Madagascar Payroll Guide
HR & Payroll in Madagascar
Good to know
- Local Currency: the Malagasy Ariary (MGA)
- Minimum Salary: MGA 262,680 per month
- Salary Calculation: gross to net
- Legal Working Hours: t 173.33 hours/month maximum for the general scheme
- Paid Leave: the employee acquires the right to paid leave to the extent of two and a half days per calendar month of actual work.:
- The right to paid leave is acquired after twelve months of effective service.
About Madagascar
Madagascar (Madagasikara) is an island state located in the Indian Ocean. Madagascar is the 5th largest island in the world after Australia, Greenland, New Guinea and Borneo.
The country has important biodiversity and many natural resources. The fauna and flora are unique in the world. A large part of the country’s economy is based on agriculture, particularly rice growing.
Are you looking to settle in Madagascar? Do you need help with payroll or human resources management? Our Malagasy payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Malagasy Social Security System
The Malagasy social security system covers salaried workers. The compulsory insurances are
Work accidents and occupational diseases
Old age, disability and death insurance (survivors)
Family benefits
The risk of illness and maternity is managed by inter-company medical service organizations. Companies are required to join one of these organizations.
The social security system does not provide protection against unemployment.
Administrative Organization
The National Social Security Fund (CNaPS) is a public institution in charge of the pension and work accident risks and providing family benefits through regional branches.
The inter-company medical service organizations offer health and maternity coverage. Companies are required to join one of these organizations and pay contributions (single rate):
OSTIE– Tananarivian Inter-company Health Organization (OSTIE)
AMIT – Inter-company medical association of Tananarive
ESIA
Funds health Center (FUNHECE).
Social Security Contributions (for employees)
| Branch | Employer’s share | Employee’s share |
|---|---|---|
| Sickness, maternity | 5% | 1% |
| Disability, old age, death (survivors) Work accidents, occupational diseases Family benefits | 13 % | 1% |
| Total | 18% | 2% |
The minimum amount for calculating contributions is equal to the amount of the minimum monthly salary.
Contributions are calculated on a salary capped at 8 times the minimum wage
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Madagascar.
Our Payroll and HR services in Madagascar
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
- I am ready for my Malagasy HR & Payroll expert
Source: CLEISS
- Salary Income Tax (IRSA)
- All income received by Malagasy employees is subject to the salary income tax (IRSA).
- The IRSA is deducted at source and paid by the employer or the paying agency to the tax office in charge of the employee’s tax file.
- The website of the General Management of Taxes of Madagascar provides a calculation simulator that you can find here.
- Source: https://www.impots.mg