Your quick guide on talent and labor compliance norms in Madagascar
Capital
Antananarivo
Currency
Ariary (MGA)
Languages
Malagasy, French
Payroll Frequency
Monthly
GDP per Capita
$453.86
Employer Tax
19%
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 in the 2022 list. 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
Local Universities
The top local universities in Madagascar are as follows:
Local: 1
World: 6418
Local: 2
World: 11133
Local: 3
World: 11147
Local: 4
World: 11194
Local: 5
World: 11240
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 |
Talent Sourcing Tips
Jobboardfinder, Jobisland, LinkedIn
290,800
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.
The employee contract for newly hired employees in Madagascar must be in the country’s official language, i.e., Malagasy or French.
In Madagascar, the probation period is 0 to 6 months.
| Date | Name | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 8 Mar | International Women’s Day | National holiday |
| 29 Mar | Martyrs’ Day | Public Holiday |
| 31 Mar | Easter Sunday | Public Holiday |
| 1 Apr | Easter Monday | Public Holiday |
| 10 Apr | Eid al-Fitr (Tentative Date) | Public Holiday |
| 1 May | Labor Day | Public Holiday |
| 9 May | Ascension Day | Public Holiday |
| 19 May | Whit Sunday | Public Holiday |
| 20 May | Whit Monday | Public Holiday |
| 17 Jun | Eid al-Adha (Tentative Date) | Public Holiday |
| 26 Jun | Independence Day | Public Holiday |
| 15 Aug | Assumption of Mary | Public Holiday |
| 1 Nov | All Saints’ Day | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
| Type Of Leave | Number of Days | Mandatory |
| Annual Leaves | 30 days | Yes |
| Sick Leaves | Atleast 5 days | Yes |
| Maternity Leaves | 14 weeks | Yes |
Payroll
Payroll Cycle
The payroll cycle in Madagascar is Monthly.
Minimum Wage
Madagascar’s minimum wage is 133,013.40 Malagasy ariary per month or 767.40 ariary per hour for non-agricultural workers; 134,920.00 ariary per month,674.60 ariary per hour for agricultural workers.
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.
Bonus
There is no statutory law for 13th-month pay in Madagascar.
Taxes
| Type Of Contribution | Contribution |
| National Pension Fund | 13% (Cash amount of 13% of eight times the minimum salary for each employee) |
| Health Insurance | 5% (Cash amount of 5% of eight times the minimum salary for each employee |
| Fonds National sur la Formation Professionnelle (FNFP) | 1% |
| Type Of Contribution | Contribution |
| National Pension Fund | 1% (Cash amount of 1% of eight times the minimum salary for each employee) |
| Health Insurance | 1% (Cash amount of 1% of eight times the minimum salary for each employee |
| Annual Taxable Income | Tax Rate |
| From 3,000 to 350,000 MGA | 0 |
| From 350,001 to 400,000 MGA | 5% |
| From 400,001 to 500,000 MGA | 10% |
| From 500,001 to 600,000 MGA | 15% |
| Above 600,000 MGA | 20% |
In Madagascar, the standard rate of VAT is 20%.
Offboarding & Termination
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.
