Glossary
Contracts, pay, tax, rights: everything you need to understand before applying or hiring in Monaco.
An open-ended employment contract — the norm in Monaco.
The CDI is a contract with no predefined end date. In Monaco it is governed by Law No. 729 and remains the dominant form of employment in finance, hospitality and the public sector. The probation period is 3 months, renewable once for executives.
A contract with a set end date.
A CDD is capped at 24 months in Monaco (renewals included). It is used for replacements, seasonal work or one-off projects. Pay must be at least equal to that of a CDI employee in the same role.
Mandatory authorisation for non-Monégasques.
Every non-Monégasque employee must obtain a work permit issued by the Direction du Travail (labour authority). The employer initiates the application. Three hiring priorities apply: Monégasque nationals, Monaco residents, then cross-border workers.
Residence document for non-nationals.
Issued by the Direction de la Sûreté Publique, it is valid for 1, 3 or 10 years depending on length of residence. Requirements: housing in Monaco, sufficient means, and a clean criminal record. Separate from the work permit.
The minimum wage applicable in Monaco.
Hourly rate aligned with the French SMIC, topped up by a Monaco-specific 5% flat allowance (exempt from social charges). As of 1 January 2026: €12.02/hour — €2,031.38 gross per month for a 39-hour week (169 h), ≈ €2,133 including the 5% allowance. Updated automatically with French minimum-wage increases.
39 hours per week.
In Monaco the statutory working week is 39 hours (vs 35 in France). Overtime is paid at +25% beyond 39 hours, then +50% beyond 47 hours. Collective agreements may provide more favourable terms.
30 working days per year.
Employees in Monaco accrue 2.5 working days per month of effective work — 30 days per year. Reference period: 1 June to 31 May. Collective agreements may grant more (banking, hotels and restaurants).
An annual bonus equal to one month's salary.
The 13th month is not mandatory in Monaco but is widely paid in finance, luxury and hospitality. Paid in December or in two instalments (June/December). Often set out in the collective agreement or the individual contract.
Compensation due when the contract is terminated.
Calculated by seniority: 1/4 of a month's salary per year of service up to 10 years, then 1/3 beyond. Damages are added if the labour tribunal finds the dismissal unfair.
An employee living in France and working in Monaco.
Cross-border workers number ~50,000 in Monaco (≈70% of the workforce). They are taxed in France under the 1963 Franco-Monégasque tax treaty but contribute to Monaco's social security (CCSS).
Monaco's social security system.
The CCSS manages health, maternity, workplace-accident and pension coverage for private-sector employees. Contributions are shared between employer and employee, with overall rates comparable to France. Separate from the French system.
A sector-level agreement setting working conditions.
Several collective agreements apply in Monaco: banking, hotels and restaurants, construction, pharmaceutical industry. They set sector-specific pay scales, bonuses, leave and notice periods, often more favourable than the law.
No income tax for most residents.
Monaco levies no personal income tax on its residents (except French nationals, a tax exception under the 1963 treaty). This is one of the main attractions of the local job market.
The notice to be observed before leaving.
Varies by seniority and category. Executives: generally 3 months. Employees: 1 to 2 months. Resignation: identical notice. Collective agreements may impose longer periods, particularly for senior executives.
The court with jurisdiction over employer-employee disputes.
Monaco's labour tribunal hears individual employment disputes at first instance. Joint composition (employers/employees). Free procedure, with mandatory prior conciliation. Average time to judgment: 6–12 months.
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