Madagascar, while still classed as having a developing economy, has multiple well-developed industries such as agriculture, mining, and multiple others. The country has had a tumultuous few decades, but recently the economy has been on a massive upsurge, giving promising signs for the future.
At New Horizons, our experienced expansion team helps businesses expand via our Madagascar PEO. Our tailored professional employer organization (PEO), employer of record, and payroll services can provide you with all the support you need to efficiently expand your business into Madagascar, whether or not you have already established an Madagascan entity.
However, if your company is planning an expansion into Madagascar, then you should be prepared for a complex process. While the payoff can be well worth it, Madagascar’s unique business and employment regulations, cultural customs, and language barriers can all result in delays to any expansion efforts.
We help organizations of all kinds to expand abroad, including into Madagascar. Our Madagascar PEO and payroll services can provide your organization with everything you need to begin your Madagascan expansion. With New Horizons, you can save thousands in expansion costs and get up and running in a matter of just days, even if you don’t have an established entity in the country.
Grow your presence in Madagascar, with help from New Horizons outsourcing
Establish and grow your business in Madagascar, whether or not you already have a Madagascar subsidiary.
Hiring in Madagascar: Employment law overview
Employment contracts in Madagascar
Employers in Madagascar are required to provide written contracts of employment for every employee. These contracts should always cover the relevant details of the agreement, such as benefits, entitlements, compensation, and so on. The contracts should also be written in one of the country’s official languages (French and Malagasy), and use the local currency of the Madagascan ariary.
Working hours in Madagascar
The typical working week for employees in Madagascar is 40 hours spread across five days.
Public holidays in Madagascar
There are a number of annual public holidays for employees in Madagascar. The following days are usually given as leave to employees:
- Easter Monday
- New Year’s Day
- Whit Monday
- Independence Day
- Assumption of MaryMartyrs’ Day
- Labor Day
- Ascension Day
- Republic Day
- International Women’s Day
- Christmas Day
- All Saints’ Day
Madagascar vacation leave
Employees in Madagascar are entitled to 30 days of paid vacation leave each year.
Madagascar sick leave
Employees in Madagascar are entitled to at least five days of sick leave annually, with compensation.
Parental leave in Madagascar
Female employees in Madagascar can take paid maternal leave of 14 weeks. A minimum of eight of these weeks must be taken after the mother has given birth. This leave is covered at 50% for most employees.
Male employees can take ten days per year for special family events.
Terminations and severance in Madagascar
Employees in Madagascar can be terminated by their employer if given written notice prior to termination. The noticer period varies from eight days to six months, depending on the length of service and the type of work they are engaged in.
When severance is due, employees are generally entitled to ten days of pay for every year of service they have completed.
Taxation in Madagascar
Both employers and employees in Madagascar must pay a percentage of salaries to social security (13% and 1% respectively) and health insurance (5% and 1% respectively).
Income tax in Madagascar is 20% of income above MGA350,000 per year, or MGA2,000 for incomes below that.
Health coverage in Madagascar
Madagascar has a publicly funded healthcare system, but we advise getting medical insurance to ensure an optimal level of care. Many employers choose to provide medical insurance to employees.
Madagascar compensations & benefits
Compensation laws in Madagascar
The minimum wage for employees in Madagascar varies depending on the type of work and the individual employee’s length of service. Due to this relatively complex system, it is vital that you understand which rates apply to your employees in Madagascar before setting rates.
Benefit management in Madagascar
Employees in Madagascar often expect benefits packages as part of their employment agreements, so you may need to set up a benefits management system when hiring in the country. But setting up and managing a benefits system in Madagascar can be complicated, particularly if you are unfamiliar with the country’s unique regulations and procedures.
New Horizons can help you avoid this complex part of your Madagascan expansion, saving you time and money and simplifying the entire process. Our team will offer advice and outsourcing of your benefit system setup and management, giving you time to focus on the other important elements of your expansion.
New Horizons will simplify your expansion into Madagascar
At New Horizons, we specialize in providing tailored Madagascar PEO, employer of record, and payroll outsourcing services to give businesses everything they need to begin trading in Madagascar as efficiently as possible. Our experts will ensure that you are ready to start trading and hiring in Madagascar in as little as 48 hours and could save you more than 80% in expenditure, whether or not you’ve already registered a legal entity in the country.
We can handle all of your expenses, payroll, benefits, and legal compliance in Madagascar, as well as all related human resources administration. As the only Madagascar PEO with an in-house recruitment team, we can also find and hire your local staff, providing our Madagascan subsidiary to act as employer of record for your hires so you don’t even need to establish an Madagascan entity.
Get in touch with our Madagascar experts today to find out more about our outsourcing services for Madagascar expansion.