Economic Overview, Francophone BPO Hub & Critical Minerals
Madagascar combines top-tier Francophone customer support and software engineering talent with global vanilla leadership and nickel/cobalt mining.
Key Economic Clusters
- Francophone BPO & Tech Outsourcing: Over 40,000 tech and BPO professionals in Antananarivo serving European tech enterprises.
- Bourbon Vanilla & Agribusiness: World's top producer of natural vanilla (SAVA region) and organic spices.
- Critical Minerals & Mining: Major nickel, cobalt (Ambatovy mine), and battery-grade graphite extraction.
Employment Contracts, Labour Code (Loi 2003-044) & Probation
Regulated by the Code du Travail Malgache (Loi N° 2003-044).
- Mandatory Written Contracts: Must be in French or Malagasy.
- Probation Period: Maximum 1 month for hourly workers, 3 months for technicians, and 6 months for executives (*cadres*).
Working Hours, Overtime & Rest Periods
- Standard Hours: 40 hours per week (8 hours/day over 5 days).
- Overtime Surcharges: Minimum 130% (30% premium) for first 8 overtime hours; 150% (50% premium) thereafter; 140% for night overtime; 150%–200% for rest days and public holidays.
Annual Leave (30 Calendar Days), Holidays & Maternity
- Annual Paid Vacation: Minimum 30 calendar days (2.5 days per month worked) per continuous year of service.
- Public Holidays: 13 official national public holidays.
- Maternity Leave: 14 consecutive weeks (6 weeks prenatal + 8 weeks postnatal) paid at 100% (50% paid by CNaPS and 50% by employer).
Social Security (CNaPS 13%), OSTIE Health (5%) & IRSA Tax
| Statutory Institution | Employer Share | Employee Share | Coverage |
|---|---|---|---|
| National Social Insurance (CNaPS) | 13.00% | 1.00% | Pensions, family allowances & workplace accidents (capped base) |
| Occupational Health (OSTIE / AMIT) | 5.00% | 1.00% | Inter-enterprise medical service and healthcare clinic |
| National Training Fund (FMFP) | 1.00% | 0.00% | Vocational skills development fund |
| Total Statutory Contributions | 19.00% | 2.00% | Total monthly social burden |
Personal Income Tax (IRSA): Progressive rates from 0% up to 20% on taxable income, remitted monthly to DGI.
Termination, Notice & Severance Indemnity
- Notice Periods: 10 days to 6 months based on employee category and seniority.
- Severance Pay: Progressive statutory formula based on average monthly earnings per completed year of service.
Why Use an Employer of Record (EOR) in Madagascar
- Rapid Francophone Tech & BPO Deployment: Onboard software engineers and customer support agents in Antananarivo in days.
- CNaPS, OSTIE & IRSA Compliance: Automated management of 19% employer social charges and DGI tax declarations.
- Work Permit Sponsorship: EOR manages Ministry of Labour work authorizations and residence visas through EDBM.