How to hire remote employees in

Madagascar

Madagascar’s a great place to hire remote talent. But labor laws are complicated, and it’s nearly impossible to figure out how to hire there on your own. That’s what we’re for. By the end of this page, you’ll know exactly how you can hire remote talent in Madagascar—without spending thousands in fees.

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Employment requirements

Country snapshot

CURRENCY

Malagasy Ariary (Ar/MGA)

EMPLOYER TAXES

19%

PAYROLL FREQUENCY

Monthly

OFFICIAL LANGUAGE

Malagasy, French

Why hire independent contractors in Madagascar

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in Madagascar.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

HHiring contractors in Madagascar means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

What to know before you hire in Madagascar

Laws about hiring are complicated. Especially when they’re in countries you’re not used to hiring in. But we’re here to make things simple. Below, you’ll learn the two options you have for hiring in Madagascar—and the advantages and disadvantages of each.

If you want to successfully hire in Madagascar, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in Madagascar. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in Madagascar is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Hire contractors in a couple clicks with Thera

How can I pay people in Madagascar

If you’re hiring contractors in Madagascar, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

If you want to hire employees in Madagascar

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Madagascar than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Madagascar.

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Taxes in Madagascar

Employer tax

Caisse Nationale de Prévoyance Sociale,

Statutory health

Fonds National sur la Formation Professionnelle (FNFP)

Leave

Paid Time Off (PTO)

Employees are entitled to have 2.5 days leave per month.

All the employees working in Madagascar have the right to claim 30 days of paid leave per year if they have worked in any organization for more than a year.

Public Holidays

There are 12 public holidays.

Sick Days

Employees in Madagascar are entitled to a paid five sick days a year.

Maternity Leave

Female employees receive 14 weeks of fully paid leave with 8 weeks to be taken after the birth.

This leave can be extended by three weeks due to a pregnancy illness or complications. Women are entitled to their wages which get paid partially by insurance and the employer.

Paternity Leave

There is no law stipulating paternity leave, but all workers receive 10 days leave a year for family events, and this could be utilised by new fathers.

Parental Leave

No Info.

Other Leave

No Info.

Marriage Leave

Medical leave - Every employee working in Madagascar is entitled to at least five(5) days of paid sick leave, extendable in the case of chronic illnesses.

Bereavement Leave

No Info.

Termination

Termination Process

An employment contract can be terminated in Madagascar when the term of the contract comes to an end.

There must be some practical reasons for the termination of the employment contract. During the probation, the employment contract can be deemed void without any notification.

Notice Period

The notice period for termination is determined by the type of employment and length of service, and can range from eight days to six months.

Severance Pay

Employees in Madagascar are not generally eligible for severance pay, except if they are terminated for economic reasons, in which case the employee is entitled to 10 days’ wages for each year of service, up to six months’ of wages.

Probation Period

The probation period according to Convention Number 158 of the ILO, a probation period of any employee can last for at least six (6) months.

Employee requirements in Madagascar

Working Hours

The standard working hours in Madagascar is 40 hours a week with eight hours a day.

Overtime

Overtime is paid at 130% above the basic wage for the first eight hours and then 150% onwards. Evening work is paid at 130%, while weekend work is paid at 140% and then 150% if it is a public holiday.

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