Employer Tax Contributions

Tax Type	Rate	Base
CNaPS (Social Security & Pension)	13%	Gross salary (up to a ceiling)
Occupational Health Services (OSTIE/OSIE)	~1% or 5%	Gross salary (subject to a ceiling)
Fonds Malgache de Formation Professionnelle (FMFP/FNFP)	1%	Gross salary (subject to a ceiling)
IRSA (Income Tax on Salaries)	Progressive (0% - 20%)	Employee's taxable income

Filing & Compliance

• Monthly declarations (Déclaration des Salaires - DS) and payments for IRSA, CNaPS, OSTIE, and FMFP are generally due by the 15th of the following month.
• Annual declarations summarizing salaries and contributions are typically due by March 31st of the following year.
• Employers are responsible for withholding IRSA from employee salaries and remitting it to tax authorities.

In Madagascar, employee tax deductions encompass various areas, including social security contributions, health insurance, professional training, and income tax.

Income Tax (IRSA)

The Income Tax (Impôt sur le Revenu des Salaires et Assimilés - IRSA) is a progressive tax deducted directly from employee salaries. Here's the general structure:

• Up to 350,000 MGA: 3,000 MGA
• 350,001 MGA - 400,000 MGA: 5%
• 400,001 MGA - 500,000 MGA: 10%
• 500,001 MGA - 600,000 MGA: 15%
• Above 600,000 MGA: 20%

Social Security Contributions (CNaPS)

Employees contribute a total of 2% of their salary to the National Social Security Fund (Caisse Nationale de Prévoyance Sociale - CNaPS), covering:

• Pension (Retirement): 1% (employee contribution)
• Sickness and Maternity: 1% (employee contribution)
• Work Accidents and Occupational Diseases: Covered by the employer's contribution.
• Family benefits: Covered by the employer's contribution.

The employer contributes 18% divided into the above categories, with 13% allocated to the retirement plan. Contributions are calculated on earnings up to eight times the monthly minimum wage.

Health Insurance

Employees contribute 1% of their monthly salary towards a statutory health organization. Employers are also required to contribute 5% of the total payroll for employee healthcare coverage.

Professional Training Funds

Employees are subject to a 1% contribution from their monthly salary towards professional training funds.

Other Deductions

• Retirement Contributions: Employees can make additional voluntary contributions to their retirement savings, up to 10% of their taxable salary.

It's important to note that the information provided here reflects the situation as of February 5, 2025, and might be subject to changes due to legal and regulatory updates in Madagascar. Consulting with local tax and legal professionals is always recommended for the most up-to-date and accurate details. More detailed information about tax rates and regulations may be found through the Direction Générale des Impôts (DGI) in Madagascar. They are responsible for tax administration in the country.