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Get expert helpMadagascar’s been on your radar, and not just for its wildlife. Maybe it’s the local talent pool—young, multilingual professionals with skills in everything from finance to customer support. Or perhaps it’s the strategic time zone that bridges Europe and Asia. Whatever the reason, you’re ready to hire in Madagascar.
But hiring in a new country always comes with a learning curve. Payroll, contracts, compliance—none of it looks quite like what you’re used to. This guide walks you through every step, so you can move from interest to onboarding with confidence.
Your hiring options in Madagascar: Local entity, EOR, or contractor
Before you make your first hire, you’ll need to decide how to legally employ someone in Madagascar. You’ve got three main paths:
| Hiring Option | What It Involves | Pros | Cons |
| Direct Employment | Set up a local company and employ people under Malagasy law | Complete control and long-term presence | Time-consuming setup, more admin and legal exposure |
| Employer of Record | Partner with a third-party that hires on your behalf | Quick entry, local compliance handled for you | Less control over local employer branding |
| Contractor Engagement | Work with freelancers on a per-project basis | Flexible and cost-efficient | Higher misclassification risk, fewer protections for workers |
With a local entity, you take on the full employer role: contracts, payroll, taxes, and compliance. That can be great for long-term investment, but it’s a lot to manage upfront.
An Employer of Record (EOR) hires your team on your behalf. You still manage the work. They handle the legalities like contracts, registration, taxes, and compliance.
Contractors are perfect for short-term work, but risky if they start looking like employees. If you unknowingly misclassify someone, you could end up paying penalties. For help deciding between these paths, explore EOR vs. entity establishment.
Step-by-step: How to legally hire employees in Madagascar
Ready to make it official? Whether you’re setting up locally or working with an EOR, these are the steps you’ll need to take to hire someone legally in Madagascar.
1. Create a legally compliant employment contract
In Madagascar, a written employment contract is mandatory. It must be in French or Malagasy and include:
- Job title and responsibilities
- Work location
- Salary (in Malagasy Ariary)
- A fixed-term or open-ended contract
- Work hours and paid time off
- Probation period (up to six months is standard)
- Notice period for termination
Make sure your contract follows Madagascar’s Labor Code. It’s your go-to for required clauses and structure.
2. Register with local authorities
If you’re hiring directly, you’ll need to register your company and each employee with:
- CNaPS (National Social Security Fund). Register within 15 days of employment.
- DGI (Tax Authority). Required for all income tax and payroll declarations.
EOR partners take care of this for you.
3. Complete onboarding and first payroll setup
You shouldn’t skip these steps:
- New employees need a medical exam before or right after starting.
- Signed contracts must be filed with the labor inspectorate.
- Report new hires to CNaPS and DGI.
- Get payroll systems ready to track deductions and benefits.
Tips and resources for a smooth hiring experience
Hiring in Madagascar doesn’t have to mean building a full legal presence. This is where an employer of record really shines.
An EOR is your local compliance partner. They become the legal employer of record in Madagascar and handle:
- Drafting contracts that meet local law
- Registering employees with the right agencies
- Processing payroll in Malagasy Ariary
- Withholding taxes and social security contributions
- Keeping your team compliant with Madagascar’s labor laws
You still manage your employees day-to-day. The EOR manages everything that keeps you compliant and protected.
Pebl does exactly that—with a local-first approach and technology that makes it all seamless.
Payroll in Madagascar: What you need to know
Payroll here follows a clear rhythm of monthly cycles, payments in MGA, and government-required deductions. But you’ll need to keep up with local tax rules and updates to benefits law.
How payroll typically works
- Wages are paid monthly in Malagasy Ariary (MGA), usually by bank transfer.
- Payroll must include social contributions and tax withholdings.
- Most employers issue payslips and submit declarations monthly.
Key payroll details
- Minimum wage. MGA 262,680/month (~US$57.79), as of 2025.
- Social security. 19% employer contribution to CNaPS; 2% from the employee.
- Income tax. Withheld at source using progressive tax bands.
- Leave. Paid annual leave of 30 days after one year of service, sick days, and 14 weeks of maternity leave are required.
FAQs about hiring and payroll in Madagascar, answered
What’s the average salary in Madagascar?
In 2025, the net average is around MGA 507,250/month (roughly US$110.92), but expect wide variation by role and region.
How are employees typically paid?
Via local bank transfer in MGA. If you’re outside the country, EORs handle the full process—local payments, deductions, and filings.
What’s the standard payroll cycle?
Monthly, with payment due by the end of each working month. Public holidays and reporting deadlines are listed in Madagascar’s fiscal calendar.
What’s the risk with contractors?
If your contractor works like an employee, you risk misclassification penalties. EORs help you hire legally without crossing compliance lines.
Hiring in Madagascar doesn’t have to be hard if you follow the right steps
Hiring abroad can feel overwhelming, but it doesn’t have to be. When you understand the rules—and have the right partner—you can hire with confidence.
Follow the steps in this guide to build a legally sound, payroll-ready team. And if you want to move faster without the paperwork, an EOR can help you start hiring in days instead of months.
Pebl simplifies hiring and payroll in Madagascar
Pebl helps you build global teams without the complexity. With our EOR services in Madagascar, you can hire full-time employees there without opening a local entity. We already know the language, the local nuances, and how business is done there. So, you can be confident that contracts, payroll, taxes, and compliance are expertly handled.
Need boots-on-the-ground help in Antananarivo? Let’s chat about your next best hire in Madagascar or any of the 185+ countries where we operate.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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