Madagascar is an island country off the coast of east Africa, located in the Indian Ocean. It consists of the big island of Madagascar and some smaller peripheral islands. Madagascar is a biodiversity hotspot, and over 90% of its wildlife is native to the island and only found there. Its economy is market economy and supported by an agricultural industry and tourism, textile, and mining industries.
Pregnant employees can receive 14 weeks of paid maternity leave, of which 6 weeks need to be taken before the birth. The employee receives 100% of their average salary during this leave, of which Social Security pays 50% and the employer the other 50%. There is no paternity leave required by law in Madagascar.
Employees are entitled to paid sick leave for up to 6 months, which is paid at the full salary (share by the employe and social security).
Madagascar celebrates 12 national holidays, and employees are entitled to 30 days of paid time off each year, accrued at 2.5 days per month.
The minimum wage in Madagascar is around MGA 200,000 per month, with a standard workweek of 37.5 hours at 7.5 hours per day.
There is no at-will termination in Madagascar, so terminations of employment contracts need to be done with just cause (misconduct, negligence, resignation, and other work offenses).
In Madagascar, notice periods can be complex. The minimum notice period is 1 day and will be increased according to the length of the employment and the employment type.
In Madagascar, all employees who are terminated due to economic reasons are entitled to severance pay. Severance pay is 10 days of salary per year of service up to 6 months based compensation.
★ 13% - CNAPS - Retirement Gratuity
★ 5% - OSTIE - Medical Contribution
★ 1% - FTMP - Human Resource Contribution
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.