Madagascar

Madagascar

Global Employment Solutions & PEO in Madagascar

Omnipresent makes it fast and easy to employ remote talent in Madagascar. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Antananarivo
Currency
Malagasy Ariary (Ar/MGA)
Native Language
Malagasy, French
Payroll Frequency
Monthly
Employee Protections
Moderate
Employment Costs
Low
Termination
Easy
Immigration
Difficult
Cost of Living
Low
Population
28,648,661

What You Need to Know About Employing in Madagascar

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Madagascar

How Do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Madagascar. Traditional methods of establishing global employment and subsidiaries in Madagascar typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services help hundreds of organisations onboard new employees in Madagascar in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

  • Your company conducts the hiring and candidate selection process in Madagascar.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Madagascar.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Madagascar.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.
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Payroll & Taxes in Madagascar

Employee Income Taxes:

Employees in Madagascar have to pay IRSA (Salary Income Tax):

  • Income range up to MGA 350,000: 0%
  • Income range from MGA 350,001 to MGA 400,000: 5%
  • Income range from MGA 400,001 to MGA 500,000: 10%
  • Income range from MGA 500,001 to MGA 600,000: 15%
  • Income range above MGA 600,000: 20%

The minimum income tax to be levied on any worker in any event is 2000 MGA.

Payroll Cycle:

Employees in Madagascar are generally paid on a monthly basis.

Madagascar

Employer Costs in Madagascar

Employer Contributions:

Employers must contribute to Caisse Nationale de Prévoyance Sociale, Madagascar’s national social security fund, which includes pensions and accident insurance. The contribution is capped at 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.

Employers are also 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.

Employee Contributions:

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.

Madagascar

Working Hours in Madagascar

Typical Working Hours per Week:

The typical working week in Madagascar consists of 40 hours, made up of five eight-hour days.

It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!

Overtime Laws:

Overtime in Madagascar is paid at 130% above the basic wage for the first eight hours, and then 150% thereafter. Evening work is paid at 130%, while weekend work is paid at 140% and at 150% if it is on a public holiday.

However, collective bargaining and individual agreements generally govern overtime and overtime pay.

Overtime laws in Madagascar are complex and can depend on the specific circumstances and the employee. We’re happy to discuss this in more detail for a specific context.

Madagascar

Public Holidays & Vacation Time in Madagascar

Standard Public Holidays in Madagascar

There are 12 public holidays in Madagascar: 

  • New Year’s Day 
  • International Women’s Day 
  • Easter Monday 
  • Martyrs’ Day 
  • Labor Day 
  • Ascension Day 
  • Whit Monday 
  • Independence Day 
  • Assumption of Mary 
  • All Saints’ Day 
  • Republic Day 
  • Christmas Day         

Vacation Time in Madagascar

In general, employees in Madagascar are entitled to 2.5 days of paid leave per month.

Madagascar

Types of Leave in Madagascar

Sick Leave:

Every employee working in Madagascar is entitled to at least five days of paid sick leave, extendable in the case of chronic illnesses.

Maternity Leave:

Female employees are generally entitled to 14 weeks of paid maternity leave, at least eight of which should be taken after the child’s birth.

Paternity Leave:

There is no law stipulating paternity leave, but all workers receive 10 days leave a year for family events, and this could be utilised by new fathers.

Madagascar

Health Insurance & Supplementary Benefits in Madagascar

We believe that remote employees should be able to access their local benefits, as well as high-standard international benefits, wherever they are. Details about international or country specific benefit packages can be provided on request. Please contact us for further details.

Madagascar

Termination & Severance in Madagascar

Severance:

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

Notice of Termination:

The notice period for termination is determined by the type of employment and length of service, and can range from eight days to six months.

Unprotected and Protected Termination:

Madagascar law protects employees from illegal termination of employment, and as there are a range of reasons an employee can be terminated, it’s important for those looking to employ in Madagascar to reach out to us directly with questions.

Protected Classes of Employees:

Laws around employees who have specific termination protections, or classes of employees who have protected characteristics relevant to discrimination, are highly complex and there can be a number of situation-specific variables. If you have questions in this area, please reach out to us directly to discuss.

Madagascar

Grow Your Global Team. 

Employ the Best Talent, Anywhere in the World

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Madagascar are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We’re here to help you every step of the way.

Want to onboard an international employee today? Get started.

Omnipresent makes it easy to hire, pay, and support your international team. Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.

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