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Employer of record in Madagascar

21 sourced figures on hiring in Madagascar, drawn from 8 sources and normalized for comparison: statutory rules, employer cost and exactly what an EOR covers locally. Every figure is dated.

ISO MGRegion AfricaCurrency MGAVerified 2026-08-03

Hiring here: moderately complex, mid-range on cost, and fast to hire via EOR.

cost of employment
MODERATE
18% employer social security, 20% corporate tax
ease of exit
MODERATE
8.9 weeks severance, 5.8 weeks notice
speed to hire
DAYS
24 EOR providers, from $179/mo
Employer burden rank
statutory employer burden: cost, severance, notice
#36 of 192
Each band is derived from the 21 sourced fields below and recomputed on every refresh. See the methodology.
Statutory snapshot

Employer of record in Madagascar: the statutory snapshot

The headline employer costs, pay floor and worker protections for hiring in Madagascar through an employer of record, each figure sourced and dated. 24 EOR providers cover Madagascar.

Minimum wageMGA 262,880/moILOSTAT, 2024-01-01
Employer social security18%ISSA Country Profiles, 2024-01-01
Corporate tax20%PwC Worldwide Tax Summaries, 2025-11-18
Notice period5.8 weeksWorld Bank Employing Workers / B-READY, 2019-05-01
Severance8.9 weeksWorld Bank Employing Workers / B-READY, 2019-05-01
Annual leave30 daysNational government, 2026-01-01
Public holidays13 daysNational government, 2026-01-01
Maternity leavePaid leave available to mothers, incl. mother-eligible parental leave14 weeksWorld Bank Women, Business and the Law, 2026-02-23

As of 2026-08-03. Each value is the winning figure from primary and harmonized sources, resolved by a documented priority chain. Full record with provenance below.

Reading the data

What the figures say about Madagascar

The statutory minimum wage sits at MGA 262,880 per month, which is notably above the most recent average monthly wage figure of MGA 209,429, though that average dates to 2015. Employers face a social security contribution of 18% on top of base pay, while employees contribute a further 2%, giving a combined statutory payroll burden of 20% before any other deductions. Corporate tax, the top personal income tax rate, and the standard VAT rate all sit at 20%, pointing to a consistent flat-rate structure across the main tax categories. Ending an employment relationship carries defined statutory costs: a notice period of 5.8 weeks and severance of 8.9 weeks. On leave entitlements, mothers are owed 14 weeks of maternity leave, while paternity leave stands at 0.4 weeks, and employees are entitled to 13 public holidays per year. The labour force numbers 17.1 million people, and the recorded unemployment rate is 3.04%, though GDP per capita of $599 signals a very low wage base in absolute terms.

Written from the 20 sourced figures on this page and regenerated whenever the data changes. Last generated 2026-08-03. How our data works is on the methodology page.

Where to start

Three ways to hire in Madagascar

Own entity

You are the employer. Lowest per head cost at scale, months to establish.

Best for large, permanent headcount.
EORfastest

You direct the work, the provider's local entity is the employer on paper. Compliant in days.

See the 24 providers below
Best for 1 to 50 hires, for speed, or to test a market.
Contractor

Not your employee. Fastest and cheapest, with misclassification exposure.

Best for genuinely independent, short term work.
Compare entity setup cost against EOR fees for Madagascar

The full record

Every figure behind the snapshot

Not a guide, a record: 21 figures for Madagascar from 8 sources, last refreshed 2026-08-03. Each value carries its source and the date it was pulled. Hover any provenance tag for the full chain.

employment & pay3 fields
Minimum wage
MGA 262,880/mo
ILOSTAT · 2024-01
Average monthly wage
MGA 209,429/mo
ILOSTAT · 2015-01
Actual weekly hours
37 hrs/wk
ILOSTAT · 2022-01
cost & taxes5 fields
Employer social security
18%
ISSA Country Profiles · 2024-01
Employee social security
2%
ISSA Country Profiles · 2024-01
Corporate tax
20%
PwC Worldwide Tax Summaries · 2025-11
Top income tax rate
20%
PwC Worldwide Tax Summaries · 2025-11
VAT / GST
20%
PwC Worldwide Tax Summaries · 2025-11
termination2 fields
Severance
8.9 weeks
World Bank Employing Workers / B-READY · 2019-05
Notice period
5.8 weeks
World Bank Employing Workers / B-READY · 2019-05
leave4 fields
Maternity leavePaid leave available to mothers, incl. mother-eligible parental leave
14 weeks
World Bank Women, Business and the Law · 2026-02
Paternity leavePaid leave available to fathers, incl. father-eligible parental leave
0.4 weeks
World Bank Women, Business and the Law · 2026-02
Annual leave
30 days
National government · 2026-01
Public holidays
13 days
National government · 2026-01
labour market7 fields
Unemployment
3.04%
World Bank Open Data · 2025-01
Inflation
8.05%
World Bank Open Data · 2025-01
GDP per capita
$599
World Bank Open Data · 2025-01
GNI per capita
$560
World Bank Open Data · 2025-01
Labour force
17.1M people
World Bank Open Data · 2025-01
Union density
7.23%
ILOSTAT · 2015-01
Retirement age
60 yrs
SSA Social Security Programs Throughout the World · 2019-01

The differentiator

What an EOR handles in Madagascar

An EOR removes the entity and the payroll machinery. It does not remove your obligations as the people manager.

obligationeor coverswhat that means for you
Legal employer of record● fullThe EOR's local entity is the employer on paper. No entity setup required.
Payroll, tax & social security● fullGross-to-net, statutory withholding and employer contributions remitted locally. Employer social security here is 18%.
Compliant local contract● fullDrafted to local labour law and language requirements. Here statutory notice is 5.8 weeks and the wage floor is MGA 262,880/mo.
Statutory leave & public holidays● fullAccrual, tracking and payment run through the local payroll the EOR operates. 30 days annual leave, 13 public holidays and 14 weeks maternity leave.
Statutory severance on exit● partialThe EOR computes and processes it, but the cost is billed to you (often pre-funded). Statutory severance here is 8.9 weeks.
Termination decision & risk● partialThe EOR runs the legal process; the business reason, timing and exposure stay yours.
Work permits / visas (foreigners)● partialSome providers sponsor, many don't. Confirm per provider in the table below.
Performance management● noneDay-to-day direction, reviews and PIPs are entirely on your side.
Equity / ESOP administration● noneCross-border equity handling sits outside standard EOR scope.

Provider × country

Who can employ in Madagascar

24 providers operate an EOR in Madagascar, ranked by Select Score.

providerfrom / moselect score
Multiplier logoMultiplierSELECT PICKfrom $45981
RemoFirst logoRemoFirstfrom $19979
Payoneer Workforce Management logoPayoneer Workforce Managementfrom $19978
Remote logoRemotefrom $69977
Pebl (formerly Velocity Global) logoPebl (formerly Velocity Global)Quote75
Remote People logoRemote Peoplefrom $19975
Globalization Partners logoGlobalization PartnersQuote74
Rivermate logoRivermatefrom $31974
Show all 24 providers ↓
Deel logoDeelfrom $59974
Borderless AI logoBorderless AIfrom $57971
Playroll logoPlayrollfrom $39971
Papaya Global logoPapaya Globalfrom $49969
Native Teams logoNative Teamsfrom $9969
Oyster logoOysterfrom $69968
Thera logoTheraQuote67
Lano logoLanofrom $49965
Atlas HXM logoAtlas HXMfrom $59961
Foxhire logoFoxhireQuote61
24 providers operate an EOR in Madagascar, ranked by Select Score. Price is each provider’s lowest published EOR rate (global, not country-specific).
See the ranked best EOR in Madagascar
Scored by the EOR Select rating systemSee the methodology →Built and maintained by Robbin SchuchmannUpdated 2026-08-03

Comparing EOR options for Madagascar?

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