Madagascar HR Outsourcing

Madagascar is a country with an abundance of mineral and petroleum reserves, significant agricultural potential, and is among the world’s top producers of vanilla. Madagascar has often faced challenges such as cyclones, floods, and recently the pandemic, which has impacted the economy, but measures are being established to improve the overall economy.

Africa HR Solutions can help you expand your activities in Madagascar through a range of HR outsourcing services. We offer employment outsourcing solutions, such as Professional Employer Organisation (PEO), Employer of Record, payroll outsourcing, and other related services. Our experts ensure that every process is seamless, and your move is easy even if you do not have a legal entity in Madagascar yet.

Country Profile - Madagascar

Population: 26.3 mn

Gross Domestic Product (GDP): $13.72 bn

GDP Growth: 5.2%

Inflation: 7.3%

Foreign Direct Investment (% of GDP): 5.1%

Unemployment Rate: 1.7 %

Capital: Antananarivo

Currency: Malagasy ariary

Languages: Malagasy, French


Madagascar's Economy

Madagascar is known for its abundance in mineral reserves, precious stones, nickel, cobalt, as well as petroleum reserves. It has significant potential in the agricultural industry, considered among the world’s leading producers of vanilla. The economy was previously affected by drought, cyclones, plague, and recently the Covid-19 pandemic which had an impact on several sectors of the economy including tourism. Continued public investment, re-engagement of key partners, a rise in mining exports are aimed at fueling the economy’s growth. As Madagascar aims to increase its trade cooperation with the COMESA economies, several measures are being established to improve the living conditions of people, drive job creation and wealth to achieve the Objectives of Agenda 2063 in the global economy.

Interesting Facts About Madagascar

Madagascar is the fourth largest island in the world

Miavana is a centre for “blue safaris” where you can see turtles, whales, and dolphins and engage in scuba diving and fishing. This location is accessible only by helicopter only.

Madagascar is abundantly rich in biodiversity and is considered to be a “megadiverse”

‘Moraingy’is a bare-fisted fighting style that started in Madagascar and is known as its national sport

The national dish of Madagascar is ‘romazava’,  a stew made with meat and leafy greens

Public Holidays in Madagascar

New Year’s Day

International Women’s Day

Easter Monday

Martyrs’ Day

Labour Day

Ascension Day

Whit Monday

Independence Day

Assumption of Mary

All Saints’ Day

Republic Day

Christmas Day

Employment in Madagascar

Employees are entitled to vacation, sick and parental leaves. They work 5 days a week of 8 hours, that is 40 hours per week. The timeframe of renewals for fixed contracts and probationary periods differs; the notice period depends on the job position and the length of service. Severance pay is only offered in cases of economic reasons.

As regards to taxation,

for employers:

they contribute 13% of wages to social security

5% for healthcare

1% to the Fonds Malgache de Formation Professionnelle (FMFP)

For employees

They pay 1% to social security and 1% to healthcare

There are several benefits that are provided by employers namely supplementary health insurance, car, fitness & meal allowances as well as dependent education.