An indefinite-term contract can be terminated by either party by providing prior notice (or without notice in the event of gross negligence). The dismissal notice length varies between 1 day and 6 months, depending on the employee’s length of service in that company and their professional category.
The notice must be provided in writing. During the notice period, the worker is entitled to 1 day off per week. Any breach of contract where the notice period is not fully observed requires the party responsible for the breach to pay the other party compensation.
Under the labor law, foreign nationals may work in Madagascar if they obtain the following:
Employees must apply for a transformable visa to obtain a work permit. Depending on the immigrant category, additional documents might be required in addition to the general documents required for this type of visa.
To apply for a work visa, an application with relevant documents must be submitted to Madagascar's Economic Development Board. Work visas are issued for up to 2 years and are renewable.
In Madagascar, employees are entitled to 2.5 days of paid annual leave per month after 12 months of service. It is compulsory to take 15 days' leave within the first 3 months after acquiring the right to leave. Employees have the right to accumulate annual leave for up to 3 years.
An employee is entitled to 1/12th of the annual wages before the commencement of annual leave. If an employment contract is terminated before utilizing all of the annual leave, compensation for unused leave is paid.
The Labor Code of Madagascar defines hours of work as actual hours worked, not including time required to dress, undress, or eat. The maximum legal work hours is 173.33 monthly or 40 per week. Work done in excess of these hours is considered overtime.
For agricultural businesses, the maximum legal work hours are 2,200 hours yearly, and the Government Council determines the terms, wages, nature, and length of overtime.
In Madagascar, female employees are entitled to 14 consecutive weeks of paid maternity leave, including 8 weeks of postnatal leave. In case of complications or sickness resulting from pregnancy or birth, the maternity leave can be further extended by 4 weeks with a medical certificate attesting to her condition.
An employee cannot be dismissed for taking maternity leave. Employees who are confirmed pregnant by an approved medical professional may terminate the employment contract without notice or duty to pay compensation for breach of contract.
Maternity leave is fully paid. The employee shall be reimbursed for childbirth costs and, where appropriate, for medical care (within the limits of the health facilities' fees). If the female employee is insured, the costs are split equally between the National Social Insurance Fund and the employer.
Effective March 1, 2026, the non-agricultural minimum wage is MGA 300,0000 (Malagasy ariary), and the agricultural minimum wage is MGA 304,300 per month. The value of the index point for calculating Minimum Hiring and Seniority Salaries by professional category is 0.8745 for the non-agricultural sector and 0.7688 for the agricultural sector.
Remuneration for performance, task, piecework, or target-related work must equal that of an employee paid by the hour doing similar work and at least the minimum wage for the applicable occupational category.
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