Madagascar Employment Guide
Madagascar Employment Guide
Madagascar, an island nation off the southeast coast of Africa, has a population of around 28 million. Its economy is primarily based on agriculture, mining, and tourism. Employment in Madagascar is regulated by labor laws that govern contracts, working hours, minimum wage, leave, and social security contributions. Employers must ensure compliance with local labor regulations, including fair treatment, occupational safety, and employee rights. The country is gradually developing its industrial and service sectors, providing opportunities for skilled professionals.
Check recruitment costs
Currency
Malagasy Ariary (MGA)
Capital
Antananarivo
Official language
Malagasy, French
Salary Cycle
Monthly
Our Employment Guide in Madagascar
Browse the following tags to learn all about hiring employees in Madagascar
Understanding Minimum Wage Regulations in Madagascar
In Madagascar, the statutory minimum wage is set at 262,680 Malagasy Ariary per month. However, it's important to note that this baseline can vary depending on the specific industry and the employee's length of service. For multinational companies like SailGlobal, accurately applying these variations is crucial for compliance and fair compensation practices.
Personal Income Tax Structure
Madagascar employs a progressive tax system for personal income, with rates ranging from 0% to 20%. This structure ensures that tax obligations align with an individual's earnings capacity. For example, a junior employee at SailGlobal would fall into a lower bracket compared to a senior manager, impacting net pay calculations.
| Annual Income Bracket (Ariary) | Tax Rate (%) |
|---|---|
| Up to 350,000 | 0% |
| Up to 400,000 | 5% |
| Up to 500,000 | 10% |
| Up to 600,000 | 15% |
| Over 600,000 | 20% |
Calculating Total Employer Costs
Beyond the gross salary, employers must factor in statutory contributions, which typically amount to approximately 19% of the employee's wage. This is a critical component of the total employment cost for any business, including SailGlobal's operations in the region.
- CNAPS (Social Security and Pension Fund): 13.0%
- OSIE (Inter-Company Health Organization): 5.0%
- FTMP (Vocational Training Fund): 1.0%
These contributions are calculated on a monthly salary base, capped between 262,680 Ariary and 2,101,440 Ariary. Please note that these figures are estimates; for precise budgeting, SailGlobal recommends consulting with local legal experts.
Overtime Regulations and Standard Working Hours
The standard workweek in Madagascar is 40 hours, typically structured as eight hours per day from Monday to Friday. Overtime compensation is mandatory for hours worked beyond this standard. The law permits a maximum of 20 overtime hours per week, remunerated at a premium rate to compensate employees for their additional time.
- First 8 hours of overtime: 130% of the standard hourly rate.
- Subsequent hours (up to the weekly limit): 150% of the standard hourly rate.
Properly managing overtime is essential for companies like SailGlobal to maintain compliance and foster a positive work environment.
Hire easily in Madagascar
Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now
Cost Calculator
Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.
USD