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How To Hire New Remote Employees | Madagascar

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Madagascar

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Madagascar

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Madagascar

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capital city
Madagascar
currency
Malagasy Ariary (Ar)
language spoken
Malagasy and French
payroll frequency
Monthly
employer taxes
19%
vat - standard rate
20%
cost of living index
Low ($554)
gdp - real growth rate
$ 45.948 billion
termination process
Easy
employee protections
High
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Overview

Despite possessing a number of natural resources including graphite, chromite, coal, fish, and hydropower, Madagascar remains an agriculture-based economy. Of the nation's $37.5 billion GDP (PPP), 25% is contributed by the, which is also responsible for 80% of employment on the island. Madagascar is the world's, while coffee, sugarcane, and rice are also key agricultural products. With insufficient domestic demand, Madagascar’s economy is dependent on the exportation of its agricultural products.

Public Holidays

1 January- New Year's Day

29 March- Martyrs' Day

18 April- Easter Monday

1 May- Labour Day

2–3 May- Eid al-Fitr

26 May- Ascension Day

6 June- Whit Monday

26 June- Independence Day

9–10 July- Eid al-Adha

15 August- Assumption of Mary

1 November- All Saints' Day

25 December- Christmas Day

Minimum wage

The minimum wage in Madagascar is MGA 133,013.40 per month, or MGA 767.40 per hour for workers in the non-agricultural sectors, and MGA 134,920.00 Monthly, or MGA 674.60 per hour for workers in the agricultural sector.

Payroll cycle

The Labour Code 2003 regulates the payment of wages to all classes of workers. The salary is the counterpart of the work; no salary is due in case of absence outside the cases provided by regulation and unless agreed in writing between the parties. Minimum wages in Madagascar are calculated at a daily rate. It requires the employers to make timely payment of remuneration to the employee.

 • For a worker hired on a daily or weekly basis, wages must be paid in regular intervals of less than 8 days; 

• For a worker working on a fortnightly basis, wage interval must not exceed 20 days; and 

• For working on a monthly basis, wages must be paid within 8 days of the end of the month.

Taxation

In Madagascar, employers contribute 5% of salaries to healthcare and 13% to social security, as well as 1% for Fonds National sur la Formation Professionnelle (FNFP). On the other hand, employees pay income tax according to their salary band as follows;

Up to MGA 350,000-0%

MGA 350,001- MGA 400,000-5%

MGA 400,001-MGA 500,000-10%

MGA 500,001-MGA 600,000-15%

Above MGA 600,000-20%

Leaves

All female employees in Madagascar are granted paid maternity leave totaling 14 weeks, with which eight weeks must be taken once the child is born. Notably, the legal pay during maternity leave is 50% of the employee's salary and 100% for employees employed by the government. 

In Madagascar, male employees are also entitled to a maximum of ten days annually to attend family events.


Termination process

In Madagascar, employees can be terminated for a reason with a written notice.


Notice Period

The notice period differs depending on the employment type and the duration in which the employee has worked with an organization. This period ideally ranges between eight days and six months.

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