Salaries, contributions and employment cost in Madagascar in 2026
Salaries, contributions, taxation, and top roles. Kernel data.
Employment cost in Madagascar in 2026
In Madagascar, employer cost is gross salary plus employer contributions, estimated at around 19% before ceilings. Net salary is gross pay less employee contributions and income tax, whose top bracket reaches 25%. Currency: Malagasy Ariary (MGA).
Understanding a payslip in Madagascar
A payslip moves from gross salary to net pay by applying contributions, taxable income and income tax. Ceilings, benefits, dependants and sector rules can change the result.
- 1
Gross salary
Pay before mandatory deductions in MGA.
- 2
Employee contributions
Pension, health and other applicable deductions, including any contribution ceilings.
- 3
Taxable income
The base after locally permitted deductions and allowances.
- 4
Income tax
The amount calculated under current brackets, credits and local tax rules.
- 5
Net salary
Pay after employee contributions and income tax, excluding contract-specific benefits or deductions.
Essential guide
Employing in Madagascar
Law No. 2024-014 is the new Labour Code and replaces the 2003 framework. It modernises contracts, leave, occupational health and collective relations. Costs use active 2026 records.
Decision brief
High confidenceMajor recent reform. Update contracts, internal rules, health and safety, leave, any remote work and termination processes.
Complete guide
Contracts and hiring+
Permanent employment is the reference. Fixed term and probation should be written and comply with grounds, durations and renewals allowed by the 2024 Code.
Working time+
Statutory time is 40 hours per week. Excess hours, rest and premiums should be tracked.
Leave and absences+
Leave accrues at 2.5 calendar days per month of service, equal to 30 days for a complete year.
Termination+
Respect the ground, process, notice and final entitlements for the type of termination.
Payroll and obligations+
Payroll should reconcile IRSA, CNaPS, occupational health, ceilings and benefits. Calculations apply active data.
International hiring+
Work permission and residence formalities should precede employment.
Employment law, verified sources
Reviewed on 16/09/2026. Official sources take priority.
- Intergovernmental sourceOIT NATLEX, loi n° 2024-014 portant Code du travail
Implementing instruments and practice under the 2024 Code should be monitored as they consolidate.
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Income tax in Madagascar
| Bracket | Lower bound | Upper bound | Rate |
|---|---|---|---|
| 1 | 0 | 4,200,000 | 0.0% |
| 2 | 4,200,000 | 4,800,000 | 5.0% |
| 3 | 4,800,000 | 6,000,000 | 10.0% |
| 4 | 6,000,000 | 7,200,000 | 15.0% |
| 5 | 7,200,000 | 48,000,000 | 20.0% |
| 6 | 48,000,000 | and above | 25.0% |
FAQ
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