Seeking A Reliable Payroll Partner in Madagascar ?
With our Madagascar Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Madagascar’s Labor Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Madagascar Country Overview
Geographic location: Approximately 400 kilometers off the Eastern African coast lies Madagascar: the largest island of the Indian Ocean.
Population: With more than 28 million habitants, Madagascar represents a significant prospective market opportunity. Spoken languages are Malagasy and French.
Economy: This African country is known for its natural resources (especially precious stones and crystals) and handicrafts. However, many people in Madagascar live in poverty, particularly in the wake of the Covid-19 pandemic. This has impacted economic growth. While most sectors were struggling in the past years, Madagascar is now recovering slowly but surely from this economic shock… And there lies the opportunity!
Payroll in Madagascar - What You Should Know
- Population: 28,427,333
- Gross Domestic Product (GDP): $14.64 B
- GDP Growth (April 2021): 4.4%
- Inflation, consumer prices: 4.2%
- Foreign Direct Investment (% of GDP): 0.4%
- Unemployment Rate: 2.6%
- Capital: Antananarivo
- Currency: Malagasy Ariary
- Languages: Malagasy, French
Employer Contribution
- 13.00% of the employer’s payroll must be contributed to the National Pensions Fund
- 5.00% of the employer’s payroll must be contributed to the Statutory Health Organization
- 1.00% of the employer’s payroll must be contributed to the Fonds National sur la Formation Professionnelle (FNFP)
Employee Contribution
- 1.00% of the employer’s payroll must be contributed to the National Pensions Fund
- 1.00% of the employer’s payroll must be contributed to the Statutory Health Organization
Value-added tax (VAT)
The standard VAT rate is 20% in Madagascar.
Exports are zero-rated in the country.
Paid Time-Off
Employees are generally entitled to 21 days of paid annual leave.
Sick Leave
In Kenya, employees are generally entitled to 14 days of paid sick leave per year. The first 7 days are paid at 100% and the remaining at 50%.
Maternity Leave
In Kenya, women are entitled to a maximum of 3 months of paid maternity.
Paternity Leave
Thanks to the Employment Act, men in Kenya are entitled to 2 weeks of paid paternity leave.
In Madagascar, an employee’s contract can be terminated for justifiable reasons after the employee has been given prior written notice.
According to the country’s Labour Code, notice periods vary in proportion to the time served within the same company and can range from 8 days to 6 months.
Employees in Madagascar are only eligible for compensation if they are terminated as a result of redundancy or any other economic reasons, in which case they are entitled to 10 days’ wages for each year of service (up to 6 months of wages).
- New Year’s Day (1st January)
- Martyrs’ Day (29th March)
- Easter Monday (13th April)
- Labor Day (1st May)
- Ascension Day (21st May)
- Eid al-Fitr
- Whit Monday (1st June)
- Independence Day (26th June)
- Assumption of Mary (15th August)
- All Saints’ Day (1st November)
- Christmas Day (25th December)
Madagascar Payroll Done The Easy Way. The Right Way.
12 Years of Experience
Over more than a decade, Africa HR Solutions has become a leading payroll service provider across Africa with a proven track record of success with over 400 clients across many industries.
Bulletproof Compliance
Ensuring your operations are carried out compliantly is a must. From country-specific regulations to government laws, we make sure your company is up to code with Africa's legislation at all times.
+44 Countries in Africa
Operating in more than 44 countries in Africa, our team of experts gathered the required knowledge and local expertise to handle your needs and demands - wherever, whenever.
Single Point of Contact
Avoid unnecessary headaches and mistakes thanks to our centralized services and manage everything from a single database. A single point of contact for all of your needs across the continent.
Maximize your ROI
It is cheaper to let a third-party organization handle your payroll than to do it yourself. By saving on the overall cost of payroll, you can reallocate your budget elsewhere to promote company growth.
Swift Payroll Implementation
With Africa HR Solutions you are one call away from implementing an accurate and timely payroll operation to ensure your talents are paid on time no matter where they are in Africa.
We Can Help. Just Tell Us How!
Related Services
Countries We Cover
In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.
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