Employer of Record in Monaco | Hire Worlwide Talent

Country Guide

Employer of Record in Monaco

Last updated: May 27, 2025

Capital City

Monaco

Languages

French (official), Italian, English, Monégasque (traditional local dialect)

Currency

Euro (EUR)

Population Size

Approximately 39,000

Employer Taxes

Around 35%–40%

Employee Costs

Around 13%

Payroll Frequency

Monthly

Back to All Countries

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Expanding to Monaco? EOR Services Help You Hire Globally, Pay Locally, and Expand Effortlessly

INS Global makes global expansion seamless. With our Employer of Record (EOR) in Monaco, you can hire and manage employees without setting up a local entity, saving time and resources while accelerating growth.

Our EOR services provide a secure, efficient, and cost-effective way to recruit and manage talent in Monaco and over 100 countries worldwide. With over a decade of experience, we empower businesses to build and oversee international teams effortlessly.

As your authorized employer, we handle all HR, payroll, and compliance tasks, enabling you to expand quickly and focus on growing your business.

Want to have a Team in Monaco TODAY?

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We prefer to let others grow their business.

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Why Choose an EOR in Monaco Over Company Incorporation?

Establishing a new company can get complicated and time-consuming in Monaco. EOR support from a local EOR provider simplifies the entire process and allows you to grow your business seamlessly abroad.

Working with a Monégasque EOR…

  • Saves time
  • Reduces costs
  • Ensures legal compliance
  • Empowers growth

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

The Advantages of Using a Professional Employer Organization in Monaco

icon EOR

Legal Compliance

An EOR has local experience that can help you launch in a new market efficiently while minimizing risk in Monaco. Employer of Record services also ensure that you can hire and manage employees while abiding by the latest labor regulations.

icon EOR

Cut Expansion Costs

Working with a local EOR allows you to streamline your expansion plans and drastically reduce your overheads. This empowers your business to expand in a more cost-efficient way.

icon EOR

Grow Your Business Efficiently

EORs in Monaco manage all the HR-related responsibilities on behalf of your business. In this way, you can focus on growing your business faster than ever before.

icon EOR

Expand Seamlessly

If you were to set up a new company abroad, the entire process could take between 4 and 12 months. Working with a EOR is more effective and can have you up and running in less than a week.

icon EOR

Manage Your HR Online

INS Global offers you a way to manage your diverse workforce seamlessly and remotely. This allows you to keep your finger on the pulse no matter where you are in the world.

How Does an EOR In Monaco Work?

INS Global’s EOR in Monaco allows your company to expand overseas in 4 simple steps.

1

We work with your business to create a customized expansion plan that’s perfect for your individual business needs.

2

Our organization provides a legal entity to help hire and manage staff in Monaco.

3

We handle HR-related tasks such as recruitment, contract management, and payroll processing to ensure legal compliance.

4

Your employees focus on your goals while we take care of HR and compliance.

The Differences Between PEOs and Employer Of Record

When considering a partnership with a PEO in Monaco, you will likely also hear the term EOR (Employer of Record). Typically, the two terms are largely interchangeable based on the kind of services they offer. The main difference between the two is the level of liability taken on by the PEO/EOR and the parties involved in the agreement.  

  • A PEO provides all HR services to employees on behalf of other companies 
  • A PEO agreement is made between the PEO and the original company to share the responsibilities for the employee 
  • An EOR in Monaco legally hires the employee on behalf of the original company and provides all HR services 
  • An EOR agreement is made between the EOR and the employee on behalf of the original company 

In Monaco both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements 

INS GUIDES

Check Our Labor Law Guides

Learn how the Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
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Labor Law in Monaco

Employment Contracts in Monaco

In Monaco, employment must always be formalized through a written offer. Employers may include a probation period of 6 days for hourly-paid employees and 1 month for monthly-paid employees. During or after the probation period, the employer has the right to terminate the employee without severance.

The employment contract should clearly outline the nature of the role and include a description of the employee’s responsibilities. If an employee breaches the contract, the employer may terminate the agreement immediately.

Regarding notice periods:

  • No notice is required for employees with less than 6 months of service.
  • Employees with 6 months to 2 years of service must receive 1 month’s notice.
  • Employees with more than 2 years of service must receive 2 months’ notice.

In cases of redundancy, severance pay depends on the employee’s length of service:

  • For the first 10 years, employees are entitled to ¼ of their monthly salary per year.
  • After 10 years, they are entitled to â…“ of their monthly salary per year.

Working Hours in Monaco

  • The working week in Monaco starts on Monday and ends on Friday.
  • Full-time employees generally work 8 hours per day, 39 hours per week.
  • Employees have a maximum working time of 10 hours per day.
  • Part-time employees work around 20 hours per week.
  • Employees are entitled to a higher hourly rate for working overtime. This is 125% of the normal hourly rate.

Types Of Leave

Annual Leave in Monaco

  • Monaco has 13 official public holidays.
  • Employees are entitled to 2.5 days of paid leave per month that they have worked per year.
  • The period of leave can’t be more than 30 days at one time.
  • Part-time employees have the same right to paid leave as full-time employees.
  • The number of paid days leave increases as employees stay with the company longer.
  • 2 additional days are added after 20 years of service, 4 days are added after 25 years, and 6 days are added after 30 years.

Sick Leave in Monaco

  • Monégasque labor law states that sick leave should not count as paid leave unless the employment contract states otherwise.
  • Days of absence due to illness should not be deducted from an employee’s paid leave.
  • Long-term sick leave is when an employee is ill for more than 28 consecutive days.

Parental Leave

  • According to Monégasque labor law, female employees are entitled to 16 weeks of maternity leave. This increases to 26 weeks after a third child.
  • An allowance is paid during maternity leave.
  • Pregnant employees are not obligated to disclose that they are pregnant to the employer until they wish to take maternity leave.
  • Employees should notify their employer verbally or by written letter.
  • Fathers can take 12 consecutive calendar days of paternity leave after the birth of their child.
  • This increases to 19 days for multiple births or if this is the third child at home

Tax Laws in Monaco

In Monaco, employers are responsible for deducting all applicable taxes and social contributions from employees’ salaries. Employees are not subject to income tax unless they are French nationals residing in Monaco, in which case the French tax rate applies.

Employers must contribute the equivalent of 15.05% of an employee’s salary to sickness insurance, 8.03% to the state pension system, and 4.05% to unemployment insurance. Meanwhile, employees contribute 6.55% of their salary to the state pension and 2.4% to unemployment insurance.

The corporate income tax rate in Monaco is 25%.

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Frequently Asked Questions

faqs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

Certainly, working with an Employer of Record in Monaco is a legal and efficient solution that streamlines your expansion plans while reducing costs. 

Salaries are usually processed monthly for full-time employees, while part-time workers may prefer weekly or bi-monthly payments. Employers deduct taxes and social contributions at source. 

Absolutely, a Monégasque Employer of Record can recruit and hire employees from all regions, expanding your talent pool. 

Modifications to employment contracts require mutual agreement. A Monégasque PEO ensures compliance with local labor laws. 

Yes, employers in Monaco are responsible for deducting taxes and social contributions from employee salaries. 

Termination costs vary depending on the circumstances. Employees are generally entitled to 1/4 of their monthly salary for every year of service for the first 10 years. If they have been with the company for more than 10 years, they are entitled to 1/3 of their monthly salary for each year. 

In Monaco, you have the flexibility to hire employees for both in-person and remote opportunities, ensuring cost-efficiency during market entry. 

Certainly! Our recruitment experts have extensive experience in hiring top talent globally. We provide comprehensive support in recruiting, hiring, and managing your workforce, regardless of your location. 

Monaco observes 13 public holidays, and most employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate. 

Employers must adhere to strict labor laws and regulations to avoid penalties and fines. Collaborating with an experienced PEO in Monaco ensures compliance and seamless expansion. 

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Monaco

Date Day Holiday Notes
January 1 Wednesday New Year’s Day Celebration of the beginning of the Gregorian calendar year
January 27 Monday Saint Dévote’s Day Honors Monaco’s patron saint; traditional celebrations include a boat-burning ceremony
April 21 Monday Easter Monday Christian holiday commemorating the resurrection of Jesus Christ
May 1 Thursday Labour Day International Workers’ Day; celebrates labor and workers’ rights
May 29 Thursday Ascension Day Christian holiday commemorating the ascension of Jesus into heaven
June 9 Monday Whit Monday Christian holiday celebrated the day after Pentecost
June 19 Thursday Corpus Christi Christian feast celebrating the Eucharist
August 15 Friday Assumption Day Christian holiday commemorating the assumption of the Virgin Mary into heaven
November 1 Saturday All Saints’ Day Christian holiday honoring all saints
November 19 Wednesday National Day (Prince’s Day) Celebrates the reigning prince; includes official ceremonies and festivities
December 8 Monday Immaculate Conception Christian holiday celebrating the conception of the Virgin Mary free from original sin
December 25 Thursday Christmas Day Christian holiday celebrating the birth of Jesus Christ

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