Salary increases take effect this July in the private sector. Employers are considering staggering the payment of salary arrears. A staggered payment of salary arrears is the scenario currently emerging for private sector employees. Some employers are planning to spread out payments of arrears linked to salary increases applicable since March. "The burden is too heavy for some companies," a business source said yesterday. The implementation decree relating to the minimum hiring wage (SME) indeed requires retroactive arrears dating back to March 2026. From that date, the SME is set at 300,000 ariary for the non-agricultural sector, compared to 262,680 ariary previously, and at 304,300 ariary for the agricultural sector, compared to 266,500 ariary. "The strategy for implementing this staggered payment will depend on each company," the same source clarifies. It emphasizes that companies that are members of this employers' group must strictly comply with regulations and apply the minimum wage increase starting this July for employees still earning below the legal threshold. It adds that half of the group's members already pay wages above the SME. Revalued. This prospect suits "more or less" some workers' unions. "A lump sum payment, made in one or two installments, would partly cancel out the effect of the salary increase due to the mechanical jump in income tax," says Julio Rakotomaharavo of the Confederation of Revolutionary Malagasy Workers' Unions (Fisemare). For this union, the ideal formula would be to spread the payment at a rate of two months of arrears per month. The SME will be revalued twice this year. The Ministry of Labor, Employment and Civil Service announced a second increase in October. It will then be raised to 315,000 ariary. On the workers' side, union leaders express their disappointment with the level of this revaluation. "Given the high cost of living, this increase is disconnected from current economic reality. We had requested at least 360,000 ariary, but our request was not accepted. The authorities have however given us an appointment next year for the next salary review. We'll see," laments a union representative. Miangaly Ralitera