Employment in Madagascar

Madagascar has a formal employment framework, but access to work remains fragmented between companies, public employment services, accredited private agencies and local or informal networks. The latest comparable national survey identified for Madagascar, EPM 2021-2022, recorded labour-force participation of 58.8%, unemployment of 6.6% and labour underutilization of 22.8%. Agriculture accounted for 60.7% of employment. Informal economic units represented 83.3% of units, and informal employment represented 95.2% of total employment or 89.8% when agriculture was excluded. Average monthly earnings were 196,359 Ariary and the median was 108,250 Ariary. The National Observatory of Employment and Training, known as ONEF, publishes labour-market information and helps match vacancies with applicants. The state employment service operates through local or regional offices where available. The General Directorate for Employment, known as DGPE, supports youth and unemployed people through placement, employment information, continuous training and selected rural, small-trade and self-employment programs. Direct applications, local contacts and informal networks also play a major role. An accredited private placement agency needs authorization from the Labour Minister. Its candidate-facing service is free, it may not charge a placement fee or deduct money from salary, and the placement process may not exceed three days under the stated framework. Agencies also have pre-placement training and reporting duties. The Labour Code, Law 2024-014, covers dependent paid work performed in Madagascar and applies to workers of all nationalities. Public servants, independent workers and maritime workers follow separate arrangements. At hiring, the employer provides a written contract in Malagasy and/or French in two copies. The contract identifies at least the function, professional category, classification index, salary and effective start date. No stamp or registration fee applies to the contract. The absence of a written contract does not by itself remove a provable employment relationship. A permanent contract is commonly called a CDI, while a fixed-term contract is called a CDD. A CDD is written, concerns work that is not part of the employer's normal permanent activity, lasts at least one month and may last no more than two years, with no more than two renewals and a total maximum of six years under the stated rules. Two successive renewals automatically lead to a CDI. A written probation period may last up to six months and may be renewed once; the worker retains the same work and social-protection conditions during probation. Part-time workers retain employment rights in proportion to their working time. A daily worker who remains in the same post for six months while averaging 20 days per month moves toward a CDI, and intermittent work continuing for five years moves toward a part-time CDI. A seasonal worker receives priority after three regular engagements. Telework can be arranged through a collective or establishment agreement, a contract or an annex. Workers who relocate inside Madagascar on a durable basis may be treated as displaced workers. The arrangement involves a prior medical examination and a regional labour visa, and the contract states housing and return transport for the worker and family. A Malagasy worker leaving the country needs a contract reviewed and approved through the migration and labour-inspection process. The contract covers the destination country's labour and social-security rules, housing, access to justice and complaints, return or repatriation and travel costs. A foreign worker coming to Madagascar needs prior contract approval and a work permit. The permit identifies the worker, nationality, post, category, validity and workplace. Fees and processing times for migration documents depend on regulations that were not verified in the available research. Equal pay applies to work of equal value, and discrimination is prohibited. The current CNaPS small-enterprise threshold, effective 1 March 2026, is 300,000 Ariary per month or 1,730.80 Ariary per hour for non-agricultural work and 304,300 Ariary per month or 1,521.60 Ariary per hour for agricultural work. The CNaPS contribution ceiling is eight times the applicable threshold. Wages may be paid at daily, weekly, fortnightly or monthly intervals. An unjustified delay can increase the amount owed through legal interest. Employers provide a payslip in Malagasy and/or French, on paper or electronically. CNaPS is the National Social Security Fund. Employers affiliate workers covered by the Labour Code when they are hired by submitting an avis d'embauchage, and employers declare and pay contributions through E-CNaPS. Coverage includes family benefits, work accidents and occupational diseases and retirement. Workers can inspect their CNaPS record through the relevant service. Current coverage is approximately 520,000 private workers, while contribution rates can change and should be checked with CNaPS. The normal working-time standard is 173.33 hours per month or 40 hours per week. Agriculture uses a yearly reference of 2,200 hours. Daily rest lasts at least 12 hours and weekly rest at least 24 consecutive hours. Night work runs from 22:00 to 05:00, and the employer provides transport and safety measures for night workers. Paid leave accrues at 2.5 calendar days per month after 12 months of service; the first 15 days are taken without interruption within the following three months. Paternity leave lasts three paid days. Maternity suspension lasts 14 weeks, including at least eight weeks after birth, and maternity pay is shared equally between CNaPS and the employer. Pregnancy discrimination and termination on that basis are protected. Employers provide safety training and personal protective equipment free of charge. A Health and Safety Committee, known as CSST, is required from 50 workers, and a worker may alert the employer or temporarily withdraw from an imminent serious danger. A CDI can end through dismissal, resignation, mutual agreement or force majeure. The initiating party gives written notice and states the reason. A dismissal includes written prior information, a hearing, an opportunity to defend oneself and the possibility of assistance; the summons is issued at least three working days before the hearing. At the end, the worker receives the outstanding salary, compensation for unused leave, notice pay where applicable and a mandatory work certificate. Economic dismissal compensation is ten salary-days for each full year of service, limited to six months. A CDD normally ends at its agreed term. An early unilateral termination is limited to a contractual case, serious misconduct or force majeure; otherwise, the remaining salary and related benefits may be owed. The CNaPS old-age pension normally requires age 60, at least 15 years of affiliation and 28 contribution quarters during the last ten years. A proportional pension may be possible from age 60 with 60 contribution quarters in total. Because most work remains informal, a job title or verbal agreement does not by itself show the same protection as registered employment. The concrete checks are the employer, written contract, salary and payslip, CNaPS affiliation, working-time arrangement, leave record and the applicable procedure for ending the relationship.