Minimum Wage
In Madagascar’s private sector, the minimum wage is set by legislation: the 2024 Labour Code establishes a minimum hiring wage for both agricultural and non-agricultural sectors (SME) and provides that the amounts are fixed by a Government Decree adopted in the Council of Government after an opinion from the Conseil National du Travail et de l’Emploi.
Minimum wage rates in Madagascar are determined either by the government or by a collective agreement between the employer and the worker. Government, following the recommendations of the National Employment Council (NCTE), 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 subsistence level for workers in order to guarantee them sufficient purchasing power; the cost of living; the national economic situation and current economic climate; the evolution of the nation’s accounts; and consumer prices. The recent Decree 2024/794 setting the SME is proposed by the Minister of Labour, Employment and the Civil Service, finalised by the Prime Minister, and issued by the Council of Government.
Madagascar’s Decree n°2024-794 (2 April 2024) updates the minimum monthly wages in the private sector by setting the minimum hiring wage and minimum seniority wage for each job category (separately for non-agricultural and agricultural workers), and it applies from 1 March 2024.
It repeals the previous minimum-wage decree (Decree n°2023-563 of 17 May 2023).
Compliance with provisions of the Labour Code, including minimum wages, is ensured by the Labour and Social Laws Inspectorate, whose inspectors 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 ranging between Ar 1,000,000 and Ar 4,000,000. In the case of a repeat offence, the fine is doubled, and a prison sentence of five (05) to twenty‑nine (29) days may also be imposed. A worker may request the Labour Inspectorate to settle a dispute amicably.
Source: §85253–254 & 367 of the Labour Code, Law No. 2024‑014; Decree No. 2024‑794 establishing the minimum monthly starting and seniority wages by professional category.
Regular Pay
The Labour Code 2024 regulates the payment of wages to all classes of workers. Salary is the counterpart of the work performed; no salary is due in case of absence except in situations provided by regulation or when agreed in writing between the parties.
Remuneration broadly includes the basic or minimum wage or salary and all other benefits paid directly or indirectly, in cash or in kind, by the employer to the worker by reason of employment. Remuneration must be equal for all workers performing equal work or work of equal value, without discrimination.
Employers are required to make timely payment of wages. For a worker hired on a daily or weekly basis, wages must be paid in regular intervals not exceeding 8 days. For a worker working on a fortnightly basis, the wage interval must not exceed 20 days. For a worker paid monthly, wages must be paid within 8 days of the monthly due date. Wages must be fully paid in Madagascar in legal tender. Payment in alcohol, alcoholic beverages, or illicit products is strictly forbidden. The law also declares that digital payments are encouraged if they are safer and more practical for workers. Payment must occur during working hours and (except for force majeure) at the workplace or the nearby employer's office. Delay in payment of wages must be justified by force majeure. Any unjustified delay leads to a surcharge calculated according to the statutory interest rate in force, and the employer can also face criminal penalties. Employers must issue a payslip, either manual or computerised, in Malagasy or French, as evidence of payment. Proof of payment can also be a bank document or a carnet à souche (numbered/initialled). The law makes clear that even if a worker accepts a payslip without complaint, they still keep the right to claim full pay and benefits.
Workers are entitled to their wages without deductions, except in cases prescribed by law. Permitted deductions include mandatory deductions, advances agreed in writing, union dues authorised by agreement and voluntary assignment, or deductions ordered by law. Other deductions or set‑offs are null and void. Exceptions exist only for goods from the employer’s store or advances made for tools and equipment necessary for the work, agreed in writing. Housing and food deductions are only allowed under special regulations. Any illegal deductions must be repaid with interest to the worker. Employers are strictly prohibited from imposing fines or any form of financial penalties.
The Labour Code does not provide any provision for compulsory 13th or 14th-month pay. However, if a worker’s pay includes bonuses or commissions, these must be counted when calculating paid leave, severance pay, notice allowance, or damages. Moreover, amounts received by the employer as “pourboires” (tips) must be fully paid to staff.
Source: §83, 88, 89, 91-95,100, 101-104, 106, 191, 202, 238 & 335 of the Labour Code, Law No. 2024‑014
