Madagascar’s official name is the Republic of Madagascar and it is an African island nation located in the Indian Ocean. Madagascar is the world’s second largest island country. The official languages are French and Malagasy. Agriculture is Madagascar’s largest industry, specifically fishing and forestry. Madagascar is also the leading global producer of vanilla. Additionally, the service sector has seen rapid growth with the emergence of Madagascar’s tourist industry.
Employment contracts in Madagascar are generally written. There are two types of contracts in Madagascar: fixed-term and indefinite-period contracts. Fixed-term contracts are for a definite period of time with a maximum duration of two years. Employment contracts that extend past two years are considered indefinite-period contracts.
The standard workweek is 40 hours with eight hours a day. 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. However, collective and individual agreements generally govern overtime and overtime pay.
Employees receive five days of paid sick leave a year.
Female employees receive 14 weeks of fully paid leave with eight weeks to be taken after the birth. This leave can be extended by three weeks due to a pregnancy illness or complications. There is no paternity leave, but all workers receive 10 days leave a year for family events, which could be used for new fathers. Employers are not required to pay their employees using this leave, but some employers do as part of a benefit package.
Female employees are entitled to a percentage of their wages for the period of maternity leave covered by the social insurance (CNAPS), with a percentage of wages being provided by the employer. Employees not covered by social insurance have their maternity leave funded entirely by their employer.
The minimum wage in Madagascar is determined by the industry in which the employee works. Bonuses are not required, but are common.
Employees are entitled to have 2.5 days leave per month.
Madagascar provides universal healthcare but private healthcare is highly recommended.
An employment contract can be terminated at the end of the contract period (if for a fixed term), by the employee and by the employer. Terminations must be in writing and employers must generally have a reason for dismissing an employee. An employment contract can be terminated during the probation period without notice. An employee also can be dismissed without notice for misconduct including fraud, code of conduct, theft or moral misconduct. Outside the probation period and absent misconduct, notice is required before terminating an employment contract. The notice required generally depends on the type of employee and length of service.
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.
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