Payroll management in Madagascar: obligations and adapted solutions

Managing payroll in Madagascar can be a complex task, requiring a good knowledge of local regulations. Whether you are a company or an NGO, it is possible to hire and pay employees in Madagascar, provided that you respect certain legal and administrative obligations.

1) Conditions for employment and remuneration in Madagascar

Any company or NGO can hire and pay employees in Madagascar. To make salary payments legally, companies or NGOs must:

• Have a local legal entity :

  • This may be a subsidiary registered with the Malagasy authorities.
  • Or, more simply and with conditions, call on a salary portage company or paying agency like Madeinmada , an expert in outsourcing human resources.

• Establish a formal employment contract :

  • Each employee must have a signed contract, guaranteeing their rights and clarifying their responsibilities.

2) Taxation: IRSA, an essential tax

In Madagascar, all salaries paid are subject to IRSA (Income Tax on Wages and Similar Income) .

• This tax is calculated, withheld at source and paid to the tax authorities by the employer, whether a company or an NGO.
• Madeinmada guarantees rigorous management of tax obligations for its clients, thus ensuring their compliance.

3) Social protection of employees

Registration with social security organizations is a legal obligation. This guarantees social security and benefits for employees:

• Cnaps (National Social Security Fund) : social protection, including family allowances and retirement.
• Ostie (Inter-Company Health Organization) : medical coverage and health care.
• Fmfp (Malagasy Professional Training Fund) : contribution to continuing professional training.

Madeinmada takes care of these complex administrative procedures, thus offering a turnkey solution.

4) Social and tax declarations

Salary-related declarations must be made:

• Monthly or quarterly , depending on the legal obligations in force.
  Madeinmada offers precise and personalized monitoring to simplify these processes.

5) Payroll management software: tools adapted to the local context

Accuracy and efficiency are essential in payroll processing. In Madagascar, companies use configurable software such as:

• Sage and Odoo , adapted to Malagasy specificities.
• Local solutions , designed to meet the specific needs of employers in Madagascar.

Madeinmada integrates these technologies to guarantee compliant and error-free payroll.

6) Payment of salaries: rules and good practices

The payment of salaries is governed by strict rules:

• Local currency : salaries must be paid in ariary, the legal currency of Madagascar.
• Respect for deadlines : salaries must be paid regularly, in accordance with the contract.
• Payment methods:
  • Bank transfers and electronic payments are preferred.
  • However, cash payment remains a legal option.
• Pay slips : mandatory, they can be sent in paper or electronic format.

Conclusion: Madeinmada, your partner in payroll management

A specialist in salary portage, Madeinmada relies on a young and dynamic team, expert in human resources, to offer payroll management solutions adapted to the needs of local and international companies.

By outsourcing your payroll management to Madeinmada, you benefit from:

• Local expertise on tax and social obligations.
• A turnkey service for all administrative formalities.
• A reliable and compliant solution, allowing you to focus on your core activities.

Entrust your payroll management to Madeinmada and benefit from a tailor-made service that ensures your peace of mind.