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Partial: some charges not included, see notes
Mandatory employer contributions in Madagascar
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| National Pensions Fund | 13.0% | none stated |
| Statutory health organisation | 5.0% | none stated |
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 2,710,000 MGA | 487,800 MGA | 18.0% | 3,197,800 MGA | $706 |
| 5,430,000 MGA | 977,400 MGA | 18.0% | 6,407,400 MGA | $1,415 |
| 10,900,000 MGA | 1,962,000 MGA | 18.0% | 12,862,000 MGA | $2,839 |
The examples use 1×, 2× and 4× Madagascar’s 2025 GDP per person in local currency (2,714,523 MGA, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 5,430,000 MGA a year, the employer adds about 977,400 MGA (18.0%) in mandatory contributions, for a total of 6,407,400 MGA, about $1,415 at the 2025 average exchange rate. The rate is roughly flat across salaries (18.0% to 18.0%), so on-costs scale with pay.
What is not included
- Both are capped at eight times the legal minimum salary per month (cap not modelled, so higher salaries are overstated).
How to budget a hire in Madagascar
- Start from the gross salary you plan to offer in MGA.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in Madagascar (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare Madagascar with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: Madagascar, other taxes, last reviewed 18 November 2025 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in Madagascar?
On a salary of 5,430,000 MGA, mandatory employer contributions add about 18.0%, for a total of roughly 6,407,400 MGA a year before benefits (PwC, reviewed 18 November 2025).
What are employer social security contributions in Madagascar?
National Pensions Fund 13.0%, Statutory health organisation 5.0%.
Is the Madagascar data verified?
Partly. The rates shown are cited, but some employer charges are not included; they are listed under "What is not included".