Madagascar Pension Guide 2026

Overview — CNaPS Pension System

The Malagasy old-age pension system is a defined-benefit social insurance scheme operated by CNaPS. It is financed by contributions from employees (9%) and employers (13%) on gross salary up to the monthly ceiling. The system operates on a pay-as-you-go (PAYG) basis where current contributions fund current pensions. The pension entitlement is based on the number of quarters of contributions and the average monthly salary over the best 10 years of contributions. The standard retirement age is 60 for both men and women. To qualify for a full pension, a worker must have contributed for at least 60 quarters (15 years). The system also provides disability pensions for those who become permanently unable to work before retirement age, and survivor pensions for the dependants of deceased contributors.

Retirement Age — 60 Standard

The standard legal retirement age in Madagascar is 60. Early retirement is possible at age 55 if the worker has contributed for at least 60 quarters. However, early retirement results in a permanently reduced pension (actuarial reduction calculated at approximately 5% per year below age 60). Workers may continue working after age 60 and defer pension commencement, which increases the monthly benefit by approximately 4% per year of deferral up to age 65. Public sector workers may have different retirement ages (62 for certain categories, 65 for senior officials). The government has discussed raising the retirement age to 62 or 65 to improve pension sustainability, but no legislation has been passed as of 2026.

Pension Calculation Formula

The CNaPS old-age pension is calculated using the following formula:

Monthly pension = (Average monthly salary × Accrual rate × Number of quarters) / 4

The key components:

• Average monthly salary — average of the best 10 years of contributions (up to the CNaPS ceiling)
• Accrual rate — 1.33% per quarter (5.32% per year), maximum of 80% of average salary
• Number of quarters — total quarters of contributions (minimum 60 quarters for full pension)
• Ceiling — salary above MGA 4,000,000/month is not considered in the calculation

For a worker who contributed for 40 years (160 quarters) at the average salary, the pension would be approximately 53.2% of the average salary (1.33% × 160 / 4). The maximum pension is capped at 80% of the average salary. The pension is paid monthly and is indexed to inflation through periodic reviews by CNaPS.

Disability & Survivor Pensions

CNaPS also provides social insurance benefits beyond the old-age pension:

• Disability pension — available to workers who become permanently disabled (loss of at least 66.6% of work capacity) before retirement age. The amount is based on the projected pension at age 60, paid from the date of disability. Requires at least 12 months of contributions.
• Survivor pension — paid to the spouse and children of a deceased contributor. The spouse receives 50% of the deceased's pension (or projected pension). Each orphan child receives 25% (up to 3 children). Total survivor benefits cannot exceed 100% of the deceased's pension.
• Funeral grant — a lump sum payment to cover funeral expenses (approximately 3 months of the deceased's salary or pension)

Pension Reform & Challenges

Madagascar's pension system faces challenges typical of PAYG schemes: demographic ageing, low coverage (only about 10–15% of the workforce in the formal sector), and the contribution ceiling limiting benefits. The system covers only formal sector employees; the vast majority of workers in agriculture and the informal economy have no pension coverage. Reform proposals have included gradually raising the retirement age, increasing the contribution ceiling, introducing a multi-tier system with mandatory occupational pension funds, and expanding coverage to informal sector workers through voluntary simplified schemes. The government has also discussed establishing a supplementary pension fund (fonds de retraite complémentaire) managed by private fund managers. As of 2026, no major reforms have been enacted.

FAQs

Can I withdraw my CNaPS contributions if I leave Madagascar?

CNaPS does not generally allow withdrawal of contributions before retirement age. However, if Madagascar has a totalisation agreement with your home country, your contribution periods may be combined for pension eligibility. Madagascar has such agreements with France and some other Francophone African countries.

How is the pension claimed?

Workers must apply for their pension at the CNaPS regional office (Caisse de Prévoyance Sociale) 3–6 months before the desired retirement date. Required documents include identification, employment certificate (certificat de travail), salary records, and CNaPS contribution statement. Processing takes 1–3 months.

Is the pension taxable?

CNaPS pensions are subject to income tax (IRPP) in Madagascar. The pension income is included in the retiree's annual tax return and taxed at progressive rates after the applicable deductions and allowances.

Disclaimer

This guide provides general information about Malagasy pensions for the 2026 tax year. Pension laws, contribution rates, and benefit calculations may change. Always consult with CNaPS or a qualified Malagasy financial advisor for advice specific to your situation. InvestmentKit does not provide pension advice.