Madagascar - Employer of Record (EOR)

✔ We get your team working in Madagascar

✔ We handle all your payroll needs

✔ We ensure 100% compliance for your business

Africa HR Solutions offers employer of record solutions to businesses that want to recruit workers and process payroll without establishing a branch office or subsidiary in Madagascar. Your employees are hired by Africa HR Solutions Madagascar Employer of Record (EOR Madagascar) in accordance with local labor laws and can be on-boarded within days rather than the weeks it usually takes. The new worker is assigned to work on your team, working on your company’s behalf just like he or she was your employee.

As always, we guarantee 100% compliance for your business in Africa.

Overview of Madagascar?

Madagascar is an island in the Indian Ocean off 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. 28,427,333 people live in Madagascar, and their official languages are Malagasy and French.

Official public holidays in Madagascar

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

Employment 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, made up of 5, eight-hour days.

Bonus payment in Madagascar

Annual, 13th month, and performance-based bonuses are all common in Madagascar.

Vacation leave in Madagascar

In general, employees are entitled to 2.5 days of paid leave per month.

Sick leave in Madagascar

Employees are entitled to at least 5 paid sick days per year.

Maternity and 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. Leave is paid at 50% for employees covered by the labor code and at 100% for public servants.

Men are generally entitled to up to 10 days each year for family events.

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.

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.

How Africa HR Solutions Can Help You in Madagascar

Our employer of record solution enables companies to run payroll in Madagascar while Africa HR Solutions takes care of tax calculations,
and compliance management issues are lifted out of their shoulders and
passed onto ours. As an African Employer of Record expert, we manage employment contract best practices, statutory and local standard, employee benefits, and employee expenses, as well as severance and termination when needed.

Moreover, we keep you updated of any amendments to local employment laws in Madagascar.

When using our services, your new
hire is up and ready even earlier, since he has a smoother hiring
experience. You’ll have peace of mind knowing that you have a team of dedicated employment experts, backed by years of experience, helping with every hire.

Africa HR Solutions lets you focus on running efficiently your core business.