MADAGASCAR Payroll Outsourcing
Pay Your Talents in Madagascar Compliantly
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Pay Your Team in Madagascar.
On Time. Everytime.
Ensure your team in Madagascar is paid accurately and on time with our Payroll Outsourcing services. Gain expert support to keep your operations fully compliant with Madagascar's Labour Code and tax regulations.
- Pay anyone in Madagascar - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Madagascar.
Flexible Payroll Solutions in Madagascar.
Payroll solutions that adapt to your needs whether you are established or growing in Madagascar.
Madagascar Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Madagascar and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes – manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Madagascar
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Madagascar’s legislation at all times.
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 Organisation
- 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 Organisation
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)
Seeking a Reliable Payroll Partner in Madagascar?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Madagascar labour 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.
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While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.