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Employer of record in Madagascar

21 sourced figures on hiring in Madagascar, drawn from 7 sources and normalized for comparison: statutory rules, employer cost and exactly what an EOR covers locally. Every figure is dated.

ISO MGRegion AfricaCurrency MGALanguages French, MalagasyVerified 2026-09-17

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
7.6 weeks severance, 5.8 weeks notice
speed to hire
DAYS
25 EOR providers, from $199/mo
Employer burden rank
statutory employer burden: cost, severance, notice
#42 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. 25 EOR providers cover Madagascar.

Minimum wage300,000/moNational government, 2026-03-01
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
Severance7.6 weeksNational government, 2026-09-12
Annual leave (minimum, once eligible)22National government, 2026-09-12
Public holidays12National government, 2026-09-12
Maternity leavePaid leave available to mothers, incl. mother-eligible parental leave14 weeksWorld Bank Women, Business and the Law, 2026-02-23

As of 2026-09-17. 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 in Madagascar is 300000 per month, well above the average monthly wage of employees, recorded at MGA 209429 as of 2015. Employers contribute 18% in social security, against 2% owed by employees, a gap that adds a fixed cost on top of gross pay. Corporate tax, top personal income tax, and standard VAT all sit at the same 20% rate. Employees work 37 hours per week on average, with 12 public holidays factored into the annual calendar. Exiting an employment contract carries statutory severance of 7.6 weeks plus a notice period of 5.8 weeks. Maternity leave runs 14 weeks, while paternity leave is set at 0.4 weeks, and retirement age is fixed at 60 years.

Written from the 20 sourced figures on this page and regenerated whenever the data changes. Last generated 2026-09-27. 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 25 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 7 sources, last refreshed 2026-09-17. Each value carries its source and the date it was pulled. Hover any provenance tag for the full chain.

employment & pay3 fields
Minimum wage
300,000/mo
National government · 2026-03
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
25%
National government · 2026-09
VAT / GST
20%
PwC Worldwide Tax Summaries · 2025-11
termination2 fields
Severance
7.6 weeks
National government · 2026-09
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 (minimum, once eligible)
22
National government · 2026-09
Public holidays
12
National government · 2026-09
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
National government · 2026-09

// recent updates

What changed in Madagascar

Checked against official sources on 17 September 2026

No rule changes recorded since we began logging them.

Every figure is sourced and dated. How we verify the data →

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 300,000/mo.
Statutory leave & public holidays● fullAccrual, tracking and payment run through the local payroll the EOR operates. 22 annual leave, 12 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 7.6 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

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

providerfrom / moselect score
Pebl (formerly Velocity Global) logoPebl (formerly Velocity Global)SELECT PICK$399/mo80
Multiplier logoMultiplier$459/mo · Core · billed annually80
Payoneer Workforce Management logoPayoneer Workforce Management$199/mo79
RemoFirst logoRemoFirst$199/mo78
Remote logoRemote$699/mo76
Globalization Partners logoGlobalization Partners$599/mo75
Remote People logoRemote People$199/mo74
Deel logoDeel$599/mo73
Show all 25 providers ↓
Rivermate logoRivermate$319/mo72
Borderless AI logoBorderless AI$579/mo71
Playroll logoPlayroll$399/mo71
Papaya Global logoPapaya Global$499/mo68
Native Teams logoNative Teams$99/mo67
Lano logoLano€499/mo66
Teamed logoTeamed$599/mo66
Thera logoTheraQuote65
Oyster logoOyster$699/mo65
Atlas HXM logoAtlas HXM$599/mo62
Foxhire logoFoxhireQuote61
25 providers operate an EOR in Madagascar, ranked by Select Score. Price is each provider’s lowest published EOR rate (global, not country-specific).
Scored by the EOR Select rating systemSee the methodology →Built and maintained by Robbin SchuchmannUpdated 2026-09-17

Comparing EOR options for Madagascar?

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