Public sector pay and pensions to increase

The Prince’s Government has announced a 1% increase in public sector salaries and pensions from 1 May 2026. The decision follows a 1.2% rise in inflation between December 2025 and March 2026, and takes into account the economic outlook for 2026.

The increase will apply to both active and retired civil servants and public sector employees. By acting now, the Government is looking to stay ahead of economic pressures and build on earlier measures introduced to support purchasing power for public sector workers including a previous 1% pay rise granted last July.

The Government aims to protect the long-term purchasing power of both civil servants currently working and recipients of public sector pensions, whilst maintaining balanced public finances.

The measure is expected to have a direct positive impact on Monaco’s economy by supporting consumer spending at a time of economic uncertainty, and also acknowledges the commitment shown every day by public sector staff, whose work remains essential to the effective delivery of State services for the benefit of all. With collective effort more important than ever at this pivotal time, the pay increase recognises their invaluable dedication.