In response to the ever-increasing cost of living the Malagasy government has introduced a wage policy designed to gradually prepare employees financially for the new burdens of modern life.

As a result of this policy, Decree no. 2023-563 was published in July 2023 to confirm the “minimum monthly remuneration” in Madagascar, which includes the Minimum Hiring Wage (SME ) and wage accessories.

CNaPS social security contributions

The change to the SME also affects the threshold on wages subject to CNAPS contributions.

How are CNAPS contributions determined?

Social security contributions are shared between the employer and the employee. Here are the calculation methods and rates proposed by the fund.

Social security contribution rates
-Employer’s share: 13

-Employee’s share: 1%.

Non-agricultural SME: 238,800Ar

-SME Agricultural: 220,000Ar

Contribution base threshold :
Non-agricultural ceiling: Ar 238,800 x 8= Ar 1,910,400

-Agricultural ceiling: Ar 242,200 x 8= Ar 1,937,600

Contribution simulation
The employee’s gross salary is the basis for calculating the social security contributions to be paid by the employer to the social security organizations. The calculation is therefore as follows:

For an employee earning a gross salary of 450,000 Ar, the proportional contributions are as follows

Employee portion: 450,000 x 1% = 4,500 Ar
Employer’s share: 450,000 x 13% = 58,500 Ar
However, the new ceiling instituted by the CNAPS offers the following calculation, for any employee earning more than 1,910,400 Ar in gross salary.

For an employee earning 2,000,000 Ar, the calculation of contributions is based on the 1,910,400Ar ceiling:

Employee’s share: 1,910,400 x 1% = 19,104 Ar
Employer’s share: 1,910,400 x 13% = 248,352 Ar

Contribution payment schedule

  • First-quarter contributions: due on April 30
  • Second-quarter contributions: due on July 31
  • Third-quarter contributions: due on October 31
  • Fourth-quarter contributions: due non January 31

The CNAPS has made an exception for employers whose employees benefit from a government subsidy.

Private companies that have applied for state subsidies since the announcement of this possibility, and which expired on 10/11/2022, have recourse to base their contributions on the EMS for 2022.

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