In Madagascar, employers are legally required to provide a package of benefits to their employees. These benefits are designed to protect workers and ensure their well-being.

Social Security

Madagascar has a state-run social security system called the Malagasy Social Security Scheme. This scheme offers benefits like pensions, medical coverage, disability insurance, and death benefits.

• Employer Contributions: Employers contribute 13% of the gross wage (based on eight times the legal minimum wage) to the scheme. Of this contribution, 9.5% goes towards old-age, disability, and survivor's pensions.
• Employee Contributions: Employees contribute 1% of their gross wages (based on eight times the legal minimum wage) towards the benefits offered by the scheme.

Paid Leave

Employees in Madagascar are entitled to various types of paid leave, including:

• Annual Leave: Employees accrue paid annual leave at a rate of 2.5 days per month worked.
• Public Holidays: Madagascar has 12 paid public holidays each year.
• Sick Leave: Employees are entitled to at least 5 paid sick days per year.
• Maternity Leave: Female employees are generally entitled to 14 weeks of paid maternity leave, with at least eight weeks taken after childbirth. Leave is partially paid by the National Security Fund (50%) and the employer (50%) for employees covered by the labor code.
• Paternity Leave: Men are generally entitled to up to 10 days of leave per year for family events.

Other Mandatory Benefits

• Notice Period: Both employers and employees are required to provide a notice period before termination of employment. The notice period varies depending on the length of service.
• Severance Pay: In cases of redundancy or dismissal, employees may be entitled to severance pay.
• Overtime Pay: Overtime work is compensated at a premium rate. The premium rate increases for overtime hours worked beyond a set threshold.

In Madagascar, employers often offer a variety of optional benefits to attract and retain top talent. These benefits can range from financial incentives to time off benefits and other perks.

Financial Benefits

• Supplementary Health Insurance: Some employers offer private health insurance plans to supplement the coverage provided by the Malagasy Social Security Scheme.
• Life Insurance: Life insurance benefits may be provided by employers, offering financial security to employees' families in case of death.
• Profit Sharing: Profit-sharing plans are offered by some companies, allowing employees to share in the company's success.

Time Off Benefits

• Flexible Work Arrangements: Flexible work arrangements such as remote work options or compressed workweeks may be offered by employers to enhance work-life balance for employees.
• Additional Paid Leave: Additional paid leave days beyond the mandatory minimums, such as vacation days or personal leave days, may be offered by some companies.

Other Optional Benefits

• Professional Development: Employers may invest in their employees' professional development by offering training programs or educational opportunities.
• Wellness Programs: Wellness programs to promote employee health and well-being could be offered by companies. These programs could include fitness center memberships, health screenings, or discounts on health-related services.
• Company Car or Transportation Allowances: Employers may provide company cars or transportation allowances to employees to facilitate commuting.
• Meal Vouchers or Subsidized Meals: Meal vouchers or subsidized meals in the workplace may be offered by some companies.

The specific optional benefits offered by employers in Madagascar will vary depending on the company's size, industry, and budget. By providing attractive benefits packages, employers can create a more competitive work environment and attract a more qualified workforce.

In Madagascar, all employees are required to contribute to the Malagasy Social Security Scheme (Caisse Nationale de Prévoyance Sociale - CNSS). This scheme provides basic health insurance coverage for employees and their dependents.

Employee and Employer Contributions

Employees contribute 1% of their gross salary (capped at eight times the legal minimum wage) towards health insurance. On the other hand, employers contribute a significantly larger portion, at a rate of 5% of the employee's gross salary (also capped at eight times the legal minimum wage).

Coverage of Public Health Insurance

The public health insurance system covers a range of medical services, including emergency care, general surgery, maternity care, specialized services (availability may vary), primary medical care, and prenatal care. However, the public system can be limited in terms of access to specialists, quality of care, and wait times.

Private Health Insurance

Due to these limitations, some employers may offer private health insurance plans. Private health insurance can provide employees with access to a wider network of healthcare providers, including specialists, shorter wait times for treatment, and coverage for a broader range of medical services. The decision to enroll in private health insurance is up to the individual employee.

In Madagascar, the retirement system is primarily based on a public pension plan, with the option for private supplementation.

Public Pension Plan (Old-Age Pension)

The Malagasy Social Security Scheme (CNSS) provides a public old-age pension as the main retirement benefit for employees.

• Eligibility: To qualify for a full old-age pension, employees must:
  • Reach the retirement age: 60 years old (55 for merchant seamen)
  • Accumulate at least 15 years of coverage under CNSS
  • Contribute for at least 28 quarters within the last 10 years before retirement

If employees don't meet the full eligibility criteria, they may be entitled to a partial pension based on their contribution history.

• Pension Calculation: The amount of the old-age pension is calculated based on the employee's average salary during their contribution period. The minimum pension benefit is set at 60% of the legal minimum wage, with supplements available for dependents and work medals.

However, the public pension may not always be sufficient to maintain a comfortable standard of living in retirement.

Private Pension Plans

Some employers or individuals may opt for private pension plans to supplement the public pension. These plans can be offered by insurance companies or financial institutions.

• Benefits: Private pension plans offer various benefits, including:
  • Flexibility: Individuals can choose their contribution amount and investment strategy.
  • Higher Returns: Potential for higher returns compared to the public pension.
  • Early Access: May offer access to funds before the official retirement age.