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Madagascar - Minimum Wages - 2011


LAST UPDATE

05 May 2011.
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SOURCES


Name of Act

Decree Regarding the Calculation of Minimum Wages, of 31 January 2006, Official Journal, 2006-02-27, No. 3016, pp. 1613

Name of Act

Law No. 89-027 concerning free trade zones in Madagascar, Journal officiel, 1990-01-02, No. 1973, p. 28-38 as amended up to Act No. 96-016 of 13 August 1996.

Name of Act

Name of Act

Document from Madagascar’s Social Security Fund.

Other source used

Madagascar, Social Security Programs Throughout the World, Africa, ISSA, 2009

Other source used

LEGAL DEFINITIONS


Employee/worker

Means any person, regardless of their nationality, engaged to carry out a professional activity for remuneration under the direction of any individual or public or private corporation. Piece workers, regardless of whether they work under the immediate surveillance of their employer, are also considered workers in accordance with the Labour Code.
Labour Code § 2

Employer

Means any individual or public or private corporation that hires, remunerates and directs any person who has offered their services to them. This definition includes non-governmental organisations.
Labour Code § 3

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

A national minimum wage rate for agricultural and non-agricultural workers SME (Salaire Minimum d’ Embauche) and a wage scale are set by the government, following the recommendations of the National Employment Council. The SME should assure the minimum subsistence level for the most underprivileged workers and satisfactory purchasing power; as such, it is indexed to price increases. The National Employment Council is a tripartite body consisting of government, employers’ and employees’ representatives.
Labour Code § 55

Minimum wage set through decentralized collective bargaining

Wages may be set in collective agreements; however, they may not be lower than the minimum rates set by the government. Collective agreements may be extended by decree to employers and employees within the scope of application of the collective agreement.
Labour Code §§175, 177

Criteria


Needs of workers and their families

It is established a minimum wage (SME) for agricultural and non-agricultural workers, taking into account the minimum vital for workers in order to guarantee them a sufficient purchasing power.
Labour Code §55(1)

Cost of living

The minimum subsistence figure should be examined by the National Employment Council when recommendations are being made concerning adjustments to minimum wage rates.
Labour Code §55(1)

Economic development

The national economic situation and current economic climate must be taken into consideration when rates are being set.
Labour Code §55(2)

Inflation rate

A decree issued after having consulted the National Labour Council shall determine the minimum wage for each professional category, which shall be revised periodically taking into account the nation’s budget evolution, the economical conjuncture at the time, as well as the consumer prices.
Labour Code §55(2)

Coverage


Scope

The Labour Code applies to all workers whose employment contract is executed in Madagascar.
Labour Code § 1

Specific minimum wage rates


» Specific minimum wage by occupation

No.

» Specific minimum wage by sector

Two minimum wage scales are set by the government: one for agricultural workers and another for non-agricultural workers
Labour Code §55

» Specific minimum wage by region

In addition, the legislation specifically states that enterprises operating in Free Trade Zones (Zones Franches) must comply with the provisions of the Labour Code.
Free Trades Zones Act § 23

» Minimum wage levels for specific categories of workers


» Trainees

No

» Youth

No

» Disabled

No

» Piece-rate workers

Yes - Rates paid to piece workers must be such that an average worker working at a normal rate receives the same wage as workers being paid according to the time worked.
Labour Code § 57

» Other categories

A scale sets forth higher minimum rates to be paid to workers in accordance with their seniority and professional category.
Decree Regarding Minimum Wages : Annexe

Level


Minimum wage level(s) in national currency

-Non-agricultural Sector 90.235,60 ariary per month (unskilled worker, professional category M1)
-Agricultural Sector 91.520 Ar per month.
Document from Madagascar’s Social Security Fund.

In-kind allowances

The Labour Code provides that all wages must be paid entirely in legal tender.
Labour Code § 62

Rate of payment


» Hourly

520,60 Ar, no-agricultural workers;
457,60 Ar, agricultural workers.
Document from Madagascar’s Social Security Fund.

» Monthly

-Non-agricultural Sector 90.235,60 ariary per month (unskilled worker, professional category M1)
-Agricultural Sector 91.520 Ar per month.
Document from Madagascar’s Social Security Fund.

Scheduled frequency of adjustment

The legislation does not set forth how frequently minimum wage rates should be adjusted.

Enforcement mechanisms


Labour inspection

Labour Inspectors ensure that all provisions of the Labour Code and other labour laws are adhered to and they may enter workplaces at any time in order to carry out inspections.
Labour Code §§ 234, 238

Fines in national currency for non-respect of legislation

Employers who fail to pay the minimum wage set by the government are liable to a fine of between 2 5000 000 Fmg and 10 000 000 Fmg and in the case of repeat offences the maximum fine is increased twofold.
Labour Code § 257

Results generated on: 22nd October 2014 at 14:20:08.
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