Request a ProposalDownloadShare

Madagascar – Employer of Record

Reading Time: 3 minutes

Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Madagascar. Your candidate is hired via Globalization Partners’ Madagascar PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.

Our Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Madagascar while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Madagascar.

Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in 170 countries around the world, quickly and painlessly.

Madagascar is an island in the Indian Ocean off of the Southeast coast of Africa. The island is the 4th largest in the world, and 90% of the wildlife on the island lives only in Madagascar. 22 million people live in Madagascar, and their official languages are Malagasy and French.

When negotiating terms of an employment contract and offer letter with an employee in Madagascar, it may be useful to keep the following in mind:

Madagascar Holidays

Madagascar celebrates the following public holidays:

  • New Year’s Day
  • International Women’s Day
  • Easter Monday
  • Martyrs’ Day
  • Labor Day
  • Ascension Day
  • Whit Monday
  • Independence Day
  • Assumption of Mary
  • All Saints’ Day
  • Republic Day
  • Christmas Day

Bonus in Madagascar

Annual, 13th month, and performance-based bonuses are all common in Madagascar.

Working Hours in Madagascar

In general the work week is 40 hours, with five, eight-hour days.

Vacation in Madagascar

In general, employees are entitled to 2.5 days of paid leave per month.

Sick Leave in Madagascar

Employees are entitled to at least 5 paid sick days per year.

Maternity/Paternity Leave in Madagascar

Female employees are generally entitled to 14 weeks of paid maternity leave, at least 8 of which should be taken after the child’s birth. Leave is paid at 50% for employees covered by the labor code and at 100% for public servants.

Men are generally entitled to up to 10 days each year for family events.

Termination/Severance in Madagascar

Probationary periods of up to 6 months are allowed with a one-time renewal. The time allowed depends on the position.

Fixed term contracts, including renewals, may not exceed 24 months.

Employees may be terminated for cause with written notice. The notice period is determined by the type of employment and length of service, and ranges from 8 days to 6 months.

Employees are not generally eligible for severance pay, except if they are terminated for economic reasons, in which case they are entitled to 10 days’ wages for each year of service, up to 6 months’ of wages.

Taxes in Madagascar

In Madagascar, employers contribute 13% of wages to social security and 5% for healthcare. Employees contribute 1% to social security and 1% to healthcare.

Health Insurance in Madagascar

Madagascar has a public/private healthcare system.

Additional Benefits in Madagascar

Common employer provided benefits include:

  • Supplementary health insurance
  • Car allowance
  • Dependent education
  • Fitness allowance
  • Meal allowance

Employment Contracts in Madagascar

It is legally required to put a written employment contract in place in Madagascar, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Madagascar should always state the salary and any compensation amounts in Malagasy ariary rather than a foreign currency.

This information is provided as generally accepted information and is not intended as advisory services.

Why Globalization Partners

Establishing a branch office or subsidiary in Madagascar to engage a small team is time-consuming, expensive and complex. Labor law in Madagascar has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Madagascar. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Madagascar PEO and Global Employer of Record Platform provides you peace of mind so that you can focus on running your business.

If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Madagascar, please contact us.

Download this content in PDF