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hire in Madagascar

Madagascar PEO &
Employer of Record

SALARY PAYMENT IN Malagasy Ariary (MGA)

CONTRACT LANGUAGE French / English

PAYROLL TAX 13% (with limit)

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

Hire in Madagascar

Horizons ensures day-to-day guidance to help your business navigate Madagascar labor laws and regulations. Horizons also ensures payroll is processed on time, and that taxes are withheld as required.

As the Madagascar Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Madagascar Tax Office. 

Partnering with our Madagascar PEO is the quickest and most cost-effective way to enter the Madagascar market.

Facts & Stats

PEO Platform Hire in Madagascar, and pay employees through our platform or app.PEO Cost Our Madagascar PEO solution is the most affordable on the market.Time-to-hire Fast onboarding in Madagascar, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with Madagascar labor law.Local Benefits We administer all mandatory benefits and contributions in Madagascar.180+ Countries It doesn’t stop with Madagascar — we are an international PEO

Employment Laws

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.

Fixed-term
Probationary period6 months (renewable)
Termination notice period8 days – 6 months
Severance

Only in cases of redundancy

10 days’ salary per year of service

Indefinite
Probationary period6 months (max.)
Termination notice period8 days – 6 months
Severance

Only in cases of redundancy

10 days’ salary per year of service

Working hours in Madagascar

The typical working week for employees in Madagascar is 40 hours spread across five days.

Hire compliantly in Madagascar without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

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:

Madagascar has a range of national public holidays that are celebrated annually. In 2023 these holidays are:

DateHoliday name
1 Jan SundayNew Year’s Day
8 Mar WednesdayInternational Women’s Day
29 Mar WednesdayMartyrs’ Day
10 Apr MondayEaster Monday
22 Apr SaturdayEid al-Fitr (Tentative Date)
1 May MondayLabor Day
18 May ThursdayAscension Day
29 May MondayWhit Monday
26 Jun MondayIndependence Day
29 Jun ThursdayEid al-Adha (Tentative Date)
15 Aug TuesdayAssumption of Mary
1 Nov WednesdayAll Saints’ Day
25 Dec MondayChristmas 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.

hassle-free Madagascar compensation & benefits

Compensation & 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.

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.

Hire in Madagascar in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

A Madagascar PEO and a Madagascar EOR are two types of companies which specialize in providing human resources services to businesses in Madagascar.

The main difference between a Madagascar PEO and a Madagascar EOR is in the scope of their services.

Madagascar PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Madagascar PEO is essentially outsourcing your HR duties in Madagascar.

Madagascar EORs actually take over as the legal employer of your employees based abroad. Madagascar EORs become responsible for labor compliance for your employees in Madagascar.

At Horizons, we offer both PEO and EOR services in Madagascar. Get in touch now and let us know what service you are seeking.

A PEO in Madagascar can feasibly hire both local and foreign nationals to work in Madagascar.

However, the ability of Horizons to sponsor your foreign national employee in Madagascar may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Madagascar PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Madagascar.

It is possible to get a work visa in Madagascar. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Madagascar are limited, however—get started today to secure your employees’ visa spot.