Hire and pay employees in

Madagascar, hassle-free

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 Madagascar is 5 days with Deel.


Malagasy Ariar (MGA)



Official Language

French & Malagasy

Payroll Cycle


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.

Deel lets you hire employees in Madagascar quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

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.

  • Pension
  • Public Health Care
  • Private Healthcare - Allianz (optional)

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 minimum wage is complex. The base minimum wage is 133,013.40 MGA 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. Multiple additional factors may impact overall rates such as the household status and the number of children.

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 - Retirement Gratuity - 13.0%
  • OSTIE - Medical Contribution - 5.0%
  • FTMP - Human Resource contribution - 1.0%

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 not mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 16 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.

Maternity Leave

Pregnant employees are entitled to 14 weeks of paid leave. 6 weeks must be taken before the child's birth. The remaining 8 weeks must be taken after the child's birth. The employee will receive 100% of their average salary during this period, Social Security will be responsible for 50% of this payment and the employer the other 50%.

If there are health complications due to pregnancy, the employee can extend leave an additional 3 weeks at 100% pay.

Paternity Leave

There is no paternity leave currently required by law for workers in the private sector.

Parental Leave

In Madagascar, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 6 months. This leave is paid at 100% of the employee's salary, 50% by the employer, and 50% by Social Security.

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Madagascar can be complex. There is no at-will termination in Madagascar for employers and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Probation period
    • Objective grounds
    • Disciplinary dismissal
    • Performance due to unsuitability for the job
  • By the expiration of the contract

Notice Period

In Madagascar, notice periods can be complex. The minimum notice period is 1 day and will be increased according to the length of the employment and the employment type.

Severance for Employees

In Madagascar, all employees who are terminated due to economic reasons are entitled to severance pay. Severance pay is 10 days of salary per year of service up to 6 months based compensation.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Paid Time Off

Both full-time and part-time employees are entitled to 30 working days of paid time off (PTO) a year after 1 year of service. PTO accrues monthly at 2.5 days per month. Employees are eligible for annual leave after 1 month of work. During the first year of employment, an employee is not allowed to take more than 13.5 days.

Public Holidays

Madagascar celebrates 12 public holidays.

National public holidays include:

  1. New Year's Day
  2. Martyrs' Day
  3. Easter Monday
  4. Labour Day
  5. Eid al-Fitr
  6. Ascension Day
  7. Whit Monday
  8. Independence Day
  9. Eid al-Adha
  10. Assumption of Mary
  11. All Saints' Day
  12. Christmas Day


Onboarding takes 5 business days.

Employment Contract Details

Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are not mandatory. The minimum probation period is 3 months and the maximum probation period is 6 months.

Download the complete guide to hiring in Madagascar

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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.

Group (8)

599 USD

Management fee

Group (9)


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