What you'll learn
- Country Introduction
- Tax Breakdown for Employers
- Statutory Leave Laws
- Minimum Wage and Working Hours
- Termination Process
- Additional Information
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.
Paid Leave and Statutory Leave
Parental Leave
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.
Sick Leave
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).
Paid Leave
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.
Wage Requirements and Working Hours
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.
Termination Process
Process
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).
Notice Period
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.
Severance Pay
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.
Additional Information
N/A
★ 13% - CNAPS - Retirement Gratuity
★ 5% - OSTIE - Medical Contribution
★ 1% - FTMP - Human Resource Contribution
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It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.
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.
