Madagascar is a growing economy in the Indian Ocean with a skilled workforce and good opportunities for international companies. But its wage system is detailed and needs careful attention to follow local rules. 

The main employment law is called the Labour Code, and specific pay rates are announced in official government orders called decrees. The government department in charge of this is the Ministry of Labour. If you’re looking for how to hire employees in Madagascar, it’s important to understand how the country’s minimum wage works.

Here’s What to Know About the Minimum Wage in Madagascar

Madagascar has one of the most detailed minimum wage systems in Africa. The country doesn’t have just one minimum wage for everyone.

Instead, it has a minimum starting wage, which is called the Salaire Minimum d’Embauche (SME). This is the lowest legal wage for a new employee in the most basic job category.

An official order, Decree No. 2024‑794, set the new rates starting from March 1, 2024, and these are expected to remain the rates for 2026. The decree sets two different starting wages:

Job Type
Monthly Starting Wage (MGA)
Notes
Non-Agricultural
262,680
Standard working hours
Agricultural (Farm Work)
266,500
Includes longer working hours

Wages change depending on the sector, job type, and years of experience.

Job Categories and Wage Levels in Madagascar

The 2024 decree includes specific, legally required salaries for many different job categories. These categories include:

Code
Category
Examples
M
Manual Laborers (Manœuvres)
M1, M2
OS
Specialized Workers (Ouvriers Spécialisés)
OS1, OS2, OS3
OP
Professional/Skilled Workers (Ouvriers Professionnels)
OP1, OP2, OP3, etc.

The decree also lists the exact minimum monthly salary for each sub-category. For example, in the non-agricultural sector, for an employee with less than three years of service as of March 2024:

Level
Classification
Monthly Wage (MGA)
M1-1A
Base Level (Manual Laborer)
262,680
OS1-2A
Specialized Worker
268,700
OP1A-3B
Skilled Worker
277,700
OP3-5B
Highly Skilled Worker
402,100

The M1-1A category is entry-level jobs that don’t require much training or special skills. These workers usually do basic tasks or support work. As the categories go up, the jobs require more skills and responsibility, and the pay increases.

While a basic laborer starts at 262,680 MGA, a skilled professional worker has a legal minimum salary of 277,700 MGA. The pay also legally increases after an employee has worked at the company for three or more years.

Someone in the OP3-5B group with more than 3 years of experience can earn up to MGA 440,200 per month in non-agricultural jobs.

Statutory Leave Entitlements

Workers in Madagascar have some employee benefits that employers must adhere to.

  • Annual Leave: Employees are entitled to 2.5 calendar days of paid leave for each month of service, which amounts to 30 days per year.
  • Public Holidays: There are 14 official public holidays in Madagascar. Work performed on these days must be compensated at a premium rate.
  • Sick Leave: Employees with a medical certificate are entitled to up to six months of paid sick leave. The employer covers a portion of the salary, and the remainder can be claimed from social security (CNaPS).
  • Maternity and Paternity Leave: The law provides for up to three months (14 weeks) of paid maternity leave and 10 days of paid paternity leave.

What to Know About International Employers Hiring in Madagascar

Foreign companies doing business in Madagascar need to follow more rules than just paying the minimum wage. First, they must get work permits for any international employees. This process involves sharing detailed documents with the local government.

Madagascar also has a probation period that can last from 0 to 6 months. During this time, employers can review the employee’s performance, but they must still pay full wages and provide benefits. If an employee is let go, the company must pay severance, that’s 10 days of pay for every year worked, up to a maximum of 6 months’ pay.

There are also notice periods that depend on how long the employee has worked at the company. Because Madagascar’s labor laws have so many layers, it’s a good idea for foreign companies to work with local experts to make sure they follow all the rules.

Economic Competitiveness

The World Bank’s recent economic analysis shows that the most productive firms in Madagascar often pay wages up to seven times higher than the minimum requirements, particularly in export-oriented industries.

The country’s economic outlook remains positive, with projected growth of 4.5% in 2024 and 5.3% in 2025, driven by strong performance in the mining sector, tourism recovery, and buoyant exports.

Employer of Record Services for Madagascar

For international companies seeking to establish operations in Madagascar without the complexity of setting up a local entity, Employer of Record (EOR) services provide an effective solution. At RemotePeople, we handle all aspects of employment compliance, including minimum wage requirements, contributions, and regulatory reporting.

RemotePeople’s EOR and PEO service in Madagascar offers comprehensive services, including payroll processing, tax compliance, benefits administration, and regulatory updates. We allow international companies to focus on their core business operations while ensuring full compliance with local employment laws.

Our Madagascar EOR services include complete minimum wage compliance across all professional categories, an automated global payroll calculator for all statutory contributions, regular updates on regulatory changes, and reporting for your internal tracking. We handle the complexity of Madagascar’s employment system so you can focus on growing your business in today’s market.