Madagascar’s cost-effective labor and skilled workforce make it an ideal outsourcing destination. Employers considering hiring employees in the region may wonder, What is the average salary in Madagascar? This information will help them make a fair hiring offer. 

The average monthly salary in Madagascar is 2,150,000 Malagasy Ariary (MGA), equivalent to approximately USD 484. However, wages vary by industry, experience, position, education, and location. Comparing earnings in the country to wages worldwide provides additional insight. 

This article will cover all aspects of salaries in Madagascar, preparing you for your hiring journey. 

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What is the Average Salary in Madagascar?

The average salary in Madagascar is 2,150,000 MGA, equivalent to approximately $484. Wages in the country are low due to a high reliance on the agricultural industry, which typically offers low-paying positions. The government is also plagued by weak governance and corruption, which limit economic growth. 

Madagascar Median Income

Madagascar’s median monthly income is 1,999,575 MGA, about $450. Half the country earns lower wages, the other half has higher earnings. 

Salary Range

Salary range spans the lowest to the highest salaries in the country. In Madagascar, low earners earn around 443,500 MGA, approximately $100, while high earners earn closer to 50,629,960 per month, roughly $11,416.

Salary Comparisons in Madagascar

Average salary provides some insight, but you must also consider how wages vary by education, experience, location, position, and industry. The following sections will explore how these factors impact earnings. 

Salary by Position

This salary comparison chart reveals how wages vary by position. 

PositionAverage Monthly Salary (MGA)
Financial Manager2,760,000 MGA
General Manager2,420,000 MGA
Business Development Manager2,150,000 MGA
Financial Analyst1,720,000 MGA
Business Analyst1,690,000 MGA
Project Manager1,470,000 MGA

Average Wage in Madagascar Based on Education

In Madagascar, many families struggle to afford an education due to financial constraints. Over 1.7 million children aged 6 to 14 are currently out of school. 

However, education is recognized as a primary means of combating poverty. Statistics show that a primary school education can lead to 3.5% returns, a lower secondary education can produce 10.2% returns, and an upper secondary education can yield 14.3% returns. With this in mind, the government is focused on making education more accessible through initiatives like the 2017-2021 Education Sector Plan (ESP) and the National Policy on Employment and Vocational Training. 

Salary Comparison by Experience

Experience impacts salaries in Madagascar in various ways as follows:

  • Workers are entitled to a 13th salary at the end of the year, which equals 14% of the annual salary. 
  • Employees who leave their jobs may be entitled to severance pay, which is based on the worker’s length of service. 
  • Minimum wage increases for workers with more than three years of tenure at their company. 

Salary Comparison by Location

Salaries vary by location as workers in urban centers like Antananarivo earn more than workers in rural areas due to higher costs of living and proximity to large companies offering high-paying job opportunities. Urban areas provide more lucrative positions in the financial, telecommunications, and mining industries, whereas rural workers are typically limited to agricultural work, which often pays poorly. 

How Much is Minimum Wage in Madagascar?

The minimum wage in Madagascar varies by industry and tenure within a company as follows: 

Non-Agricultural Sector

EmployeesAverage Salary (MGA per month)Average Salary (USD per month)
Less than 3 years of tenure262,68059.14
3 years or more of experience264,20059.57

Agricultural Sector

EmployeesAverage Salary (MGA per month)Average Salary (USD per month)
Less than 3 years of tenure266,50060.09
3 or more years of tenure268,70060.59

Average Salary in Madagascar vs. the Rest of the World

The following charts compare salaries in Madagascar to those in developed, developing, and least developed countries, providing more insight. 

Madagascar vs. Developed Countries

CountryAverage Salary (Local Currency & USD Equivalent)Comparison to Average Madagascar Salary
Japan¥379,434 (approx. $2,635)– 400%
United Kingdom€3,000 (approx. $3,116)– 520%
Norwaykr 50,790 (approx. $4,700)– 840%
Germany€4,300 (approx. $4,467)– 800%
Austria€3,500 (approx. $3,636)– 620%

Madagascar vs. Developing Countries

CountryAverage Salary (Local & USD Equivalent)Comparison to Average Madagascar Salary
Romania4,000 RON (approx. $835)– 68%
Russia73,709 RUB (approx. $700)– 40%
Albania€1,500 (approx. $1,550)– 210%
Kazakhstan342,082 KZT (approx. $645)– 30%
Ukraine18,000 UAH (approx. $500)0%

Madagascar vs. Undeveloped Countries

CountryAverage Salary (Local & USD Equivalent)Comparison to Average Madagascar Salary
Afghanistan30,000 AFN (approx. $419)19%
Philippines18,423 PHP (approx. $875)– 76%
Cambodia1,000,027 KHR (approx. $250)100%
Egypt13,244 EGP (approx. $263)92%
Pakistan45,000 PKR (approx. $150)233%

Madagascar is a least developed country with a low income economy. It faces economic challenges due to food insecurity, hgh inflation, vulnerability to natural disasters, and weak governance and infrastructure. The country is dominated by the agricultural industry which offers low-paying positions. 

Despite internal challenges, Madagascar shows potential for growth through outsourcing opportunities. It offers cost-effective labor and a skilled and multi-lingual workforce. Its strategic location could open opportunities in European markets. 

What are the Most Common Outsourced Industries in Madagascar?

Employers who wish to form remote partnerships in Madagascar will benefit most when focusing on the following industries: 

BPO

Madagascar’s BPO industry is experiencing significant growth with salaries half of those in Morocco, a major competitor. It offers a wide range of services including customer service, technical support, and data entry. The government is investing in the industry, improving internet speeds and road networks. 

Textiles

The textile industry plays a significant role in Madagacar’s economy. It is a major employer offering operations to several international apparel brands including Zara, Express, and Puma. The industry has experienced growth in recent years, moving beyond basic CMT (cut, make, trim) production. 

Agriculture

Agriculture is the backbone of Madagascar’s economy, employing about 75% of the population. Cash crops include vanilla, coffee, cloves, and cocoa. Many citizens also rely on subsistence farming to feed their families. 

Although the industry drives the economy, it faces challenges due to limited mechanisms and climate vulnerabilities. 

Conclusion

Madagascar’s low average salaries and motivated workforce make it an ideal outsourcing destination. Companies that form remote partnerships in the country can benefit from cost savings and superior products and services while helping workers overcome poverty, resulting in positive outcomes for all involved parties.