Employment Law

Employment Contracts in Madagascar

Employers in Madagascar must provide each employee with a written employment contract. These contracts should always cover the relevant details of the agreement, such as benefits, rights, compensation, etc. The contract should also be written in one of the country's official languages ​​(French and Malagasy) and in the local Malagasy currency.

Fixed Term

Indefinite

Madagascar Working Hours

The typical working week for Malagasy employees is 40 hours spread over 5 days.

Holiday Policy

Madagascar Vacation

Employees in Madagascar are entitled to 30 days of paid vacation per year.

Madagascar Sick Leave

Employees in Madagascar are entitled to at least five days of paid sick leave per year.

Parental Leave in Madagascar

Female employees in Madagascar are entitled to 14 weeks of paid maternity leave. The mother must take it for at least eight weeks after delivery. For most employees, this holiday is 50% off.

Male employees are allowed ten days per year to participate in special family events.

Termination and Severance in Madagascar

Employees in Madagascar can be dismissed by their employer if written notice is given prior to termination. Notice periods range from eight days to six months, depending on the length of service and the type of work performed.

When severance pay expires, employees are generally entitled to ten days' pay for each year of service completed.

Madagascar Taxes

Both employers and employees in Madagascar are required to contribute a certain percentage of their wages to social security (13% and 1%, respectively) and health insurance (5% and 1%, respectively).

Income tax in Madagascar is 20% on annual income over MGA 350,000 and MGA 2,000 below that.

Health Insurance in Madagascar

Madagascar has a publicly funded healthcare system, but we recommend purchasing health insurance to ensure the best level of care. Many employers choose to provide health insurance to their employees.

Salary and Benefits

Madagascar’s Compensation Law

The minimum wage for employees in Madagascar varies depending on the type of job and the individual employee’s length of service. Because this system is relatively complex, it is crucial to understand which rates apply to employees in Madagascar before setting rates.

Welfare Administration in Madagascar

Employees in Madagascar often expect benefits packages as part of their employment agreement, so you may want to set up a benefits management system when recruiting in the country. But setting up and administering a benefits system in Madagascar can be complex, especially if you're unfamiliar with the country's unique regulations and procedures.

Remoly can help you avoid this complex part of the Madagascar expansion process, saving you time and money and streamlining the entire process. Our team will advise and outsource the setup and management of your benefits system, freeing you up to focus on other important elements of your expansion.