G-P’s Employer of Record (EOR) model allows your company to start hiring talent in minutes via our global entity infrastructure. Unlike a Professional Employer Organization (PEO), G-P allows your company to expand your global footprint without the hassle of entity setup and management.
Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.
As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in Madagascar
Madagascar is an island off of the Southeast coast of Africa. Over 28 million people live in Madagascar, and the official languages are Malagasy and French.
When negotiating terms of an employment contract and offer letter with an employee in Madagascar, it may be useful to keep the following in mind.
Employment contracts in Madagascar
It is legally required to put a written employment contract in place in Madagascar, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Madagascar should always state the salary and any compensation amounts in Malagasy Ariary rather than another currency.
Working hours in Madagascar
In general, the workweek is 40 hours, typically distributed across 5 workdays (8 hours each).
Holidays in Madagascar
Madagascar celebrates the following public holidays:
- New Year’s Day
- International Women’s Day
- Easter Monday
- Martyrs’ Day
- Labor Day
- Ascension Day
- Whit Monday
- Independence Day
- Assumption of Mary
- All Saints’ Day
- Republic Day
- Christmas Day
Vacation days in Madagascar
In general, employees are entitled to 2.5 days of paid leave per month.
Madagascar sick leave
Employees are entitled to at least 5 paid sick days per year.
Maternity/paternity leave in Madagascar
Expecting employees are generally entitled to 14 weeks of paid maternity leave, at least 8 of which should be taken after the child’s birth. Maternity leave can be extended an additional 3 weeks in the case of illness as a result of the pregnancy or childbirth.
For employees covered by the labor code, leave is paid 50% by the National Security Fund and 50% by the employer. For employees not covered by the labor code, employers are responsible for 100% of maternity leave wages.
Fathers are generally entitled to up to 10 days each year for family events.
Health insurance in Madagascar
Madagascar has a public/private healthcare system.
Madagascar supplementary benefits
Common fringe benefits include:
- Supplementary health insurance
- Car allowance
- Dependent education
- Fitness allowance
- Meal allowance
Bonuses
Annual, 13-month, and performance-based bonuses are all common in Madagascar.
Termination/severance in Madagascar
Probationary periods of up to 6 months are allowed with a one-time renewal. The time allowed depends on the position. Fixed-term contracts, including renewals, may not exceed 24 months.
Employees may be terminated for just cause with written notice. The notice period is determined by the type of employment and length of service, and ranges from 8 days to 6 months.
Employees are not generally eligible for severance pay, except if they are terminated for economic reasons, in which case they are entitled to 10 days’ wages for each year of service, up to 6 months of wages.
Paying taxes in Madagascar
In Madagascar, employers contribute 13% of wages to social security and 5% for healthcare. Employees contribute 1% to social security and 1% to healthcare.
As of January 2019, employers must also contribute 1% to the Fonds Malgache de Formation Professionnelle (FMFP).
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading Global Growth Platform™. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
Contact us today to learn more.