According to Monaco’s official statistics office, IMSEE, the country counted 53,454 employees in March 2020. This figure is 3% less than 2018, due to the lack of recruitment for industry events, like the Grand Prix, and seasonal summer staff.
Two weeks after Monaco went into lockdown, the government stated 2,625 employers had signed up for Reinforced Total Temporary Unemployment (CTTR), which impacted 21,650 employees, about 40% of the country’s salaried employees.
On June 21, Didier Gamerdinger, minister of social affairs and health, said that the CTTR scheme cost the State €13 million in March and €32 million in April.
At a press conference this afternoon, minister of state Serge Telle announced prolonged financial support for those working in Monaco.
The government told Forbes Monaco it doesn’t foresee an increase in the corporate tax rate to cover the costs of this extended financial support.
The CTTR scheme will be extended in September and October guaranteeing that the state pays employees at least 80% of their salary (this is down from 100% in May and June for those who went back to work in May). Nightclubs remain closed and the state will continue to cover 100% of the CTTR.
For employers, the state has also extended the EPCP partial exemption from charges (l'Exonération Partielle des Cotisations Patronales) for September and October. Additionally, any employer who hires an employee with 20 years of seniority in the Principality and who has been let go due to Covid will be fully reimbursed for his employer contributions for 2 years. And a “pre-employment internship” allows job applicants to receive half their salary paid for by the state during the first three months trial period in the company. If hired on a 2-year CDI or CDD, the employer will be reimbursed for social contributions for one year.For Q1 2020, IMSEE reported a 2.6% overall drop in turnover, with the heaviest losses to Monaco’s economy in accommodation and food services (-28.5%), transportation (-18.7%) and industry (-16.3%).
Guillaume Rose, Monaco Economic Board's Chief Executive Officer, told Forbes Monaco, “Anyone who could adapt quickly and offer products related to the crisis came out of the Covid shutdown strong. A lot of IT companies have been created since the end of the lockdown, and while some activities will disappear, others linked to the new economy will emerge. And Monaco is at the heart of that move.”