Madagascar

Old Age, Disability, and Survivors

Regulatory Framework

First and current laws: 1969 (social insurance) and 1994 (social protection).

Type of program: Social insurance system.

Coverage

Employed persons, including household and salaried agricultural workers, merchant seamen, members of the clergy, presidents and directors of private companies, managers of limited companies, and employed taxi drivers.

Exclusions: Self-employed persons; farmers and casual agricultural workers working less than 3 months a year.

Special system for civil servants.

Source of Funds

Insured person: 1% of covered earnings. Full-time household workers contribute a monthly flat-rate of 400 ariary.

The minimum earnings for contribution calculation purposes are equal to the legal monthly minimum wage.

The maximum earnings for contribution calculation purposes are equal to eight times the legal minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

Self-employed person: Not applicable.

Employer: 9.5% of covered payroll; a flat rate of 2,923 ariary a month on behalf of full-time household workers.

The minimum earnings for contribution calculation purposes are equal to the legal monthly minimum wage.

The maximum earnings for contribution calculation purposes are equal to eight times the legal minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

Contributions are paid quarterly.

Government: None; contributes as an employer for public-sector employees who are not civil servants.

Qualifying Conditions

Old-age pension: Age 60 (men) or age 55 (women) with at least 15 years of coverage (some periods of work before 1969 are credited) including 28 quarters of contributions in the last 10 calendar years. The pensionable age is reduced by 5 years for merchant seamen. Retirement from employment is necessary.

Partial pension: A proportionately reduced pension is paid if the insured has less than 28 quarters of contributions in the last 10 calendar years but has at least 100 quarters (men) or 80 quarters (women) of total coverage.

If the insured has insufficient quarters of contributions, he or she can continue working up to 5 years after the legal retirement age to meet the contribution qualifying conditions.

The pension is payable abroad.

Solidarity allowance: Paid to insured persons who do not meet the qualifying conditions for the full or partial old-age pension at age 60 (men) or age 55 (women). The insured must have had at least 15 quarters of employment between January 1, 1964, and December 31, 1968, and have been in salaried employment on January 1, 1969. Retirement from employment is necessary.

The allowance is payable abroad.

Disability pension: Age 55 (men) or age 50 (women and merchant seamen) with at least a 60% loss of working capacity and with at least 10 years of coverage (some periods of work before 1969 are credited), including at least 28 quarters of contributions in the last 10 calendar years.

The pension is payable abroad.

Survivor pension: The deceased was a pensioner or was at least age 55 (men) or age 50 (women) and met the contribution qualifying conditions for the old-age pension at the time of death.

Eligible survivors are the spouse and children younger than age 15 (age 22 if a student or disabled).

The widow(er)'s pension ceases on remarriage.

The pension is payable abroad.

Old-Age Benefits

Old-age pension: The pension is equal to 30% of the legal monthly minimum wage plus 20% of the insured's monthly average adjusted earnings in the last 10 calendar years plus 1% of the insured's earnings for each year of contributions exceeding 10 years.

The minimum earnings for benefit calculation purposes are equal to the legal monthly minimum wage.

The maximum earnings for benefit calculation purposes are equal to eight times the legal minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

Partial pension: A reduced pension is paid.

Dependent's supplement: 10% of the insured's pension is paid for a spouse older than age 59 (men) or age 54 (women).

Special supplement: A supplement equal to 5% of the pension is paid for workers awarded the bronze medal for long service at work; 10% for the silver medal for long service at work.

The minimum pension is equal to 60% of the legal minimum wage including supplements.

The maximum pension is equal to 40% of the maximum earnings for contribution calculation purposes (if supplements are not paid) or 75% of the insured's monthly average adjusted earnings in the last 10 calendar years (if supplements are paid).

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

The insured may receive both the old-age pension and the work injury permanent disability pension. The total amount received is calculated based on 100% of the higher pension plus 25% of the lower pension.

Pensions are paid quarterly.

Benefit adjustment: Benefits are adjusted according to increases in the legal minimum wage. (The last adjustment to the legal minimum wage was made in 2008.)

Refund of contributions: Total contributions plus 2% annual interest are paid to an insured person with at least 4 contribution quarters who does not meet the requirements for the pension. The amount of the refund must not be less than 20,000 ariary.

Solidarity allowance: The annual allowance is equal to 30% of the legal annual minimum wage plus 10% of the insured's average annual earnings in the last 5 calendar years plus 1% of the insured's earnings for each 4-quarter period of contributions.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

The allowance is paid quarterly.

Benefit adjustment: Benefits are adjusted according to increases in the legal minimum wage. (The last adjustment to the legal minimum wage was made in 2008.)

Permanent Disability Benefits

Disability pension: 80% of the old-age pension that would have been paid if the insured had worked until the pensionable age is paid.

Dependent's supplement: 10% of the insured's pension is paid for a spouse older than age 59 (men) or age 54 (women).

Special supplement: A supplement equal to 5% of the pension is paid for workers awarded the bronze medal for long service at work; 10% for the silver medal for long service at work.

The minimum pension is equal to 60% of the legal monthly minimum wage, including supplements.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

If the insured is no longer capable of work and is eligible for both the disability pension and the work injury permanent disability pension, only the higher pension is paid.

Benefit adjustment: Benefits are adjusted according to increases in the legal minimum wage. (The last adjustment of the legal minimum wage was made in 2008.)

Refund of contributions: Total contributions plus 2% annual interest are paid to an insured person with at least 4 contribution quarters who does not meet the requirements for the pension. The amount of the refund must not be less than 20,000 ariary.

Survivor Benefits

Survivor pension: 30% of the pension the insured received or would have been entitled to receive is paid to an unemployed widow(er); 15% if the widow(er) is employed or receiving a pension.

Pensions are paid quarterly.

Orphan's pension: 15% of the pension the insured received or would have been entitled to receive is paid for each of the first two orphans; 10% is paid for each additional orphan; 20% is paid for each full orphan.

All survivor benefits combined must not exceed 85% of the pension the deceased received or would have been entitled to receive; otherwise, the benefits are reduced proportionately.

Benefit adjustment: Benefits are adjusted according to increases in the legal minimum wage. (The last adjustment of the legal minimum wage was made in 2008.)

Administrative Organization

Ministry of Civil Service, Labor, and Social Legislation provides general supervision.

National Social Insurance Fund (http://www.cnaps.mg) administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1952.

Current laws: 1963 (family benefits) and 1994 (social protection).

Type of program: Social insurance system. Maternity benefits only.

Coverage

Employed women, including household and salaried agricultural workers.

Exclusions: Self-employed women; casual agricultural workers working less than 3 months a year.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: See source of funds under Family Allowances, below.

Government: None.

Qualifying Conditions

Cash sickness benefits: No statutory benefits are provided. (The labor code requires employers to provide paid sick leave to employees.)

Cash maternity benefits: The insured must have at least 6 consecutive months of insured employment with at least 20 days or 134 hours of work a month.

Sickness and Maternity Benefits

Sickness benefit: No statutory benefits are provided. (The labor code requires employers to provide paid sick leave to employees.)

Maternity benefit: The benefit is equal to 50% of the insured's last wage. The benefit is paid for 6 weeks before and 8 weeks after (up to 11 weeks in the event of complications arising from pregnancy or childbirth) the expected date of childbirth. The benefit is paid in two equal amounts (three in the event of complications).

The minimum monthly earnings for benefit calculation purposes are equal to the legal monthly minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

If the insured is ineligible for maternity benefits, the employer pays 50% of earnings for up to 14 weeks of maternity leave.

Workers' Medical Benefits

Insured women are reimbursed for the cost of medical care during pregnancy and childbirth, up to 5,000 ariary. (The labor code requires employers to provide certain medical services to employees.)

Dependents' Medical Benefits

Some maternity and child health and welfare services are provided under Family Allowances, below. (The labor code requires employers to provide certain medical services to employees' dependents.)

Administrative Organization

Ministry of Civil Service, Labor, and Social Legislation provides general supervision.

National Social Insurance Fund (http://www.cnaps.mg) administers the program.

Work Injury

Regulatory Framework

First law: 1925.

Current laws: 1963 (work injury) and 1994 (social protection).

Type of program: Social insurance system.

Coverage

Employed persons, including household and salaried agricultural workers, merchant seamen, members of the clergy, presidents and directors of private companies, managers of limited companies, employed taxi drivers, students, apprentices, tobacco growers, members of cooperatives, and prisoners working in prison workshops.

Exclusions: Self-employed persons.

Special system for civil servants.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1.25% of covered payroll; 1% for salaried casual agricultural workers; a lump-sum monthly contribution of 77 ariary for full-time household workers; 1% of annual covered earnings for cooperative members; a flat-rate annual contribution of 40 ariary per year on behalf of each apprentice and each private technical school student; 1.5% of annual base earnings of 4,000 ariary per cultivated hectare for tobacco growers.

The minimum earnings for contribution calculation purposes are equal to the legal monthly minimum wage.

The maximum earnings for contribution calculation purposes are equal to eight times the legal minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

Contributions are paid quarterly, except for annual payments made by students, cooperative members, and tobacco growers.

Government: None; contributes as an employer for public-sector employees who are not civil servants.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Temporary Disability Benefits

The daily benefit is equal to 66.7% of the insured's daily average earnings in the last 30 days before the disability began. The benefit is paid monthly from the day after the disability began until full recovery or certification of permanent disability.

The maximum daily benefit is 1,200 ariary.

Benefit adjustment: If the disability lasts more than 3 months, benefits may be adjusted according to the growth in wages.

Permanent Disability Benefits

Permanent disability pension: If the insured is assessed with a total disability, the monthly pension is equal to 100% of the insured's monthly average earnings in the 12 months before the disability began.

The minimum earnings for benefit calculation purposes are equal to 1.4 times the legal monthly minimum wage.

Only 33% of earnings over four times the legal minimum wage is taken into account for benefit calculation purposes. The maximum earnings for benefit calculation purposes are equal to 16 times the legal minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

Constant-attendance supplement: If the insured requires the constant attendance of others to perform daily functions, 40% of the disability pension is paid. The supplement must not be less than the legal minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

Partial disability: If the assessed degree of disability is 10% or more, the pension is equal to the insured's average earnings in the 12 months before the disability began multiplied by 0.5 times the percentage of the assessed degree of disability for the portion of disability up to 50% and by 1.5 times the percentage of the assessed degree of disability for the portion of disability greater than 50%.

If the assessed degree of disability is greater than 10%, the minimum earnings for benefit calculation purposes are equal to 1.4 times the legal monthly minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

The partial disability pension is paid quarterly. If the assessed degree of disability is 75% or more, the pension can be paid monthly; if the assessed degree of disability is less than 10%, the pension is paid as a lump sum.

The partial and total disability pensions may be partially converted to a lump sum after receiving the pension for 3 years.

The insured may receive both the old-age pension and the work injury permanent disability pension. The total amount received is calculated based on 100% of the higher pension plus 25% of the lower pension.

Benefit adjustment: Benefits are adjusted according to increases in the legal minimum wage. (The last adjustment of the legal minimum wage was made in 2008.)

Workers' Medical Benefits

Benefits include medical and surgical care, hospitalization, medicines, appliances, transportation, and rehabilitation.

Survivor Benefits

Survivor pension: 30% of the deceased's monthly average earnings in the 12 months before the disability began is paid to a widow(er).

Orphan's pension: The monthly pension is equal to 15% of the deceased's monthly average earnings in the 12 months before the disability began for each of the first two orphans younger than age 15 (age 19 if an apprentice, age 22 if a student or disabled) and 10% for each other orphan; 20% for each full orphan.

Dependent parent's and grandparent's pension: The monthly pension is equal to 10% of the deceased's average earnings each, up to 30%.

The minimum earnings for benefit calculation purposes are equal to 1.4 times the legal monthly minimum wage.

Only 33.3% of earnings over 4 times the legal minimum wage are taken into account for benefit calculation purposes. The maximum earnings for benefit calculation purposes are equal to 16 times the legal minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

All survivor benefits combined must not exceed 85% of the deceased's earnings for benefit calculation purposes; otherwise, the benefits are reduced proportionately.

Pensions are paid quarterly.

Funeral grant: A lump sum of 20,000 ariary is paid.

Benefit adjustment: Pensions are adjusted according to increases in the legal minimum wage. (The last adjustment of the legal minimum wage was made in 2008.)

Administrative Organization

Ministry of Civil Service, Labor, and Social Legislation provides general supervision.

National Social Insurance Fund (http://www.cnaps.mg) administers the program.

Family Allowances

Regulatory Framework

First law: 1952.

Current laws: 1963 (family benefits) and 1994 (social protection).

Type of program: Employment-related system.

Coverage

Employed persons, including household and salaried agricultural workers, merchant seamen, members of the clergy, presidents and directors of private companies, managers of limited companies, employed taxi drivers, students, and apprentices.

The insured must reside in Madagascar or France.

Unemployed workers are covered for a maximum of 6 months under certain conditions.

Exclusions: Self-employed persons; farmers and casual agricultural workers working less than 3 months a year.

Special system for civil servants.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 2.25% of covered payroll. For full-time household workers, a flat-rate monthly contribution of 692 ariary.

The minimum earnings for contribution calculation purposes are equal to the legal monthly minimum wage.

The maximum earnings for contribution calculation purposes are equal to eight times the legal minimum wage.

The legal monthly minimum wage is 70,025.40 ariary (nonagricultural sector); 71,000 ariary (agricultural sector).

The above contributions also finance maternity benefits under Sickness and Maternity, above.

Government: None; contributes as an employer for public-sector employees who are not civil servants.

Qualifying Conditions

Family allowances: The child must be younger than age 15 (age 19 if an apprentice; age 22 if a student, an unmarried daughter caring for children, or disabled). The parent must have at least 6 consecutive months of insured employment with at least 20 days or 134 hours of work a month (nonagricultural sector), with at least 18 days or 144 hours of work a month (agricultural sector), or if a widow(er) of a beneficiary.

Prenatal allowance: The insured woman must undergo prescribed medical examinations before childbirth.

Birth grant: The insured woman must undergo prescribed medical examinations after childbirth.

Family Allowance Benefits

Family allowances: 2,000 ariary a month is paid for each child.

Prenatal allowance: A lump sum of 18,000 ariary is paid.

Birth grant: 24,000 ariary is paid for each live birth. The grant is paid in two installments. The allowance is reduced by 50% if the childbirth was not medically assisted or if the mother did not undergo the prescribed medical examinations.

Some maternity and child health and welfare services are also provided.

Benefit adjustment: Benefits are adjusted periodically. (The last adjustment was made in 2003.)

Administrative Organization

Ministry of Civil Service, Labor, and Social Legislation provides general supervision.

National Social Insurance Fund (http://www.cnaps.mg) administers the program.