Hire employees in

Madagascar, hassle-free

Hire employees in Madagascar, hassle-free

With Deel, your business can easily hire employees in Madagascar. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Madagascar is 5 days with Deel.

Download the Guide


Malagasy Ariar (MGA)



Official Language

French & Malagasy

Payroll Cycle


Hire employees in Madagascar. No entity needed.

Usually, to hire in Madagascar, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Madagascar also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Madagascar quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Madagascar
built right in

Deel allows you to provide localized benefits for employees in Madagascar within minutes. All in one manageable online dashboard.

  • Pension
  • Public Health Care

Our quickstart guide to hiring in Madagascar

Navigate the tabs below to learn everything you need to know about hiring an employee in Madagascar

Minimum Wage Requirements

In Madagascar, the minimum wage is complex. The base minimum wage is 133,013.40 MGA per month. However, minimum wage also varies depending on the sector and years of employment of the employee.

For more details see here

Individual Income Tax

The individual income tax ranges from 0% to 20%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income Tax Rate (%)
Up to MGA 350,000 0%
Up to MGA 400,000 5%
Up to MGA 500,000 10%
Up to MGA 600,000 15%
Over MGA 600,000 20%

Employer Cost

The employer cost is generally estimated at 19% of the employee salary.

  • CNAPS - Retirement Gratuity - 13.0%
  • OSTIE - Medical Contribution - 5.0%
  • FTMP - Human Resource contribution - 1.0%

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is not mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 16 hours of overtime per week. For additional hours, employees are paid:

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

Maternity Leave

Pregnant employees are entitled to 14 weeks of paid leave. 6 weeks must be taken before the child's birth. The remaining 8 weeks must be taken after the child's birth. The employee will receive 100% of their average salary during this period, Social Security will be responsible for 50% of this payment and the employer the other 50%.

If there are health complications due to pregnancy, the employee can extend leave an additional 3 weeks at 100% pay.

Paternity Leave

There is no paternity leave currently required by law for workers in the private sector.

Parental Leave

In Madagascar, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 6 months. This leave is paid at 100% of the employee's salary, 50% by the employer, and 50% by Social Security.

Termination Requirements

Terminations in Madagascar can be complex. There is no at-will termination in Madagascar for employers and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Probation period
    • Objective grounds
    • Disciplinary dismissal
    • 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 will be increased according to the length of the employment and the employment type.

Severance for Employees

In Madagascar, all employees who are terminated due to economic reasons are entitled to severance pay. Severance pay is 10 days of salary per year of service up to 6 months based compensation.

Paid Time Off

Both full-time and part-time employees are entitled to 30 working days of paid time off (PTO) a year after 1 year of service. PTO accrues monthly at 2.5 days per month. Employees are eligible for annual leave after 1 month of work. During the first year of employment, an employee is not allowed to take more than 13.5 days.

Public Holidays

Madagascar celebrates 12 public holidays.

National public holidays include:

  1. New Year's Day
  2. Martyrs' Day
  3. Easter Monday
  4. Labour Day
  5. Eid al-Fitr
  6. Ascension Day
  7. Whit Monday
  8. Independence Day
  9. Eid al-Adha
  10. Assumption of Mary
  11. All Saints' Day
  12. Christmas Day


Onboarding takes 5 business days.

Employment Contract Details

Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

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

Probation Period

Probation periods are not mandatory. The minimum probation period is 3 months and the maximum probation period is 6 months.

Download the complete guide to hiring in Madagascar

Simply fill out your details below to gain access to our complete guide to hiring in Madagascar.

Hiring in Madagascar, hassle-free

With Deel, your business can easily hire employees in Madagascar. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)


Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Madagascar?

View our Employee Cost Calculator

We have a 4.9 out of 5 rating on Trustpilot

We're trusted by over 6,000 businesses all over the world. Read our reviews on Trustpilot.com.

5 Stars

Deel is the best!!

“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”

Manuela Echeverry
Nov 20, 2020
5 Stars

A contracting life-changer!

"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."

Kix Panganiban
Dec 3, 2020
5 Stars

Great service offering!!

"The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."

Michael US
Oct 28, 2020
5 Stars

Terrific service

"Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"

Nunzio Martinello
Dec 15, 2020
5 Stars

Deel is a game-changer for distributed teams

"Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"

Jeremie Habib
Nov 16, 2020
5 Stars

Great app with great customer service

"Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!"

Felipe Marote
Jan 29, 2021

Deel makes growing remote and international teams effortless. Ready to get started?






Legal experts