Madagascar

Employer of Record (EOR) in Madagascar

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Madagascar . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Madagascar.

Employer of Record people
A coin
Currency
Malagasy Ariary
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Capital
Antananarivo
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Region
Africa
Megaphone
Language
French
Hire remote employees
Population
27691018
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GDP
$11.50 billion
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GDP growth
0.0417
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Ease of doing business
47.7
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World GDP share
0.0001

1. Grow your team in Madagascar with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Madagascar , particularly if you don't have established local relationships. You can hire employees in Madagascar effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

The Republic of Madagascar, sometimes known as Madagascar (and formerly as the Malagasy Republic), is an island republic in the Indian Ocean, about 400 kilometers (250 miles) off the coast of East Africa across the Mozambique Channel. Madagascar is the world's second-largest island nation, behind Indonesia, with 592,800 square kilometers (228,900 square miles). The country is made up of Madagascar (the world's fourth-largest island) plus a number of smaller outlying islands. Madagascar parted from the Indian subcontinent some 88 million years ago, after the ancient breakup of the supercontinent Gondwana, enabling local vegetation and animals to develop in relative isolation. As a result, Madagascar is a biodiversity hotspot, with over 90% of its animals being indigenous.

Austronesian peoples arrived in Madagascar before or before the mid-first millennium AD, likely aboard outrigger canoes from present-day Indonesia. Bantu migrants crossing the Mozambique Channel from East Africa joined them about the 9th century AD. Other tribes settled in Madagascar throughout time, each making significant contributions to Malagasy cultural life. The Malagasy ethnic group is often subdivided into 18 or more subgroups, the biggest of which being the Merina of the central highlands.

Until the late 18th century, Madagascar was dominated by a jumbled collection of fluctuating social coalitions. Beginning in the early nineteenth century, a succession of Merina nobility unified and dominated the majority of the island as the Kingdom of Madagascar. The island's monarchy ended in 1897, when it was absorbed into the French colonial empire, from which it gained independence in 1960. Since then, Madagascar's independent state has gone through four significant constitutional eras known as republics. Since 1992, the country has been ruled as a constitutional democracy from Antananarivo, its capital. However, after a political crisis in 2009, President Marc Ravalomanana was forced to resign, and presidential authority was given to Andry Rajoelina in March 2009. Constitutional administration was restored in January 2014, when Hery Rajaonarimampianina was elected president after a fair and transparent election in 2013. Madagascar belongs to the United Nations, the African Union (AU), the Southern African Development Community (SADC), and the Organisation Internationale de la Francophonie.

According to the United Nations, Madagascar is one of the world's least developed nations. Both Malagasy and French are official languages of the country. The vast majority of people follow Christianity, traditional beliefs, or a combination of the two. Madagascar's development plan includes increased expenditures in education, health, and the private sector, as well as ecotourism and agriculture. These investments brought significant economic development under Ravalomanana, but the gains were not uniformly distributed across the population, causing conflicts over rising living costs and falling living standards among the poor and certain elements of the middle class. The economy has been devastated by the 2009–2013 political crisis, and the majority of the Malagasy people continue to live in poverty.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Madagascar is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

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

Public holidays

There are many holidays

New Year’s Day

International Women’s Day

Easter Sunday

Easter Monday

Commemoration of the 1947 Rebellion

Labour day

Ascension Day

Pentecost

Monday of Pentecost

Independence Day

Assumption Day

All Saints’ Day

Christmas 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

5. Employment termination

There is no information about employment information for this country.

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.

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.

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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

Overtime

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.

7. Minimum wage

There is no information about the minimum wage for this country.

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.

8. Employee benefits

There is no information about the employee benefits for this country.

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.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Madagascar is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

Individual income tax

Madagascar is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

VAT, GST and sales tax

Madagascar is a tax-free jurisdiction. Corporations are not subject to income, capital gains, profit, or other types of direct taxes, regardless of their residency status.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Madagascar has put in place rules and restrictions that adhere to the Madagascar visa policy. Anyone from a nation that is not on the list of exempt passengers must apply for, submit, and be granted for a Madagascar visa in order to enter the country. The Madagascar visa policy stipulates that you must have a Madagascar visa in order to enter, reside in, or exit the country.

Certain information must be given in order for the Madagascar Visa to be filed, processed, and granted. A visa application will be deemed comprehensive and officially authorized by authorities if the following information is provided: the nation from which the passport was issued, the duration of stay in Madagascar, and the reason for the visit.

Madagascar developed the Madagascar Visa, which is accessible to citizens of all nations worldwide. This visa permits tourists to visit Madagascar for tourism reasons and allows them to stay for up to 30 days each entry.

Applying for a visa to Madagascar online is straightforward and fast, and the visa will be issued quickly after the application. Once approved, this visa must be shown to immigration authorities when a passenger arrives at Madagascar's port of entry.

Agreements have been struck between Madagascar and numerous nations that enable some countries to be visa free and do not need its passport holders to seek a visa before visiting the country.

There is now just one visa available as part of Madagascar's visa policy for tourist reasons. Travelers who wish to tour Madagascar but do not have a passport and are not given visa exemption under the Madagascar Visa policy must acquire authorization from the Madagascar government before arriving and attempting to cross the border.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

In Madagascar, it is legally obligatory to have a written employment contract in the local language that specifies out the conditions of the employee's remuneration, benefits, and termination requirements. In Madagascar, an offer letter and job contract should always mention the salary and any other remuneration amounts in Malagasy ariary rather than a foreign currency.

With Rivermate being your Employer of Record (EoR) in Madagascar, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

In Madagascar, most employment contracts are written. In Madagascar, there are two sorts of contracts: fixed-term and indefinite-period contracts. Fixed-term contracts are for a certain amount of time, with a maximum tenure of two years. Indefinite-period contracts are employment contracts that last more than two years.

Payment currency

Malagasy Ariary

13.Opening a subsidiary in Madagascar

There is no information about the working hours for this country.

How to set up a subsidiary

Before learning how to set up a Madagascar subsidiary, your firm may benefit from considering a few aspects of growth. For example, where would you want to open a branch in the country? Certain localities, towns, and regions have different prices, availability, and Madagascar subsidiary laws that might make incorporation simpler or more difficult. You should investigate the several regions you are considering and choose the one with the fewest subsidiary legislation.

Another thing to think about is the sort of company you intend to run in Madagascar. You may establish your Madagascar subsidiary as a limited liability company (LLC), a public limited company, a free zone business, a branch, or a representative office. Each entity gives you a different level of flexibility, with LLCs providing you the most.

The following actions are required to establish a Madagascar subsidiary as an LLC:

1. Choosing and registering a distinct business name

2. Obtaining licenses and statistical identification

3. Creating an in-country bank account

4. Paid-up share capital is deposited.

5. Filing a notice of constitution to be published in a daily French newspaper

6. Taking care of social security and tax responsibilities

Subsidiary laws

Madagascar subsidiary laws must be followed by each subsidiary structure. You'll need at least one director and one shareholder who may be of any country to form an LLC. To go through the incorporation procedure, you must also have a minimum paid-up share capital of $1.

Because French is the primary language in Madagascar, all of your LLC's financial records must be in French in order to be compliant. To retain these records at your registered office in Madagascar, you must select a resident representative. Subsidiary regulations in Madagascar also demand you to generate yearly financial statements and submit an audit each year via your authorized, designated auditor.

13. Why choose Rivermate as your Employer of Record / PEO in Madagascar

Establishing an entity in Madagascar to hire a team takes time, money, and effort. The labor law in Madagascar has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Madagascar 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 (EOR) solutions in Madagascar 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 Madagascar via our Employer of Record (EOR) / PEO solution.

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