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# [MADAGASCAR] First Double Minimum Wage Hike in 60 Years: Floor Rises to 315,000 Ariary
- URL: https://businessoi.media/en/madagascar-premiere-double-hausse-du-smig-en-60-ans-le-salaire-minimum-grimpe-a-315-000-ariary-en/
- Published: 2026-08-04T08:43:41.000Z
- Updated: 2026-08-04T08:43:41.000Z
- Description: By decree of June 29, 2026, Madagascar formalises a double minimum wage hike: from 262,680 to 300,000 ariary from March, then 315,000 ariary in October. A first in 60 years, secured after lengthy union negotiations.
- Author: Emmanuel TAOCHY
- Tags: Madagascar, Économie, emploi, Flash de mi-journée, #en

A historic page is being written in Madagascar's labour relations. By decree of **June 29, 2026**, the Malagasy government ratified a double increase to the Minimum Starting Wage (SME) in the private sector — the first such move in sixty years. A strong signal to workers in a country where purchasing power remains under pressure.

## A Two-Step Catch-Up

The timeline is clear: from **March 1, 2026**, the minimum wage rose from **262,680 ariary** to **300,000 ariary**. Then, from **October 2026**, a second step will lift the floor to **315,000 ariary**. The cumulative increase reaches **+19.8%** over the year.

A notable provision of the decree: workers are owed **four months of back pay** (March through June 2026), ensuring no one is short-changed by the gap between the effective date and publication. The Labour Director confirmed: «The minimum wage is maintained at 300,000 ariary until September. From October, a second increase will bring the SME to 315,000 ariary.»

## A Compromise Wrung from Months of Negotiation

Talks between the government, employers and trade unions were intense. The Confederation of Madagascar Workers (CTM) had initially demanded a floor of **360,000 ariary**. The final figure of 315,000 ariary is a compromise, but union representatives hail the historical advance: «It's the first time in 60 years there's been a double increase in the same year!»

This standoff plays out against a backdrop of persistent inflation, worsened by rising food and fuel prices that have eroded Malagasy household purchasing power since 2022.

## Why It Matters

The minimum wage hike is more than a social issue: it signals to foreign investors that the Malagasy state can manage social dialogue. In the short term, injecting additional income into low-income households could support domestic consumption — a growth lever in a country where the internal market remains under-exploited. Worth watching: the impact on margins for formal SMEs, particularly vulnerable in the textile and agro-industry sectors.

*Source: L'Express de Madagascar, Newsmada / Business.OI*