Monaco Business
Social Security System and Benefits
Monaco has a well developed social security system and contributions are made by the employer and the employee on a monthly basis to the following organisations:
CAR: Pension Fund
The CAR, “Caisse Autonome des Retraites” is the general pension scheme.
It is limited to the first 4128€ of gross salary.
AGRR: Supplementary Pension Fund
The AGRR contribution is paid on the total gross salary unless the employee has executive (“cadre") status.
ASSEDIC: Unemployment Benefit Insurance
Monaco salaried employees are covered for risk by the French ASSEDIC system.
Two rates are paid depending on salary level (i) up to the first gross salary ceiling limit and (ii) from the first ceiling level up to four times that level.
CCSS: Health Insurance
The "Caisse de Compensation des Services Sociaux" covers situations of illness, maternity, invalidity or death.
It is limited to the first 7300€ of gross salary.
The limit is index-linked and modified in January and July of each year. The contributory percentages are subject to change at the same times of the year.
Contributions
Contributions are currently as follows:
|
Employer (%) |
Employee (%) |
|
|
CAR |
6.95 |
6.15 |
|
AGRR |
4.50 |
3.00 |
|
ASSEDIC (i) |
4.00 |
2.40 |
|
ASSEDIC (ii) |
4.00 |
2.40 |
|
CCSS |
14.80 |
- |
CAR: Pension Fund
A pension is only payable if the employee has worked for a minimum of 10 years. However, an employee having left the Principality before the 10 years limit may request reimbursement of their contributions on reaching retirement age.
As an example, an employee having worked for 10 years at an average monthly salary of around 3000€ or above, would accumulate a current pension value of approximately 480€ per month. This sum would increase with time but not with salary level.
AGRR: Supplementary Pension Fund
The calculations for the AGRR are quite complicated. As a rough guide, an employee having worked for 10 years at an average monthly salary of around 3000€, would accumulate a supplementary pension of approximately 270€ per month. This sum increases both with time and with salary level.
ASSEDIC: Unemployment Benefit Insurance
If after having worked for a minimum of 12 months an employee is either fired or made redundant, they are entitled to approximately 55% of the average gross salary earned over the previous 12 months (including any bonuses paid etc.) for a period of 9 months. This then is reduced every quarter.
Once 14 months have elapsed, if the ex-employee has not found employment and can prove they have been making an active effort to find work, they may receive a prolongation for up to 6 months at a lower rate but this is discretionary and becoming more difficult to obtain. During the time that they are unemployed, they and their family are still covered by health insurance. Health insurance lapses however, once unemployment benefits are terminated.
No benefits are paid if the employee resigns.
CCSS: Health Insurance
There is a maximum cover of 80% of the official tariff for doctors, ambulance, hospital, laboratory, specialists’ and surgeons’ fees both for illness and accident (including sports accidents). There is a sliding scale of reimbursement depending on household salary/resources. Private supplementary insurance (“Assurance Mutuelle”) that “tops up” the remaining 20% or more is also available as an option. It should be noted that when making a claim, a minimum of 200 hours must have been worked during the three preceding months in order to be covered.
Allocations Familiales: Child benefits for Monaco residents
Employees with children under their care, residing in Monaco, receive monthly benefits per child. All benefits are index-linked with October being the base month.
Paternity leave
This leave is for a period of 12 consecutive calendar days, 19 in the case of multiple birth and / or a third dependent children of the home, and can be taken within 4 months after the child's birth. A specific forma certificate of absence is completed by the employer and available on the "Caisses Sociales" website.
Please contact us for further information
