COUNTRY

Written Agreements

Madagascar's Labor Code provides that employment contracts concluded in writing, whether in French or Malagasy, must be made in 2 copies and signed by both parties. The written agreement must be provided to the employee immediately after signing and must include the following information:

• Functions
• Wage
• Professional classification
• Professional category
• The effective date of the contract
• Probationary period, if any.

Oral Agreements

Madagascar's labor law does not contain provisions for oral contracts. Without a written agreement, an employment relationship may be proved by any means based on the Labor Code's definition of a worker and employer.

Implied Agreements

Madagascar's labor law does not contain provisions for implied contracts. Without a written agreement, an employment relationship may be proved by any means based on the Labor Code's definition of a worker and employer.

The Labor Code of Madagascar defines hours of work as actual hours worked, not including time required to dress, undress, or eat. The maximum legal work hours is 173.33 monthly or 40 per week. Work done in excess of these hours is considered overtime.

For agricultural businesses, the maximum legal work hours is 2,200 hours yearly, and the Government Council determines the terms, wages, nature, and length of overtime.

New Year (January 1), International Women’s Day (March 08), Easter Sunday and Easter Monday (dates may vary), Commemoration of the 1947 Rebellion (March 29), Labor Day (May 1), Ascension Day (date may vary), Pentecost/Whit and Monday of Pentecost/Whit (dates may vary), Independence Day (June 26), Assumption Day (date may vary), All Saints’ Day (November 1), Christmas Day (December 25).

In Madagascar, employees are entitled to 2.5 days of paid annual leave per month after 12 months of service. It is compulsory to take 15 days' leave within the first 3 months after acquiring the right to leave. Employees have the right to accumulate annual leave for up to 3 years.

An employee is entitled to 1/12th of the annual wages before the commencement of annual leave. If an employment contract is terminated before utilizing all of the annual leave, compensation for unused leave is paid.

According to Madagascar's Labor Code, employees are entitled to sick leave for a maximum of 6 months upon providing proof of illness from a certified doctor or medical professional. The employment contract may be suspended during this period, but the employer cannot terminate it. After this period, the employer may terminate the employment contract but must pay all employees' rights, including the termination notice.

Employees can receive a "suspension indemnity" during sick leave equal to the remuneration amount.

Employees with a probationary employment contract that is suspended due to illness certified by a certified medical professional are entitled to up to 1 month's compensation of their normal wages.

In Madagascar, female employees are entitled to 14 consecutive weeks of paid maternity leave, including 8 weeks of postnatal leave. In case of complications or sickness resulting from pregnancy or birth, the maternity leave can be further extended by 4 weeks with a medical certificate attesting to her condition.

An employee cannot be dismissed for taking maternity leave. Employees who are confirmed pregnant by an approved medical professional may terminate the employment contract without notice or duty to pay compensation for breach of contract.

Maternity leave is fully paid. The employee shall be reimbursed for childbirth costs and, where appropriate, for medical care (within the limits of the health facilities' fees). If the female employee is insured, the costs are split equally between the National Social Insurance Fund and the employer.

Madagascar's Labor Code grants employees who are the lawful spouse of a woman giving birth to 3 days of paid paternity leave. The employer must pay the leave as days actually worked.

Minimum Wage

The current non-agricultural minimum wage is MGA 262,680 (Malagasy ariary), and the agricultural minimum wage is MGA 266,500 per month. The value of the index point for calculating Minimum Hiring and Seniority Salaries by professional category is 0.8745 for the non-agricultural sector and 0.7688 for the agricultural sector.

Remuneration for performance, task, piecework, or target-related work must equal that of an employee paid by the hour doing similar work and at least the minimum wage for the applicable occupational category.

Overtime, Holiday & Vacation Pay

Overtime shall be paid as follows:

• 130% of the regular hourly rate for the first 8 hours of overtime
• 150% of the regular hourly rate after the 8th hour
• 150% of the regular hourly rate for overtime at night
• 150% of the regular hourly rate for work done on public holidays
• 140% of the regular hourly rate for work done on weekly rest days

Employees are entitled to a 12th of their annual wages before the commencement of annual leave.

Notice Period

An indefinite-term contract can be terminated by either party by providing prior notice (or without notice in the event of gross negligence). The dismissal notice length varies between 1 day and 6 months, depending on the employee’s length of service in that company and their professional category.

The notice must be provided in writing. During the notice period, the worker is entitled to 1 day off per week. Any breach of contract where the notice period is not fully observed requires the party responsible for the breach to pay the other party compensation.

Severance Benefits

In cases of economic redundancy, employers must pay affected employees a severance payment equal to 10 days’ wages for each year of service in the company, up to a total of 6 months’ wages.

Employees and employers may agree on severance pay in other cases of termination. Such provisions must be indicated in the employment contract.

Pension

The National Social Security Fund of Madagascar, Caisse Nationale de Prévoyance Sociale (CNPS), provides pension benefits to insured employees who fulfill the following conditions:

• Old-age pension - age 60 (or 55 for merchant seamen), with at least 15 years of coverage and 28 quarters of contributions in the last 10 years
• Partial pension - age 60 (or 55 for merchant seamen), with at least 60 quarters of contributions and 15 years of coverage, if an employee has less than 28 quarters in the past 10 years.

The old-age pension is 30% of the legal monthly minimum wage plus 20% of the insured's average monthly adjusted earnings in the last ten years, plus 1% of average monthly adjusted earnings for each year of contributions over 10 years. Supplements are added for spouses and length of service. Individuals who have reached 60 years of age and do not meet any criteria for retirement benefits (but have paid contributions for at least 4 quarters) are eligible to receive a retirement grant.

Both employees and employers pay contributions to the social security fund.

Dependents/Survivors Benefits

In Madagascar, dependents are entitled to receive survivor benefits if the deceased worker was retired or at least 45 years of age (40 for merchant seamen) and was eligible for an old-age pension at the time of their death.

Dependents eligible for survivor benefits include:

• Widow/widower (pension ceases upon remarriage)
• Children younger than age 15 (age 22 if they are a student or disabled).

If the deceased was not eligible for an old-age pension but had at least 4 quarters of contributions, the contributions would be refunded to the dependents.

Invalidity Benefits

In Madagascar, workers are entitled to the disability pension covered by the National Social Security Fund of Madagascar, Caisse Nationale de Prévoyance Sociale (CNPS), if they meet the following conditions:

• Age 55 (50 for merchant seamen)
• Working capacity loss of at least 60%
• At least 15 years of coverage, including 28 quarters of contributions in the past ten years.

The disability pension is paid quarterly and is calculated at a rate of 80% of the old-age pension that the worker would have been entitled to if they worked until the regular retirement age. There is also a 10% supplement that can be paid to a dependent spouse over 59 years of age (54 for merchant seamen) if the couple had been married for at least two years before retirement.

Both employees and employers pay contributions to the social security fund.