Facts & Stats
- Capital City
Malagasy ariary (Ar, MGA)
Malagasy and French
- Population size
- Ease of doing business
- Cost of living index
- Payroll frequency
- VAT - standard rate
- GDP - real growth rate
Madagascar is the world’s fourth largest island & it’s home to a vibrant collection of flora & fauna that doesn’t exist anywhere else on the planet. Think lemurs (remember King Julien from Penguins of Madagascar?), aye-ayes, sifakas, and even the Malagasy giant rat. Add to that exotic palms, frogs, geckos, and chameleons and amazingly, 9% of all species live only in Madagascar.
This natural diversity should make Madagascar a compelling tourist destination. However, life on the island is not as idyllic as the crystal blue waters suggest. Sadly, Madagascar is one of the poorest countries in Africa and with more than half of the 28 million population living in poverty according to research by the World Bank.
The country has a comparatively high crime rate, and the supporting infrastructure is not advanced. Internal travel is difficult because of poorly surfaced roads, flights are expensive and limited to select international ports, and many international visitors stick to guided tours or beach resorts. Corruption, unrest, and violence can be a problem in the country, especially in the capital.
However, the local Malagasy people are known for their warmth and kindness. Doing business in Madagascar can prove challenging and the island is not a comfortable option for a digital nomad but there are expats and global businesses operating (mainly in the textiles, mining, and agriculture industries).
Grow your team in Madagascar with Remote
Note that we are busy building our own entity in Madagascar to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.
To employ in Madagascar, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Madagascar can get complicated fast, especially without localized expertise.
If you’re looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.
In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
Risks of misclassification
Madagascar, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Madagascar may lead to fines and penalties for the offending company.
Employing in Madagascar
Workers' rights in Madagascar are protected by:
The Malagasy Constitution of 2010
The Labor Code, i.e. Law No. 2003-44 of 2004
— all of which guarantee equal pay for equal work, the right to individual and collective labour disputes, safe working environments, and protections against discrimination based on age, religion, and race.
Common questions from local candidates during the hiring process will often involve minimum wage, overtime rates, healthcare benefits, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Madagascar.
Madagascar’s minimum wage is fixed at MGA 168,089 ($42.18) per month for general workers and MGA 170,442 ($42.77) for agricultural employees.
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Effortless HR in Madagascar: Take the Tour
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Competitive benefits package in Madagascar
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
We are still busy building our own entity in Madagascar, but our benefits packages for all countries are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Madagascar
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Madagascar.
social security (contributions are only charged on salaries up to eight times the minimum wage)
healthcare contributions (capped at 5% of eight times the minimum wage per employees, depending on the health plan enrolled)
Types of leave
Malagasy employees are entitled to 2.5 days of paid leave per month, or roughly 30 days paid vacation every year.
Employers can dismiss employees for business reasons, personal preferences, and serious misconduct. A written notice providing a reason for termination must be tendered in writing.
The notice period depends on the type of employment and an employee’s tenure but ranges from eight days to six months.
Workers who are dismissed for business reasons are entitled to severance payments equal to 10 days’ wages for each year of service, capped at six months’ pay.
The Madagascar Labour Code stipulates that probationary periods must not not exceed 6 months.