The Malagasy government has revised its minimum wage grid, effective March 2026, with further adjustments in October 2026. The new decrees, numbers 2026-1352 and 2026-1358, outline the changes in the sector non-agricole, impacting ten categories, from M1-1A to OP3-5B. The minimum hiring wage ranges from 300,000 to 432,100 ariary per month until September 2026 and then from 315,000 to 454,000 ariary starting October 2026.
The updated grid reveals significant increases in the lower categories. The M1 category, for instance, saw a 14.2% increase between 2024 and March 2026. In contrast, the OP3 category, at the higher end of the grid, experienced a 7.5% increase during the same period. The gap between OP3 and M1 has narrowed from 53% to 44%. The lowest category, M1-1A, starts at 300,000 ariary, rising to 315,000 ariary in October, while the highest, OP3-5B, starts at 432,100 ariary, increasing to 454,000 ariary.
The calculation of the minimum wage involves multiplying the category index by the point value and then by 173.33 hours. The point value increased by 5% in October 2026, from 0.8745 to 0.9182 ariary, without changes to the indices. This adjustment results in a higher minimum wage for all categories. For example, the OS2-2B category, with an index of 2,078, yields approximately 330,700 ariary, rounded to 331,000 ariary by the decree.
A notable aspect of the revised grid is the substantial increase in the lower end of the scale. Between March and October 2026, all categories received a uniform 5% increase. Since 2024, the M1 category has seen a 19.9% increase, while the OP3 category has experienced a 12.9% rise. The difference in salary between consecutive categories remains relatively small, ranging from 5,000 to 6,000 ariary per month, until the OP2B category.
The new minimum wage grid consists of ten categories, with two tiers in 2026. The sector agricole has its own separate grid, with a point value of 0.7688 and 0.8084 ariary and a month calculated on 200 hours. In the agricultural sector, the M1 category is set at 304,300 ariary until September 2026 and 320,000 ariary in October 2026. Employees should verify their category and salary on their pay stub or contract to ensure compliance with the new grid.
To ensure accurate payment, employees must check their category and base salary against the minimum wage grid. The decree applies retroactively to March 1, 2026, entitling employees to back pay for the preceding months. The government has not published an equivalent grid for the public sector.
The updated minimum wage grid reflects the government's efforts to adjust salaries to the current economic conditions. With these changes, the lower end of the scale has increased at a faster rate than the upper end, reducing the gap between categories.
Key points
- The minimum wage grid was updated in March and October 2026.
- The lower end of the scale increased at a faster rate than the upper end.
- The sector agricole has its own separate minimum wage grid.
