Employer of Record in Madagascar: Hire, Manage, and Pay Talent Seamlessly

Agreements in Madagascar

• The employment agreement in Madagascar can either be verbal or in writing. Written agreements are always preferred for proper documentation.
• Contracts can be fixed-term or indefinite. Fixed-term contracts can be for a period of a maximum of 2 years.
• For permanent positions, fixed-term contracts cannot be used.
• The employment contract can be written in either Malagasy or French.
• The agreement must include mandatory points such as compensation, nature of work, company policies etc.

Visa in Madagascar

Minimum Wage in Madagascar

Annual Bonus in Madagascar

Health Benefits in Madagascar

• Madagascar offers public health care which is funded by the government. Both employers and employees contribute to health insurance.
• However, since the public health service may be limited in some cases, employers also offer private health insurance in Madagascar.

Working Hours and Overtime in Madagascar

• Work hours: A typical work day is of 8 hours and typical work hours in Madagascar are of 40 hours a week.
• Break: A lunch break of 30 minutes to 1 hour is usually provided in the afternoon.
• Overtime: Employees can work 16 hours of overtime per week. The overtime pay is negotiated in the agreement. It is usually 130% of the normal pay for the first 8 hours and then 150% of the normal pay for the next 8 hours.

Leaves in Madagascar

Social Security in Madagascar

Taxes for Employers in Madagascar

• Social security (work-related accidents and illnesses, old age benefits, disability benefits, survivor's insurance, family benefits) - 13%
• Health insurance - 5%

Probation in Madagascar

Termination in Madagascar

• Employment can be terminated by either party only for a just cause.
• The termination can be done mutually or if the employee voluntarily agrees to terminate the agreement.
• The employer can terminate the employee for reasons such as -

  • Gross misconduct
  • Bad performance or unsuitable skill-set
  • Objective grounds
• A notice period is mandatory in Madagascar. The length of the notice period varies based on the period of employment.

Severance Pay in Madagascar

Employees or Contractors in Madagascar

• In Madagascar, people can be hired as full-time employees on payroll or as contractors.
• Employees in Madagascar receive benefits such as social security and health insurance. Contractors do not enjoy such benefits.
• Misclassifying employees as contractors or vice versa would result in penalties and fines for the employer.