Madagascar

Madagascar

Capital: Antananarivo
Currency: Malagasy Ariary- MGA
MGA

Madagascar Labor Law and Employment Policy Overview

Employment Law Overview

  • Key Legislation:
    • Labor Code (Decree No. 2003-029 of 2003)
    • Social Security Code (Decree No. 60-127 of 1960)
  • Legal Characteristics:
    • Aims to protect employee rights and promote harmonious labor relations.
    • Sets standards for minimum wage, working hours, leave, social security, and contract termination.

Employment Contract Requirements

  • Contract Types:
    • Fixed-term contracts (maximum duration of 2 years)
    • Indefinite-term contracts
  • Contractual Provisions:
    • Must include clauses on job description, remuneration, working hours, benefits, and termination conditions.
  • Language and Currency:
    • Contracts must be written in French or Malagasy.
    • Currency is the Malagasy Ariary (MGA).

Working Hours Regulations

  • Standard Working Hours: 40 hours per week, 8 hours per day.
  • Rest Days and Breaks: 1 rest day per week, 1 hour break after 8 hours of work per day.

Leave Policy

  • Annual Leave: 30 days of paid annual leave per year.
  • Public Holidays: 15 official public holidays.
  • Special Leave:
    • Sick Leave: 5 days of paid sick leave per year.
    • Maternity Leave: 14 weeks of paid maternity leave, of which 8 weeks must be taken after childbirth.
    • Paternity Leave: No statutory paternity leave.
    • Parental Leave: Female employees are entitled to up to 14 weeks of paid parental leave, of which at least 8 weeks must be taken after childbirth. Male employees are entitled to 10 days of leave per year for exceptional family events.

Employee Dismissal and Contract Termination

  • Notice Period:
    • During probationary period: No notice period
    • Outside probationary period: 8 days to 6 months, depending on length of service and type of work.
  • Severance Pay:
    • Payable only in cases of dismissal for economic reasons.
    • 10 days' salary per year of service, up to a maximum of 6 months' salary.
  • Protection Against Unfair Dismissal:
    • Employers must have valid grounds for dismissing an employee.
    • Employees can file a complaint for unfair dismissal.

Taxation

  • Personal Income Tax:

    • Salary Range (MGA)Tax Rate
      0 - 350,0000%
      350,000 - 400,0005%
      400,000 - 500,00010%
      500,000 - 600,00015%
      600,000 and above20%
  • Social Security Contributions:

    • Employee: 1%
    • Employer: 13%

Health Insurance

  • Insurance Policy:
    • All employees must be enrolled in the public healthcare system.
    • Private health insurance is also common.
  • Coverage:
    • Public healthcare system provides basic medical services.
    • Private health insurance offers more comprehensive coverage.

Compensation and Benefits

  • Minimum Wage: Varies based on job type and seniority.
  • Salary Structure:
    • Typically includes base salary, bonuses, and allowances.

Work Permits and Visas

  • Permit Requirement:
    • Foreigners require a work permit to work in Madagascar.
  • Application Process:
    • Applicants must submit an application to the Malagasy embassy or consulate abroad.

Confidentiality and Non-Compete Clauses

  • Enforceability:
    • Confidentiality and non-compete clauses are enforceable in Madagascar.
  • Common Provisions:
    • Confidentiality clauses typically restrict employees from disclosing confidential information.
    • Non-compete clauses typically restrict employees from working for competitors for a certain period.

Training and Development

  • Legal Requirements:
    • Employers must provide safety training and opportunities for skill enhancement to employees.
  • Government Support:
    • Government provides funding and programs to support employee training and development.

Workplace Diversity and Inclusion

  • Legal Requirements:
    • Discrimination based on race, gender, religion, or other protected characteristics is prohibited.
  • Enforcement Measures:
    • Employers must implement policies and procedures to ensure workplace diversity and inclusion.

Remote Work Policy

  • Legal Framework:
    • No specific legal framework governing remote work.
  • Tax and Insurance Implications:
    • Remote work may impact employees' tax and social security obligations.

Authoritative Website Addresses

1.Madagascar Labor Law and Employment Policy Overview
1.1Employment Law Overview
1.2Employment Contract Requirements
1.3Working Hours Regulations
1.4Leave Policy
1.5Employee Dismissal and Contract Termination
1.6Taxation
1.7Health Insurance
1.8Compensation and Benefits
1.9Work Permits and Visas
1.10Confidentiality and Non-Compete Clauses
1.11Training and Development
1.12Workplace Diversity and Inclusion
1.13Remote Work Policy
1.14Authoritative Website Addresses