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Hiring guidelines in Madagascar

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Salary range
(0-2) years of experience
Full-time (40h/week)
Large business (regional)
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Hiring guidelines in Madagascar

  • Pay & taxes
  • Leave policy
  • Termination
  • Time-off
  • Additional info
Minimum Wage Requirements

In Madagascar, the minimum wage is complex. The base minimum wage is 133,013.40 MGA per month. However, minimum wage also varies depending on the sector and years of employment of the employee.

For more details see here

Individual Income Tax

The individual income tax ranges from 0% to 20%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income Tax Rate (%)
Up to MGA 350,000 0%
Up to MGA 400,000 5%
Up to MGA 500,000 10%
Up to MGA 600,000 15%
Over MGA 600,000 20%
Payroll Cost

The employer cost is generally estimated at 19% of the employee salary.

  • CNAPS - Retirement Gratuity - 13.0%
  • OSTIE - Medical Contribution - 5.0%
  • FTMP - Human Resource contribution - 1.0%
Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is not mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 16 hours of overtime per week. For additional hours, employees are paid:

  • 130% of the hourly rate, the first 8 hours.
  • 150% of the hourly rate, the following 8 hours.