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Africa Deployments (ADS) is an Employer of Record (EOR) provider that lets international companies hire staff in Madagascar legally, without opening a local entity. As an EOR Madagascar partner, ADS becomes the legal employer of record, handling labor contracts, CNaPS social security registration, and IRSA income tax withholding, so a foreign business can build a compliant team on this Indian Ocean island economy.
Quick facts: Employer of Record Madagascar at a glance
- Employer statutory contributions: reported at around 18% of gross salary combined across CNaPS, OSTIE (health) and FNFP (training fund)
- Minimum wage: around MGA 200,000-266,500/month depending on sector and source, revised periodically by decree
- Income tax (IRSA): withheld monthly, due by the 15th of the following month
- Employer-centric labor law with strong wage, leave and termination protections
- Currency: Malagasy ariary (MGA)
What Is an Employer of Record in Madagascar?
An Employer of Record in Madagascar is a licensed local entity that legally employs staff on behalf of a foreign company, while that company retains full control over the employee’s day-to-day work. Africa Deployments’EOR Madagascar service covers compliant contract drafting under the Labour Code, CNaPS registration, IRSA withholding, statutory leave administration, and work permit support for expatriates.
Beyond EOR, Africa Deployments also supports companies that want a PEO Madagascar co-employment arrangement, plus standalone payroll Madagascar outsourcing for businesses that already hold a local entity but want compliant MGA payroll and CNaPS reporting handled externally.
Madagascar Employment Law at a Glance
| Requirement | Detail |
|---|---|
| Minimum wage | Set by government decree; sector-specific rates for agricultural and non-agricultural work |
| Social security body | Caisse Nationale de Prévoyance Sociale (CNaPS) |
| Health scheme | OSTIE (mandatory health insurance) |
| Training fund | Fonds National de la Formation Professionnelle (FNFP) |
| Income tax | IRSA, withheld monthly by the employer |
| Labour law character | More employee-centric than many regional peers, with strong wage, leave and termination protections |
Payroll, Tax and CNaPS Compliance in Madagascar
Malagasy payroll runs on two parallel obligations: monthly IRSA income tax withholding, and mandatory registration with the Caisse Nationale de Prévoyance Sociale (CNaPS), Madagascar’s national social security fund, alongside related contributions to OSTIE (health) and the FNFP training fund. Combined employer-side statutory contributions across these three schemes are commonly estimated around 18% of gross salary, though the CNaPS, OSTIE and FNFP rates and thresholds are each revised periodically by decree. The ILO’s labour market profile for Madagascar offers further background on the country’s employment landscape.
Because Madagascar’s minimum wage is set separately for agricultural and non-agricultural sectors and revised by decree, and because CNaPS/OSTIE/FNFP thresholds move in step with those decrees, businesses running Madagascar payroll on older figures risk both underpaying and misfiling. This is the compliance gap Africa Deployments’ EOR and payroll Madagascar services are built to close.
Why Companies Choose Africa Deployments for EOR Services in Madagascar
Africa Deployments (ADS) operates as an Employer of Record across 50+ African countries, including Madagascar, giving companies a single partner for the Indian Ocean region and continent-wide expansion rather than a patchwork of local vendors. For Madagascar specifically, ADS handles:
- CNaPS, OSTIE and FNFP registration and current filing
- IRSA withholding and payslip generation in MGA
- Sector-correct minimum wage classification
- Statutory leave and termination calculations under Madagascar’s employee-protective labour law
Frequently Asked Questions
What does an Employer of Record in Madagascar actually do?
An EOR like Africa Deployments becomes the legal employer of your Madagascar-based staff, managing contracts, CNaPS registration, IRSA withholding and statutory leave, while you direct the employee’s daily work.
How much do employers contribute across CNaPS, OSTIE and FNFP in Madagascar?
Combined employer-side statutory contributions across these three schemes are commonly estimated around 18% of gross salary, though exact rates should be confirmed against the current decree.
What is Madagascar’s minimum wage?
It varies by sector (agricultural vs non-agricultural) and is revised periodically by government decree; current figures should be confirmed for the specific role.
Does Africa Deployments offer payroll-only services in Madagascar?
Yes. Alongside full EOR, ADS provides standalone payroll Madagascar outsourcing for companies that already have a local entity but want CNaPS and IRSA compliance managed externally.
About Africa Deployments
Registered Company Name: Africa Deployments Ltd.
Address: The Strand, Beau Plan Business Park, Mauritius
BRN: C19167158 | VAT: 27738392
Phone: +230 5713 8629
Conclusion
Madagascar’s sector-specific minimum wage decrees and multi-scheme employer contributions require accurate, current application. An EOR Madagascar arrangement with Africa Deployments removes that operational risk, giving international businesses a compliant, fast route into the market.
Reviewed by: Africa Deployments (ADS) Compliance Team
