When discussing salaries in Madagascar, it’s important to differentiate between the minimum wage and the average salary. It’s also important to keep in mind that the average salary can vary depending on factors such as industry, region, and the employee’s profile, including education level and professional background.

Minimum wage in Madagascar

The minimum wage in Madagascar is established by decree and updated every few years. The most recent one, Decree No. 2024-794: Establishing Minimum Wages for Hiring and Seniority by Professional Category, was made applicable in the first semester of 2024. This decree mandated that the previous minimum wage be raised by 10%. The wage increase applies uniformly across different sectors, with specific variations to accommodate the agricultural and non-agricultural workforce. For workers in the non-agricultural sector, the minimum wage is now set at 262,680 ariary, while for those in the agricultural sector, it has risen to 266,500 ariary.

It is important to note that these figures represent the base salary without considering additional benefits such as bonuses or overtime, which can vary significantly depending on the employer and the region. Furthermore, while the minimum wage serves as a legal benchmark, in practice, some employees earn above this threshold, especially in urban areas where the cost of living is higher.

It is crucial for anyone considering starting a company in Madagascar and becoming an employer to stay informed about legal changes, including updates to the minimum wage. Staying up to date with wage policies can play a significant role in fostering sustainable growth for businesses and help avoid issues with local public administration. 

Average salary in Madagascar

General trend with sectoral and geographical specificities

Back in 2022, the World Bank reported that, on average, the gross monthly income per inhabitant was $43 (approximately 180,000 ariary, based on the 2022 exchange rate).

A recent study conducted in June 2024 by the national statistics institution (INSTAT) showed a quite similar trend, far from the legal amounts mentioned above. The survey revealed that, on average, an employee (working in the public or private sector) earns 196,359 monthly.

It’s important to note that this survey took into account both the formal and informal sectors, with results showing that undeclared employees are more disadvantaged in terms of compensation compared to workers in the formal sector. The study also demonstrates that salaries vary depending on the location. Cities and more populated areas tend to be more expensive, and the cost of living is reflected in the wages.

Education level and earning in Madagascar

A study conducted by a local consultancy firm focused on graduates. While it may not be fully representative of the general population — the World Bank estimated that 1.3372% of the Malagasy population aged 18+ graduated from tertiary education in 2018 — it’s still worth mentioning to provide a more accurate picture of wage trends in Madagascar. In a nutshell, this survey shows the average gross income for someone with an undergraduate degree is 694,393 ariary, while postgraduates earn an average of 814,032 ariary. 

Interestingly, the salary amount and the compensation policy for those graduates also depends on their institution of origin as well as their field of study or workfield. 

An overview of the average salary in ariary cf field of study/work

Source: FTHM Consulting, 2018

In conclusion, the average salary in Madagascar depends on many factors. It’s important to stay informed if you intend to work with the local workforce to ensure compliance with both legal standards and ethical considerations.