Salary increases in the private sector will take effect this July. Employers are planning to stagger the payment of salary arrears.
Staggered payment of salary arrears: this is the scenario currently emerging for private sector employees. Employers are considering spreading out the payment of arrears linked to salary increases that have been applicable since March. “The burden is too heavy for some companies,” a source from the employers’ association confided yesterday.
The implementation decree regarding the Minimum Hiring Wage (SME) effectively imposes retroactive payments dating back to March 2026. As of that date, the SME has been set at 300,000 ariary for the non-agricultural sector, up from the previous 262,680 ariary, and at 304,300 ariary for the agricultural sector, up from 266,500 ariary. “The implementation strategy for this staggered payment will depend on each company,” the same source specified. They emphasized that member companies of this employers’ group must strictly comply with regulations and apply the minimum wage hike starting this July for employees still earning below the legal threshold. They added that half of the group’s members are already paying wages higher than the SME.
Revalued
This prospect suits some labor unions “more or less.” “A global payment, made in one or two installments, would partially cancel out the effect of the salary increase due to the automatic jump in income tax,” indicated Julio Rakotomaharavo of the Confederation of Revolutionary Malagasy Workers’ Unions (Fisemare). For this union, the ideal formula would be to spread the payment out at a rate of two months of arrears per month.
The SME will be revalued twice this year. The Ministry of Labor, Employment, and Civil Service has announced a second increase in October, when it will be raised to 315,000 ariary.
On the workers’ side, union officials express their disappointment regarding the level of this revaluation. “Given the high cost of living, this increase is disconnected from current economic realities. We had requested at least 360,000 ariary, but our demand was not accepted. However, the authorities have set an appointment with us next year for the next salary revision. We shall see,” lamented a union representative.
By Miangaly Ralitera
Captured & Published at: 2026-07-07 06:13:35 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/07/emploi-le-patronat-discute-des-rappels.html
