Foreign nationals must obtain a work visa and work permit before employment begins. Employers must justify the hire and register the employee with labour authorities.

Residence permits are typically tied to the employment contract and must be renewed periodically. Compliance with local labour quotas may apply in certain industries.

Employers must register with Malagasy tax authorities and social security institutions prior to hiring.

Payroll is generally processed monthly. Employers are responsible for:

• Withholding personal income tax
• Withholding employee social security
• Paying employer social contributions
• Filing monthly declarations

Social Security Contributions (approximate):

• Employer: ~13%
• Employee: ~1%
  Additional occupational accident insurance contributions may apply.

Contracts may be fixed-term or indefinite. Written contracts are recommended and required for fixed-term agreements.

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Probation Period: Typically up to 6 months depending on role.

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Working Hours:

• Standard workweek: 40 hours
• Overtime subject to premium rates

Termination: Permitted for misconduct, economic reasons, or mutual agreement. Written notice required. Severance applies depending on length of service. Unlawful termination may result in damages or reinstatement.

• Annual Leave: Minimum 2.5 days per month worked (30 days per year).
• Sick Leave: Paid sick leave subject to medical certification.
• Maternity Leave: 14 weeks paid leave.
• Public Holidays: Approximately 12–13 paid national holidays.
• Employers must also provide workers’ compensation coverage.

Tax Residency: Individuals residing or working in Madagascar for more than 183 days in a year are generally considered tax residents.

Residents are taxed on Malagasy-sourced income.

Tax Year: January 1 – December 31.

Madagascar applies a progressive personal income tax system with rates up to 20%.