Payroll and Benefits Guide Madagascar
Last updated: Jun 10, 2025
Contribution
| Employer Payroll Contributions | |
| 13.00% | Pension, applied on up to 8 times the legal minimum wage (MGA 1,910,400 per month). |
| 5.00% | Health Insurance, applied on up to 8 times the legal minimum wage (MGA 1,910,400 per month). |
| Varies | Workers Compensation, determined based on the level of occupational risk, applied on up to 8 times the legal minimum wage (MGA 1,910,400 per month). |
| 18.00% |
Total Employer Cost
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Employee Payroll Contributions
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| 1.00% | Social Security, applied on up to 8 times the legal minimum wage (MGA 1,910,400 per month). |
| 1.00% | Health Insurance, applied on up to 8 times the legal minimum wage (MGA 1,910,400 per month). |
| 1.00% | Professional Training Funds, applied on up to 8 times the legal minimum wage (MGA 1,910,400 per month). |
| 3.00% | Total Employee Cost |
| Employee Income Tax | |
| 3,000 MGA | Up to 350,000 MGA |
| 5% | 350,001-400,000 MGA |
| 10% | 400,001-500,000 MGA |
| 15% | 500,001-600,000 MGA |
| 20% | Above 600,000 MGA |
Employer taxes
Working Hours
General
The standard workweek in Madagascar is generally 8 hours per day, 40 hours, with a lunch break between noon and 1pm Monday to Friday.
Employers are legally required to maintain accurate records of their employees’ working time.
Overtime
All employees are entitled to 130% of their regular pay for the first 8 hours of overtime and 150% thereafter.
Employees who are in senior managerial roles are often exempt from overtime provisions.
Payroll
Payroll Cycle
In Madagascar, the standard payroll cycle is monthly. Payments are generally made before the 8th of each month.
13th Salary
In Madagascar, a 13th salary is a mandatory bonus under the law. This bonus amounts to 14% of the annual salary and is typically distributed pro-rated throughout the year, with the final payment usually made in December.
Leave
Annual Leave (vacation)
In Madagascar, employees are entitled to 2.5 calendar days of paid leave per month of service, which totals 30 working days annually for those who have worked a full year.
- Accrual and Usage: Vacation leave accrues throughout the employment period. The timing of when leave is taken is determined by mutual agreement between the employer and employee, considering company regulations and operational needs.
- Mandatory Leave Period: At least 15 consecutive days of the annual vacation entitlement must be taken within a three-month period.
- Unused Leave: Unused leave can be carried over, but it must be used either by the end of the current year or within a three-year period.
- Probationary Periods: Employees may not take vacation leave during probationary periods.
PTO carryover
In Madagascar, statutory annual leave does not automatically expire at year-end. The law does not clearly grant unlimited carryover, but accrued statutory leave cannot be forfeited by policy. Unused leave must be taken later or paid out on termination; a blanket “use-it-or-lose-it” rule is not supported.
Public Holidays
In Madagascar, if a public holiday falls on a weekend it is usually moved to the following Monday.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 8 March 2026 | Sunday | International Women’s Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr | Standard holiday |
| 29 March 2026 | Sunday | Martyrs’ Day | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 24 May 2026 | Sunday | Whit Sunday (Pentecost) | Standard holiday |
| 25 May 2026 | Monday | Whit Monday | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha | Standard holiday |
| 26 June 2026 | Friday | Independence Day | Standard holiday |
| 15 August 2026 | Saturday | Assumption Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
Every employee working in Madagascar is entitled to at least 5 days of paid sick leave per year.
A certified health certificate must be provided.
Maternity Leave
In Madagascar, female employees are entitled to 14 weeks of paid maternity leave. This includes 8 weeks of postnatal leave. If there are complications or sickness resulting from pregnancy or birth, the maternity leave can be extended by an additional 3 weeks with a medical certificate.
During maternity leave, employees receive 100% of their average salary, with Social Security covering 50% and the employer covering the other 50%.
Paternity Leave
In Madagascar, fathers are entitled to 10 working days of paid paternity leave following the birth of a child. This leave is provided to support new fathers in spending time with their newborns and assisting the mother during the early days after childbirth.
Parental Leave
There is no additional parental leave granted under the law.
Other Leave
The labor code provides Family Events Leave of up to 10 days of unpaid leave per year for family-related events including marriage, birth or death of a close relative
Employer taxes
Termination
Termination Process
In Madagascar, termination can occur for just causes such as economic, technical, or organizational reasons, serious misconduct, repeated misconduct, or force majeure. Employers must provide advance notice, which varies based on the employee’s job category and length of service: 8 days for unskilled workers, 1 month for skilled workers, and 3 months for managers. Additionally, severance pay is generally required for terminations due to economic, technical, organizational, or force majeure reasons, calculated based on the employee’s length of service and salary.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| For monthly-paid workers: wages must be paid within 8 days after the end of the month worked. For fortnightly workers the interval must not exceed 20 days; for daily/weekly workers the interval must be fewer than 8 days. | When employment ends, the employer must pay all earned wages and benefits due “upon the cessation of services”. The law does not explicitly set a universal “within X days after termination” deadline in the accessible summaries. | Wages must be paid in legal tender (Malagasy ariary) and in money; payment via bank transfer is permitted but the law does not appear to mandate payments only via bank account for all employees. |
Notice Period
In Madagascar, when resigning employees typically must give 1 months notice unless otherwise specified in the employment agreement.
The notice period when terminating employment varies based on the employee’s employment category and length of service:
| Length of Service | Employee Category | Minimum Notice Period |
| During Probation | No notice required | |
| Less than 6 months | 1 day | |
| Less than 1 year | Worker | 8 days |
| Less than 1 year | Employee | 15 days |
| Less than 1 year | Supervisor/Cadre | 1 month |
| 1 to 5 years | Worker | 15 days |
| 1 to 5 years | Employee | 1 month |
| 1 to 5 years | Supervisor/Cadre | 2 months |
| More than 5 years | Worker | 1 month |
| More than 5 years | Employee | 2 months |
| More than 5 years | Supervisor/Cadre | 3 months |
Severance Pay
Under certain termination scenarios, severance pay might be mandatory e.g. economic reasons. Severance pay is calculated based on the employee’s length of service and their salary at 10 days’ wages for each year of service, capped at 6 months’ of wages.
Severance pay is not required if the employee resigns voluntarily or if the resignation is due to justified reasons.
Probation Period
In Madagascar, the minimum probation period is considered to be 3 months and the maximum allowed is 6 months.
Immigration
Process for Obtaining a Work Visa for Employees in Madagascar:
- Job Offer: Ensure you have extended a job offer to the prospective employee.
- Document Preparation: Assist your employee in gathering the necessary documents, including:
- A stamped employment contract from the Ministry of Public Service, Labor Administration Reform, and Social Laws (MFPTLS).
- A work permit issued by the MFPTLS.
- A certificate of employment from your company.
- Your company’s registration certificate from the Registrar of Companies (RCS).
- Your company’s Tax Identification Number (TIN) and statistics cards.
- Two recent passport-sized photos of the employee.
- The employee’s valid passport with at least one year of validity.
- A clean criminal record certificate for the employee.
- Proof of required vaccinations (e.g., hepatitis A, typhoid).
- A letter of intent from the employee explaining their reason for moving to Madagascar.
- Visa Application: Guide your employee to submit the visa application form along with the required documents to the nearest Malagasy embassy or consulate. Ensure the applicable visa fee is paid.
- Visa Interview: Prepare your employee for a visa interview if required.
- Visa Issuance: Once approved, the embassy or consulate will issue the work visa.
- Residency Permit: Upon the employee’s arrival in Madagascar, assist them in applying for a residency permit to legally reside and work in the country.
Minimum Wage
The minimum wage in Madagascar varies depending on the sector and tenure of the employee.
- Non-Agricultural Sector:
- For employees with less than 3 years of tenure: MGA 262,680 per month.
- For employees with 3 years or more of tenure: MGA 264,200 per month.
- Agricultural Sector:
- For employees with less than 3 years of tenure: MGA 266,500 per month.
- For employees with 3 years or more of tenure: MGA 268,700 per month.
MINIMUM WAGE (PER MONTH)
VAT
The Value Added Tax (VAT) rate in Madagascar is generally 20%. However, the VAT rate for exports of goods and services is 0%.
A reduced VAT rate of 5% applies to locally produced butane gas.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 8 March 2026 | Sunday | International Women’s Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr | Standard holiday |
| 29 March 2026 | Sunday | Martyrs’ Day | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 24 May 2026 | Sunday | Whit Sunday (Pentecost) | Standard holiday |
| 25 May 2026 | Monday | Whit Monday | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha | Standard holiday |
| 26 June 2026 | Friday | Independence Day | Standard holiday |
| 15 August 2026 | Saturday | Assumption Day | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Hello,
Trust you are fine.
We have around 6 employees joining one our company branch in Madagascar.
Kindly advise how we can proceed to have an in-country partner who can proceed with the statutory payments based on payroll processed.
We will be processing the payroll at our end.
Thank you.
Kind regards,
Yash.
Papaya Global has payroll and payment solutions in Madagascar. Feel free to connect out experts