Hire and pay employees in Madagascar, hassle-free
With Deel, your business can easily hire employees in Madagascar. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the Madagascar is 3 days with Deel.
Onboard, pay and manage employees in Madagascar with Deel
Usually, to hire in Madagascar, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Now you can hire employees in Madagascar quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency Malagasy Ariar (MGA)
Capital Antananarivo
Official language French & Malagasy
Payroll cycle Monthly
All the necessary benefits for Madagascar built right in
Deel allows you to provide localized benefits for employees in Madagascar within minutes. All in one manageable online dashboard in a single HR platform.
- Pension
- Public Health Care
- Social Security
- Private Healthcare - Allianz (optional)
- Optional global health insurance - Allianz
Our quickstart guide to hiring in Madagascar
Navigate the tabs below to learn everything you need to know about hiring an employee in Madagascar
Minimum Wage Requirements
In Madagascar, the base minimum wage is MGA 262,680 per month. However, minimum wage also varies depending on the sector and years of employment of the employee.
For more details see here
Individual Income Tax
The individual income tax ranges from 0% to 20%. Income tax is calculated according to progressive rates.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to MGA 350,000 | 0% |
| Up to MGA 400,000 | 5% |
| Up to MGA 500,000 | 10% |
| Up to MGA 600,000 | 15% |
| Over MGA 600,000 | 20% |
Payroll Cost
The employer cost is generally estimated at 19% of the employee salary.
- CNAPS - Social Security and Pension Fund - 13.0%
- OSIE - Inter-Company Health Organization - 5.0%
- FTMP - Vocational Training Fund - 1.0%
*The minimum salary for the calculation of employer costs is MGA 262,680/month and the maximum is MGA 2,101,440/month.
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
Overtime payment is mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 20 hours of overtime per week. For additional hours, employees are paid:
- 130% of the hourly rate, the first 8 hours.
- 150% of the hourly rate, the following 8 hours.
Download the complete guide to hiring in Madagascar
Hiring in Madagascar, hassle-free
With Deel, your business can easily hire employees in Madagascar with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Madagascar and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
19%
of employee salary