HR Software for Madagascar

Leave Policy

Maternity Leave

Employees are entitled to 14 weeks of paid vacation. 6 weeks must be taken before the birth of the child. The remaining 8 weeks must be taken after the birth of the child. The employee receives 100% of her average salary during this period, social security pays 50% of this payment, and the employer pays the other 50%.

If pregnancy-related health complications occur, the employee can extend the vacation by a further 3 weeks with 100% continued payment of wages.

You can use the leave module in IceHrm to manage maternity leave in Madagascar.

Paternity Leave

There is currently no statutory paternity leave for employees in the private sector.

Parental Leave

Parental leave is not regulated by law in Madagascar. However, employees may be entitled to maternity and paternity leave.

Sick Leave

Employees are entitled to up to 6 months of paid sick leave. The illness must be confirmed by a doctor from the inter-company medical service and would amount to 100% of the daily wage.

Pay & Tax

Minimum Wage Requirements

In Madagascar, the basic minimum wage is 238,800 MGA per month. However, the minimum wage also varies depending on the industry and the employee’s years of employment.

Individual Income Tax

Personal income tax ranges from 0% to 20%. Income tax is calculated at progressive rates.

Gross Annual IncomeTax Rate (%)
Up to MGA 350,0000%
Up to MGA 400,0005%
Up to MGA 500,00010%
Up to MGA 600,00015%
Over MGA 600,00020%

Payroll Cost

Employer costs are generally estimated at 19% of employee wages.

  • CNAPS – Social Security and Pension Fund – 13.0%
  • OSIE – inter-company health organization – 5.0%
  • FTMP – Vocational Training Fund – 1.0%

*The maximum monthly salary for calculating employer costs is 1,910,400 MGA.

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.

Pay for overtime is mandatory and can be compensated with salary. Hours outside of standard working hours are considered overtime. An employee can work a maximum of 20 hours of overtime per week. Employees receive compensation for additional hours:

  • 130% of the hourly rate for the first 8 hours.
  • 150% of the hourly rate for the following 8 hours.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Layoffs in Madagascar can be complex. In Madagascar, employers cannot terminate at their own discretion and termination must be for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    1. Probation period
    2. Objective grounds
    3. Disciplinary dismissal
    4. Performance due to unsuitability for the job
  • By the expiration of the contract

Notice Period

In Madagascar, notice periods can be complex. The minimum notice period is 1 day and increases depending on the length of the employment relationship and the type of employment.

Severance for Employees

In Madagascar, all workers who are laid off for economic reasons are entitled to severance pay. The severance payment is 10 days per year of service up to 6 months’ salary.

To protect you from unforeseen financial risks arising from dismissals, IceHrm applies a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk around the world and our severance provision is calculated based on prevailing common law or statutory claims and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.

Statutory Time Off

Paid Time Off

Full-time employees are entitled to 30 days of paid time off (PTO) per year. PTO is credited monthly at 2.5 days per month. Employees are entitled to annual leave after 12 months of work, unless otherwise agreed. For part-time employees, vacation entitlement is calculated pro rata based on the time of attendance.

Public Holidays

There are 12 public holidays in Madagascar.

National holidays include:

  • New Year’s Day
  • Martyrs’ Day
  • Easter Monday
  • Labour Day
  • Eid al-Fitr
  • Ascension Day
  • Whit Monday
  • Independence Day
  • Eid al-Adha
  • Assumption of Mary
  • All Saints’ Day
  • Christmas Day

Onboarding

Onboarding

Onboarding takes 3 working days.

Additional Info

Employment Contract Details

The contracts must be written in English and French. They must be in writing and signed by both parties.

A contract must contain:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

The usual probationary period for employees in the IceHrm category is 4 months and can be extended once.