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.
Hiring in Madagascar? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks: