Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Madagascar

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) (Ratification: 1960)
Protection of Wages Convention, 1949 (No. 95) (Ratification: 1960)

In order to provide an overview of matters relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 (minimum wages) and 95 (protection of wages) in a single comment. The Committee notes the observations of Madagascar Enterprise Group (GEM) and of the Christian Confederation of Malagasy Trade Unions (SEKRIMA) provided with the Government’s reports.

Minimum wages

Article 3 of Convention No. 26. Minimum wage fixing machinery and consultation of the social partners. Further to its previous comments, the Committee notes the information provided by the Government, particularly the adoption in 2017 of Decree No. 2017-143 setting the new rates of the starting and seniority minimum wage, and of Decree No. 2017-843 establishing the National Labour Council (CNT) and the Regional Tripartite Labour Councils. The Government indicates that the CNT is being operationalized. The Committee notes that, in accordance with the relevant provisions of the Labour Code, Decree No. 2017-143 reaffirms the role of the CNT in the functioning of the minimum wage system and establishes the Committee on Purchasing Power and Wages as a standing committee of the CNT. The Committee also notes the indications of the GEM that the minimum wage rates have been reviewed on the basis of annual negotiations between the social partners. It also notes that the SEKRIMA considers that the method used to calculate minimum wages does not take into account the real social context and must be reviewed. The Committee requests the Government to provide information on the progress achieved to operationalize the National Labour Council, and on its work on minimum wages and any results achieved.

Article 4. System of supervision and sanctions. Further to its previous comments, the Committee notes the information provided by the Government on reported infringements concerning non-payment of the minimum wage. The Committee also notes the reports of the SEKRIMA that there is insufficient supervision by the labour administration. The Committee also notes that, according to the Decent Work Country Programme (2015–19), 80 per cent of workers are engaged in the informal economy. In this context, the Committee requests the Government to take the necessary measures to ensure the payment of the minimum wage in the formal and informal sectors, including through the action of the labour inspection services and the imposition of effective sanctions in the event of non-compliance. It requests the Government to provide information in this regard.

Protection of wages

Article 8 of Convention No. 95. Deductions from wages. Further to its previous comments, the Committee notes the information provided by the Government on deductions from wages. It notes the reports by the SEKRIMA of abuse in this area. The Committee notes that, in addition to statutory deductions, sections 69 and 71 of the Labour Code authorize deductions in the event of the employer making special advances and advance payments and in order to reimburse amounts related to the use of equipment. These deductions can be made in addition to those related to voluntary attachment or assignment of wages. While the latter are limited by section 685 of the Code of Civil Procedure, there is no limit on the other deductions. The Committee requests the Government to indicate the manner in which the deductions authorized by sections 69 and 71 of the Labour Code are limited and to take steps to prevent abuse.

Article 12. Regular payment of wages and final settlement of all wages upon the termination of the contract. Further to its previous comments, the Committee notes the information provided by the Government. It also notes that the SEKRIMA reports delays in the payment of wages and of social security contributions as well as cases of non-payment of remaining amounts due to workers on the termination of the employment relationship. The Committee requests the Government to take steps, including through the labour inspection service and the imposition of effective sanctions in the event of non-compliance, in order to remedy these difficulties and to provide information in this respect.