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Employer of Record (EOR) in Madagascar

Hiring in Madagascar doesn't have to mean months of paperwork and entity setup. Native Teams acts as your legal employer on the ground, so you can bring Malagasy talent onto your team quickly, compliantly, and without the overhead of a local subsidiary.

How does an EOR in Madagascar work?

Setting up a legal entity in Madagascar is a lengthy and resource-intensive process - one that many businesses simply don't need if their goal is to hire a small team or test the market. An EOR gives you a faster, cleaner path.

 

Once you partner with Native Teams, we become the legal employer of your Madagascar-based staff. We issue locally compliant employment contracts, manage payroll in Malagasy Ariary (MGA), handle tax withholdings, and ensure all statutory obligations under the Malagasy Labour Code (Code du Travail) are met. 

 

You stay in control of day-to-day work and team direction - we handle everything behind the scenes.

Who can use EOR services in Madagascar?

EOR services in Madagascar are a practical solution for businesses at almost any stage. Early-stage startups can access talent without the cost of incorporation. Established companies can expand without much commitment. And enterprises operating across Africa can consolidate their regional hiring under one compliant framework.

What you need to know?

Employment status

Your Madagascar employees are formally employed through Native Teams' local entity, ensuring full legal standing under Malagasy labour law. Contracts are aligned with the Code du Travail, and issued within the required timeframes.

Global payroll

We calculate and process payroll in MGA, handling income tax deductions and employer contributions accurately and on time. You receive a transparent cost breakdown each cycle.

HR administration and documentation

All employment records, contracts, and payroll documentation are stored securely and accessible directly from your Native Teams dashboard. Onboarding is streamlined, records are maintained, and your team stays audit-ready at all times.

Statutory benefits

We make sure every employee receives the mandatory benefits they're entitled to under Malagasy law - including social security contributions through CNAPS (Caisse Nationale de Prévoyance Sociale) and healthcare coverage via OSTIE, where applicable.

What legal requirements exist for employment in Madagascar?

Business registration

Foreign companies wishing to hire directly in Madagascar must register with the Economic Development Board of Madagascar (EDBM) and obtain a local NIF (tax identification number).

Employment contracts

All employment agreements must be written in French and comply with the provisions of the Code du Travail. Contracts must specify role, remuneration, working hours, and duration - and must be signed before the employee begins work.

Income tax

Employers are responsible for withholding and remitting IRSA (Impôt sur les Revenus Salariaux et Assimilés) on behalf of employees each month. Rates are progressive and tied to total gross income.

Social security contributions

Both employer and employee contribute to CNAPS, Madagascar's national social security institution. Employer contributions cover work-related risk, family allowances, and retirement provisions.

Healthcare

In certain sectors and regions, employers are required to provide access to occupational health services through OSTIE or an equivalent approved provider.

Madagascar's labour regulations are subject to change. Always verify current requirements with a local legal expert or through your EOR provider.

Why choose Native Teams as your Madagascar Employer of Record?

Why choose Native Teams as your Madagascar Employer of Record?

Native Teams is a global work payments and employment platform operating in 95+ countries. Our Employer of Record services enable companies to hire and manage employees in Madagascar without setting up a local entity.

Beyond employer support, Native Teams also provides dedicated assistance to employees, ensuring they have a smooth onboarding experience and access to the resources they need. Today, more than 3,000 companies use Native Teams to expand internationally while simplifying workforce management and reducing operational overhead.

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What you need to know?

What is an Employer of Record?

An Employer of Record (EOR) is a third-party company that takes on the legal responsibilities of employing workers on behalf of another business. 

This includes payroll processing, tax compliance, benefits administration, and adherence to local labour laws. The client company retains full control over the employee's work, while the EOR simply handles the legal and administrative layer.

What are the costs of using an Employer of Record in Madagascar?

EOR pricing in Madagascar varies depending on the number of employees, the services included, and the provider. Native Teams operates on a transparent pricing model with no hidden fees - you can review the full breakdown on our pricing page.

What is the difference between PEO and EOR?

An EOR takes on full legal employer status, meaning it holds complete responsibility for employment contracts, payroll, and local compliance - making it the right choice for companies without a registered entity in Madagascar.

A PEO operates as a co-employer, sharing certain HR responsibilities with a client company that already has a local entity.

What are the responsibilities of an Employer of Record (EOR)?

An EOR in Madagascar is responsible for issuing and maintaining compliant employment contracts, running monthly payroll in MGA, withholding and remitting IRSA, managing CNAPS and OSTIE contributions, handling employee onboarding documentation, and ensuring ongoing compliance with the Code du Travail. 

Is using an Employer of Record in Madagascar legal?

Yes. Using an EOR in Madagascar is a fully legitimate and widely used model for international businesses hiring local talent. 

Why should I use EOR instead of opening my own company or an office in Madagascar?

Incorporating in Madagascar involves company registration, obtaining a local tax number, setting up a corporate bank account, and meeting ongoing filing obligations.

An EOR lets you skip all of that. You can:

  • Start hiring in days, not months
  • Avoid entity setup and maintenance costs
  • Stay compliant without a local legal team
  • Scale your headcount up or down freely
  • Exit the market without complex dissolution procedures

It's the right model when you want to move fast, test a market, or keep your operations lean while maintaining full legal standing in Madagascar.

How many people can I employ in Madagascar?

There is no upper limit on how many employees you can hire through an EOR in Madagascar. Whether you're bringing on a single specialist or building out a larger local team, Native Teams can scale with you.