Employment in Madagascar is governed by the Labour Code of 2024 (Law No. 2024-014), which replaced the 2003 Code, with minimum wages set by government decree and social security run by the Caisse Nationale de Prévoyance Sociale (CNaPS). Here is what employers need to know about leave, pay, tax and ending employment.
The 2024 Labour Code sets minimum leave for all employees. Collective agreements and contracts can only improve on it, and employees cannot give up their annual leave in exchange for pay while employed.
Calendar days a year, earned at 2.5 days per month of service and paid by the employer before the leave starts. Leave can be accumulated for up to 3 years; at least 2 weeks must be taken at once.
Fully paid, including 8 weeks after the birth: half by CNaPS and half by the employer. Extendable by 4 weeks for illness of the mother or newborn.
Paid leave for the father on the birth of a child, introduced by the 2024 Code.
Up to 10 days a year of exceptional leave for family events, not deducted from annual leave.
Illness certified by the occupational health service or an approved doctor suspends the employment contract for up to 6 months, during which the employer cannot dismiss the employee. The employer continues to pay the salary for a limited period: one month, or the length of the notice period if that is longer. Longer absences are covered under the social protection rules.
Set up each Malagasy leave type in IceHrm with its own accrual, carry forward and approval rules, such as annual leave earned at 2.5 days a month and capped at 3 years of carry-over. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The government sets a minimum hiring wage (salaire minimum d'embauche) by decree for each professional category, with separate scales for agricultural and non-agricultural work and slightly higher rates after 3 years of service.
For the lowest non-agricultural category (M1-1A) from 1 March 2026. Higher non-agricultural categories go up to Ar 447,100.
173.33 hours a month. Agriculture is limited to 2,200 hours a year. Overtime is capped at 20 hours a week and needs the labour inspector's authorisation.
130% for the first 8 overtime hours in a week, 150% after that.
Night work (22:00 to 05:00) is paid at 130% when habitual and 150% when occasional. Work on the weekly rest day is paid at 140% and work on a public holiday at 150%. Employees must get at least 24 consecutive hours of rest a week, normally on Sunday, and 12 hours between working days.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so the 130%, 140% and 150% rates are paid on what was actually worked, and design payslips in French or Malagasy. Time & attendance →
Salaries are taxed through IRSA (Impôt sur les Revenus Salariaux et Assimilés), which the employer withholds from taxable remuneration, including allowances and benefits in kind, and pays to the tax authority. Residents are taxed on worldwide income.
| Monthly taxable income | Rate |
|---|---|
| Up to Ar 350,000 | 0% |
| Ar 350,001 – Ar 400,000 | 5% |
| Ar 400,001 – Ar 500,000 | 10% |
| Ar 500,001 – Ar 600,000 | 15% |
| Above Ar 600,000 | 20% |
Employers contribute to CNaPS for pensions and work accidents, to an approved occupational health organisation, and to the vocational training fund. Each contribution is capped at a base of 8 times the legal minimum wage per employee.
| Contribution | Employer | Employee |
|---|---|---|
| CNaPS (pensions and work accidents) | 13% | 1% |
| Occupational health organisation | 5% | 1% |
| Vocational training fund (FMFP) | 1% | – |
| Total | 19% | 2% |
Build Malagasy pay the way you already structure it, with your own salary components, deductions and formula columns, such as capped CNaPS and health contribution columns. Want to know how well IceHrm handles payroll calculations for Madagascar? Contact us or see Payroll →
Ending an indefinite contract requires a legitimate reason linked to the employee's aptitude or conduct, or the needs of the business. The employer must give written notice stating the reasons, and cannot add new reasons later. Dismissal without a legitimate reason is abusive and gives the right to damages set by the court.
| Seniority | Notice |
|---|---|
| Less than 8 days | 1 to 5 days |
| Less than 3 months | 3 days to 1 month |
| Less than 1 year | 8 days to 3 months |
| More than 1 year | 10 days to 4 months |
| More than 5 years | 1 to 6 months |
During notice the employee gets one day a week, paid, to look for a new job.
Severance is only required for economic dismissals and business closures: 10 days' salary for each full year of service, capped at 6 months' salary, calculated on the last salary including benefits. It is paid on top of notice pay, accrued leave and any damages for abusive dismissal. Collective economic dismissals also require consultation with staff representatives and notification of the labour inspector.
On termination the employee is entitled to salary due to the leaving date, pay for unused leave, notice pay (except for serious misconduct) and a certificate of employment.
Public holidays and any bridge days are fixed each year by government decree. They are days off with full pay. The list below reflects recent decrees.
Leave groups give each office its own public holiday calendar, so you can load the dates and bridge days from each year's decree once and have them applied to everyone in Madagascar. Holiday calendars →
Contracts are written in Malagasy and/or French, in two originals, one for each party. Fixed-term contracts and probation must be in writing; an indefinite contract can be proved by any means if it was not written down. The Ministry of Labour publishes model contracts with the mandatory clauses.
Probation must be agreed in writing and cannot exceed 6 months in total, including one renewal. In practice it is 3 months for workers and employees, 4 months for supervisors and 6 months for senior managers. A single fixed-term contract runs from 1 month to 2 years and can be renewed twice, up to 6 years in total; after that, or if the contract is used for permanent work, it becomes indefinite.
Send French or Malagasy contracts for e-signing, store them on the employee's record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Madagascar, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Madagascar? Talk to us.
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