Madagascar

Old Age, Disability, and Survivors

Regulatory Framework

First and current laws: 1968 (pension fund) and 1969 (social insurance).

Type of program: Social insurance system.

Coverage

Employed persons, including full-time household workers and public-sector employees covered by the labor code.

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

Special system for civil servants.

Source of Funds

Insured person: 1% of monthly covered earnings; a flat rate of 80 ariary a month for full-time household workers.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The maximum monthly earnings used to calculate contributions are eight times the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

Self-employed person: Not applicable.

Employer: 4.5% (agricultural sector) or 9.5% (nonagricultural sector) of monthly covered payroll; a flat rate of 584.60 ariary a month for full-time household workers.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The maximum monthly earnings used to calculate contributions are eight times the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

Contributions are paid quarterly.

Government: None; contributes as an employer for public-sector employees covered by the labor code.

Qualifying Conditions

Old-age pension (Pension de vieillesse): Age 60 (age 55 for merchant seamen) with at least 15 years of coverage, including at least 28 quarters of contributions in the last 10 calendar years before reaching the normal retirement age. (The insured may continue to work up to five years after the normal retirement age to meet the coverage requirement.)

Employment must cease.

Partial pension (Pension proportionnelle de vieillesse): Age 60 (age 55 for merchant seamen) with at least 15 years of coverage, including at least 60 quarters of contributions, and does not meet the contribution requirements for an old-age pension.

Dependent’s supplement (Supplément pour personnes à charge): Paid for a spouse older than age 59 (age 54 for merchant seamen) who has been married to the insured for at least two years.

Special supplement (Supplément pour médailles du travail): Paid for workers awarded a medal for long service at work. Only one supplement is paid to workers with more than one medal.

The old-age pension is payable abroad.

Solidarity allowance (Allocation de solidarité): Age 60 and does not qualify for the full or partial old-age pension. Must have at least 15 quarters of employment from January 1, 1964, to December 31, 1968, and have been in salaried employment on January 1, 1969.

Employment must cease.

The solidarity allowance is payable abroad.

Old-age settlement (Remboursement des cotisations): Age 60 with at least four quarters of contributions and does not qualify for an old-age pension, a solidarity allowance, or a disability pension.

Disability pension (Rente d’invalidité): Age 55 (age 50 for merchant seamen) with at least a 60% assessed loss of working capacity and at least 15 years of coverage, including at least 28 quarters of contributions in the last 10 calendar years.

The disability pension may be replaced by an old-age pension at the normal retirement age upon the insured person’s request.

The normal retirement age and minimum coverage requirement for the old-age pension are reduced by up to five years for persons with at least a 60% assessed loss of work capacity.

Dependent’s supplement (Supplément pour personnes à charge): Paid for a spouse older than age 59 (54 for merchant seamen) who has been married to the insured for at least two years before the claim is made.

Special supplement (Supplément pour médailles du travail): Paid for workers awarded a medal for long service at work. Only one supplement is paid to workers with more than one medal.

The disability pension is payable abroad.

Survivor pension (Pension de survivant): The deceased was an-old age or disability pensioner, was receiving a solidarity allowance, or was aged 45 or older (aged 40 or older for merchant seamen) and qualified for the old-age pension at the time of death.

Eligible survivors include a widow(er) and orphans younger than age 15 (age 22 if a student or disabled).

The widow(er)’s pension ceases upon remarriage.

Survivor settlement (Remboursement des cotisations): The deceased died before reaching the normal retirement age, had at least four quarters of contributions, and did not qualify for an old-age pension, a disability pension, or a solidarity allowance at the time of death.

Eligible survivors include a widow(er) and orphans younger than age 15 (age 22 if a student or disabled).

Old-Age Benefits

Old-age pension (Pension de vieillesse): The pension is 30% of the legal monthly minimum wage plus 20% of the insured’s average monthly covered adjusted earnings in the last 10 calendar years before reaching the normal retirement age plus 1% of average monthly covered adjusted earnings for each year of contributions exceeding 10 years.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

Partial pension (Pension proportionelle): Calculated in the same way as the old-age pension.

Dependent’s supplement (Supplément pour personnes à charge): 10% of the old-age pension is paid.

Special supplement (Supplément pour médailles du travail): 5% of the old-age pension is paid for workers awarded a bronze medal; 10% for a silver medal.

The minimum monthly old-age pension (including supplements) is 60% of the legal monthly minimum wage.

The maximum monthly old-age pension is 40% of the maximum monthly earnings used to calculate contributions (if supplements are not paid) or 75% of the insured’s monthly average covered adjusted earnings in the last 10 calendar years (if supplements are paid).

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

Schedule of payments: The old-age pension is paid quarterly.

Benefit adjustment: Benefits are adjusted based on increases in the legal minimum wage.

Solidarity allowance (Allocation de solidarité): The allowance is 30% of the legal monthly minimum wage plus 10% of the insured’s average monthly earnings in the last five calendar years plus 1% of average monthly earnings for every four quarters of contributions exceeding five years.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

Benefit adjustment: Benefits are adjusted based on increases in the legal minimum wage.

Old-age settlement (Remboursement des cotisations): A lump sum of the total employee contributions plus accrued interest is paid.

The interest rate is 2% a year.

Permanent Disability Benefits

Disability pension (Rente d’invalidité): 80% of the old-age pension is paid.

Dependent’s supplement (Supplément pour personnes à charge): 10% of the disability pension (excluding supplements) is paid.

Special supplement (Supplément pour médailles du travail): 5% of the disability pension is paid for workers awarded the bronze medal for long service at work; 10% for the silver medal.

The minimum monthly disability pension (including supplements) is 60% of the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

If the insured is entitled to receive both the disability pension and the work injury permanent disability pension, only the higher pension is paid.

Schedule of payments: The disability pension is paid quarterly.

Benefit adjustment: Benefits are adjusted based on increases in the legal monthly minimum wage.

Survivor Benefits

Survivor pension (Pension de survivant)

Spouse’s pension: 30% of the old-age or disability pension the deceased received or was entitled to receive is paid to an unemployed widow(er); 15% if the widow(er) is employed or receiving his or her own old-age pension, solidarity allowance, or disability pension.

Orphan’s pension: 15% of the old-age or disability pension the deceased received or was entitled to receive is paid for each of the first two eligible orphans; 10% for each additional orphan; 20% for each full orphan.

The maximum combined survivor pension is 85% of the old-age or disability pension the deceased received or was entitled to receive.

Schedule of payments: Survivor pensions are paid quarterly.

Benefit adjustment: Benefits are adjusted based on increases in the legal minimum wage.

Survivor settlement (Remboursement des cotisations): A lump sum of the deceased’s total contributions plus accrued interest is paid.

The interest rate is 2% a year.

The minimum survivor settlement is 100,000 ariary.

Administrative Organization

Ministry of Labor, Employment, Civil Service, and Social Legislation (http://www.mfptls.gov.mg/) provides general supervision.

National Social Insurance Fund (http://www.cnaps.mg/) administers the programs and collects contributions.

Sickness and Maternity

Regulatory Framework

First laws: 1956 (family benefits fund) and 1963 (family benefits and work injury code).

Current laws: 1969 (social insurance), 2003 (employer-provided medical care), and 2004 (labor code).

Type of program: Social insurance (cash maternity and medical benefits) and employer-liability (cash sickness benefits) system.

Coverage

Social insurance: Employed persons, including full-time household workers, public-sector employees covered by the labor code, and salaried agricultural workers.

Exclusions: Self-employed persons, and casual agricultural workers working less than three months a year.

Special system for civil servants.

Employer liability: Employed persons.

Exclusions: Self-employed persons.

Special system for civil servants.

Source of Funds

Insured person

Social insurance (cash maternity and maternity medical benefits): None.

Social insurance (medical benefits): 1% of gross monthly covered earnings.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The maximum monthly earnings used to calculate contributions are eight times the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

Employer liability: None.

Self-employed person

Social insurance (cash maternity and maternity medical benefits): Not applicable.

Social insurance (medical benefits): Not applicable.

Employer liability: Not applicable.

Employer

Social insurance (cash maternity and maternity medical benefits): See source of funds under Family Allowances.

Social insurance (medical benefits): 5% of gross monthly covered earnings.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The maximum monthly earnings used to calculate contributions are eight times the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

Employer liability: The total cost.

Government

Social insurance (cash maternity and maternity medical benefits): None; contributes as an employer for public-sector employees covered by the labor code.

Social insurance (medical benefits): None; contributes as an employer for public-sector employees covered by the labor code.

Employer liability: None; contributes as an employer for public-sector employees covered by the labor code.

Qualifying Conditions

Cash sickness benefit (employer liability): Must have at least four weeks of consecutive covered employment.

Cash maternity benefit (social insurance): Must have worked at least 20 days or 134 hours a month for six consecutive months in covered employment.

Cash maternity benefit (employer liability): There is no minimum qualifying period.

Prenatal allowance and birth grant (social insurance): See Family Allowances.

Maternity medical benefits (social insurance): Paid if the insured women qualifies for the family allowance. Must provide proof of the costs of childbirth.

Sickness and Maternity Benefits

Sickness benefit (employer liability): Up to six months of paid sick leave are provided.

Maternity benefit (social insurance and employer liability): 100% of the insured’s daily earnings is paid (the cost is split equally between the social insurance program and the employer) for six weeks before and eight weeks after the expected date of childbirth (up to 11 weeks after if there are complications arising from pregnancy or childbirth).

The minimum monthly earnings used to calculate benefits are the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

If the insured does not qualify for social insurance benefits, the employer pays 100% of the employee’s earnings for 14 weeks.

Schedule of payments: The maternity benefit is paid in two equal amounts (three if there are complications).

Prenatal allowance and birth grant (social insurance): See Family Allowances.

Workers’ Medical Benefits

Maternity medical benefits (social insurance): Insured women are reimbursed for the cost of medical care during pregnancy and childbirth, up to 68,000 ariary.

Medical benefits (social insurance): The labor code requires employers to provide certain medical services to employees. Benefit packages vary depending on the provider, and include medical care and prevention, medicine, and transportation.

Dependents’ Medical Benefits

Maternity medical benefits (social insurance): Not applicable.

Medical benefits (social insurance): Dependents are covered for a reduced package of medical benefits, depending on the provider.

Administrative Organization

Ministry of Labor, Employment, Civil Service, and Social Legislation (http://www.mfptls.gov.mg/) provides general supervision.

National Social Insurance Fund (http://www.cnaps.mg/) administers the social insurance maternity and maternity medical benefits.

Employee’s health care associations (Services Médicaux du Travail [SMT]) administer the social insurance medical benefits for employees.

Work Injury

Regulatory Framework

First law: 1925.

Current law: 1969 (work injury).

Type of program: Social insurance system.

Coverage

Employed persons, including full-time household workers, public-sector employees covered by the labor code, and salaried agricultural workers.

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

Special system for civil servants.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 1.25% of monthly covered payroll; 1% for salaried casual agricultural workers; a flat-rate monthly contribution of 77 ariary for full-time household workers; a flat-rate yearly contribution of 40 ariary for apprentices and students of private technical institutions; 1% of annual covered earnings for cooperative members; and 1.5% of annual base earnings of 8,000 ariary for each cultivated hectare for tobacco growers.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The maximum monthly earnings used to calculate contributions are eight times the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

Contributions are paid quarterly. Cooperative members and tobacco growers pay contributions annually.

Government: None; contributes as an employer for public-sector employees covered by the labor code.

Qualifying Conditions

Must be assessed with a work injury or occupational disease. There is no minimum qualifying period. Employers must report accidents to the National Social Insurance Fund within 48 hours. Accidents that occur while commuting to and from work are covered.

Temporary Disability Benefits

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

The maximum daily temporary disability benefit is 29,870 ariary.

Benefit adjustment: If the disability lasts more than three months, benefits may be adjusted based on the growth in wages. The maximum daily benefit is adjusted based on increases in the legal monthly minimum wage.

Permanent Disability Benefits

Permanent disability pension (Rente pour incapacité permanente): For a total (100%) disability, 100% of the insured’s average monthly covered earnings in the 12 months before the disability began is paid.

The minimum monthly earnings used to calculate benefits are 1.4 times the legal monthly minimum wage.

33.3% of monthly earnings exceeding four times the legal monthly minimum wage are used to calculate benefits.

The maximum monthly earnings used to calculate benefits are 16 times the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

Constant-attendance allowance (Supplément pour assistance constante): 40% of the monthly permanent disability pension is paid if the insured requires the constant attendance of others to perform daily functions.

The minimum monthly constant-attendance allowance is the legal monthly minimum wage.

Partial disability: If the assessed degree of disability is at least 10% but less than 100%, the pension is the insured’s average annual covered earnings multiplied by 0.5% for each assessed degree of disability from 10% to 50% plus 1.5% for each assessed degree of disability exceeding 50%. If the assessed degree of disability is less than 10%, a lump sum of the insured’s average annual covered earnings multiplied by 0.5% for each assessed degree of disability is paid.

The minimum monthly earnings used to calculate benefits are 1.4 times the legal monthly minimum wage.

Schedule of payments: The total disability pension is paid monthly; the partial disability pension is paid quarterly. If the assessed degree of disability is at least 75%, the pension can be paid monthly. The partial and total disability pensions may be partially converted to a lump sum after the pension is paid for three years.

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

Benefit adjustment: Benefits are adjusted based on increases in the legal minimum wage.

Workers’ Medical Benefits

Benefits include medical and surgical care; hospitalization; medicine; appliances; travel expenses, including accommodation and transportation; and rehabilitation.

Survivor Benefits

Survivor pension (Rente aux ayants droits)

Spouse’s pension (Rente au conjoint survivant): 30% of the deceased’s average monthly covered earnings in the 12 months before the injury or illness occurred is paid to a widow(er); 20% for a divorced spouse with a maintenance allowance.

Orphan’s pension (Rente aux enfants et descendants): 15% of the deceased’s average monthly covered earnings in the 12 months before the injury or illness occurred is paid 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 additional orphan; 20% for each full orphan.

Dependent parent’s and grandparent’s pension (Rente aux ascendants): If there is no eligible spouse or orphan, 10% of the deceased’s average monthly covered earnings in the 12 months before the injury or illness occurred is paid for each dependent parent or grandparent.

The minimum monthly earnings used to calculate benefits are 1.4 times the legal monthly minimum wage.

33.3% of monthly earnings exceeding four times the legal monthly minimum wage are used to calculate benefits.

The maximum monthly earnings used to calculate benefits are 16 times the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

The maximum combined survivor pension is 85% of the deceased’s earnings used to calculate benefits.

Schedule of payments: Survivor pensions are paid quarterly.

Benefit adjustment: Benefits are adjusted based on increases in the legal minimum wage.

Funeral grant (Allocation funéraire): A lump sum of 100,000 ariary is paid.

Benefit adjustment: Benefits are adjusted based on increases in the legal minimum wage.

Administrative Organization

Ministry of Labor, Employment, Civil Service, and Social Legislation (http://www.mfptls.gov.mg/) provides general supervision.

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

Unemployment

Regulatory Framework

Under the 2004 labor code, employers are required to provide severance pay to employees dismissed for economic reasons. The payment amount is the employee’s last 10 days of earnings multiplied by years of service, up to six months of the employee’s last monthly earnings.

Family Allowances

Regulatory Framework

First laws: 1956 (family benefits fund) and 1963 (family benefits and work injury code).

Current law: 1969 (social insurance).

Type of program: Social insurance system.

Coverage

Employed residents of Madagascar, including public-sector employees covered by the labor code.

Unemployed workers are covered for up to six months under certain conditions.

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

Special system for civil servants.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 2.25% of monthly covered payroll; a flat rate of 138.40 ariary a month for full-time household workers.

The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.

The maximum monthly earnings used to calculate contributions are eight times the legal monthly minimum wage.

The legal monthly minimum wage is 170,422 ariary (agricultural sector) or 168,019 ariary (nonagricultural sector).

The employer’s contributions also finance cash maternity and maternity medical benefits under Sickness and Maternity.

Government: None; contributes as an employer for public-sector employees covered by the labor code.

Qualifying Conditions

Family allowance (Allocation familiale): Paid for children younger than age 15 (age 19 if an apprentice; age 22 if a student or disabled) who reside in Madagascar or temporarily reside in France or a member state of the African Union. The parent must have worked at least 20 days or 134 hours a month (non-agricultural workers) or 18 days or 144 hours a month (agricultural workers) for at least six consecutive months in covered employment; be a widow(er) of a family allowance beneficiary; or be a university student younger than age 30.

Prenatal allowance (Allocation prénatale): Paid to women who undergo prescribed medical examinations before childbirth and have births attended by medical professionals.

Birth grant (Allocation de maternité): Paid to women who undergo prescribed medical examinations after childbirth.

Family Allowance Benefits

Family allowance (Allocation familiale): 5,000 ariary a month is paid for each eligible child.

Benefit adjustment: Benefits are adjusted periodically based on increases in the legal monthly minimum wage.

Prenatal allowance (Allocation prénatale): A lump sum of nine times the monthly family allowance is paid.

The monthly family allowance is 5,000 ariary.

Benefit adjustment: Benefits are adjusted periodically based on increases in the legal monthly minimum wage.

The benefit is reduced by 50% if the mother did not undergo the prescribed medical examinations or failed to report the medical examination to the National Social Insurance Fund within a month of the examination.

Birth grant (Allocation de maternité): A lump sum of 12 times the monthly family allowance is paid in two equal parts for each live birth.

The monthly family allowance is 5,000 ariary.

Benefit adjustment: Benefits are adjusted periodically based on increases in the legal monthly minimum wage.

Administrative Organization

Ministry of Labor, Employment, Civil Service, Administrative Reform, and Social Legislation (http://www.mfptls.gov.mg/) provides general supervision.

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