Madagascar, the "Red Island" of Africa, is renowned for its breathtaking biodiversity, from lush rainforests and surreal limestone formations in the Tsingy de Bemaraha to the iconic Avenue of the Baobabs.
Beyond its natural wonders, it's emerging as a hub for companies seeking highly skilled remote talent.
With an educated, multilingual workforce and affordable hiring costs, Madagascar offers employers a unique opportunity to expand a global team by tapping into the diverse expertise of the Malagasy.
Key Takeaways:
- Madagascar is home to highly skilled professionals in remote fields like digital marketing and IT support with low hiring costs.
- The country is advancing digital connectivity by expanding 4G and 5G networks, making remote work viable and accessible.
- To hire employees in Madagascar, employers must comply with local labor laws, including role-specific probation periods, mandatory contributions to social security, and structured paid leave policies.
Advantages of Hiring in Madagascar
Madagascar boasts a literacy rate of 77.48% and a growing pool of talent in high-demand remote fields such as digital marketing, web design, and IT support.
Also, many Malagasy professionals are proficient in French and English, making them well-suited for international teams.
Here are some quick facts about Madagascar:
- Languages: Malagasy, French
- Currency: Malagasy Ariary (MGA)
- Capital City: Antananarivo
- Population: 31.9 Million
- Cost of Living Rank: 189th
A Digital Future for Madagascar
Madagascar is one of the first African countries to roll out 5G, significantly improving digital connectivity. The rapid expansion of 4G and 5G networks promises to open doors for affordable broadband access across the island.
Madagascar’s Prodigy initiative is a pioneering step towards building a comprehensive digital identity system. Launched with substantial support from the World Bank, this USD 143 million project focuses on creating a national digital identity infrastructure powered by biometric verification.
By addressing barriers like low digital literacy and limited access to mobile technology, the Prodigy initiative supports Madagascar’s goal of increasing connectivity and digital accessibility, making remote work more viable.
Popular sectors for remote work in Madagascar include:
- Software Engineering
- Web Development
- Customer Service
- Digital Marketing
- Graphicdesign
- IT Support
- Data Entry
Employment Laws: Hiring Compliantly in Madagascar
Employment Contracts
Madagascar recognizes two main types of employment contracts:
- Fixed-term contracts (CDD - Contrat à Durée Déterminée) last up to two years and automatically convert to permanent after two renewals.
- Indefinite-term contracts (CDI - Contrat à Durée Indéterminée) have no fixed end date and offer greater job security and benefits.
All contracts must be written in Malagasy or French.
Working Hours & Pay
The standard workweek in Madagascar is 40 hours spread out over either five or six days. Any additional hours are considered overtime and compensated between 130-150% of the standard hourly rate.
As of 2024, the minimum wage in Madagascar varies by industry and region and is calculated daily. Under Malagasy labor laws, the legal payroll frequency is:
- Daily/Weekly Workers: Within 8 days
- Fortnightly Workers: Within 20 days
- Monthly Workers: Within 8 days of the month's end
Probation Periods
Madagascar's labor code allows for a probationary period of up to six months, which can be renewed once. This period is typically shorter for blue-collar positions and longer for managerial and executive roles.
The written employment contract must specify the probationary period and its terms, including the required notice period for termination.
Employer Taxes
Employers in Madagascar are responsible for social security contributions on behalf of their employees. These contributions include 13% of employee gross salaries for the National Pension Fund and 5% for the Statutory Health Organisation.
Also, employers must contribute 1% of employee taxable remuneration to the National Professional Training Fund (FNFP).
Termination Process & Severance Pay
In Madagascar, employers can terminate the employment contract only for just causes such as voluntary resignation by the employee, termination by mutual agreement, objective grounds (such as economic reasons or health issues), or disciplinary dismissal for misconduct.
The notice period in Madagascar varies based on employment length and type, as follows:
- Less than 6 months: 1 day's notice
- 6 months to 1 year: 8 days' notice
- More than 1 year: The notice period gradually extends with each additional year
If terminated for economic reasons, an employee is entitled to severance pay of 10 days per year of service, with a maximum limit of six months' salary.
Paid Leave Laws in Madagascar
Vacation and Holiday
Employees in Madagascar receive 30 days of paid time off per year after completing 12 months of continuous service.
Additionally, employees enjoy several paid public holidays, including:
- New Year's Day
- International Women's Day
- All Saints Day
- Labour Day
- Independence Day
Sick Leave
Malagasy Labor Law provides up to six months of paid sick leave. During this period, the employee is paid their full salary, with 50% covered by the employer and the remaining half by Social Security.
Maternity Leave
In Madagascar, female employees receive 14 weeks of maternity leave, which commences six weeks before the due date.
Employees receive full pay during maternity leave, half covered by Social Security and half by the employer. The leave can be extended by up to three weeks for health reasons with a medical certificate
Paternity Leave
Madagascar has no official paternity leave provision, but all male workers are entitled to 10 days of unpaid leave per year for family-related events, such as the birth of their child.
Madagascar’s Vibrant Culture for Remote Workers
While the country doesn't offer a digital nomad visa, Madagascar's E-visa allows expats and digital nomads to visit the country for short periods.
The island's stunning landscapes, from the iconic Avenue of the Baobabs to the lush rainforests of Andasibe, combined with its low living costs, make it an attractive choice for remote workers.
Urban centers like Antananarivo and Nosy Be offer coworking spaces and vibrant culture, perfect for balancing work and leisure.
How to Pay Remote Workers in Madagascar
Paying your remote workforce in Madagascar with traditional methods, like bank transfers and digital platforms like Wise and Payoneer, are viable options, but they can sometimes involve fees and exchange rate fluctuations.
In addition, some payment methods may not comply with local regulations, exposing employers to legal and financial risks.
To simplify the process and ensure compliance with local regulations, consider partnering with an Employer of Record (EOR).
Hire in Madagascar with RemoFirst
Understanding complex labor laws and tax regulations can be challenging for businesses hiring remote workers in Madagascar. At RemoFirst, we make this process hassle-free by handling all HR tasks, including onboarding, payroll, and legal compliance with local laws.
Ready to expand your team globally? Book a demo with us today to learn how we can help you hire and manage remote workers in 180+ other countries, including Madagascar.
