Page 17 - Monaco Economy 128

Salaries: Higher Salaries Over 39 Hours

by Milena Radoman
In Monaco, the net salary is often higher than in France due to lower social security contributions.
The legal working hours are 39 hours per week, compared to 35 in France.

In Monaco, “For certain jobs - bilingual personal difficult to find somewhere to live... Covid
assistants, for example - we are seeing salaries has raised awareness of the importance A 5% «PRINCE’S BONUS»
15 to 30% higher than those in France”, of spending time with the family. Some In Monaco, as in France, the hourly
explains Mehdi Betiche, manager at Hays in people prefer to earn less to live better,” say minimum wage was increased by 2.2%
Nice, backed up by a study. In the 2023 edition Cédrick Lanari and Jean-Luc Cloupet of the on 1 May 2023, to €11.52 per hour.
of its study on remuneration in Monaco, the F2SM, who believe that a boost is needed This is equivalent to €1,946.88 gross
specialist recruitment firm Hays (13,400 in view of inflation. “Only SBM has indexed per month for a 39-hour week (169
employees in 32 countries) shows that salary salaries to the French INSEE inflation index hours per month). It should be noted
trends are on the up. excluding tobacco”. The USM is in favour of that minimum pay must be increased
“Among the best-performing sectors in a progressive salary linked to inflation: “With by an exceptional allowance of 5%.
2023, construction and real estate are the inflationary period we are going through This “Prince’s bonus” is “compulsory
particularly strong, as is insurance. The (5.2% for 2022, 5.1% from May 2022 to May and not subject to social security
Tech sector, meanwhile, will see a further 2023), median salaries in Monaco are not
rise in salaries. The need to digitalise our keeping pace with this inflation. Moreover, it contributions, when the remuneration
businesses is naturally driving up salaries is executives who are suffering the greatest on which it is calculated is equal
for this type of position”, comments the erosion of their purchasing power at the to the minimums as defined by the
recruiter, who believes that candidates are moment. This sliding scale of salaries would Law on salaries”, the Social Security
paying close attention to social benefits. only be social justice in a rich country like Funds remind us, and can represent
“In France, an employee will contribute Monaco. Let’s not forget that the average up to 50% of the fixed salary for
23% for non-executives and between wealth created per employee is close to certain professions.
25 and 26% for executives, whereas in 125,000 euros (GDP per employee)”.
Monaco, the rate of employee contributions
varies between 13% and 15% regardless of
status. The Monegasque pension fund is
more competitive than the French pension
system. If you want to make a career in the
Principality, the fact that you are entitled
to a Monegasque pension after working for
10 years is an interesting feature. Finally,
all heads of household are eligible for
family allowances, regardless of income.
Monthly allowances net of tax can be
as much as €600, which is a significant
competitive advantage”, adds Mehdi Betiche,
who believes that the gap with France is
nevertheless narrowing compared with 10
or 15 years ago. “Salary in itself is no longer
the only asset that candidates take into
account. They look just as much at ancillary
expenses as they do at the time it takes to
get to their place of work, and this creates a
certain dissonance between the salaries on
offer and their expectations”. Trade unions
have also noted this: “In Monaco we work 39
hours, not 35. That’s an extra 8 days a month
if you include the extra 4 hours and 1.5 hours
of transport per day on average. Rents in
neighbouring towns are so high that it’s very © Freepik

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