New Labour Code in Madagascar - Law 2024-014
Adopted in due form at the level of the two parliamentary chambers, declared in conformity with the constitution by the High Constitutional Court (HCC) on August 8, law 2024-014 relating to the Labor Code was promulgated
Here are the key changes between the 2003 and 2024 versions of the Madagascar Labor Code:
Structure and Organization
2003 Code: The code was divided into 10 titles covering various aspects of labor relations, such as general provisions, work contracts, work conditions, hygiene and safety, professional relations, and penalties.
2024 Code: The new code expanded to 11 titles. Notably, there is a new emphasis on "Employment" as its own title, reflecting a stronger focus on employment policies. Additionally, "Security and Health at Work" has been given its own dedicated titlle
General Provisions
The 2024 code introduces more inclusive language, clarifying the applicability of the code to both national and international workers in Madagascar. There are also clearer distinctions about who is not covered under the code, such as public servants and independent workers.
Worker and Employer Definitions
Both codes define a worker as anyone who works under the authority of another for remuneration. However, the 2024 code emphasizes the inclusion of protections for workers regardless of their contract's form, the place of contract conclusion, or the nationality of the worker.
Employment Relations
2003 Code: Focused on general relations between employers and employees. 2024 Code: Places greater emphasis on collective labor relations, and includes more detailed procedures for managing employment contracts, including modifications, termination, and dispute resolution.
Health and Safety
The 2024 code further strengthens the obligations of employers regarding workplace safety, with an entire title dedicated to "Security and Health at Work." This shows an increased focus on aligning with international standards to ensure safer working conditions
Dispute Resolution
The 2024 code provides more detailed processes for resolving labor disputes, including the involvement of national labor councils and other entities, reflecting a more structured approach to labor conflict resolution.
Penalties
Penalties for violations have been updated to be more severe and effective, with an emphasis on protecting fundamental worker rights. The 2024 code includes updated sanctions to ensure compliance with the new labor regulations.
Worker Migration and Exploitation
The new code acknowledges the issue of worker migration and the risks associated with exploitation, reflecting a broader concern for Malagasy workers employed abroad. This is a response to the international context and aligns with global labor standards.
These changes reflect a significant evolution in Madagascar's labor laws, aiming for more comprehensive protection of workers' rights and alignment with international labor standards.
TELEWORKING IS REGULATED, SALARY PORTAGE - EMPLOYER OF RECORD SERVICES IS WELL COVERED AND REGULATED IN THE NEW ADOPTED CODE
Madeinmada, undertakes to respect and implement the new labor code for its employees and employees carried within its structure on behalf of local and foreign companies and NGOs
Why Choose Madeinmada as your EOR, Employer of Record?
Madeinmada positions itself as a key player in the salary portage sector, Employer of Record EOR Services in Madagascar. With in-depth knowledge of the legal framework and expertise in human resources management, Madeinmada offers tailor-made support to professionals and companies wishing to benefit from the advantages of payroll management.
Whether you are an expert looking for a specific mission or a company requiring specific skills for a defined period, Madeinmada offers you a flexible and secure solution, aligned with the requirements of the Malagasy Labor Code.
Services
The team aims to ensure 100% compliance with local laws and legislations and keep each and every partner updated for any changes. Our Services listed below are real Solutions to companies and ngos for their mid or long term projects in Madagascar
Payroll Services Madagascar
Process Payroll Calculations, payroll tax statements, Monthly, Quarterely, Yearly taxes, Employee and Employer contributions, handling of deposits and withdrawals for your employees, Expenses reimbursment, Insurance handling, reporting
Employer of Record (EOR)
MADEINMADA is the legal employer of your workers and handle all aspects of compliance from the onboarding to the termination. Handling the employment contract. Processing payroll. Filing employer social contributions. Filing employee taxes
Professional Employer Organization (PEO)
As a co-employer MADEINMADA provides real engagement for your business. Our PEO services will allow you to outsource important HR functions. We take some important responsibilities and add real value to your business and activities in order to enhance your bottom line
Employee and Contractor Recruitment
Short-term, mid-term, long-term assignment? Hire an employee or a contractor? Let us help you with quicker hiring and onboarding. We source, we screen, we interview. We handle the short-listing process and you decide the right people for your organization
Running Projects
Our valuable clients, hand in hand with us
Cossel Staffing and Recruiting
Cossel is a recruitment agency bringing together appropriate clients and candidates in the IT and Financial sector.
cosselrecruitment.comNutreco | Feeding the future
Nutreco is a global leader in animal nutrition and aquafeed. Our advanced nutritional solutions are at the origin of food for millions of consumers worldwide.
nutreco.comEasyHire | Paving your path to success
Easy Hire is a premier recruitment consultancy specializing in the identification and placement of highly qualified professionals and executives within the financial, IT, and sales sectors.
easy-hire.coEpoca | Le futur de la santé à vos côtés
Allowing elderly people to age at home, in the best possible conditions while making daily life easier for caregivers and carers.
epoca.healthPayroll Elements
Get to know more about payroll componemts and labour code in Madagascar...
IRSA - Tax on Salary - Income Tax
Impôt sur le Revenu Salarial, withhold and paid by the employer
CNAPS - Caisse Nationale de Prévoyance Sociale
Family benefits, Work accidents and occupational diseases, Retirement
FMFP - Training Contributions
Fonds Malgache de Formation Professionnelle
OSTIE - Employee Health Coverage
Organisation Sanitaire Inter-entreprise d'Antananarivo
FUNHECE - Service Médical Inter Entreprise
Employee Health Coverage, Funds Health Center, FUNRECO Group
Exchange rates - Banky Foibe (Central Bank)
Currency daily Exchange Rates - EUR/USD/GBP to MGA Salary payment
Monthly Payslip delivery to employees -
Signed proof of salary payment - Payment note
Employee Health Insurance Coverage
Employee benefits - Health coverage for employees and families
Expenses Reimbursment - Overheads Management
Employees prepaid expenses coverred by the company
Compensation and Severance Payment
because of a layoff, dismissal or retirement
Madagascar Holidays 2024
12 days of holidays
Entrust us with a mission
We do it simple, friendly and smart! the way we build long-term win-win partnership with you
Frequently Asked Questions
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What is the minimum salary in Madagascar?
Applicable from March 1, 2024, the minimum salary in Madagascar is 262,680 MGA per month
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What is the payroll frequency in Madagascar?
For workers/employees on monthly basis, the payroll is once a month with optional mid-month advance
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In which currency the salaries and wages are paid in Madagascar?
Salaries and wages should be paid in Ariary (MGA - Malagasy Ariary) and to a local bank account
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What is the tax rate applicable in Madagascar for the salary income?
For the installment above 600,000 Ar, the tax rate is 20%. For installment 500,000 Ar - 600,000 Ar, 15%. For the installment 400,000 Ar - 500,000 Ar, 10%. For the installment 350,000 Ar - 400,000 Ar, 5%. For the installment 0 Ar - 350,000 Ar, 0%.
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What are the social contributions in Madagascar?
for the calculation of social charges, the salary is capped at 8 times the minimum salary
CNAPS retirement: salary share: 1% of gross salary - employer's share: 13% of gross salary
OSTIE Health: salary share: 1% of gross salary - employer's share: 5% of gross salary
FMFP professional training: salary share: 0% of gross salary - employer's share: 1% of gross salary -
What are common employees advantage in Madagascar ?
Companies offer mainly health insurance to the employee and his family members and 13th month salary
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What are the basic holidays in Madagascar?
01 January - New Year's Day, 29 March - Martyrs' Day, Easter Monday, Eid al-Fitr, 01 May - Labour Day, Ascension Day, Whit Monday, 26 June - Independence Day, Eid al-Adha, 15 August - Assumption of Mary, 01 November - All Saints' Day, 25 December - Christmas Day. (12 days)