The adopted PLFI 2026 provides for an average increase of 14% in salaries from January 2026.

A 14% salary increase for civil servants and officials in Madagascar in 2026: impacts on the public service and the private sector 

The recently adopted 2026 Initial Finance Bill provides for an average 14% increase in civil servants' salaries starting in January 2026. This measure reflects the stated intention of the new transitional government to support the purchasing power of public employees and staff , in order to strengthen the performance of the public service.

Evolution of civil servant salaries in Madagascar over the last five years

🔁 Reminder: the evolution of public sector salaries in recent years

• After several years without significant revaluation, this 14% increase comes five years after the previous major revaluation which took place in 2022, with differentiated increases according to categories.
• In recent years, Madagascar has experienced an economic context marked by structural inflation and pressure on the cost of living, making these adjustments particularly anticipated by public officials.

📌 Analysis: What impact for civil servants?

This increase can be seen as reasonable but measured in relation to current economic challenges:

📍 Expected positive effect

✔️ An improvement in the purchasing power of civil servants in 2026, particularly in the face of persistent inflation.
✔️ An increase in allowances for certain staff (for example, housing allowances for teachers, risk allowances for healthcare workers).

📍 Limitations and questions

❗ A 14% increase remains an average: it will be necessary to see how it breaks down across different categories of civil servants to assess a genuine improvement in living standards , especially for the lowest salaries.
❗ Some unions want ongoing dialogue with the government to ensure effective implementation.

What impact will this have on the private sector and employers?

📊 Towards alignment of the private sector?

Typically, the private sector, through professional and trade union associations, follows suit to ensure its workers are on the same pay scale. While the measure currently only applies to civil servants , several economic actors and professional associations are questioning whether it will have a knock-on effect on private sector wages .

✔️ Some signs indicate that the private sector may need to reassess its wage scales for workers, especially in areas of high demand (industrial free zones, manufacturing, services, technology, healthcare, education).
✔️ Discussions between private sector representatives and government authorities are expected to consider coordinated adjustment mechanisms.

👉 The anticipation of a partial or gradual alignment of private sector wages with public sector wages is becoming an increasingly prominent topic in local economic debates.

📅 Practical application: decree expected

Even though the 14% increase is now adopted in the PLFI 2026 , its operational application will depend on an implementing decree expected at the beginning of 2026. This decree will specify in particular:
✅ The methods of actual calculation of the increased salaries
✅ The exact effective dates
✅ The categories concerned and any differences according to professions.

Madeinmada, strategic partner for payroll management in Madagascar

Madeinmada | Portage Salarial Madagascar (PSM): a key player in payroll management, umbrella company services, and talent placement in Madagascar

In this context of rising wages, Madeinmada is positioning itself as a key player :

🔹 Supporting companies in structuring competitive compensation policies.
🔹 Local expertise to anticipate regulatory and budgetary impacts on compensation.
🔹 Facilitating the provision of talent to the private sector and international employers in line with new salary trends.

👉 Thanks to a keen understanding of legislative and economic developments in Madagascar , Madeinmada helps its partners prepare their HR strategies and remain attractive in a rapidly changing job market.