Madagascar

• New Year’s Day
• International Women’s Day
• Martyrs Day
• Easter Monday
• Labour Day
• Ascension Day
• Whit Monday
• Independence Day
• Assumption of Mary
• All Saints' Day
• Republic Day
• Christmas Day

Working Hours

The standard working hours are eight hours a day, up to 40 hours a week.

Minimum Wage

As of 1st March 2024, the minimum monthly wage is set at MGA 262,680 for the non-agricultural sector and MGA 266,500 for the agricultural sector.

Employee Tax

Annual income	Tax rate
Up to MGA 350,000	MGA 3,000 (flat rate)
MGA 350,001 - 400,000	5%
MGA 400,001 - 500,000	10%
MGA 500,001 - 600,000	15%
More than MGA 600,000	20%
Statutory healthcare contribution	1%
Pension contribution	1%

Bonuses

There are no statutory bonus schemes in Madagascar, but a 13th-month salary is common.

Employment contracts in Madagascar must be written in the local language (usually Malagasy or French). Contracts should include:

• Salary
• Benefits
• Termination requirements

Both indefinite and fixed-term contracts are permitted in Madagascar.

Annual Leave

Employees are entitled to 2 days of paid leave per month.

Sick Leave

Employees are entitled to at least 5 paid sick days per year.

Parental Leave

• Maternity leave: at least 14 weeks' paid leave.
• Paternity leave: none.
• Parental leave: up to ten days' family leave (which may be paid or unpaid).

Termination Process

Employers in Madagascar can terminate a contract, provided they give notice in line with legal requirements.

Other grounds for termination include:

• Fraud
• General misconduct
• Theft
• Moral misconduct

Employees can also give notice of termination in line with their contract terms.

Severance Pay

Employees are not usually entitled to severance pay, unless they have been dismissed for economic reasons.

In this case, employees are entitled to 10 days’ wages for each year of service, up to a maximum of 6 months of wages.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.