Madagascar
Min. wage
(x12 payments)
MGA 300,000 /mo
About the minimum wage
Employer tax
Annual leave
30 days
Learn about annual leave
Notice period
1 day-2 months (by tenure)
Termination and notice info
Updated
Sep 2026
The Contrat a Duree Indeterminee (CDI) is the default, presumed contract form for ongoing employment with no fixed end date. A fixed-term contract must be objectively justified; absent that, or if legal formalities are not met, the relationship is deemed a CDI by law.
CDDs are permitted only for temporary needs. Each term capped at 2 years; may be renewed up to twice, total duration not exceeding 6 years. A CDD renewed beyond these limits, lacking valid written justification, or continuing after its end date without formal notice of non-renewal, is automatically reclassified as indefinite (CDI). Casual engagement in the same role for 6 consecutive months is also deemed to create a CDI.
The Labour Code sets a general maximum of 40 hours per week. Overtime is compensated: first 8 overtime hours in a week at +30%, additional hours at +50%, Sunday/holiday daytime work at +100%, Sunday/holiday night work at +150%. Minimum weekly rest of 24 consecutive hours required.
Probation length is tied to employee classification. Periods may typically be renewed once, provided combined duration does not exceed the statutory maximum for that category. Either party may generally terminate during probation with a short or no notice period, without severance obligation.
Madagascar's Labour Code does not require a 13th- or 14th-month salary. It is widespread market practice among larger companies/multinationals, often paid as a year-end bonus equivalent to roughly one month's salary, set by company policy or CBA.
No broad national job-title licensing regime beyond standard regulated professions. The main restriction affecting EOR-style hiring is on foreign workers: employers must obtain a Ministry of Labour work permit and generally demonstrate the position could not be filled by a qualified Malagasy national, plus a residence permit.
Approximate total of 19% of gross salary: CNaPS (pension/family allowances/work-injury, bundled) 13%; approved private health/medical scheme (e.g. OSTIE) 5%; FMFP vocational training levy 1%. Calculated on gross salary up to a periodically-adjusted statutory ceiling.
Approximate total of 2% of gross salary: CNaPS employee share 1%; health/medical scheme employee share 1%. Withheld before calculating IRSA (payroll income tax).
In addition to statutory leave, employees are entitled to the following statutory benefits:
Madagascar's social protection system is anchored by CNaPS, which covers pensions, family allowances, and work-injury insurance in a single bundled contribution, plus a separate approved health/medical insurance scheme (commonly OSTIE) and a professional training levy (FMFP).
Work-injury and occupational-illness coverage is provided through the employer's CNaPS contribution, not a separate stand-alone premium in most consensus sources.
Severance is payable to employees dismissed after at least one year of service, calculated on a tiered scale by seniority based on average monthly remuneration over the preceding 12 months.
Not owed for dismissal due to serious misconduct; different terms may apply for collective economic redundancies.
Madagascar's Labour Code does not impose a mandatory 13th-month salary.
P.S. our team speaks multiple languages and we'd love to chat in your preferred language if requested.
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
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.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.
