Employment taxes

The income tax (IRSA) in Madagascar is withheld directly from your salary.

• Income tax rate: 20% (flat).
• Tax-free threshold: MGA 350,000 per month (approx. USD 75).
• Payroll contributions (employee side): Around 1% for social security.
• Employer costs: Around 13% for social security and contributions.

So if you’re working for a local or international company, most of the paperwork and deductions are handled automatically through payroll, simple and predictable

Leave policy

Everyone deserves a break, and in Madagascar, you actually get one.

• Paid annual leave: 30 days of paid leave for full-time employees.
• Public holidays: 12 per year.
• Sick leave: Available with a medical certificate, fully paid for a limited amount of time by the employer. For long-term illness the social security takes over.
• Maternity leave: 14 weeks (6 before, 8 after birth), fully paid. Half of the payment is by the employer, the other half by the social security.
• Paternity leave: For workers in the private sector, there is no paternity leave required by law.
• Parental leave: Not yet standardized by law, but can be agreed upon in contracts.

Employment termination

Notice period:

• 8 days for less than 6 months’ of service
• 15 days from 6 months to 2 years of service
• 30 days for over 2 years of service

Severance pay: Depends on the reason for termination and length of service, typically 10 days of pay per year worked.

Dismissal reasons: Can be for misconduct, redundancy, or mutual agreement, always documented.

Hiring and contracts

• A written employment contract is a must. It outlines your title, start date, pay, benefits, and working hours. Contracts must be in English and French.
• Most jobs are permanent or fixed-term.
• Probation periods: Up to 6 months.

Payment and salary payments

• Payroll frequency: Monthly.
• Payment method: Bank transfer is standard.
• Minimum wage: MGA 250,000 per month (around EUR 50.52/ USD 58.89).

Most skilled professionals earn significantly more, depending on experience and sector.

Benefits

Mandatory:

• Social security (CNAPS)
• Health insurance contributions (OSTIE)
• Paid annual leave
• Paid maternity and paternity leave

Optional:

• Private health insurance
• Meal or transport allowances
• Performance bonuses
• Housing support for senior roles

Monthly living cost (Antananarivo Edition)

Life in the capital can be affordable compared to many other countries, especially if you’re earning an international salary.

• Rent (1BR city center): $200–$400
• Rent (1BR outside center): $100–$250
• Utilities: $40–$70
• Internet: $30–$60
• Groceries: $150–$250
• Transportation: $20–$40
• Eating out: $5–$10 per meal

Living comfortably in Antananarivo is possible with $600–$900/month, depending on lifestyle.

How to get a local ID number

Everyone working in Madagascar needs a Tax Identification Number (NIF) and Social Security ID (CNAPS number).

• If you're an employee in Madagascar, your employer usually registers you for both upon hiring.
• Freelancers/remote workers can apply for a NIF through the Direction Générale des Impôts (DGI) and register for CNAPS at a local office with your passport, visa, and proof of residence.

Social security registration

Social security in Madagascar is managed by CNAPS (Caisse Nationale de Prévoyance Sociale).

• Covers pensions, maternity, workplace accidents, and family benefits.
• Both employers and employees contribute monthly.
• Once registered, you’ll receive a CNAPS card to access benefits.

Banking

Most salaries are paid via local banks. Popular banks include:

• BFV-Société Générale
• BNI Madagascar
• MCB Madagascar (Mauritius Commercial Bank)
• Bank of Africa Madagascar

Opening an account is straightforward with your passport, residence permit, and proof of address. ATMs are common in cities, and mobile payments are popular too.

Housing and rental process

Finding a home is usually done through agents or local listings.

• Lease terms: Typically 12 months, renewable.
• Deposit: 1–3 months’ rent upfront.
• Tenant rights: Landlords must give written notice before ending a lease. Rent increases must follow the terms in the contract.

Healthcare system

Healthcare is improving, but can vary in quality.

• Public healthcare exists but private clinics are more reliable in cities.
• Many expats and professionals opt for private insurance that covers treatment in private hospitals or abroad if needed.
• Pharmacies are well-stocked in major towns.

Driving and public transport

• Driving: You can drive with an international license for up to 6 months, then you’ll need to convert it to a local one.
• Public transport: Minibuses (known as taxi-be), regular taxis, and moto-taxis are widely used and affordable.
• Car rentals: Available in cities, 4x4s are best for rural travel.

Emergency and important contacts

• Police: 117
• Fire: 118
• Ambulance: 124
• Emergency medical assistance: 032 07 200 00 (private service)

Work permit and visa requirements

A local employer must sponsor the foreign worker. The employer must demonstrate that the position cannot be filled by a qualified Malagasy national.

All foreign citizens need to:

• Apply for a work visa at a Malagasy embassy before arrival.
• After arrival, convert it into a residence permit (renewable annually).
• Required documents: job offer, valid passport, health certificate, criminal record, and company registration info.

Remote workers: Can stay under a long-stay visa or through an employer of record who handles compliance locally.

Business culture and work norms

• Respect, hierarchy, and politeness matter.
• Relationships come before business, expect small talk before meetings.
• Punctuality is appreciated, but flexibility is part of the rhythm.
• Teamwork is valued, and leadership tends to be supportive and people-oriented.