Madagascar Employer of Record & Payroll

Madagascar Africa Employer of Record

Africa Deployments Madagascar offers our clients Employer of Record solutions & Payroll solutions covering all of the regions within.  We offer full-time employment or fixed terms contracts based on your requirements in Madagascar for locals or expatriates.  ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors.  We will also advise our client’s on the best Human Resource (HR) practices when setting up employees locally in Madagascar.

ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis, ensuring that they are fully compliant with the law.  We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. We work with a large amount of NGO’s, International Development Agencies, and the private sector in Madagascar.

In addition to our services we can offer you the employee in Madagascar, Medical, Disability, Life, and Workmen’s Compensation Insurances.

Madagascar, officially the Republic of Madagascar, and previously known as the Malagasy Republic, is an island country in the Indian Ocean, approximately 400 kilometers off the coast of East Africa. At 592,800 square kilometers, Madagascar is the world’s second-largest island country.

What income is Taxable in Madagascar:

The Taxable income public or private salaries, wages, fees, allowances and other gains or profits from employment, such as bonuses, premiums, non-cash benefits and all fixed or remuneration / other perquisites, alimony payments provided on a compulsory basis with the exception of those for dependent children.

What income is exempt from taxes in Madagascar:

  • Pensions, life annuities in general, and all permanent and temporary allowances received as compensation for damages suffered.
  • Allowances and increases for pension
  • Salaries attached to the distinction of honor
  • Balances of citizens called to serve within or outside the armed forces for the duration of the deployment.
  • Retirement indemnity not exceeding one year’s salary
  • Medical Expenses
  • Family allowances

Can you give Fringe Benefits:

  • Canteen expenses up to MGA 5,000
  • Car Benefits – used for both professional and personal purposes estimated at 15% of total monthly expenses incurred by the company (Fuel, maintenance, and repairs)
  • Housing / Accommodation – 50% of the actual rent or monthly bond payment not exceeding 25% of the fixed remunerations paid in cash
  • Phone Allowance – 15% of the total actual monthly expense paid by the employer

What are the Employer & Employee contributions in Madagascar:

  • Social Security (CNAPS) – The contributions are 13% (MGA 208,000 capped) by Employers and 1% (MGA 16,000 capped) by employees.
  • The employer pays – 9.5% for Old Age, Disability, and Pension. 25% work injury and 2.25% family allowances
  • The employee pays 1% for Old Age, Disability, and Pension

What Double Tax Treaties are in place in Madagascar:

  • France
  • Mauritius

Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Madagascar.