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Monaco Extends Social Aid amidst Pandemic

Monaco recently announced that it will be extending the CTTR, an emergency response benefit which gives financial support to employees who are directly affected by COVID-19. The social benefit will be extended until the end of October with a coverage of 80% so employers can continue to pay their employees who cannot work as a result of the ongoing pandemic.

During a press conference held on 30 June, Government Councillor Didier Gamerdinger expressed that it is not possible to indefinitely extend the CTTR aid and job protection scheme. However, companies in need can count on the State to continue to support them during these trying times until October. 

Up to 22,000 employees benefited from CTTR in mid-March and another 14,700 in May. So far it has cost the State €70 million. In May, state support was 100% while in June it was 90% and in July and August it was 80%. (With the exception of traders, restaurants and bars in Monaco-Ville who will continue to benefit from 100% of the CTTR aid scheme.)

Monaco Extends Social Aid amidst Pandemic

Working from home

Since the pandemic began, many employees started to work from home. The government recently announced that companies wishing to maintain employees who are working from home as of 1 October are invited to do so.

Support for retirement and sick leave

The Princely Government intends to provide further help to sectors particularly affected by the crisis, including tourism, events, sports and culture. From July, the state will cover half of social contributions (retirement and sick leave) for certain companies (with the exception of those already subsidized by the state). Companies whose 2019 turnover does not exceed €1 million and who can justify a loss of at least 20% in June are eligible for the aid.

Monaco Extends Social Aid amidst Pandemic

The Economic Recovery Support Commission (CARE)

CARE will study the files of companies with a turnover of less than €5 million. Eligible companies will have to present a provisional balance sheet for the months of July to September. State aid will result in up to 50% (or up to €35,000 of fixed costs and expenses related to the revival of activity (communication, prospecting trips, etc.).

Monaco Extends Social Aid amidst Pandemic

What happens after October?

All of Monaco’s worker’s unions and social partners agree that the extension of the CTTR is a good thing. However,  the general secretary of the Union of Trade Unions of Monaco is asking that the CTTR be extended beyond October.  According to the general secretary, after September, Monaco enters a complicated season when business tourism will be missed. He hopes that the CTTR will be extended at least until the end of the year.

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