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Currency
Ar (MGA)
Working Hours
40/Week
Madagascar, officially the Republic of Madagascar, is an island country comprising the island of Madagascar and numerous smaller peripheral islands. Lying off the southeastern coast of Africa, it is the world's fourth largest island, the second-largest island country and the 46th largest country in the world.
Permanent Employment
A contract is considered to be for an indefinite period in the following cases:
When the conditions for a fixed-term contract are not met
When neither party indicates an intention to terminate the employment relationship under the fixed-term agreement or the test contract
The contract of day laborers working for the same employer and in the same position on an intermittent basis for 6 consecutive months, for an average of 20 working days per month.
A contract of indefinite duration can be terminated at the will of 1 of the parties by giving prior notice.
Fixed-Term or Specific-Purpose Contracts
A fixed-term employment contract in Madagascar may not exceed 2 years. A fixed-term contract of at least 6 months that has been renewed twice becomes an employment contract of an indefinite period. If the contract is interrupted for less than a month and reinstated, it is considered to be renewed. The law prohibits hiring fixed-term contract workers for tasks of a permanent nature.
A fixed-term employment contract can be terminated prematurely by the will of one of the parties in the circumstances specified in the contract and in cases of gross negligence.
Temporary Employment
The Labor Code of Madagascar defines temporary employment as a form of work performed by an employee hired to temporarily replace a staff member during the latter’s absence of not more than 1 year. Interim work performed by a staff member must not exceed 6 months.
Minimum Wage
The minimum wages in Madagascar are determined by the government or by collective agreements, if more favorable. Following the National Employment Council's recommendations, the government sets a wage scale and a national minimum wage rate (on hiring).
The current minimum wage is MGA 250,800.00 (Malagasy ariary) per month. The value of the index point for the calculation of Minimum Hiring and Seniority Salaries by professional category is 0.8745 for non-agricultural sector and 0.7688 for agricultural sector, making non- agricultural minimum wage MGA 242,200, and agricultural minimum wage as MGA 238,800
Overtime, Holiday and Vacation Pay
Overtime shall be paid as follows:
130% of the regular hourly rate for the first 8 hours of overtime
150% of the regular hourly rate after the 8th hour
150% of the regular hourly rate for overtime at night
150% of the regular hourly rate for work done on public holidays 140% of the regular hourly rate for work done on weekly rest days
Employees are entitled to a 12th of their annual wages before the commencement of annual leave.
In Madagascar, employees are entitled to 2.5 days of paid annual leave per month after 12 months of service. It is compulsory to take 15 days' leave within the first 3 months after acquiring the right to leave. Employees have the right to accumulate annual leave for up to 3 years.
An employee is entitled to 1/12th of the annual wages before the commencement of annual leave. If an employment contract is terminated before utilizing all of the annual leave, compensation for unused leave is paid.
Maternity Leave
In Madagascar, female employees are entitled to 14 weeks of paid maternity leave, including 8 weeks of postnatal leave. In case of complications or sickness resulted from pregnancy or birth, the maternity leave can be further extended by 3 weeks (the employee must have a medical certificate attesting to her condition).
The maternity leave is fully paid. The employee shall be reimbursed for the childbirth costs and, where appropriate, for medical care (within the limits of the health facilities' fees). If the female employee is insured, the costs are split equally between the National Social Insurance Fund and the employer. If the employee is not insured, the employer must cover the costs in full. An employee cannot be dismissed for taking maternity leave.
A prenatal allowance of MGA 63,000 (Malagasy ariary) is also paid to pregnant employees or spouses of insured employees. A maternity allowance of MGA 84,000 is paid to female employees in 2 installments.
Paternity Leave
Madagascar's Labor Code does not contain provisions on paternity leave. Employees are, however, entitled to 10 days of paid exceptional leave every year for family events.
Notice Period
An indefinite-term contract can be terminated by either party by providing prior notice (or without notice in the event of gross negligence). The dismissal notice length varies between 1 day and 6 months, depending on the employee’s length of service in that company and their professional category.
The notice must be provided in writing. During the notice period, the worker is entitled to 1 day off per week. Any breach of contract where the notice period is not fully observed requires the party responsible for the breach to pay the other party compensation.
Severance Benefits
In cases of economic redundancy, employers must pay affected employees a severance payment equal to 10 days’ wages for each year of service in the company, up to a total of 6 months’ wages.
Employees and employers may agree on severance pay in other cases of termination. Such provisions must be indicated in the employment contract. Failure to pay severance or notice can result in a fine of up to MGA 2 million (Malagasy ariary).
Personal Income Tax
Annual income tax is imposed on the profits and income of all natural persons. Residents are taxed on all of their income, irrespective of its source. Non-residents pay tax on income derived from sources in Madagascar. The tax assessment year runs from July 1 through June 30.
Income from employment (IRSA) is taxed at progressive rates from 5% to 20%.
Written Agreements
It is not necessary to conclude employment contracts in writing. When made in writing, agreements must be in French or Malagasy, made in 2 copies, and signed by both parties. However, registration is not required. The written agreement must be provided to the employee within 2 months after the start of employment and include information on job role, wages, professional class, the effective date of the contract, probationary period, etc.
Oral Agreements
Madagascar's Labor Code contains no provisions on oral contracts. Per the law, if there is no written contract, the agreement's conditions may be proved by all legal means of evidence.
Implied Agreements
Madagascar's Labor Code contains no provisions on implied contracts. Per the law, if there is no written contract, the agreement's conditions may be proved by all legal means of evidence. These means can be the conduct, omissions, or customs which would create a tacit agreement between two parties.
A probationary period (or trial commitment contract) cannot exceed 6 months in duration and is renewable only once. Probationary periods can be included in both permanent and fixed-term contracts. The commitment or renewal of probationary appointment must be stipulated in writing, specifying at least the vacancy, duration, salary, and professional category.
Probationary Period
The duration of the probationary period depends on the professional category. It can range from 3 months for skilled and unskilled blue- collar workers to 6 months for high-ranking executives.
Regular working hours for young workers in Madagascar are 8 hours per day and 40 hours per week. The working hours limit for all types of employees is 173.33 hours per month, and the annual limit for workers in the farming sector is 2,200 hours. Any work done in excess of these hours is considered overtime.
Minimum Age
In Madagascar, the minimum age for work is 15 years. In case of overtime, hazardous work, and night work, the minimum age is set at 18 years.
Children over 15 years of age can be hired only for light work that does not exceed their strength, present any danger to their well-being, or harm their physical, mental, spiritual, moral, or social development. Additionally, they can be hired only after a medical examination.
Young workers under 18 are limited to eight hours of work per day and 40 hours per week. They must also be given at least 12 consecutive hours of rest daily.
According to Madagascar's Labor Code, employees are entitled to sick leave for a maximum period of 6 months upon providing proof of illness from a certified doctor or medical professional. During this period, the employment contract may be suspended, but the employer cannot terminate it. After this period, the employer may terminate the employment contract but must pay all employees' rights, including the termination notice.
During sick leave, employees are eligible to receive a "suspension indemnity," which is equal to the remuneration amount.
in 2025
January 1 - New Year's Day
March 8 - International Women's Day
March 29 - Martyrs' Day
March 31 - Eid al-Fitr
April 20 - Easter Sunday
April 21 - Easter Monday
May 1 - Labor Day
May 29 - Ascension Day
June 7 - Eid al-Adha
June 8 - Whit Sunday
June 9 - Whit Monday
June 26 - Independence Day
August 15 - Assumption of Mary
November 1 - All Saints' Day
December 25 - Christmas Day
Pension
The National Social Security Fund of Madagascar, Caisse Nationale de Prévoyance Sociale (CNPS), provides pension benefits to insured employees who fulfill the following conditions:
Old-age pension - age 60 (or 55 for merchant seamen), with at least 15 years of coverage and 28 quarters of contributions in the last ten years
Partial pension - age 60 (or 55 for merchant seamen), with at least 60 quarters of contributions and 15 years of coverage, if an employee has less than 28 quarters in the past ten years.
The old-age pension is 30% of the legal monthly minimum wage plus 20% of the insured's average monthly adjusted earnings in the last ten years, plus 1% of average monthly adjusted earnings for each year of contributions over ten years.
Supplements are added for spouses and length of service. Individuals who have reached 60 years of age and do not meet any criteria for retirement benefits (but have paid contributions for at least four quarters) are eligible to receive a retirement grant.
Dependents/Survivors Benefit
In Madagascar, dependents are entitled to receive survivors benefits if the deceased worker was retired or at least 45 years of age (40 for merchant seamen) and was eligible for an old-age pension at the time of their death.
Dependents eligible for survivors benefits include:
Widow/widower (pension ceases upon remarriage)
Children younger than age 15 (age 22 if they are a student or disabled).
If the deceased was not eligible for an old-age pension but had at least four quarters of contributions, the contributions would be refunded to the dependents.
Invalidity Benefit
In Madagascar, workers are entitled to the disability pension covered by the National Social Security Fund of Madagascar, Caisse Nationale de Prévoyance Sociale (CNPS), if they meet the following conditions:
Age 55 (50 for merchant seamen)
Working capacity loss of at least 60%
At least 15 years of coverage, including 28 quarters of contributions in the past ten years.
The disability pension is paid quarterly and is calculated at a rate of 80% of the old-age pension that the worker would have been entitled to if they worked until the regular retirement age. There is also a 10% supplement that can be paid to a dependent spouse over 59 years of age (54 for merchant seamen) if the couple had been married for at least two years before retirement.
Both employees and employers pay contributions to the social security fund.
Types of Visas
The following types of visas are recognized:
Non-immigrant visa - This visa is issued to foreign nationals visiting Madagascar for up to 90 days.
Transformable visa - This visa is issued exclusively by an Embassy or Consulate of Madagascar. It allows the holder to apply for a long-term immigrant visa and is valid for a stay of up to 30 days.
Immigrant visa - This visa is issued to foreign nationals visiting Madagascar for longer than 90 days.
Work Permits
Employees must apply for a transformable visa to obtain a work permit. In addition to the general documents required for this type of visa, additional documents might be required depending on the immigrant category.
To apply for a work visa, an application with relevant documents must be submitted to Madagascar's Economic Development Board. Work visas are issued for up to 2 years and are renewable after that.
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Local Laws & Regulations
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.
Our team of regional experts are here to support you with your global expansion plans. If you have any questions, contact us and we will be delighted to help.
