Monaco has made substantial progress in closing the gender pay gap, particularly in the public sector, where women now earn more than men on average. But while the median wage difference in the private sector has nearly disappeared, statisticians and economists are urging caution before calling the issue resolved.
The Principality of Monaco is edging closer to pay equality between men and women, according to a new report from the national statistics institute, IMSEE, released Monday 3rd November. The study, based on 2024 data, reveals that the median pay gap in the private sector has fallen to just 0.1% – down from 5.9% in 2019. In practical terms, that equates to a difference of just €1.90 per month.
The report is the second of its kind, following the 2019 study initiated by Monaco’s Committee for the Promotion and Protection of Women’s Rights. To ensure meaningful comparison, the methodology remains unchanged. It draws from private sector payroll data supplied by Monaco’s social security funds, alongside salary indices for public sector workers provided by the Directorate of Human Resources and Civil Service Training.
Public sector shows reversal in pay gap
In the civil service, women now earn 2.4% more than men on average. That gap has widened since 2019, when it stood at just 0.7%. Women are also increasingly present in senior positions, holding 49.1% of top roles in 2024 – up from 47% five years ago. However, salary differences persist across individual job categories. In each group – whether high-level managerial roles, mid-level administrative posts, or frontline positions – men continue to earn more on average, although the disparity has narrowed.
The private sector paints a more uneven picture. While the median salary shows near parity, the average monthly salary for women is still 18.6% lower than that of men. This equates to a real-world difference of approximately €744 per month, based on a notional male monthly salary of €4,000. On an hourly basis, the gender gap stands at 16.4%, or €5.10 more per hour in favour of men.
Christophe Robino, Minister of Social Affairs and Health, acknowledged the progress but said statistical averages must be understood in context. “Very high salaries—athletes, portfolio managers—pull the average upward, which artificially increases the gap,” he said at a press conference Monday. According to Robino, median pay offers a more accurate view of pay equity. “I can only be pleased that the gap has decreased, especially regarding the median salary, which I believe is a good comparator.”
Interpretation challenges rooted in structural and cultural factors
While the narrowing gap is statistically significant, experts say it cannot be interpreted in isolation. Pierre-André Chiappori, economist and advisor to the government, cautioned against drawing overly confident conclusions from aggregate figures.
“It is very important to understand the limitations of these statistical results,” he said, pointing to the influence of unmeasured variables such as education, sector of employment, and family responsibilities. “What we attribute to gender may actually be linked to other factors, like education, which are not measured here.”
Chiappori also said Monaco’s business environment requires a tailored approach to reform. “Today, we’re not pursuing a coercive approach. We don’t want to impose laws or indexes… Monaco’s business structure is largely made up of very small companies.”
In such environments, informal practices around hiring and promotion often prevail. According to Chiappori, one key issue is how confidence influences career trajectories: “Salary negotiation… it’s not something that’s necessarily taught. It often comes naturally to men, but much less so to women.”
This difference in approach can be seen even before hiring takes place. “A man will apply for a job even if he has only 60% of the required skills. A woman often won’t unless she’s sure she has at least 80%,” he said. These patterns, he explained, contribute to gender imbalances that cannot be resolved by legislation alone.
Early influences and everyday barriers
Céline Cottalorda, Monaco’s Women’s Rights Officer, said the origins of the gap run far deeper than the workplace. “In our current education system, from a young age, little girls are still unconsciously assigned to certain roles,” she said, describing how societal norms and expectations shape ambitions from an early age.
She also described the cumulative effect of domestic responsibilities, which continue to fall disproportionately on women. “There are also everyday obstacles: mental load, the logistics related to children… these responsibilities still mostly fall on women,” she said.
In response, Monaco has launched targeted initiatives to support women’s advancement in the workforce. One such project, L’Effet A, is designed to equip women in the public sector with skills in negotiation, self-confidence and professional networking. Thirty participants have already completed the training, with more sessions to follow.
A statistical milestone, not an endpoint
Despite Monaco’s progress, experts caution against interpreting the near-parity in median wages as a sign that equality has been achieved. Structural realities continue to shape careers in ways that statistical snapshots cannot fully capture. Many women entering previously male-dominated sectors remain at early or mid-career stages, while their male counterparts benefit from decades of seniority.
Chiappori argued that resolving these imbalances requires more than just improved data collection. He said a broader cultural shift is needed—one that encourages equal access to opportunity and rewards merit without bias. “The best way to fight discrimination is through competition,” he said.
See also:
New report confirms gender wage gap in Monaco, finance sector sees biggest loss for women
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Photo credit: Stephane Dana, Government Communications Department