HR, PEO & Employer of Record (EOR) Services in Madagascar

Introduction

Madagascar offers a unique gateway to growth in Africa, with its strategic location along major trade routes, abundant natural resources, and an emerging consumer market. The country is investing in infrastructure, renewable energy, and digital connectivity, creating new opportunities for global investors. For businesses seeking to expand, Madagascar combines untapped potential with competitive labor costs and a growing demand for innovation.

EOR & PEO Solutions in Madagascar

If you’re looking to hire employees in Madagascar without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Madagascar acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Madagascar quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Madagascar?

An Employer of Record Madagascar (also known as an EOR provider) enables businesses to hire and onboard Madagascar employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Madagascar, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Madagascar hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Madagascar

By using an EOR solution, companies can confidently build their team in Madagascar, access top talent in Madagascar, and stay focused on business growth without getting tangled in bureaucracy.

Hiring in Madagascar

Madagascar is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Madagascar successfully, it’s important to understand your options especially when you don’t have a legal entity in Madagascar.

That’s where using an Employer of Record in Madagascar makes all the difference.

Your Hiring Options in Madagascar

Businesses have two main paths to hire employees in Madagascar:

The second option is faster, lower-risk, and ideal for companies that want to test the market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Madagascar?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Madagascar

Understanding how employment in Madagascar works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Madagascar to handle these responsibilities with confidence.

Employment Contracts in Madagascar

All employees in Madagascar must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Madagascar, and are usually signed before or on the first day of work.

By working with a Madagascar employer of record, you can ensure that all employment contracts in Madagascar are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Madagascar involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Madagascar handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Madagascar receives all required benefits and that your business remains fully compliant with employment law.

Termination & Notice Periods

Ending an employment contract in Madagascar requires compliance with the Labor Code, which sets clear rules on notice periods and termination grounds. Notice typically ranges from 8 days to 3 months depending on the employee’s role and seniority, with severance obligations applying in many cases.

Partnering with an Employer of Record helps businesses navigate these requirements smoothly, ensuring lawful practices while reducing the risk of disputes.

Visas & Permits in Madagascar

If you’re planning to hire employees in Madagascar or bring in foreign talent, understanding Madagascar’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Madagascar makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Madagascar with confidence.

Work Permits for Foreign Employees in Madagascar

Foreign nationals who plan to work in Madagascar must obtain a valid work permit and residence authorization, both of which are tied to a sponsoring local employer. The process involves government approvals, documentation, and compliance with strict labor regulations.

An Employer of Record simplifies this by acting as the local sponsor, managing applications and compliance so companies can seamlessly onboard international talent.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Madagascar, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Madagascar or send international staff temporarily, an EOR Madagascar solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Madagascar, foreign companies typically need to register a legal entity in Madagascar and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with labor laws.

Alternatively, you can use an EOR in Madagascar to bypass the need for a local entity. The Madagascar employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Madagascar.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Madagascar, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Madagascar

What types of employees can be hired through an EOR in Madagascar?

An EOR can hire both local Malagasy nationals and foreign professionals, provided the appropriate visas and work authorizations are secured. This enables companies to access diverse talent pools quickly.

How does an EOR ensure compliance with Malagasy labor laws?

The EOR manages all employment obligations in accordance with Madagascar’s Labor Code, including contracts in French or Malagasy, payroll contributions, statutory benefits, and lawful termination procedures.

How quickly can employees be onboarded through an EOR in Madagascar?

Local employees can typically be onboarded within 1–2 weeks once contracts are finalized. For foreign employees, the process takes longer due to work permit and visa approvals, often requiring several weeks to months.

Is using an EOR in Madagascar legally recognized by authorities?

Yes, as long as the EOR is a properly registered Malagasy entity complying with labor, tax, and immigration laws. This makes it a fully legal and reliable solution for international companies expanding into Madagascar.

What are the notice periods and termination rules in Madagascar?

Notice periods vary based on role and seniority, typically ranging from 8 days to 3 months. Employers must follow lawful termination grounds and, in many cases, provide severance compensation, which the EOR administers in compliance with the law.