In Madagascar, the minimum wage must ensure that the most disadvantaged workers receive a living wage and sufficient purchasing power. Cross-industry collective bargaining on the minimum wage is the only means of establishing this crucial intervention to regulate the labour market. However, it encounters several challenges, including informal institutions such as the perception of time and the pursuit of consensus. The case study presented in this article was conducted in Madagascar to assess the role of collective bargaining in determining the minimum wage. It adopts an institutionalist approach. The study recommends strengthening bargaining institutions and enhancing the capacity of social partners to negotiate collectively, as well as developing economic policies that incorporate the minimum wage.