Employee benefitsin Madagascar

Employers must affiliate staff with an intercompany medical service. At the Organisation Sanitaire Tananarivienne Inter-Entreprises (OSTIE), the general regime charges 5% to the employer and 1% to the employee. New staff must be declared from their first day; OSTIE states care starts 48 hours after declaration. Eligible family members require registration documents. This occupational medical system is distinct from supplementary private insurance.

The Caisse Nationale de Prévoyance Sociale (CNaPS), Madagascar’s employee social-protection fund, provides occupational injury and disease protection. Claims can reimburse injury-related medical costs and pay daily compensation where salary has not been fully maintained; lasting impairment can lead to a pension. Employers submit an accident declaration with the previous month’s payslip. If the employer fails to declare, the worker can make a claim within one year of the accident.

For 15 months after childbirth, a mother has paid breastfeeding breaks totaling up to one hour per working day. Part-time entitlement is proportionate to daily working time. Where the number of mothers wishing to breastfeed at work requires it, the workplace must provide a suitable space under arrangements discussed within the business.

Formal employers contribute 1% of capped gross payroll to the Fonds Malgache de Formation Professionnelle (FMFP), the national vocational-training financing fund. This is an employer-only charge. Contributing businesses can apply for eligible employee training finance; their individual drawing right is 70% of contributions already paid, while other funds support pooled projects and administration. It is a training-finance mechanism, rather than a cash allowance paid to every employee.

Some employers add medical insurance above compulsory occupational care. In Concentrix’s Toamasina hiring example, supplementary cover starts from the sixth month and family cover is also listed. A digital-education employer separately lists employee supplementary cover alongside family occupational care. The chosen policy sets dependants, reimbursement, exclusions and employee costs.

Employer development can include initial and ongoing job training. Concentrix lists both in its Toamasina package; Orange Business Madagascar describes access to professional technology certifications. These are named employer practices above the payroll training-finance mechanism.

The Caisse Nationale de Prévoyance Sociale (CNaPS), Madagascar’s employee social-protection fund, pays a normal retirement pension from age 60 when the worker has stopped salaried activity, has at least 15 years of affiliation and has contributions for 28 quarters in the last ten years. A proportional pension is possible with at least 60 career contribution quarters. The annual formula combines 30% of the annual minimum hiring wage, 20% of the revalued average annual pay for the last ten years, and an additional 1% of that average for each four contribution quarters beyond ten years; the pension is paid quarterly.

Employers register covered employees with the Caisse Nationale de Prévoyance Sociale (CNaPS), Madagascar’s fund for pensions, family benefits and occupational injuries. The standard contribution is 13% from the employer and 1% from the employee, assessed on the applicable capped wage base. Medical-service and vocational-training contributions are separate costs. Registration starts at hiring, including probation.

The employee social-security regime does not provide unemployment-risk insurance. Termination pay, economic-dismissal severance and any separately agreed employer assistance follow their own rules; they should not be described as an unemployment insurance benefit.

Employees dismissed for economic reasons or because the business closes receive ten days of salary for each complete year of service, capped at six months’ salary unless a contract or collective agreement is more favourable. Calculation uses the final remuneration rate and relevant benefits, excluding expense reimbursements. This payment is separate from notice compensation, unused annual-leave pay and any damages for unfair dismissal. Ordinary resignation does not itself trigger this economic-dismissal entitlement.

The Caisse Nationale de Prévoyance Sociale (CNaPS), Madagascar’s employee social-protection fund, has a voluntary supplementary pension regime. Joint employer/employee participation requires a majority of existing staff to join and covers later hires. Contributions total 4.5%: 3.5% employer and 1% employee. Benefits add pension protection under the fund’s supplementary regime.

Employees earn 2.5 calendar days of employer-funded annual leave for each month of effective service, equivalent to 30 calendar days for twelve months. Leave can normally be taken after twelve months; the first 15-day block must be continuous and taken within three months of the right opening, with operational arrangements agreed. The balance can be split or accumulated within the three-year rules. Public holidays and qualifying sickness are not deducted from annual leave. A worker can challenge expiry where the employer prevented leave being taken.

Medically certified illness can suspend the employment contract for up to six consecutive months. During the protected suspension, the employer pays normal remuneration for up to one month where the usual notice period is shorter, or for the usual notice period where it is longer. The six-month suspension limit therefore does not mean six months at full pay. Certification comes from the occupational medical service or an approved doctor. Separate provisions apply to qualifying long-term illness and occupational injury.

An employee can suspend work for up to two consecutive months to care for an ill or hospitalized child when a medical certificate confirms the employee’s presence is necessary, or for up to 15 consecutive days when a legally married spouse is hospitalized. Article 32’s employer-funded suspension allowance applies: normal remuneration for one month or the longer usual notice period, within the actual absence. These periods protect annual-leave accrual. Authorized exceptional family-event absences also preserve accrual for up to ten days a year, without reducing annual leave.

Employees receive 14 consecutive weeks of maternity leave, including eight weeks after childbirth, at full salary with continuing benefits in kind. The Caisse Nationale de Prévoyance Sociale (CNaPS), Madagascar’s employee social-protection fund, pays half the salary and the employer pays half. Certified pregnancy or childbirth illness, or illness of the newborn, can extend leave by up to four weeks. CNaPS reimburses childbirth and related care within applicable medical tariffs. If the employer has not affiliated the employee, the employer pays the full salary and relevant medical reimbursement. The minimum 14-week pay remains due even after a stillbirth or a changed delivery date.

An employee who is the legally married spouse of a woman giving birth is entitled to three days of paternity leave, paid by the employer as effective working days. A more favourable agreement can extend this right. The entitlement belongs to the qualifying employee spouse and is separate from the mother’s maternity leave.

The Caisse Nationale de Prévoyance Sociale (CNaPS), Madagascar’s employee social-protection fund, pays qualifying family allowances for children under 21, prenatal and maternity allowances, half-salary maternity compensation and childbirth reimbursement. Benefits require an application and supporting documents. Child eligibility, the employee’s work record and the employer’s contribution and declaration compliance affect payment. Being registered alone does not start benefit payments.

Annual leave is funded by the employer. The leave allowance must be at least one twelfth of the employee’s salary and relevant remuneration over the preceding twelve months, excluding expense reimbursements. The cash value of benefits in kind is included unless those benefits continue throughout leave. Payment is due before leave starts unless the parties agree otherwise in writing. Untaken accrued leave is paid out when the contract ends; cash cannot replace the right to rest during an ongoing contract.

A Passerelles Numériques Madagascar offer provides a year-end thirteenth-month payment after twelve effective months, prorated for shorter service. Concentrix separately lists results-linked variable pay. Contractual year-end pay and performance incentives have different conditions; an offered bonus should specify eligibility, calculation and payment timing.

Where workplace location and unavailable public transport make employer transport necessary, the employer must arrange suitable transport or provide an allowance at a single rate agreed with employee representatives. Night workers must also have employer-provided transport and security. Employees relocated for work have separate rights to employer-paid housing and family travel within implementing limits; these conditional duties differ from a general commuting perk.

Remote work uses communications technology to perform work outside the employer’s premises. It can be agreed at hiring or later through a collective agreement, workplace agreement, contract or amendment. The arrangement must address employee acceptance, work supplies and equipment, working-time or workload controls, and normal contact hours. Employers explain equipment-use rules and hold periodic discussions about conditions and workload. These safeguards support an agreed arrangement; they do not create a general employee right to work remotely.

Workplace meals can be provided in kind. Concentrix’s Toamasina offer includes a complete canteen meal for each day attended, rather than a published cash allowance.

Some employers arrange commuting transport as part of their package. Concentrix’s Toamasina offer lists company-provided transport. This employer policy sits alongside the separate statutory transport duties for certain locations and night work.

Some employers offer scheduled work from home. A Passerelles Numériques Madagascar recruitment policy provides two half-days of remote work per week for an Antananarivo role. This is a specific digital-education employer example, with the employee otherwise based at its office, rather than a national hybrid-work standard.

The Labour Code covers paid work performed under another person’s direction and authority in Madagascar, regardless of nationality or where the contract was signed. Genuine independent workers are outside this Code. Certain habitual pieceworkers and homeworkers are expressly included as employees, so a freelance label or payment by task does not decide status. Public servants under their own statutes and maritime workers follow separate regimes.

Employers must document the employment contract at hiring in Malagasy and/or French and give the employee a signed copy. The document must identify the job, occupational category, minimum classification index, salary and effective date. Fixed-term contracts are limited to eligible nonpermanent work, including defined projects and temporary exceptional workload, rather than filling permanent jobs indefinitely.

Salaries must be paid in Madagascar in legal tender, with a payslip in Malagasy and/or French. Payment intervals can be daily, weekly, fortnightly or monthly; monthly payroll is a reported hiring practice. Delays require force majeure justification. Even then, monthly salaries must be paid no later than eight days after the monthly due date. Digital payment is encouraged where suitable, with practical arrangements discussed with staff.

From 1 October 2026, the minimum monthly hiring wage is MGA 315,000 under the general nonagricultural regime and MGA 320,000 under the agricultural regime. The Caisse Nationale de Prévoyance Sociale (CNaPS), the national employee social-protection fund, lists corresponding contribution ceilings of MGA 2,520,000 and MGA 2,560,000 a month, equal to eight times these floors. Job classifications and applicable wage schedules can require higher pay.

For covered 40-hour occupations, overtime attracts a minimum 30% premium for the first eight additional hours in a week and 50% thereafter. The decree permits at most 20 overtime hours weekly and requires the applicable labour-inspector authorization or urgent notification procedure. Regular night work attracts at least 30%, occasional night work 50%, Sunday daytime work 40%, and specified holiday daytime work 50%. Night work runs from 22:00 to 05:00. Night/Sunday/holiday premiums do not add to one another, but may combine with overtime premiums. Labour Day has a separate statutory compensation rule.

The general statutory work duration is 40 hours a week or 173.33 hours a month. Agricultural work follows a 2,200-hour annual basis. Employees must receive at least 12 continuous hours of daily rest and 24 consecutive hours of weekly rest, normally on Sunday. Collective agreements can set shorter hours; sector equivalence and exception rules determine how presence time and overtime are counted.

Probation and any renewal must be agreed in writing, stating the position, length, pay and occupational category. Its duration follows the occupational category and cannot exceed six months initially, with one renewal permitted. Employees on probation receive the same working conditions and social protection as confirmed staff in the same role; probation does not postpone basic social protection.

Dismissal needs a legitimate, real and serious reason and the required procedure. Where there is no disciplinary council, employees receive written reasons and an opportunity to defend themselves at a hearing; the summons must arrive at least three working days beforehand. At departure the employer settles salary, unused leave and applicable notice rights and supplies an employment certificate. Economic dismissals also require consultation and labour-inspector involvement; severance is a separate entitlement.

Notice for an indefinite contract depends on service and five occupational groups: group 1 covers basic manual or entry-level work; group 2 skilled workers and experienced employees; group 3 highly skilled workers, qualified employees and junior professional staff; group 4 engineers and administrative, technical or commercial managers; and group 5 senior executives above those categories.

For service below eight days, the group 1–5 minimums are respectively one, two, three, four and five calendar days. Below three months they are three, eight and 15 days, then one month for groups 4 and 5. Below one year they are eight and 15 days, then one, one-and-a-half and three months. Above one year they are ten days, one, one-and-a-half, two-and-a-half and four months. Above three years, two days are added per service year, subject to group caps of one, one-and-a-half, two, three and six months. A month counts as 30 days.

The standard payroll framework includes 13% employer social-protection contributions, a 5% employer medical-service contribution and 1% employer vocational-training contribution, giving a 19% headline total before applying the correct bases and ceilings. Employee contributions are 1% for social protection and 1% for medical services. Training is employer-funded. The headline rates are not an uncapped percentage of every salary, and provider administration charges are separate from country obligations.

Salary-income tax uses monthly progressive bands: 0% through MGA 350,000; 5% on MGA 350,001–400,000; 10% on MGA 400,001–500,000; 15% on MGA 500,001–600,000; 20% on MGA 600,001–4,000,000; and 25% above MGA 4,000,000. Rates apply to each taxable slice rather than to the whole salary. Taxable-benefit valuation, deductions and any minimum tax must be considered separately when calculating payroll.

Foreign employees working in Madagascar need prior labour-authority approval of their employment contract and a work permit issued by the labour ministry or its authorized directorate. The permit identifies the worker, nationality, role, occupational category and validity. Immigration residence requirements remain separate from the labour authorization, and a signed offer alone does not authorize work.