Expand your global workforce in Madagascar
Your guide to the employment landscape, working customs and local labor laws in Madagascar
Capital
Antananarivo
Currency
Ariary (MGA)
Languages
Malagasy, French
GDP per Capita
$453.86
Employer Tax
19%
Payroll Frequency
Monthly
Talent overview
Madagascar is located in East Africa and is an island nation in the Indian Ocean. The country holds an economic freedom score of 58.9. This makes Madagascar the 98th freest country. The Republic of Madagascar has grown remarkably in terms of GDP since 2021. Madagascar ranks 12th out of 47 countries in the Sub-Saharan Africa region.
Major economic hubs:
Antananarivo, Toliara, and Antsiranana
Skills in demand:
General Manager, Software Developer, IT Professionals
Madagascar
Top local universities in Madagascar
Université d’Antananarivo (University of Antananarivo)
RANKING
Local: 1
World: 6418
Université de Fianarantsoa (University of Fianarantsoa)
RANKING
Local: 2
World: 11133
Université de Toamasina (University of Toamasina)
RANKING
Local: 3
World: 11147
Université de Toliara (University of Toliary)
RANKING
Local: 4
World: 11194
Université de Mahajanga (University of Mahajanga)
RANKING
Local: 5
World: 11240
Top Local Job Boards:
Jobboardfinder, Jobisland, LinkedIn
Number of LinkedIn users:
290,800
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
The below table mentions the average salary in Madagascar for most common jobs:
| Job Title | Average Monthly Salary (MGA) | Average Monthly Salary (USD) |
| Financial Manager | 2,760,000 MGA | 617 USD |
| General Manager | 2,420,000 MGA | 541 USD |
| Business Development Manager | 2,150,000 MGA | 481 USD |
| Financial Analyst | 1,720,000 MGA | 384 USD |
| Business Analyst | 1,690,000 MGA | 378 USD |
| Project Manager | 1,470,000 MGA | 329 USD |
Employ in Madagascar
Employing in Madagascar
To hire an individual from Madagascar, the employer must know about labor laws, benefits, contributions, bonuses, and allowances. This section contains information about the above-mentioned for employers to know more about Madagascar before onboarding.
Employee Contract
The employee contract for newly hired employees in Madagascar must be in the country’s official language, i.e., Malagasy or French.
Probation Period
In Madagascar, the probation period is 0 to 6 months.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| March 8 | International Women’s Day | National Holiday |
| March 29 | Martyrs’ Day | National Holiday |
| March 31 | Eid al-Fitr | National Holiday |
| April 20 | Easter Sunday | National Holiday |
| April 21 | Easter Monday | National Holiday |
| May 1 | Labor Day | National Holiday |
| May 29 | Ascension Day | National Holiday |
| June 7 | Eid al-Adha | National Holiday |
| June 8 | Whit Sunday | National Holiday |
| June 9 | Whit Monday | National Holiday |
| June 26 | Independence Day | National Holiday |
| August 15 | Assumption of Mary | National Holiday |
| November 1 | All Saints’ Day | National Holiday |
| December 25 | Christmas Day | National Holiday |
Employee Leaves
| Type Of Leave | Number of Days | Mandatory |
| Annual Leaves | 30 days | Yes |
| Sick Leaves | Upto 6 months | Yes |
| Maternity Leaves | 14 weeks | Yes |
Leave Compliance
Payroll in Madagascar
Payroll cycle
The payroll cycle in Madagascar is Monthly.
Minimum wage
The current non-agricultural minimum wage is MGA 262,680 (Malagasy ariary), and the agricultural minimum wage is MGA 266,500 per month.
Overtime pay
The overtime pay for the first overtime hours is 130% of the regular salary and 150% for overtime that exceeds the 8th hour.
How taxes work
Employer Payroll Tax:
| Scheme | Employer’s
Contribution |
| Invalidity, Old-age, Death (Survivors) | 9.50% |
| Work Accidents, Occupational Diseases | 1.25% |
| Family Benefits | 2.25% |
| Illness and Maternity | 5% |
Employee Payroll Tax:
| Scheme | Employee’s
Contributions |
| Invalidity, Old-age, Death (Survivors) | 1% |
| Work Accidents, Occupational Diseases | – |
| Family Benefits | – |
| Illness and Maternity | 1% |
Employee Income Tax:
| Annual Taxable Income
(MGA, Malagasy ariary) |
Tax Rate |
| Up to 350,000 | 0% |
| 350,001 to 400,000 | 5% |
| 400,001 to 500,000 | 10% |
| 500,001 to 600,000 | 15% |
| Above 600,0000 | 20% |
There are different rates of tax, depending on the type of income:
Income from individual business – 5% tax is imposed on income under MGA 200,000,000. Income above this amount is taxed at corporate tax rates.
Income from movable capital – 20% tax is imposed on all income.
Income from real estate – 20% tax is imposed on all income.
VAT:
In Madagascar, the standard rate of VAT is 20%.
Bonus
13th Month Pay:
There is no statutory law for 13th-month pay in Madagascar.
Employee Benefits:
- Paid Leaves
- Maternity Leaves
- Social security benefits
- Allowances
Employee offboarding
Both employer and employee can terminate the employment contract. However, there are laws that strictly prohibit illegal termination in Madagascar. The employer can terminate based on misconduct and redundancy.
The notice period in Madagascar is based on the length of the service.
| Length of Service | Notice Period |
| Less than one year | 8 days to 3 months |
| Over one year | 10 days to 4 months |
| Up to 3 years | 12 days to 5 months |
| Above 5 years | One month to 6 months |
In Madagascar, the severance pay is 10 days of compensation for each year of service. However, the maximum is 6 months.
Visa and
immigration
An individual needs a work permit to work in Madagascar. The individual must present all the personal documents with the employment contract.
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration