Madagascar

Capital: Antananarivo

Currency: Malagasy Ariary- MGA

MGA

Madagascar Labor Law and Employment Policy 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.

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).

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.

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.

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.

Personal Income Tax:
- Salary Range (MGA) Tax Rate
  0 - 350,000 0%
  350,000 - 400,000 5%
  400,000 - 500,000 10%
  500,000 - 600,000 15%
  600,000 and above 20%
Social Security Contributions:
- Employee: 1%
- Employer: 13%

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.

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

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.

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.

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.

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.

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