Monaco

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1944 (workers) and 1958 (self-employed).

Current laws: 1947, 1956, 1961, 1971, 1974, 1976, 1980, and 1983.

Type of program: Social insurance system.

Coverage

Employed persons.

Special systems for self-employed persons and public-sector employees.

Source of Funds

Insured person: 6.15% of earnings (old-age pension and survivor pension).

Employer: 6.15% of payroll (old-age pension and survivor pension), plus an additional 1.01% of payroll (the additional contribution finances sickness benefits and other benefits insuring against the interruption of employment); 15.8% of payroll (disability benefits and survivor pension).

The employer contribution for disability benefits also covers sickness and maternity benefits and family benefits.

Government: None.

The maximum monthly earnings for contribution purposes are €3,690 for old-age benefits and €6,130 for disability benefits.

Qualifying Conditions

Old-age pension: Age 65 (men and women) with 10 years of insurance coverage including at least 169 hours of employment each year; 60 months of effective or deemed employment. Women can retire at age 55 if they have raised at least three children.

Early pension: Age 60 with the cessation of all work activity.

Deferred pension: The pension can be deferred after age 65.

Disability pension: Under age 60 and a total loss of work capacity (total disability) or the loss of 2/3 of work capacity (partial disability); 12 months' registration in the previous 15 months; or 800 hours of employment in the previous 12 months, including 200 hours in the previous 3 months.

Survivor pension: Age 65; age 60 if disabled (widowers) or age 50 (widows). There is no age limit for a widow(er) caring for at least one child. The survivor must have been married for at least 4 years at the date of the insured's death, married 2 years before the insured's date of retirement, or there was at least one child born as a result of the marriage. The insured was a pensioner or met the qualifying conditions for a pension.

Old-Age Benefits

Old-age pension: The pension is calculated as the number of points acquired multiplied by the value of a point (€15.37). The number of points acquired during any 1-year period is obtained by dividing the declared earnings by the basic salary in force, up to a limit of 4 points per month.

Early pension: The pension is calculated on the same basis as the old-age pension.

Deferred pension: The pension is calculated on the same basis as the old-age pension.

Permanent Disability Benefits

Disability pension: The pension is 30% or 50% of the average monthly earnings over the previous 60 months, depending on the category of disability.

The guaranteed minimum income for disabled persons under age 65 is equal to twice the standard minimum income (€2,346 per quarter).

Constant-attendance allowance: 40% of the disability pension.

Survivor Benefits

Survivor pension: 60% of the insured's pension.

Orphan's pension: 25% of the insured's pension for each orphan under age 18 (under age 20 if an apprentice, under age 21 if a student). Full orphans receive 50% of the insured's pension. The maximum total pension cannot exceed the value of the insured's pension.

Administrative Organization

Independent Employees' Pension Fund, involving representatives of government, employers, and employees, administers the employees' old-age insurance scheme.

Compensation Fund for Social Services, involving representatives of government, employers, and employees, administers the employees' disability insurance.

Independent Pension Fund for Self-Employed Workers, involving representatives of government, employers, and self-employed persons, administers self-employed persons' old-age insurance.

Sickness and Maternity

Regulatory Framework

First laws: 1944 (employees) and 1982 (self-employed persons).

Current laws: 1949, 1959, 1971, 1981, 1982, and 1983.

Type of program: Social insurance system.

Coverage

Employed persons.

Special scheme for self-employed persons.

Source of Funds

Insured person: None.

Employer: See source of funds (disability benefits) under Old Age, Disability, and Survivors, above.

Government: None.

Qualifying Conditions

Cash sickness benefit: The benefit is paid if the insured has less than 6 months of interruptions from employment and has 120 hours of effective or deemed employment during the last month or 200 hours during the last 3 months; if interruptions to employment are more than 6 months, the insured must have 12 months of contributions in the previous 15 months and 800 hours of work or deemed work in the previous 12 months, including 200 hours in the last 3 months.

Cash maternity benefit: One month's registration in the quarter preceding conception and continuing registration and 85 hours of work for each month between conception and the medical confirmation of pregnancy.

Medical benefits: 120 hours of employment in the last month or 200 hours in the previous 3 months.

Maternity medical benefits: 120 hours of employment in the last month or 200 hours in the previous 3 months.

Sickness and Maternity Benefits

Sickness benefit: 50% of the average daily wage of the previous 12 months up to a ceiling of €102.17. The benefit is payable after the first 3 days, up to a maximum of 360 days; benefit entitlement can be extended for 3 or 4 years in cases of chronic or recurrent illness.

Maternity benefit: 90% of the average salary of the previous 12 months up to a ceiling of €102.17. The benefit for the first and second child (in households with fewer than two children currently residing at home) is payable for 8 weeks before and 8 weeks after the expected date of childbirth; third and subsequent children (or with two children currently residing at home), 8 weeks before and 18 weeks after the expected date of childbirth; for twins (with no other children in the family), 12 weeks before and 22 weeks after the expected date of childbirth; and other multiple births, 24 weeks before and 22 weeks after the expected date of childbirth.

Workers' Medical Benefits

Reimbursements for medical costs include primary and specialist treatment, hospitalization, laboratory services, pharmaceuticals, dental care, appliances, and transportation. The rates applied by medical practitioners and auxiliary medical services to insured persons are classified into three categories according to income and family size: standard rate with no extras; 20% higher than the standard rate; and fee set by prior agreement with a medical practitioner.

The award is up to 80% of the cost of the medical benefit, up to the ceiling of the first category rate. This rate can increase to 100% for lengthy and costly treatment or for certain complicated procedures, including complicated surgery and prolonged hospitalization.

Dependents' Medical Benefits

Same as for the insured person.

Administrative Organization

Compensation Fund for Social Services, involving representatives of government, employers, and employees, administers the employee's scheme.

Work Injury

Regulatory Framework

First and current law: 1958.

Type of program: Mandatory private insurance system.

Unemployment

Regulatory Framework

Coverage is provided through France's scheme for unemployment insurance.

Family Allowances

Regulatory Framework

First law: 1938.

Current law: 1954.

Type of program: Social insurance system.

Coverage

Employed persons.

Source of Funds

Insured person: None.

Employer: See source of funds (disability benefits) under Old Age, Disability, and Survivors, above.

Government: None.

Qualifying Conditions

Family allowance: Child under age 6 (under age 16 if a school pupil; age 17 if searching for a first job; age 21 if an apprentice, a student, or disabled).

Prenatal allowance: The head of the household is registered as insured and has at least 77 hours of employment or deemed employment during the related month. A formal declaration of pregnancy during the first 3 months following conception supported by a medical examination of the mother.

Education grant: For children going to school in Monaco or France.

Family Allowance Benefits

Family allowance: With 145 hours of insured employment, the allowance is €115.80 a month for each child under age 3; €173.70 for each child aged 3 to 6; €208.40 for each child aged 6 to 10; €243.20 for each child aged 10 to 21. The benefits are proportionately reduced with between 77 hours and 144 hours of insured employment.

Prenatal allowance: With 145 hours of insured employment, the allowance is €115.80 a month. The benefits are proportionately reduced with between 77 hours and 144 hours of insured employment.

Education grant: The amount varies according to the different lessons attended by children going to school in Monaco (between €55 and €350) or France (between €28 and €350).

Administrative Organization

Compensation Fund for Social Services, involving representatives of government, employers, and employees, administers the scheme.