Work and Wages

Minimum Wage

Minimum wage rates in Madagascar are determined either by Government or by collective agreement between the employer and the worker. Government, following the recommendations of the National Employment Council, sets a wage scale and a national minimum wage rate (on hiring) for agricultural and non agricultural workers referred to as SME (Salaire Minimum d' Embauche). The National Employment Council is a tripartite body consisting of government, employer and employee representatives.

The minimum starting salary (SME) is determined by taking into account the minimum vital for worker in order to guarantee them a sufficient purchasing power; cost of living; national economic situation and current economic climate; the nation's budget evolution/balance sheet; and the consumer prices.

Compliance with provisions of Labour Code including minimum wages is labour inspectors who have the right to enter workplaces at any time and carry out inspections. Employers who fail to pay the legal minimum wage are liable to a fine which may range between 2,500,000 to 10,000,000 FMG. In the case of repeat offence, the amount of fine is doubled. A worker may also request the Labour Inspectorate to settle a dispute amicably. 

Source: §55, 175, 177,199, 234, 238 and 257 of the Labour Code 2003

Regular Pay

The Labour Code 2003 regulates the payment of wages to all classes of workers. The salary is the counterpart of the work; no salary is due in case of absence outside the cases provided by regulation and unless agreed in writing between the parties.

Minimum wages in Madagascar are calculated on a daily rate. It requires the employers to make timely payment of remuneration to the employee.

▪For a worker hired on daily or weekly basis, wages must be paid in regular intervals of less than 8 days;

▪For a worker working on fortnightly basis, wage interval must not exceed 20 days; and

▪For a working on monthly basis, wages must be paid within 8 days of the end of month.

The wages should be fully paid in legal tender. This means that law does not allow in-kind payment of wages. Payment of wages in alcohol or alcoholic beverage is not allowed. Delay in payment of wages must be justified by force majeure. Unnecessary delay leads to increase according to the currently applicable statutory rate of interest. Manual or computerized pay slip is drawn by the employer or its representatives as an evidence of payments, and ticked off by each worker or by two witnesses if he is illiterate.

Workers are entitled to the wages without any kind of deduction by attachment and voluntary transfer except in cases prescribed by the law in force.

Source: § 62, 63 & 69 of the Labour Code 2003

Regulations on Work and Wages

  • Loi n° 2003-044 du 28 juillet 2004 portant Code du travail / Lalàna laharana faha-2003-044 tamin'ny 28 jolay 2004 anaovana ny Fehezandalàna momba ny asa / Labour Code 2004
  • Décret N°2013- 476 Fixant les indices et les salaires minima d’embauche et d’ancienneté par catégorie professionnelle / Didim-panjakana laharana faha-2013- 476, mametra ny mari-karama sy karama farany ambany eo ampandraisana mpiasa sy araka ny fahelana arak'asa isaky ny sokajin'asa / Decree No. 2013-476 for fixing the minimum wages by occupational category

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