When your company prepares to expand to Madagascar, you need to consider the compensation you’ll provide and decide which benefits you’ll disperse to employees. Your company will have to meet Madagascar’s compensation laws and provide at least statutory benefits to stay compliant.
G-P offers a solution to make your expansion easier. We’ll act as the Employer of Record (EOR) and hire employees on your behalf. Our team of HR and legal experts will handle all matters of compensation, benefits, or compliance, so you don’t have to.
Madagascar compensation laws
Madagascar’s compensation laws dictate a minimum wage of MGA 168,019 a month for non-agricultural workers and MGA 170,442 a month for agricultural employees. Although Collective Bargaining Agreements (CBAs) aren’t extremely common in Madagascar, you should if any apply to your industry, as it could have different minimums.
Guaranteed benefits in Madagascar
Once you’re ready to provide benefits, you need to add employees to a Madagascar benefits management plan. You should start by providing statutory benefits such as 12 days off for the country’s public holidays. Employees are also entitled to 2.5 days of paid leave each month they work for your company.
In addition, maternity leave is a guaranteed benefit that you’ll need to provide. Expecting employees typically get 14 weeks of paid maternity leave, with 8 weeks taken after the birth. Employees covered under the labor code receive 50% of their leave pay from the National Security Fund and 50% from their employer. Employers must cover 100% of maternity leave for employees who are not covered under the code.
Madagascar benefits management
Employees need more than just statutory benefits to remain engaged and happy in their roles. Dispersing supplemental benefits as part of your Madagascar benefits management plan will show employees that they matter to your company and encourage higher retention rates. One common benefit is an annual 13th-month bonus or a performance-based bonus. Other companies may choose to provide the following benefits:
- Additional health insurance
- Car allowance
- Dependent education
- Fitness allowance
- Meal allowance
Restrictions for benefits and compensation
Many companies hope to expand to Madagascar and start working immediately. However, you have to establish a subsidiary before you can hire employees, add them to your payroll, and source benefits. Incorporation can take months and cause you to lose valuable talent.
G-P eliminates this restriction and enables an easy solution for companies looking to expand quickly. As a global Employer of Record (EOR), we can help you stay compliant and competitive from day one. When you work with us, you can begin hiring in minutes, not months, without setting up new entities.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.