G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Madagascar. Your candidate is hired via G-P’ 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 solution enables customers 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. G-P allows you to harness the talent of the brightest people in more than 185 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. Over 28 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:
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.
Working Hours in Madagascar
In general the work week is 40 hours, with five, eight-hour days.
Holidays in Madagascar
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
Vacation Days in Madagascar
In general, employees are entitled to 2.5 days of paid leave per month.
Madagascar Sick Leave
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. Maternity leave can be extended an additional 3 weeks in the case of illness as a result of the pregnancy or childbirth. For employees covered by the labor code, leave is paid 50% by the National Security Fund and 50% by the employer. For women not covered by the labor code, employers are responsible for 100% of maternity leave wages.
Men are generally entitled to up to 10 days each year for family events.
Health Insurance in Madagascar
Madagascar has a public/private healthcare system.
Madagascar Supplementary Benefits
Common employer provided benefits include:
- Supplementary health insurance
- Car allowance
- Dependent education
- Fitness allowance
- Meal allowance
Annual, 13th month, and performance-based bonuses are all common in Madagascar.
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.
Paying 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.
As of January 2019, employers must also contribute 1% to the Fonds Malgache de Formation Professionnelle (FMFP).
This information is provided as generally accepted information and is not intended as advisory services.
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. G-P 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 solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Madagascar, please contact us.