Minimum Wage in Madagascar - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Madagascar?

Yes, decree n. 2016-232 of 5th April 2016, in force since 17th February 2016, set the SME (official Minimum Wage for agricultural and non agricultural workers), taking into account the minimum living wage, i.e. a wage that gives workers a sufficient purchasing power.

Do one or more minimum wages exist that is/are determined by law?

Sector-based minimum wages are set by decree, after consulting the National Labour Council, and are revised periodically according to the Country balance sheet, the economic situation and consumer price index (Art. 55 of labour code).

At which level are minimum wages determined?

Sector-based minimum wages are set by decree, after consulting the National Labour Council, and are revised periodically according to the Country balance sheet, the economic situation and consumer price index (Art. 55 of labour code).

On what basis is minimum wage calculated: hourly, weekly, monthly or yearly?

Minimum wage is calculated on hourly and monthly basis.

In case of weekly/monthly minimum wages, are they based on any fixed number of hours?

Gross minimum wage is calculated on a basis of 40 working hours per week or 173,33 working hours per month for non agricultural sector, and for 200 working hours per month for agricultural sector.

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

Yes, the Ministry of Labour and the National Labour Council are involved in minimum wages setting.

How are upratings (adjustments) of minimum wage (s) decided upon?

As stated in article 55 of Labour Code, interprofessional guaranteed minimum wages must be set by a decree signed by the Minister of Labour, after consulting the National Labour Council.

Which are the components of minimum wage in Madagascar?

In Madagascar minimum wage is composed by one fixed element.

How frequently is the fixed component of minimum wage updated?

Sector-based minimum wages are revised periodically according to the Country balance sheet, the economic situation and consumer price index (Art. 55 of labour code).

How is minimum wages compliance regulated?

Minimum wage compliance is regulated by the National advisory council of Labour.

Which legal sanctions can be applied if compliance is lacking?

Employers who have been paying an agricultural or non agricultural worker less than the sector-based minimum wage he is entitled to are punishable with fines from 5 hetsy Ariary or 2.500.000 Fmg to 2 tapitrisa Ariary or 10 millions Fmg. (Art. 257 of labour code).

Are sanctions often applied?

No information available.

Are employer and/or trade union representatives involved in compliance procedures?

No, employer and trade union representatives are not involved in compliance procedures regarding minimum wages.

To whom/Where can individuals complain, if they think they are earning less than minimum wage?

If they want to solve the controversy amicably, workers can complain to the labour inspector. (Art. 199 of labour code).