Good to know
Local Currency: the Malagasy Ariary (MGA)
Minimum Salary: MGA 262,680 per month
Salary Calculation: gross to net
Legal Working Hours: 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 an 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.
Ready to Benefit from Malagasy HR & Payroll Experts?
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 organisations. Companies are required to join one of these organisations.
The social security system does not provide protection against unemployment.
Administrative Organisation
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 organisations 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)
Contribution rates as of January 1, 2020 | ||||
| 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.
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.
Scale (common law system) | ||||
| Up to MGA 350,000 | MGA 3000 | |||
| Income bracket from MGA 350,001 to MGA 400,000 | 5% | |||
| Income bracket from MGA 450,001 to MGA 500,00 | 10% | |||
| Income bracket from MGA 500,001 to MGA 600,000 | 15% | |||
| More than MGA 600,000 | 20% | |||
The website of the General Management of Taxes of Madagascar provides a calculation simulator that you can find here.
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
HR & Payroll in Madagascar
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: 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.
Ready to Benefit from Malagasy HR & Payroll Experts?
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 an 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 organisations. Companies are required to join one of these organisations.
The social security system does not provide protection against unemployment.
Administrative Organisation
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 organisations 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)
Contribution rates | ||||
| 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.
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.
Scale (common law system) | ||||
| Up to MGA 350,000 | MGA 3000 | |||
| Income bracket from MGA 350,001 to MGA 400,000 | 5% | |||
| Income bracket from MGA 450,001 to MGA 500,00 | 10% | |||
| Income bracket from MGA 500,001 to MGA 600,000 | 15% | |||
| More than MGA 600,000 | 20% | |||
The website of the General Management of Taxes of Madagascar provides a calculation simulator that you can find here.
Source: https://www.impots.mg
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
Good to know
Local Currency: the Malagasy Ariary (MGA)
Minimum Salary: MGA 262,680 per month
Salary Calculation: gross to net
Legal Working Hours: 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.
Ready to Benefit from Malagasy HR & Payroll Experts?
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 an 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 organisations. Companies are required to join one of these organisations.
The social security system does not provide protection against unemployment.
Administrative Organisation
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 organisations 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)
Contribution rates | ||||
| 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.
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.
Scale (common law system) | ||||
| Up to MGA 350,000 | MGA 3000 | |||
| Income bracket from MGA 350,001 to MGA 400,000 | 5% | |||
| Income bracket from MGA 450,001 to MGA 500,00 | 10% | |||
| Income bracket from MGA 500,001 to MGA 600,000 | 15% | |||
| More than MGA 600,000 | 20% | |||
The website of the General Management of Taxes of Madagascar provides a calculation simulator that you can find here.
Source: https://www.impots.mg
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
Sources
Website of the Government of Madagascar
International Labour Organization
https://www.ilo.org/global/lang–en/index.htm
The Cleiss