In Madagascar, the deadlock between social partners is now forcing the State to intervene. Lacking an agreement on raising the minimum wage in the private sector, the Ministry of Labor will have to resolve the dispute by decree as early as next week.

An initial agreement that falls apart

Last February, a consensus seemed to have emerged around a 14% increase, raising the minimum wage to 300,000 ariary (approximately 61 euros). However, the absence of the SVS union during these discussions invalidated the agreement.

When negotiations resumed on Friday, April 17, the union front—now complete—hardened its positions by demanding:

1. A salary of 360,000 ariary (74 euros).
2. A 37% increase , deemed necessary to catch up with inflation.

The poverty line argument

Workers' representatives highlight a stark reality: even at 360,000 ariary, the daily income remains below the World Bank's poverty line ($3/day). With inflation projected at 8.3% for 2026 , the purchasing power of Malagasy households is eroding daily.

Employers are sticking to their positions

For its part, the employers' association (Fivmpama and GEM) categorically rejects this new requirement and is sticking to the initial proposal of 14%. The companies emphasize the economic constraints weighing on their competitiveness.

The challenge: The decree expected in the Government Council next week will have to arbitrate between the economic survival of companies and the social protection of workers, while this revaluation is already two months late.