Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Malagasy Ariary
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Madagascar is an island country in the Indian Ocean, about 400 kilometers off the coast of East Africa, that is officially known as the Republic of Madagascar. It was previously known as the Malagasy Republic. Madagascar is the world's second-largest island nation, covering 592,800 square kilometers. Madagascar's main island, as well as a number of smaller islands off the coast, make up the nation. Madagascar separated from the Indian subcontinent about 88 million years ago, following the prehistoric breakup of the supercontinent Gondwana, allowing native plants and animals to evolve in relative isolation. As a result, Madagascar is a biodiversity hotspot, with over 90% of its fauna occurring nowhere else on the planet. The encroachment of the rapidly increasing human population and other environmental threats are threatening the island's complex habitats and unique wildlife. The earliest human foraging on Madagascar could have occurred 10,000 years ago, according to archaeological reports. Austronesian cultures arrived on outrigger canoes from present-day Indonesia, where Hinduism and Buddhism, as well as native Indonesian society, dominated the social and religious landscape. Bantu refugees entering the Mozambique Channel from East Africa joined them around the 9th century AD. Other groups settled on Madagascar over time, each making significant contributions to Malagasy culture. The Merina of the central highlands are the largest subgroup of the Malagasy ethnic group, which is also divided into 18 or more subgroups. The island of Madagascar was governed by a patchwork of changing sociopolitical alliances until the late 18th century. The majority of the island was united and administered as the Kingdom of Madagascar by a series of Merina nobles beginning in the early nineteenth century. When the island was incorporated into the French colonial empire in 1897, the dynasty came to an end, and the island achieved independence in 1960. Since then, Madagascar's independent state has passed through four big constitutional cycles, known as republics. Since 1992, the country has been ruled as a constitutional democracy from Antananarivo, its capital. President Marc Ravalomanana was forced to resign in 2009 after a popular revolt, and presidential power was transferred to Andry Rajoelina in March 2009. In January 2014, Hery Rajaonarimampianina was sworn in as president, following a 2013 election that was considered fair and open by the international community. Madagascar is a member of the Organization Internationale de la Francophonie, the United Nations, the African Union, and the Southern African Development Community. According to the United Nations, Madagascar is one of the world's least developed countries. The state's official languages are Malagasy and French. Traditional religions, Christianity, or a mix of both are held by the majority of the population.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to 2.5 days of paid vacation every month.

Public holidays

There are many holidaysNew Year’s DayInternational Women’s DayEaster SundayEaster MondayCommemoration of the 1947 RebellionLabour dayAscension DayPentecostMonday of PentecostIndependence DayAssumption DayAll Saints’ DayChristmas Day

Sick days

Employees are entitled to five paid sick days per year.

Maternity leave

Female employees are entitled to 14 weeks of fully paid maternity leave, with an additional eight weeks available following the delivery. Due to a pregnant sickness or problems, this leave might be extended by three weeks.For the duration of maternity leave covered by the social insurance (CNAPS), female employees are entitled to a proportion of their wages, with the employer providing a portion of pay. Employers bear the whole cost of maternity leave for employees who are not covered by social insurance.

Paternity leave

Paternity leave is not available, however all employees are entitled to 10 days off each year for family celebrations, which might be utilized by new dads. Employers are not obligated to compensate their employees for taking this time off, but some do as part of a benefit package.

Parental leave

Other than the already mentioned terms for maternity and paternity leaves in Madagascar, there are no other provisions regarding parental leave in the law.

Other leave

06. Employment termination

Termination process

An employment contract can be cancelled by either the employee or the employer at the conclusion of the contract period (if the contract is for a specified time). Terminations must be in writing, and employers are often required to provide a cause for terminating an employee.

Without notice, an employment contract may be terminated during the probationary period.

Additionally, an employee may be removed without notice for misbehavior such as fraud, violation of the company's code of conduct, theft, or moral wrongdoing.

Outside of the probationary period and in the absence of wrongdoing, notice prior to terminating an employment contract is necessary. The amount of notice necessary generally varies according on the employee's classification and length of service.

Notice period

The notice period varies according to the type of employment and length of service and typically ranges from eight to six months.

Severance pay

Employees are generally not eligible for severance pay, except when their employment is terminated for economic reasons, in which case they are entitled to ten days' pay for each year of service, up to a maximum of six months' pay.

Probation period

Probationary periods of up to 6 months are allowed with a one-time renewal. The time allowed depends on the position of the employee.

07. Working hours


The average work week is 40 hours, divided into five eight-hour days.


Overtime is paid at a rate of 130 percent more than the basic wage for the first eight hours and then at a rate of 150 percent. Evening work is paid at a rate of 130 percent, while weekend work is paid at a rate of 140 percent, increasing to 150 percent on holidays. However, overtime and overtime pay are generally governed by collective and individual agreements.

08. Minimum wage


The minimum wage in Madagascar is 168,019 Malagasy ariary per month for non-agricultural workers and 170,442 Malagasy ariary per month for agricultural employees, according to compensation laws.

09. Employee benefits


Madagascar has universal healthcare, although private treatment is strongly advised.

Supplemental health insurance, a vehicle allowance, dependent schooling, a fitness allowance, and a food allowance are all common employer-provided perks.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

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