Employer of Record in Madagascar

What it costs and what the law requires to employ someone in Madagascar through an EOR, with every figure cited to a primary source.

At a glance

To employ someone in Madagascar, an employer pays ~19% (pension CNAPS 13% + health OSTIE 5% + training FNFP 1%)↗ in mandatory contributions on top of gross salary, must give 30 calendar days (2.5 a month)↗ of paid annual leave, and 10 days to 4 months by category after 1 yr (~1 month employees)↗ of notice to terminate. An EOR lets you hire here without your own legal entity.

Employer cost burden
~19% (pension CNAPS 13% + health OSTIE 5% + training FNFP 1%)↗
Statutory annual leave
30 calendar days (2.5 a month)↗
Every country's annual leave
Minimum wage
MGA 315,000/mo (non-agricultural, from Oct 2026)↗
Every country's minimum wage
Notice period
10 days to 4 months by category after 1 yr (~1 month employees)↗
Standard working week
40 hours↗
Currency
MGA↗

Every figure links to the page that states it. This page's figures were read at their sources between Aug 18, 2026 and Oct 29, 2026, and every cited page is checked again each week (how we verify).

Best fits

Best EOR providers for one employee in Madagascar

Ranked the way Get matched ranks a hire: employing through its own entity in Madagascar, a lower published fee and no deposit, each read from the provider's own pages. A provider whose referral program pays us carries a labeled referral boost, and the few providers we do not work with are listed below, never among these three.

Set team size or visa need, and get quotesStill looking for the person? Ask for candidates tooHow referral programs affect ranking

Hiring demand

Remote jobs open only to people in Madagascar

Companies hiring remotely for a role that must be based in Madagascar need someone employed there. Without an entity of their own in Madagascar, an employer of record is how they do it.

Companies hiring full-time
1↗
Contract roles
2↗

Madagascar ranks #142 of 177 countries↗ for full-time remote jobs open only to its residents. Most hired fields: Customer Service.

Counted daily from job postings on Himalayas, a remote job board: a job counts for a country when it accepts applicants based only there. Counting began Oct 29, 2026; a job posted before then counts if it was still open that day. Last updated Nov 11, 2026.

Cost of employment

What an employer pays in Madagascar

The statutory employer contributions that sit on top of gross salary, each cited.

Employer pension / social security
Pension (CNaPS) 13%↗
Employer health / medical
Statutory health (OSTIE) 5%↗
Other employer contributions
Professional training fund (FNFP) 1%↗

Rates are the statutory employer contributions; the total employer burden in Madagascar is ~19% (pension CNAPS 13% + health OSTIE 5% + training FNFP 1%)↗. Confirm the current rates for your case before hiring. Compare employer costs in every country. Compare employer pension contributions in every country.

Total cost

What an EOR really costs in Madagascar

The full cost to employ combines gross salary, the statutory employer burden, and the EOR provider's own service fee.

The total cost to employ someone in Madagascar through an EOR is their gross salary, plus ~19% (pension CNAPS 13% + health OSTIE 5% + training FNFP 1%)↗ in mandatory employer contributions, plus a per-employee service fee from the provider. Across the 56 of 93 providers that publish a fee, the median is $349/employee/month (from $99 to $740); the rest quote per country.

Flat-rate illustration at a $100,000↗ salary
Gross salary
$100,000↗
Employer statutory contributions (~19%↗)
$19,000
EOR service fee (median $349/mo)
$4,188
Illustrative annual budget
$123,188

This illustration applies the representative rate to the full salary. It does not apply contribution caps, local-currency thresholds or employee eligibility rules, so it is not a payroll quote. Actual cost depends on the salary, the provider, and country-specific quotes; some countries also add mandatory items such as 13th-month pay or severance accruals. Run your own numbers in the calculator.

Providers

EOR providers that employ in Madagascar

Each provider below names Madagascar on its own website as a country where it offers Employer of Record. Cheapest published starting fee first.

24 providers name Madagascar on their own websites as a country where they offer EOR. Published starting fees among them run from $99 /mo↗ (Native Teams) to $699 /mo↗ (Oyster HR and Safeguard Global); 8 quote Madagascar on request.

Not sure which one fits? We rank these providers for your team size and visa needs, and get you quotes from the ones you pick.

Get matched

Before you sign with one of them: the questions worth asking each provider. Already employing someone in Madagascar through an employer of record? Check what you pay against these fees.

A listing is the provider's own statement that it can employ in Madagascar, read on its site on Nov 9, 2026. Fees are each provider's cheapest published rate, not a quote for Madagascar. We read the country lists and country pages of all 93 providers we track; 78 name the countries they serve, and a provider that does not name Madagascar on its own site is not shown here, even where it may serve it. Confirm availability for your role and contract type before signing.

Employment law

Statutory rules in Madagascar

The employment terms an employer must meet, each linked to the source that states it.

Paying someone in Madagascar as a contractor instead? The law looks at how the work runs, not at what the contract calls it. Check whether the role is employment.

Hiring

How to hire in Madagascar

Two ways to put someone on payroll here.

Use an employer of record

An EOR already has an entity in Madagascar and employs your worker on your behalf, handling payroll, tax and the statutory terms above. Fastest way to hire without incorporating.

Compare EOR providers

Estimate the full cost

Add the ~19% (pension CNAPS 13% + health OSTIE 5% + training FNFP 1%)↗ employer burden to salary and an EOR service fee to see your true monthly cost to employ in Madagascar.

Open the cost calculator
Economy

Madagascar at a glance

World Bank indicators (2025) for context on the labour market.

GNI per capita (Atlas method)
$560↗
GDP per capita
$599↗
GDP (current US$)
$19.6B↗
GDP growth
3%↗
Inflation, consumer prices
8.1%↗
Population, total
32.7M↗
Population ages 15-64
57.6%↗
Urban population
32.9%↗
Labour force, total
17.1M↗
Labour force participation rate
85.5%↗
Female labour participation rate
82.9%↗
Male labour participation rate
88.1%↗
Unemployment rate
3%↗
Wage & salaried workers
11.7%↗
Self-employed
88.3%↗
Questions

Hiring in Madagascar: FAQ

How much does it cost to employ someone in Madagascar?

On top of gross salary, mandatory employer contributions in Madagascar run ~19% (pension CNAPS 13% + health OSTIE 5% + training FNFP 1%)↗, made up of pension (CNaPS) 13%↗; statutory health (OSTIE) 5%↗; professional training fund (FNFP) 1%↗. An employer of record adds its own per-employee service fee on top; across the 56 of 93 providers that publish a fee, the median is $349 per employee per month.

What does an EOR charge to employ someone in Madagascar?

EOR service fees are billed per employee per month, on top of salary and statutory employer contributions in Madagascar. The contribution basis is ~19% (pension CNAPS 13% + health OSTIE 5% + training FNFP 1%)↗. Providers rarely publish a Madagascar-specific fee: across the 56 providers on our price board that publish a price, the median is $349 per employee per month (from $99 to $740), and the rest quote per country. Request a quote for Madagascar for an exact figure.

How much paid annual leave is mandatory in Madagascar?

Statutory paid annual leave in Madagascar is 30 calendar days (2.5 a month)↗.

What is the statutory notice period in Madagascar?

The minimum employer notice period in Madagascar is 10 days to 4 months by category after 1 yr (~1 month employees)↗.

What is the minimum wage in Madagascar?

The statutory minimum wage in Madagascar is MGA 315,000/mo (non-agricultural, from Oct 2026)↗.

Which EOR providers can employ someone in Madagascar?

24 of the 93 providers we track name Madagascar on their own websites as a country where they offer Employer of Record. By published starting fee: Native Teams from $99 /mo↗, RemoFirst from $199 /mo↗, Skuad (Payoneer) from $199 /mo↗, Sourcefit from $199 /mo↗, Tarmack from $199 /mo↗, and 11 more with a published fee; 8 quote Madagascar on request. Each provider's listing is its own claim, so confirm availability for your role and contract type before signing.

How many companies are hiring remotely in Madagascar?

In the 30↗ days to Nov 11, 2026, 1 company↗ posted 3↗ full-time remote jobs open only to people based in Madagascar on the Himalayas job board, plus 2↗ contract roles, which ranks Madagascar #142 of 177 countries↗. The most hired fields are Customer Service. A company hiring this way without its own entity in Madagascar employs through an employer of record.

Do I need a local entity to hire an employee in Madagascar?

No. An employer of record (EOR) already holds a legal entity in Madagascar and can employ your worker there on your behalf, running local payroll, tax and compliance, so you can hire without setting up your own entity. That settles the employment side only: what the person does for your company (signing or negotiating its contracts, running a sales team, working from one place for most of the year) can still make your company taxable in Madagascar as a permanent establishment, whoever employs them.

When a hire abroad makes your company taxable there

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