During the celebration of International Workers’ Day on May 1, the Malagasy government announced that the decree establishing the new minimum hiring wage (SME) will be issued soon, but only after ongoing negotiations between stakeholders are successfully concluded. Prime Minister Mamitiana Rajaonarison emphasized the importance of reaching a consensus to ensure smooth implementation of this highly anticipated social reform.
Speaking at the Mahamasina Sports Palace during the official festivities, the head of government confirmed that discussions are still actively underway. However, he refrained from disclosing the exact percentage increase or the final amount to be adopted. According to him, these details will only be made public once the decree is officially published. He nevertheless reassured trade unions by stating that the future wage level should not be far from the demands put forward by workers’ representatives.
This wait comes amid a context of strong social mobilization. Several banners displayed during May Day demonstrations called for the immediate implementation of a minimum wage set at 360,000 ariary. This demand exceeds the previously discussed consensus of 300,000 ariary, which had been considered a first step toward increasing the current threshold of 262,680 ariary. Such an adjustment would represent a significant rise aimed at better addressing the increasing cost of living that heavily affects Malagasy households.
The Minister of Labor, Employment and Public Service, Mac Denis Franconio, explained that the process is facing certain institutional constraints. The current absence of the National Labor and Employment Council, whose opinion is typically required in such procedures, complicates the administrative timeline. However, he assured that this situation does not constitute a definitive obstacle and that the government intends to accelerate the finalization of the regulatory text.
Beyond the issue of wages, the demands expressed during this International Workers’ Day highlighted broader concerns related to working conditions, social protection, and dialogue between public authorities and trade unions. The government sought to send a signal of appeasement by reaffirming that unions are seen as partners in social development rather than adversaries. The Prime Minister also mentioned the planned establishment of a trade union representation body within the Prime Minister’s Office, a long-standing request from union organizations.
The notable participation of several government members, parliamentarians, administrative authorities, and thousands of workers in this 2026 May Day celebration underscores the importance of this social moment. Held under the theme of rebuilding driven by Malagasy workers, the event also served as a platform to reiterate that wage issues remain at the core of public expectations in a challenging economic environment.
The forthcoming publication of the minimum wage decree will therefore be closely watched. Its content could serve as a key indicator of the government’s ability to balance economic constraints, social dialogue, and tangible improvements in workers’ purchasing power.
