<img alt="" src="https://secure.intelligentcloudforesight.com/779425.png" style="display:none;">
Skip to content

Hiring in Madagascar

Hiring employees compliantly in Madagascar means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Madagascar so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Madagascar; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in Madagascar? Contact us about our International EOR  Service

Labor Laws in Madagascar

Employee Probation Period

  • Probationary periods of up to 6 months are allowed with a one-time renewal.

Annual Leave in Madagascar

  • In general, employees are entitled to 2.5 days of paid leave per month.
New call-to-action

Holidays in Madagascar

Workers are entitled to paid holidays during Festival (public and religious) holidays. These include memorial holidays and religious holidays (Christian origin).

Here is the full list of public holidays in Madagascar:

New Year’s Day 1st January
Martyrs' Day 29th March
Easter Monday 13th April
Labor Day 1st May
Ascension Day 21st May
Eid al-Fitr  
Whit Monday 1st June
Independence Day  26th June
Assumption of Mary 15th August
All Saints' Day 1st November
Christmas Day 25th December

 

Onboard employees in days, anywhere in the world

Maternity Leave Madagascar

  • Female employees are generally entitled to 14 weeks of paid maternity leave, at least 8 of which should be taken after the child’s birth.
  • Leave is paid at 50% for employees covered by the labor code and at 100% for public servants.

Paternity Leave Madagascar

  • Men are generally entitled to up to 10 days each year for family events.

Sick Leave in Madagascar

  • In accordance with the Labour Code, a worker is entitled to sick leave for up to 6 months if sickness is certified by a qualified doctor.

Working Hours in Madagascar

  • In general, the work week is 40 hours, with five, eight-hour days.

Overtime in Madagascar

  • For the first 8 overtime hours: 30 percent premium rate; and for the following overtime hours: 50 percent premium rate.

Termination of Employment in Madagascar

  • Employees may be terminated for cause with written notice.
  • The notice period is determined by the type of employment and length of service, and ranges from 8 days to 6 months.
  • Employees are not generally eligible for severance pay, except if they are terminated for economic reasons, in which case they are entitled to 10 days’ wages for each year of service, up to 6 months’ of wages.

Notice Period in Madagascar

  • The notice period is determined by the type of employment and length of service, and ranges from 8 days to 6 months.

Severance in Madagascar

  • Employees are not generally eligible for severance pay, except if they are terminated for economic reasons, in which case they are entitled to 10 days’ wages for each year of service, up to 6 months’ of wages.

Madagascar Salary and Wages

Start your Global Expansion

13 / 14th Month Salary in Madagascar

  • Yes
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • However, it is customary for the 13th month salary to be paid.
New call-to-action

Income Tax in Madagascar

  • Individuals are subject to business income tax, called Impôt sur les Revenus (IR), or to salary income tax, called Impôt sur les Revenus Salariaux et Assimilés (IRSA), depending on the nature of the revenue earned.
  • For IRSA purposes, an individual resident in Madagascar, either Malagasy or of a foreign nationality, is liable on worldwide income.
  • In all cases, regardless of the income, the minimum salary income tax payable is MGA 3,000.
  • The tax rate is as follows: -

Salary Income Tax (IRSA)

Monthly Taxable Income (MGA)

Tax Rate/Amount

Salary up to 350,000 0% with a minimum tax payment of MGA 2000
350,001 to 400,000 5%
401,000 to 500,000 10%
501,000 to 600,000 15%
Over 600,000 20%
Tap the world's talent pool

Social Security in Madagascar

  • Employers contribute to the National Pensions Fund at 13% of cash remuneration, up to a monthly maximum amount of 13% of eight times the legal minimum salary, per employee.
  • In addition, employers are required to contribute 5% of employee remuneration to the statutory health organization, up to a monthly maximum of 5% of eight times the legal minimum salary.
  • Employees contribute to the National Pensions Fund at 1%, subject to a monthly maximum amount of 1% of eight times the legal minimum salary.
  • In addition, employees are also required to contribute 1% of monthly remuneration to the statutory health organization, up to a monthly maximum of 1% of eight times the legal minimum salary.
  • Since 1 January 2019, employers are required to contribute to the Fonds National sur la Formation Professionnelle (FNFP).
  • The contribution rate is 1% of employee taxable remuneration.
  • The contribution is capped to an amount calculated on eight times the legal minimum salary.

Contribution

Group 1083

National Pensions Fund

Statutory Health Organization

Fonds National sur la Formation Professionnelle (FNFP)

Employer Group 1083 13% 5% 1%
Employee Group 1083 1% 1%  

Immigration Madagascar

  • Foreigners who want to enter Madagascar must obtain a tourism visa or business visa for a stay of less than three months.
  • A tourism visa can be obtained at the airport on arrival in Madagascar.
  • A business visa can be obtained at the Malagasy embassy or consulate in the foreigner’s home country.
  • These types of visas do not allow foreigners to work in Madagascar.
  • Foreigners who want to work in Madagascar must obtain a transformable visa, which is valid for one month.
  • The fee for this visa is MGA140,000 (USD38.34).
  • It can be obtained at a Malagasy embassy or consulate in the foreigner’s home country.
  • The transformable visa must be changed to a long-stay visa for a foreign worker within one month after he or she enters Madagascar.
  • If no Malagasy embassy or consulate is located in the home country, an entry visa for workers, called a “boarding agreement,” may be obtained from the Ministry of Foreign Affairs in Madagascar before departure.
  • After the foreigner arrives in Madagascar, the authorities can provide the foreigner with a transformable visa.
  • The application for a transformable visa and the boarding agreement requires a prior work permit issued by the Ministry of Labor as well as a local labor contract stamped by the Ministry.
  • To work in Madagascar, foreign nationals must obtain a work permit from the Malagasy Ministry of Labor.
  • This permit is normally issued within two months following the application.
  • The following are the requirements for obtaining a work permit:
    • A local labor contract mentioning an address in Madagascar must be concluded with a local entity and receive the prior approval of the Ministry of Labor
    • Payment of a fee of EUR100
Need assistance hiring in Madagascar? Contact us about our International EOR  Service

Type of Visa/Permit

Documentation

Validity

Eligibility

Tourist Visa

  • Passport size photos
  • Valid passport
  • Travel itinerary 
  • Completed visa application form

3 months

  • Foreign nationals who want to visit Madagascar for tourism purposes must obtain a tourist visa

Business Visa

  • Passport size photos
  • Valid passport
  • Travel itinerary 
  • Completed visa application form
  • Invitation Letter

3 months                                                                                                

  • Foreign nationals who intend to enter Madagascar for business purposes must obtain a business visa

Work Permit

  • An employment contract stamped by the Ministry of Public Service, Labor Administration Reform, and Social Laws (MFPTLS)
  • Valid passport
  • Passport size photos
  • Proof of academic qualifications

1 year

  • To work in Madagascar, foreign nationals must obtain a work permit from the Malagasy Ministry of Labor. 
Onboard employees in days, anywhere in the world

Value Added Tax (VAT) in Madagascar

  • The VAT rate is 20%, and the VAT rate on export is 0%.
  • The VAT rate is 15% for premium fuel and diesel, and 5% for locally produced butane gas

VAT

Standard Rate

Group 1083

20%

Reduced Rate

Group 1083

15%

Reduced Rate

Group 1083

5%

Zero Rate Group 1083 0%
New call-to-action

Mandatory Benefits in Madagascar

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
  • Mandatory benefits also include social security benefits.
Tap the world's talent pool

Mandatory Benefits overview

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Paternity Leave

  • Sick Leave

  • Overtime Pay

  • Notice period

  • Severance Pay

  • Social Security Benefits

Payments And Invoicing

IRSA

  • The tax on salary and all statutory social contributions are withheld monthly by the employer, who is responsible for tax filing and payment.
  • Employees are not required to file individual tax returns unless they work for an employer that is not established in Madagascar.
  • If the employee does not have any business income, there is no requirement to file for IR. Payment of IRSA must be done before the 15th day of each month.
  • Payment of social tax contributions must be done quarterly.

IR

  • IR returns for small individual businesses must be filed at the tax office before 31 March of each year.
  • IR returns for large individual businesses must be filed before 15 May of each year for businesses having financial years ended on 31 December, before 15 November of each year for businesses having financial years ended on 30 June, and within 15 days of the fourth month of the end of financial year for other businesses.
  • WHT on foreign services payable to the tax authorities within one month of the date of payment.
  • Payment of IR must be done at the same time as the tax return filing and at the same office.

Payroll Accrual in Madagascar

Country Accruals Additional Information

National Pension fund 13.00%
Statutory health organization 5.00%
Sick leave 1.37%
Maternity 14 weeks
Vacations 9.59%
Dont lose your competitive advantage

Description

Employers contribute to the National Pensions Fund at 13% of cash remuneration, up to a monthly maximum amount of 13% of eight times the legal minimum salary, per employee.

In addition, employers are required to contribute 5% of employee remuneration to the statutory health organisation, up to a monthly maximum of 5% of eight times the legal minimum salary.

Employees contribute to the National Pensions Fund at 1%, subject to a monthly maximum amount of 1% of eight times the legal minimum salary.

In addition, employees are also required to contribute 1% of monthly remuneration to the statutory health organisation, up to a monthly maximum of 1% of eight times the legal minimum salary.

Since 1 January 2019, employers are required to contribute to the Fonds National sur la Formation Professionnelle (FNFP). The contribution rate is 1% of employee taxable remuneration. The contribution is capped to an amount calculated on eight times the legal minimum salary.

Payroll Accruals Additional Information

      Employment
Accruals
Annual Leave In general, employees are entitled to 2.5 days of paid leave per month.   This equals 8.22% (30/365 days) of annual income
Maternity Leave Female employees are generally entitled to 14 weeks of paid maternity leave, at least 8 of which should be taken after the child’s birth.
Leave is paid at 50% for employees covered by the labor code and at 100% for public servants.
  This equals 50% of 26.9% (14/52 weeks) of annual income
Paternity Leave Men are generally entitled to up to 10 days each year for family events.   This equals 2.74% (10/365 days) of annual income
Sick Leave Employees are entitled to at least 5 paid sick days per year.   This equals 1.36% (5/365 days) of annual income
Overtime For the first 8 overtime hours: 30 percent premium rate; and for the following overtime hours: 50 percent premium rate.   Depends on the number of overtime hours worked
Severance Employees are not generally eligible for severance pay, except if they are terminated for economic reasons, in which case they are entitled to 10 days’ wages for each year of service, up to 6 months’ of wages.   This equals 2.74% (10/365 days) of annual income
Social Security Employers contribute to the National Pensions Fund at 13% of cash remuneration, up to a monthly maximum amount of 13% of eight times the legal minimum salary, per employee.
In addition, employers are required to contribute 5% of employee remuneration to the statutory health organization, up to a monthly maximum of 5% of eight times the legal minimum salary.Since 1 January 2019, employers are required to contribute to the Fonds National sur la Formation Professionnelle (FNFP).
  This equals 18% of annual income

Accrued Benefits in Madagascar

Christmas Bonus %

Based on one month bonus
8.33%

8.33%
Christmas Bonus Over Vacations % 0%
Severance per Year%

Employees are entitled to severance pay that equals two weeks of pay after one year of service (2.74% of annual salary)

2.74%
Vacations %

Employees are entitled to an annual holiday of 30 days (8.24% of annual salary)

8.24%
Of annual
salary
Notice %

Employees are entitled to 8 days of notice after one year of service (2.19% of annual salary)

2.19%
Christmas Bonus Over Notifications % 0%
Vacations Plus % 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per annum

21.5%

Why use Global Expansion to hire in Madagascar

Establishing a branch office or subsidiary in Madagascar can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Madagascar labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Madagascar law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Madagascar. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Madagascar Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

New call-to-action

Ready to hire anywhere in the world?

Grow your team the right way with
Global Expansion.

Request a Proposal