What should I know about hiring in Madagascar?
If you are considering hiring in Madagascar, it’s important to understand that employment relationships are governed by the Labour Code (Loi n° 2024-014), introduced in August 2024. This updated framework modernises labour regulations, strengthens employee protections, and aligns local practices with international standards.
Employment contracts must clearly define key terms such as job role, salary, working conditions, and start date. Written agreements are mandatory and must comply with strict legal requirements, ensuring transparency and enforceability.
Madagascar’s legal framework places strong emphasis on fair treatment, non-discrimination, and worker protections. Employers must follow structured procedures throughout the employment lifecycle, particularly when it comes to termination, working conditions, and employee rights.
Why is Madagascar a good choice for finding remote employees?
Madagascar is increasingly recognised as an emerging destination for remote hiring, particularly for companies looking to build cost-effective and scalable global teams.
The country offers a growing pool of skilled professionals across sectors such as customer support, IT services, administration, and outsourcing. French is widely spoken, and many professionals have experience working with international companies.
In addition, Madagascar provides competitive labour costs, making it an attractive option for companies seeking operational efficiency without compromising on talent quality. As remote work regulations evolve under the new Labour Code, businesses can confidently hire and manage distributed teams.
How can Native Teams help you hire in Madagascar?
Hiring in Madagascar requires careful navigation of local labour laws, particularly around contracts, employee protections, and termination procedures.
With Native Teams’ Employer of Record (EOR) services, you can hire employees in Madagascar without setting up a local entity. We handle employment contracts, payroll, compliance, and legal obligations on your behalf.
This allows you to expand into Madagascar quickly and compliantly, while reducing administrative burden and legal risk.
Hire your first Malagasy employee with Native Teams.
Legal requirements for hiring in Madagascar
Below are the most important legal considerations when employing workers in Madagascar:
Legal framework
Employment in Madagascar is governed by the Labour Code (Loi n° 2024-014), which applies to all private-sector employment relationships.
The law defines both employer and employee responsibilities and prohibits forced labour, discrimination, and workplace harassment. It also sets clear standards for contracts, working conditions, and dispute resolution.
Types of employment contracts
Employment contracts in Madagascar are primarily divided into indefinite-term contracts (CDI) and fixed-term contracts (CDD). The indefinite-term contract is the standard form of employment and does not have a predefined end date.
Fixed-term contracts are used for specific tasks, projects, or temporary replacements and must be agreed for a defined duration. These contracts must last at least one month and cannot exceed two years. They may be renewed, but after two renewals, they are typically converted into indefinite-term contracts, reinforcing the principle that permanent roles should not be filled through continuous fixed-term arrangements.
Content of an employment contract
Employment contracts must be established in writing and include all essential details that define the working relationship. At a minimum, this includes the employee’s role, professional classification, salary, and the effective start date of employment.
Contracts must be drafted in Malagasy or French and provided to the employee immediately after signing. They must also comply with legal standards and cannot include terms that are less favourable than those established by law or applicable collective agreements.
Download a free employment contract for Madagascar through Native Teams.
Oral, written, or electronic employment contracts
In Madagascar, written contracts are legally required for all employment relationships. This requirement ensures clarity and helps prevent disputes between employers and employees.
If no written contract exists, the employment relationship can still be recognised based on factual evidence.
However, in such cases, the contract is automatically treated as an indefinite-term contract (CDI), which increases employer obligations and reduces flexibility.
Working hours
The standard working time in Madagascar is set at 40 hours per week or 173.33 hours per month. Any work performed beyond these limits is considered overtime and must be compensated according to applicable regulations or sector-specific rules.
Employees are entitled to a minimum of 12 consecutive hours of daily rest and at least 24 consecutive hours of weekly rest, typically observed on Sundays unless exceptions apply.
Night work
Night work is defined as work performed between 10:00 PM and 5:00 AM and is subject to strict regulation. Employers must consult employee representatives before introducing night shifts and ensure that appropriate health and safety measures are in place.
Employees assigned to night work are entitled to regular health assessments and must be compensated with premium pay. Additional protections apply to vulnerable groups, including a prohibition on night work for pregnant employees and minors.
Breaks and types of leave
Break periods are generally determined by employment contracts or collective agreements, depending on the nature of the work.
In addition to regular rest periods, employees are entitled to specific types of leave, including paid leave for family-related events (up to 10 days per year), and special leave for family medical situations. These entitlements are designed to support work-life balance while ensuring continuity of employment.
Annual leave
Employees in Madagascar are entitled to paid annual leave at a rate of 2.5 days per month of service, equivalent to approximately 30 days per year. This entitlement becomes available after 12 months of continuous service.
The law includes strict rules regarding the use of annual leave. It cannot be replaced with financial compensation while the employment relationship is ongoing, and employers are responsible for planning leave schedules in advance. Any unused leave must be compensated upon termination of employment.
Salary
Salary regulation in Madagascar is governed by the Labour Code and minimum wage decrees. Employers must respect the legally established minimum wage, known as the Salaire Minimum d’Embauche (SME), which is set by the government.
Wages must be paid in the local currency (Ariary) and at regular intervals. Employers are also required to provide payslips and ensure that all payments, including bonuses and commissions, are properly documented. The principle of equal pay for work of equal value is strictly enforced.
To calculate the salary and taxes in Madagascar, click here.
Sick leave
Employees are entitled to job-protected sick leave for up to six consecutive months, provided the absence is supported by valid medical certification.
During this period, the employment contract is suspended rather than terminated. Employers are required to provide a capped financial indemnity, while longer-term support may be provided through the social protection system. Employees have the right to return to their position once they recover, subject to legal conditions.
Parental leave
Madagascar does not define a single “parental leave” category. Instead, it provides a combination of maternity leave, paternity leave, and family-related and medical leave.
Paternity and maternity leave
Maternity leave is set at 14 consecutive weeks, with at least eight weeks taken after childbirth. In certain cases, such as medical complications, this period may be extended.
During maternity leave, the employee’s salary is shared between the employer and the social security system. Employees benefit from strong job protection, including job security and breastfeeding rights, and dismissal on the basis of pregnancy is prohibited.
Fathers are entitled to three days of paid paternity leave, which is treated as working time.
Methods of employment termination
Employment contracts in Madagascar can be terminated through resignation, employer dismissal, mutual agreement, contract expiration (for fixed-term contracts), or force majeure. Each termination must follow specific legal procedures, and employers must ensure that all obligations, including final payments and documentation, are fulfilled.
Ordinary dismissal by the employer
Employers may only terminate an employment contract for a real and serious cause. This includes situations such as employee misconduct, inadequate performance, or economic reasons affecting the business.
Dismissals must follow a formal process, including written notification and justification, to avoid being classified as abusive.
Notice period and challenging the dismissal
In Madagascar, terminating an indefinite-term contract (CDI) requires a mandatory notice period (“préavis”), the length of which depends on the employee’s role and length of service. If either party fails to respect this period, they must compensate the other with equivalent salary and benefits, except in cases of gross misconduct.
Employees may challenge a dismissal if it is not based on a valid, real, and serious cause or if proper procedures are not followed. If deemed abusive, courts may award compensation or other remedies.
Severance pay
Severance pay is mandatory in certain cases, particularly when termination occurs for economic reasons or similar circumstances beyond the employee’s control.
It is generally calculated as ten days of salary per year of service, with a maximum cap of six months’ salary, unless more favourable terms apply under a contract or collective agreement.
Probationary period
A probationary period can be included at the beginning of the employment relationship to allow both the employer and the employee to assess suitability. This period must be explicitly agreed in writing to be valid.
The duration of the probationary period depends on the employee’s role but cannot exceed six months. It may be renewed once, provided this is clearly stated in the contract. During this time, either party may terminate the employment without notice or severance, unless otherwise agreed.
Despite its flexibility, employees on probation are entitled to the same working conditions and social protections as permanent employees.
Intellectual property rights
In general, intellectual property created by employees during their employment belongs to the employer, especially if it is within the scope of their role. Special provisions apply to inventions, including restrictions on working with competitors until protection is secured.
Employee data privacy
Employee data is regulated by Law No. 2014-038, which requires employers to process personal data lawfully, fairly, and for legitimate purposes.Employers must ensure that data collected is relevant, not excessive, and stored securely for an appropriate period of time.
Prohibition of competition
Employees may work in other roles outside working hours, provided there is no conflict of interest.
Post-employment non-compete clauses are generally restricted, though specific exceptions apply for intellectual property protection.
Remote working policy
Remote work is recognised and regulated under Madagascar’s Labour Code. A formal agreement must define work conditions, schedule and availability, and equipment and responsibilities. Remote employees must receive the same rights and protections as on-site employees.
Responsibilities within a remote work arrangement
Employers are responsible for providing necessary equipment, ensuring health and safety, and covering or defining work-related expenses. Employees must use equipment responsibly, follow company policies, and comply with data protection requirements
What are the advantages of hiring employees from Madagascar vs other countries?
Madagascar offers a strong combination of cost efficiency, emerging talent, and an evolving legal framework that supports modern employment models.
Companies benefit from access to a growing workforce, competitive labour costs, and clearer regulations following the introduction of the updated Labour Code. This makes Madagascar a practical option for businesses looking to scale internationally while maintaining operational efficiency.
Why use Native Teams for hiring in Madagascar?
Native Teams lets you employ team members ‘like a local, meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entities.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximising your profits.
- Compliance expertise: We can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
