Madagascar EOR & PEO
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DID YOU KNOW
- Madagascar is home to around 5% of the world’s biodiversity, with over 90% of its wildlife found nowhere else on Earth – including its famous lemurs.
- The island’s Avenue of the Baobabs, lined with massive ancient trees, is one of the most surreal and photogenic landscapes in the world.
- Malagasy funerary traditions are unique – the Famadihana (turning of the bones) is a ceremonial family event where ancestors’ remains are exhumed, rewrapped, and celebrated with music and dancing.
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Working in Madagascar
Financial Year Dates
Madagascar’s financial year runs from 1st January to 31st December.
Minimum Wage
As of 2025, the minimum wage in Madagascar has increased to 262,680 MGA per month, up from 184,653 MGA in 2024. Between 2013 and 2025, minimum wages in the country have averaged 165,655 MGA per month, with the highest rate recorded in 2025 and the lowest at 108,019 MGA in 2013.
Standard working hours
The standard workweek in Madagascar is 40 hours, typically spread over five 8-hour days. Working hours generally run from 8 AM to 5 PM, with a one-hour lunch break. Flexible or part-time arrangements are not widespread but may be negotiated contractually.
Overtime
Employees who work beyond the standard 40 hours are entitled to overtime pay, typically calculated at:
- 130% of the standard wage for the first 8 overtime hours per week
- 150% for any additional hours
- 200% for work on Sundays and public holidays
Overtime arrangements must comply with national labour law and be agreed upon in the employment contract.
Holiday Allowance
Employees in Madagascar are entitled to a minimum of 2.5 days of paid leave per month, equating to 30 days per year. This is in addition to national public holidays.
Sick Leave
Employees in Madagascar are entitled to sick leave for up to 6 months, depending on their service length and medical certification. Immediate notice is required, usually supported by a medical certificate. Leave must be approved by the employer, and additional leave may be granted on a case-by-case basis. Sick leave is not accrued, but granted based on medical necessity.
Maternity & Paternity Leave
- Maternity Leave: In Madagascar, pregnant employees are entitled to 14 weeks of maternity leave, with 8 weeks mandatory postnatal. Advance notice and medical certification are required, though employer approval is not. Leave is not accrued or carried over, and no payout is given upon termination or year-end. Additional leave may be granted for medical complications. Employees are also protected from dismissal during maternity leave, except in exceptional, unrelated cases.
- Paternity Leave: Fathers in Madagascar are entitled to 10 days of paternity leave to support their partner around the time of childbirth. Advance notice is required, and the leave is subject to employer approval in line with operational needs. It cannot be accrued, carried over, or paid out, and must be used specifically around the childbirth period. Additional leave is not typically available unless offered by the employer.
Public Holiday
Madagascar observes official public holidays, which include:
- New Year’s Day – 1st January
- 1947 Events Commemoration – 29th March
- Easter Monday
- Labour Day – 1st May
- Ascension Thursday
- Whit Monday
- Independence Day – 26th June
- Assumption Day – 15th August
- All Saints’ Day – 1st November
- Christmas – 25th December
Additional religious or regional holidays may be observed locally.
Social Contributions
Employers are required to contribute to Madagascar’s social security and labour systems, including:
- CNAPS (Pension and Social Security): 13% of gross salary
- OSTIE (Medical Insurance): Between 5–6%
- Training tax: 1%
Employees contribute:
- CNAPS: 1%
- OSTIE: Up to 1%
Income Tax
In Madagascar, salary income tax (IRSA) is progressive, ranging from 0% to 20% based on income brackets:
- Up to 350,000 MGA: 0%
- 350,001–400,000 MGA: 5%
- 400,001–500,000 MGA: 10%
- 500,001–600,000 MGA: 15%
- Above 600,000 MGA: 20%
A minimum tax of 3,000 MGA applies to all employees, regardless of income level.
Health Care
Madagascar’s healthcare system is publicly funded, but under-resourced. Services are free or low-cost but may be limited in quality, especially outside major cities. Many employers provide private health insurance as part of the employment package, especially for senior or expatriate roles.
Employers registered with OSTIE (Organisme Sanitaire Tananarivien Inter-Entreprises) must enrol eligible staff for access to medical consultations and services through employer contributions.
Visas
Foreign nationals intending to work in Madagascar must apply for a work visa, usually preceded by a temporary stay permit and employment authorisation. Visa categories include:
- Non-immigrant visa: For short-term assignments
- Transformable visa: Convertible into a long-stay visa for work or residence
- Investor visa: For business owners and company shareholders
Applicants must typically submit a job offer, proof of qualifications, and a police clearance certificate. The process may take several weeks and should be started well in advance of the employment start date.
13th salary
There is no legal requirement for a 13th salary in Madagascar. However, in some sectors, particularly banking, insurance, and mining, it is common to offer end-of-year bonuses or performance-related payments.
For a broader look at how different countries handle bonus payments, explore our complete guide to 13th and 14th salaries.
Cultural Information
Business culture in Madagascar is formal and respectful, with hierarchical structures common in the workplace. Punctuality and appropriate business attire are valued, though relationship-building is just as important as efficiency.
- Languages spoken: Malagasy (official), French (widely used in business and government)
- Religion: A mix of Christianity, traditional beliefs, and Islam
- Cuisine: Rice is central to Malagasy meals, often served with zebu (beef), seafood, or coconut-based stews. Street food culture is lively and popular.
- Festivals: Independence Day (26th June) is celebrated nationwide with parades and fireworks. The Donia Music Festival in Nosy Be showcases regional and international talent.
- Etiquette tip: Greetings are important – a handshake and a polite “Salama” go a long way in establishing rapport.