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Payroll in MgMadagascar.








Country Capital



Ariary (MGA)

Madagascar is an island in the Indian Ocean close to the southeast coast of Africa. As the fourth largest island in the world, the country has diverse wildlife and a large population of more than 20 million. If you’re looking for a scenic spot for your expansion that’s close to Africa, Madagascar provides the perfect setting.

One challenge of an expansion is setting up your payroll. Your company will need to choose between the various Madagascar payroll options, meet the country’s complicated tax laws, and more. G-P can make your expansion easier through Madagascar payroll outsourcing. We’ll act as the Employer of Record to add your employees to our locally compliant payroll. With us, you won’t have to set up your Madagascar payroll, and you won’t have to worry about compliance.

Taxation Rules in Madagascar

Employers in Madagascar need to contribute 13% of wages to social security and 5% to healthcare. Many employers in the country choose to use a Pay As You Earn (PAYE) system where they calculate and process taxes on behalf of employees. You’ll need to deduct 1% of an employee’s wage for social security, 1% for healthcare, and another 1% for the Fonds Malgache de Formation Professionnelle (FMFP), then send employees their net wage.

Madagascar Payroll Options for Companies

All companies are different and need their own type of payroll. There are four different Madagascar payroll options to choose from, including:

  • Remote: Parent companies that already have their own payroll can add the subsidiary’s employees to that payroll. However, the different employees will have their own regulations and tax laws.
  • Internal: If you have a large subsidiary committed to your expansion, you can set up an internal Madagascar payroll. Doing so will require a larger staff and expertise on Madagascar payroll laws.
  • Madagascar payroll processing company: Another option is working with a Madagascar payroll processing company. This third party can outsource your payroll, but you’ll still need to shoulder compliance.
  • Madagascar payroll outsourcing: Finally, you can work with a global PEO such as G-P. Choosing Madagascar payroll outsourcing with us means we’ll set up your payroll and take on compliance.

How to Set Up a Payroll in Madagascar

Before you can set up your Madagascar payroll, you have to incorporate. Establishing a subsidiary in Madagascar can take anywhere from a few weeks to a few months, which can set back your desired timeline. G-P’ suite of expansion services, including Madagascar payroll outsourcing, will help you start working in as little as a day. You won’t have to go through the lengthy incorporation process, and you can feel confident knowing you’re meeting the country’s employment compliance laws and tax obligations.

Entitlement/Termination Terms

Since terminating an employment relationship can be tricky in foreign countries, we recommend adding entitlement and termination terms to your employment contract before setting up your Madagascar payroll. Employees can get terminated for cause with a written notice period, and the notice period required varies by type of employment and length of service. Madagascar employees typically do not get severance pay.

Payroll Processing Company in Madagascar

G-P is the team of experts you need on your side for your expansion. Contact us today to learn more about Madagascar payroll outsourcing.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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