Understanding Employment Norms in Madagascar: A Comprehensive Guide
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Hiring in Madagascar? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Madagascar.

Employment norms in Madagascar

Madagascar or the Republic of Madagascar is a Southeast African Island country. The island country is popular for tourism, fishing, and mining. The country can be a good destination for business expansion in trade-related sectors. EOR (Employer-of-Record) services in Madagascar assist potential employers with local employment norms, compensation and tax liabilities, legal compliance and more. Employers get help with overall employee management.

General Information:

  • The currency of Madagascar is the Malagasy Ariar (MGA).
  • Antananarivo is the capital of Madagascar.
  • Malagasy and French are the official languages of Madagascar. Documentation can be in Malagasy or French to be considered legally valid.
  • As of 2021, the of Madagascar was reported to be USD 14.47 billion.
The National Employment Council of Madagascar is responsible for setting and regulating employment norms in Madagascar.
Madagascar map

Table of Contents

  • Agreements
  • Onboarding Process
  • Visa
  • Minimum Wage
  • Payroll Cycle
  • Annual Bonus
  • Health Benefits
  • Working Hours and Overtime
  • Leaves
  • Social Security
  • Taxes for Employers
  • Taxes for Employees
  • Probation
  • Termination
  • Severance Pay
  • Employees or Contractors
  • Final Words


  • 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.
Onboarding Process

Onboarding Process

The onboarding process in Madagascar includes the following terms:
  • Employers must provide their employees with a written copy of the agreements.
  • The new employees must be enrolled with the relevant social security, health insurance and other tax authorities.
  • The employee must be provided with relevant training wherever required.


Work Visa:

  • Along with a work visa, a work permit is also required to work in Madagascar.
  • The work visa or the transformable visa is required which is valid for up to 30 days. For long-term employment, employees must apply for a long-term visa once in Madagascar. The following are the various requirements for a work visa in Madagascar.
    • Employment contract with a stamp from relevant authorities
    • Work permit
    • Employment certificate
    • Company's registration certificate
    • Certificate of residence
    • Proof of a clean criminal record
    • Declaration of honor with a notarized signature
    • Other requisite application documents

Business visa:

A business visa or a non-immigrant visa in Madagascar is valid for up to a 90-day stay period.
  • Passport with at least 6 months validity
  • Bank statement
  • Airplane tickets (both toward and return)
  • Identity proof
  • Letter from the company or the applicant's employer
  • Invitation letter from the company inviting the applicant to Madagascar

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Minimum Wage

Minimum Wage

The wage in Madagascar is different for different industries as well as the period of employment. Employers will have to check what category their employees fall under to determine the minimum wages.
Payroll Cycle

Payroll Cycle

Depending on the industry and type of work, the cycle in Madagascar may be daily or monthly. For monthly payroll cycles, the payments have to be made before the 8th of each month.
Annual Bonus

Annual Bonus

There is no mandatory requirement for an annual bonus. However, it is a common market practice of giving.
Health Benefits

Health Benefits

  • 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

Working Hours and Overtime

  • 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.


Sick Leave

  • Employees are entitled to 5 days of paid sick leave per year in Madagascar.

Parental leaves

  • Maternity leave: Female employees are entitled to up to 14 weeks of paid maternity leave (50% of the wages by the employer and 50% by the National Security Fund). If an employee is not enrolled with social security, the employer must provide 100% of the wage.
  • Paternity leave: Male employees can take up to 10 days of leave for paternity or other family events.

Annual leaves

  • An annual leave of 30 days is to be granted to employees who have worked for at least a year.

Public Holidays (for the Calendar year 2023)

The following are the public holidays in Madagascar for the calendar year 2023.
  • New Year (January 01)
  • International Women's Day (March 08) (paid holiday only for women)
  • Easter Sunday (April 9)
  • Easter Monday (April 10)
  • Commemoration of the 1947 Rebellion (29 March)
  • Labor Day (May 01)
  • Ascension Day (May 18)
  • Pentecost/Whit Monday (May 29)
  • Independence Day (June 26)
  • Assumption Day (August 15)
  • All Saints' Day (November 01)
  • Christmas Day (December 25)

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Social Security

Social Security

The social security system in Madagascar covers the following -
  • Work-related accidents and illnesses
  • Old age benefits
  • Disability benefits
  • Survivor's insurance
  • Family benefits
The contributions required from employers and employees are discussed in the following sections.
Taxes for Employers

Taxes for Employers

The following are the contributions toward taxes in Madagascar -
  • Social security (work-related accidents and illnesses, old age benefits, disability benefits, survivor's insurance, family benefits) - 13%
  • Health insurance - 5%

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Taxes for Employees

Taxes for Employees

Income Tax:

The following are the income tax brackets in Madagascar.
  • Up to MGA 350,000 - 0%
  • MGA 350,000 to MGA 400,000 - 5%
  • MGA 400,000 to MGA 500,000 - 10%
  • MGA 500,000 to MGA 600,000 - 15%
  • Above MGA 600,000 - 20%

Social Security Tax:

  • Social security (Old age benefits, disability benefits, survivor's insurance) - 1%
  • Health insurance - 1%


The period is up to 6 months in Madagascar.

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The following norms are usually followed for employee 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

Severance Pay

Severance pay is granted only when the employer dismisses the employee because of redundancy. The pay is calculated as the salary of 10 days per year of employment.
Employees or Contractors

Employees or Contractors

  • 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.
Final Words

Final Words

Madagascar is looking to turn itself into a lucrative tourism and business destination. The friendly employment norms of the country add to its advantages as a potential business destination. EOR services handle employee management letting businesses focus on their business goals.

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