Monaco: French affluence on the Rock
Between sea and mountains, the second smallest independent state after the Vatican has one of the highest population densities in the world (19,000 inhabitants / km2) for a population of just under 40,000 residents. On this small area of some 2 km2 very different sociological profiles are present, and not only the large fortunes which are part of the Monegasque cliché. Among those who drive the local economy, we find a large number of frontier workers, mainly French. A finding that is not surprisingly geographically given the location of Monaco, a landlocked city-state (excluding its seafront) in the Alpes-Maritimes department.
In 2017, of the 44,711 cross-border workers who worked in Monaco, 40,745 resided in France (91% of this total), the others were mainly from Italy. These French people who join the Rock to work, again unsurprisingly, for 99% of them from the Alpes-Maritimes department. With its 54,303 active jobs recorded in 2017 (i.e. more than the local population, especially if we count the seasonal workers), the Principality is, after the Nice-Cannes employment area, the second pole of activity in this cross-border area. .
Salary benefits
Who are these English cross-border workers who work in Monaco? They are first of all employees (32%), followed by the category of intermediate professions (26%). Managers and higher intellectual professions represent 20% of this group, as do blue-collar workers in the same proportion. Finally, artisans, traders and business leaders only constitute 2% of these cross-border workers. By comparison, Italian border workers in Monaco are mainly present in industry and construction, but are under-represented in the management of goods and services.
In its study on Monegasque cross-border workers published in May 2019, the National Institute of Statistics and Economic Studies (Insee) noted that “All sectors of activity combined, frontier workers [français] are predominantly men (58% against 51% for all employed inhabitants of the Alpes-Maritimes) ”. The statistical institute also specified that “Frontier work is sometimes a family affair since 23% of frontier workers have a spouse who also works in Monaco”.
Why such enthusiasm for the Principality? With salaries 10 to 15% higher on average than in France, the attractiveness of the Monegasque labor market is undeniable. Higher salaries which can be explained, among other things, by the rates of salary costs which do not apply to around 12.5% (against 22% in France). Employees who have a family also benefit from a premium of 146 to 306.50 euros per child (compared to 129 euros from the second child in France). The only downside is that the weekly working time here is 39 hours. A less inconvenience for those who want to work in Monaco, especially since the journey to the Principality can be made via a TER line (the busiest in France in comparison with other cross-border areas) or by taking several interurban bus lines.
The quest for sesame
On the fiscal front, let us recall that the French frontier worker living in France and working in the Principality sees the income from his Monegasque job taxed in France. What feed a possible bitterness towards the Monegasque citizen who, for his part, does not pay … any income tax (as well as the residents of the Principality, but with the exception, precisely, of French nationals governed by the Agreement with Franco -monégasque of 1963).
Our French border friend may also once have jealousy of his Italian border colleague in Monaco who benefits from a tax break of 7,500 euros (since 2015) when he works on the Rock. A chosen one is sure, the exorbitant prices of the local real estate hardly allow to consider residing there. For the rest, interest in employment in the Principality is not about to end. Cross-border worker flows had in fact already recorded an increase of 8.7% between 2003 and 2007 from France, and + 3.6% from Italy.
However, the key is to get the key: the work permit which allows you to exercise a salaried activity in the Principality. Indeed, any Monegasque employer who wishes to hire or re-hire a worker of foreign nationality must first publish his offer to the Monegasque employment services, then obtain an authorization from the manpower and employment directorate.
- The Journal of French Abroad would particularly like to thank Noëlle Versaveau-Gautier, regional correspondent for Europe & International Relations at the Paca Regional Directorate, for her invaluable assistance.
- Sources: Eures, Pôle emploi Paca, Labor Force Survey, Eurostat; Monaco in figures 2017, Imsee; Insee, 2013.