* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Malagasy ariary (Ar)


EAT (GMT +3)

Employment Cost


Annual Leave

30 days

In-demand Specialties*
Information Technology , Digital Marketing , Tourism And Hospitality

The Ultimate Guide to Hiring Employees in Madagascar

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Madagascar

Employing in Madagascar requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Madagascar with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Madagascar quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Madagascar's time zone may be advantageous for businesses with global operations. It can facilitate around-the-clock work or convenient communication with teams in different parts of the world.

Madagascar generally has a lower cost of living compared to many Western countries. This can translate to cost savings for businesses, especially for roles that can be outsourced or performed remotely.

Madagascar is a multilingual country with French and Malagasy as the official languages. If your business operates in French-speaking regions or if you require employees with proficiency in French, hiring from Madagascar could be beneficial.

Depending on your industry, Madagascar may have a pool of skilled professionals in areas such as agriculture, tourism, technology, and environmental sciences.


Fundamental Aspects of Employment in Madagascar

The employment process adheres to the country's labour regulations, and companies engaging in hiring activities are bound by these legal provisions. A formal agreement, outlining the terms and conditions of employment, is established between the employer and the employee. The employment contract in Madagascar must include essential details, including:

  • Employer and Employees details
  • Duration of the employment
  • Job responsibilities and description
  • Conditions under which termination may occur

Probationary Period in Madagascar

In Madagascar, probationary periods are not mandatory. However, if implemented, the minimum duration for a probationary period is three months, while the maximum allowed period is six months. During this time, individuals may undergo supervision and assessment before permanent decisions or actions are made regarding their employment or legal status.

Working hours in Madagascar

The regular work schedule is 8 hours per day and 40 hours per week, from Monday to Friday.

Overtime in Madagascar

Overtime is defined as any hours worked outside of the standard working hours. Employees can work a maximum of 16 hours of overtime per week. For these additional hours, compensation is set at 130% of the hourly rate for the first 8 hours and 150% of the hourly rate for the subsequent 8 hours.

Navigating Key Aspects of Payroll in Madagascar

Madagascar has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Madagascar

1 January - 31 December is the 12-month accounting period that businesses in Madagascar use for financial and tax reporting purposes.

Payroll Cycle in Madagascar

The payroll cycle in Madagascar is usually monthly, with employees being paid by the last working day of the month.
1,065 MGA p/h

Minimum Wage in Madagascar

The minimum wage for employees in Madagascar is typically 1,065 MGA per hour, amounting to ~184,653 MGA per month for a typical 40 hour work week.

Minimum wages and salaries in Madagascar

The minimum wage in Madagascar is 1,065 MGA per hour, amounting to a monthly wage of 184,653 MGA.

Bonus Payments in Madagascar

There is no statutory law mandating the provision of a 13th-month pay.

Comprehensive Overview of Employment Taxes in Madagascar

Understanding the tax obligations for both employers and employees is crucial when operating in Madagascar's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Madagascar.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 18% on top of the employee salary in Madagascar.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Madagascar, the typical estimation for employee payroll contributions cost is around 2%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The individual income tax in Madagascar follows a progressive rate structure, ranging from 0% to 20%. The tax calculation takes into account various factors, including household status and the number of children, which can influence the overall applicable rates.

Tax Rate Income Bracket

Pension in Madagascar

To qualify for a public pension, employees must be 60 years old with at least 15 years of coverage, including 28 quarters of contributions in the 10 years before their normal retirement age.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Madagascar tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Madagascar

When it comes to terminating employment in Madagascar, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Both the employer and the employee have the right to terminate the employment contract, but the country has strict laws against illegal termination. Acceptable termination methods include:

  • Voluntary resignation by the employee
  • Termination by mutual agreement
  • Objective grounds
  • Disciplinary dismissal

Notice Period

Notice periods in Madagascar can be complex, with the minimum notice set at 1 day and subject to increases based on the duration of employment and the type of employment. If you'd like more information about notice periods in Madagascar, reach out to one of our in-country experts.

Severance Pay

If employees are laid off for economic reasons, they receive severance pay equal to 10 days of salary per year of service, up to a maximum of 6 months of compensation.

Annual Leave Entitlements and Company Policies in Madagascar

The annual leave entitlement in Madagascar is 30 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Madagascar

Madagascar observes a total of 12 public holidays. These National public holidays include:

Holiday Date

Paid Time Off in Madagascar

Maternity Leave in Madagascar

Paternity Leave in Madagascar

Sick Leave in Madagascar

Family Leave

Parental Leave In Madagascar

Madagascar's Benefits Built Into Playroll

Competitive benefits package in Madagascar

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Madagascar's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Madagascar

Make your benefits package in Madagascar a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Madagascar

The National Social Insurance Fund (CNaPS) in Madagascar is overseen by the Ministries of Public Service, Labour, and Social Laws, and Finance, Economy, and Budget. It aims to implement the government's social protection policy for private sector workers, covering:

  • Family benefits
  • Accident insurance
  • Occupational diseases
  • Retirement benefits

Playroll allows you to provide localized benefits for employees in Madagascar within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Madagascar create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Madagascar

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Madagascar.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!