After several months of anticipation, the implementing decree has finally been published. This year, the Minimum Hiring Wage (SME) is undergoing an unprecedented change : two successive increases, with a retroactive effect that employers must take into account without delay.
Key Points to Remember
The decree implementing the minimum hiring wage was published on June 29, 2026, after lengthy negotiations between social partners. It provides for a two-stage timeline :
- 300,000 Ariary: amount maintained from March to September 2026;
- 315,000 Ariary: new threshold applicable starting from October 2026;
According to the Ministry of Labor, Employment, and Public Service, this double increase applies retroactively to March 1, 2026. This means employees are entitled to four months of back pay, which employers must regularize.
The ministry has also announced the upcoming launch of an inspection campaign to verify the effective implementation of the decree on the ground.
What this concretely changes for employers
This double upward revision implies several actions to be taken without delay by companies operating in Madagascar :
- Regularize the retroactive pay due for the period from March to September 2026 for all employees paid below the new minimum
- Anticipate the second increase in October 2026 now, in order to adjust your budgets and payroll
- Check each employee’s classification by job category
- Prepare for the inspections announced by the Ministry of Labor, which will verify that companies are effectively complying with the decree
- Recalculate the impact on payroll taxes (CNaPS, OSTIE)
Between the back pay that needs to be processed, the second raise expected in October, and the upcoming audits, managing this two-part pay increase requires precision and responsiveness. Our HR team can help you :
- Audit your payroll records and secure any wage arrears due
- Plan the budget for the increase to 315,000 Ariary as of October
- Verify the compliance of your employees’ classification by professional category
- Ensure peaceful preparation for the Ministry of Labour’s inspection campaigns
Do you have a question about how to implement this measure at your company? Contact our team today.