rate (Supplement) | Total Pay Rate | Notes |
| Tier 1 (First 8 hours of weekly overtime) | +25% of the regular hourly wage. | 125% | Applies to hours 40 through 47 in a given week. |
| Tier 2 (Subsequent hours of weekly overtime) | +50% of the regular hourly wage. | 150% | Applies to hours 48 and beyond in a given week. |
| Sunday or Public Holiday Work | +100% of the regular hourly wage. | 200% | Work performed on Sundays and official public holidays often attracts a significantly higher contractual premium, with 200% being a common benchmark for premium pay. |
Compensation Method
| Compensation Method | Statutory Requirement | Notes |
| Monetary Pay | Mandatory payment at the applicable premium rate (125% or 150%). | The employee is entitled to receive this compensation in a timely manner. |
| Time Off in Lieu (TOIL) | Equivalent paid rest time. | Compensatory time off may be granted instead of monetary payment, usually at a rate of $1.5$ hours of paid rest time for every $1$ hour of overtime worked, provided this is authorized by collective agreement. |
Payroll
Payroll Cycle
The most common payroll frequency in Monaco is monthly. However, it is also permitted to have a weekly or bi-weekly payroll set up.
13th Salary
There are no provisions in the law for a 13 month salary.
Leave
Annual Leave (vacation)
An employee is entitled to a minimum of 30 working days of paid annual leave (2.5 working days per month worked/5 calendar weeks).
Carryover of unused leave is generally permitted, but the leave should be used within the subsequent year or reference period.
Additional Leave for Seniority is given to Employees based on their length of service with the same employer of +2 working days per year after 20 years of service, +4 additional working days per year after 25 years of service and +6 additional working days per year after 30 years of service.
PTO carryover
In Monaco, statutory annual leave cannot be forfeited. Leave is meant to be taken in the year it’s earned, but unused leave may be carried over by agreement (often into the following year). A blanket “use-it-or-lose-it” policy is not lawful, and unused statutory leave must be paid out on termination.
Public Holidays
Certain public holidays that fall on a Sunday are moved to the following Monday as a day off in lieu. These are New Year’s Day, Labour Day, Assumption Day, All Saints’ Day, Prince’s Day and Christmas Day.
Other public holidays that fall on Sundays or holidays falling on Saturdays, are lost.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 27 January 2026 | Tuesday | Saint Dévote’s Day | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday (Pentecost Monday) | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 15 August 2026 | Saturday | Assumption Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 2 November 2026 | Monday | All Saints’ Day Holiday | |
| 19 November 2026 | Thursday | National Day (Prince’s Day) | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
There is no fixed statutory maximum duration that can be taken for sick leave; employees can take leave for the duration of their illness providing it is certified by a medical certificate (which should be provided to the employer within 48 hours from the start of illness).
Sick leave is primarily paid for by the Social Security system at 50% of the employee’s usual salary according to the following:
-
-
Immediately for workplace accidents or occupational illness.
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From the 4th day of absence if hospitalized or off work for at least three weeks.
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From the 11th day of absence in other cases.
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After two years of seniority the Employer must top up the sick leave payment by an additional 40% (bringing total sick pay to approximately 90% of the usual salary).
Maternity Leave
The statutory maternity leave entitlement is 18 weeks for the first and second child (8 weeks prenatal and 10 weeks postnatal) and 26 weeks for the third child.
In the event of adoption a maximum of 8 weeks is given for the adoption of a single child and a maximum of 10 weeks if the household already has two dependent children or in the case of multiple adoptions. Adoption leave can be split between both parents.
Maternity and adoption leave pay is equivalent to 90% of the employee’s average gross daily salary over the twelve months prior to the start of prenatal leave.
Paternity Leave
Fathers are entitled to 21 days paternity leave in the event of a single birth and 28 days in event of multiple births or if the household already has at least two dependent children. Leave may be taken in part or in its entirety but cannot be split.
Paternity leave pay is equivalent to 90% of the employee’s average gross daily salary over the twelve months prior to the start of prenatal leave.
Parental Leave
There is no provision for additional parental leave in Monaco.
Other Leave
Bereavement Leave – In the event of the death of a close family member, Employees are entitled to 2 days of paid leave.
Marriage Leave – An employee can receive 4 days of paid leave for their own wedding and 1 day of paid leave for the wedding of their son or daughter.
Employer taxes
Termination
Termination Process
Termination of an employee must be based on a valid cause. Justified reason include disciplinary issues, professional inadequacy, incapacity, economic difficulties and technological changes. A dismissal without notice is only allowed in cases of serious misconduct.
Employers must notify workers of dismissal in writing stating the reason for termination. A dismissal interview is typically required before termination takes effect, allowing the employee to respond.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Payment must be made according to fixed intervals agreed between employer & employee. | On termination, employees must receive wages and any dismissal indemnity without prejudice to the notice period. For example, notice is generally 1 month if service 6 mo-2 yrs, and 2 months if service ≥2 yrs. | The law requires wages to be paid in money (“en monnaie”) and in the legally required currency. The sources do not clearly state a law requiring only bank-account payment for all employees. |
Notice Period
The length of the notice period is determined by the length of service:
- Less than 6 months of service = no notice period required.
- Between 6 months and less than 2 years = 1 month notice.
- 2 years or more = 2 months notice.
Employers are also permitted to pay in lieu of notice.
Worker must give the same notice period upon resignation.
Severance Pay
Employees with at least 2 years of continuous service are generally entitled to severance pay unless dismissal is due to serious misconduct. Severance is calculated as 1/4 of a monthly salary per year of service for the first 10 years and 1/3 of monthly salary per year beyond 10 years, based on average gross monthly salary over the prior 12 months. Collective Agreements might require additional severance to be paid.
Probation Period
The probation periods in Monaco is set at a maximum of 3 months for regular employees and up to 6 months for managerial positions. It is not permitted to extend a probation once the maximum period has been served.
Minimum Wage
General
The minimum salary in Monaco is 11.88 EUR per hour and 1,968.85 EUR per month.
MINIMUM WAGE (PER MONTH)
VAT
General
The standard rate of VAT in Monaco is 20%.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 27 January 2026 | Tuesday | Saint Dévote’s Day | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday (Pentecost Monday) | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 15 August 2026 | Saturday | Assumption Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 2 November 2026 | Monday | All Saints’ Day Holiday | |
| 19 November 2026 | Thursday | National Day (Prince’s Day) | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Questions & Answers