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Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.   

Frequency cycle is Monthly. 

There is no statutory law for 13th-month pay in Madagascar.

Minimum Wages in Madagascar remained unchanged at 184653 MGA/Month in 2023 from 184653 MGA/Month in 2022. Minimum Wages in Madagascar averaged 155107.60 MGA/Month from 2013 until 2023, reaching an all-time high of 184653.00 MGA/Month in 2022 and a record low of 108019.20 MGA/Month in 2013.

For the first eight overtime hours: 30 percent premium rate; and for the following overtime hours: 50 percent premium rate.

The Malagasy Law No. 2014-038 on the Protection of Personal Data dictates that employee data, considered personal data, must be retained no longer than necessary for the specific purpose for which it was collected. This means companies in Madagascar need to carefully consider the appropriate retention periods for various types of employee data.

Specific Retention Periods:

1. Tax and Accounting Data: All tax and accounting data related to employees, including salary slips, income tax records, and social security contributions, must be kept for ten years. This ensures compliance with Malagasy tax regulations and facilitates audits.
2. Employment Contracts: Employment contracts and any related amendments must be retained for five years after the employee's termination. This is essential for resolving potential disputes concerning employment terms and conditions.
3. Payroll and Social Security Records: Payroll records, including payslips, deductions, and overtime pay calculations, should be kept for five years after each payment. Social security records, such as contributions and benefits, must be stored for three years following the last contribution or benefit payment.
4. Legal or Regulatory Data: Certain types of employee data may be subject to specific retention requirements due to legal or regulatory obligations. For example, data related to workplace accidents or investigations may need to be retained for longer periods as mandated by law.
5. Beyond the Minimum: In some cases, companies may choose to retain certain types of employee data beyond the minimum legal requirements. This could be for business purposes, such as for analyzing employee performance or conducting internal investigations. However, it's crucial to ensure that such data is kept securely and only accessed by authorized personnel.

• Specialized Qualifications: Specific skills and certifications are often required, particularly for professional and technical positions.
• Experience: Extensive and relevant experience carries significant weight in hiring decisions.
• International Exposure: Prior work experience with international companies is increasingly valued.
• Digitally Savvy: Strong digital skills and knowledge of relevant technologies are highly sought after.
• French and English Fluency: Bilingualism in French and English is becoming a standard requirement.

When onboarding employees in Madagascar, the following documents and procedures are required:

• Written Employment Contract: It is legally required to have a written employment contract in Malagasy or French outlining the terms of the employee's compensation, benefits, and termination requirements.
• Company Registration Certificate: Your company registration certificate issued by the company registrar (RCS) is required.
• Taxpayer Identification Number (TIN): Your company's Taxpayer Identification Number is also necessary.
• Statistical Maps: These maps are required for specific applications.
• Certificate of Absence of Criminal Record: Employees must provide a certificate of absence of criminal record from their country of origin.
• Certificate of Residence: A certificate of residence is needed for some applications.
• Business Visa: For business purposes, a business visa is required for employees planning to work in Madagascar.
• Work Permit: A work permit is necessary for foreign employees to work in Madagascar.

Probationary periods of up to 6 months are allowed with a one-time renewal.

• January 1: New Year's Day
• March 8: Women's Day
• March 29: Martyrs' Day (Memorializes those who died in the Revolt of 1947 against the French)
• May 1: Labor Day
• May 25: African Liberation Day
• June 26: Independence Day (Fetin'ny Fahaleovantena)
• November 1: All Saints' Day
• December 25: Christmas Day

Religious Holidays:

• Variable (March or April): Easter Monday
• Variable (July or August): Eid al-Fitr (End of Ramadan)
• Variable (August or September): Id al Adha (Feast of Sacrifice)
• Variable (July or August): Mahavelona, a traditional celebration of ancestors and spirits

In general, employees are entitled to 2.5 days of paid leave per month.

Female employees are generally entitled to 14 weeks of paid maternity leave, at least 8 of which should be taken after the child’s birth. Leave is paid at 50% for employees covered by the labor code and at 100% for public servants.

Employees are entitled to at least five paid sick days per year.

Men are generally entitled to up to 10 days each year for family events.

Employees may be terminated for cause with written notice. The notice period is determined by the type of employment and length of service and ranges from 8 days to 6 months.

In Madagascar, severance pay is not customary, and employers are only required by law to provide very little severance. Severance is only given out in the event that they are let go for financial reasons. In that scenario, they will be paid for ten days of work for every year of service.

The conditions for obtaining a work permit in Madagascar vary based on the classification of your staff. All foreign nationals looking for work, though, will require a work permit. You can sponsor your employees' immigration to the nation and set up their work permits as the employer. Self-employed people must apply for a work permit on their own.

Your employees requesting a transformable visa will require the following documents in addition to a work permit issued and signed by the Ministry of Work:

• An employment contract stamped by the Ministry of Public Service, Labor Administration Reform, and Social Laws (MFPTLS)
• A work permit delivered by the MFPTLS
• A certificate of employment issued by you, the employer
• Your company’s certificate of registration issued by the Registrar of Companies (RCS)
• Your company’s Tax Identification Number (TIN)
• Your company’s statistics cards

Types of Background Verification Checks:

• Criminal Records Search: Employers can request a criminal record search from the Ministry of Justice. This search reveals any convictions or pending charges against the applicant.
• Civil Court Records Search: This search reveals any civil judgments or lawsuits against the applicant.
• Education Verification: Employers can verify the applicant's educational credentials by contacting the relevant educational institution.
• Employment Verification: Employers can contact the applicant's previous employers to verify employment history and performance.
• Professional Reference Checks: Employers can contact the applicant's professional references to gather information about their character and work ethic.