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Last updated: July 26, 2026
Employment Cost Calculator for Madagascar
Calculate your complete hiring costs for Madagascar employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
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Employment Cost Breakdown
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Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| CNaPS (Social Security & Pension) | 13% | Gross salary (up to a ceiling) |
| Occupational Health Services (OSTIE/OSIE) | ~1% or 5% | Gross salary (subject to a ceiling) |
| Fonds Malgache de Formation Professionnelle (FMFP/FNFP) | 1% | Gross salary (subject to a ceiling) |
| IRSA (Income Tax on Salaries) | Progressive (0% - 20%) | Employee's taxable income |
Filing & Compliance
- Monthly declarations (Déclaration des Salaires - DS) and payments for IRSA, CNaPS, OSTIE, and FMFP are generally due by the 15th of the following month.
- Annual declarations summarizing salaries and contributions are typically due by March 31st of the following year.
- Employers are responsible for withholding IRSA from employee salaries and remitting it to tax authorities.
In Madagascar, employee tax deductions encompass various areas, including social security contributions, health insurance, professional training, and income tax.
Income Tax (IRSA)
The Income Tax (Impôt sur le Revenu des Salaires et Assimilés - IRSA) is a progressive tax deducted directly from employee salaries. Here's the general structure:
- Up to 350,000 MGA: 0%
- 350,001 MGA - 400,000 MGA: 5%
- 400,001 MGA - 500,000 MGA: 10%
- 500,001 MGA - 600,000 MGA: 15%
- Above 600,000 MGA: 20%
In all cases, regardless of the income, the minimum salary income tax payable is MGA 3,000.
Social Security Contributions (CNaPS)
Employees contribute a total of 2% of their salary to the National Social Security Fund (Caisse Nationale de Prévoyance Sociale - CNaPS), covering:
- Pension (Retirement): 1% (employee contribution)
- Sickness and Maternity: 1% (employee contribution)
- Work Accidents and Occupational Diseases: Covered by the employer's contribution.
- Family benefits: Covered by the employer's contribution.
The employer contributes 18% divided into the above categories, with 13% allocated to the retirement plan. Contributions are calculated on earnings up to eight times the monthly minimum wage.
Health Insurance
Employees contribute 1% of their monthly salary towards a statutory health organization. Employers are also required to contribute 5% of the total payroll for employee healthcare coverage.
Professional Training Funds
Employees are subject to a 1% contribution from their monthly salary towards professional training funds.
Other Deductions
- Retirement Contributions: Employees can make additional voluntary contributions to their retirement savings, up to 10% of their taxable salary.
It's important to note that the information provided here reflects the situation as of February 17, 2026, and might be subject to changes due to legal and regulatory updates in Madagascar. Consulting with local tax and legal professionals is always recommended for the most up-to-date and accurate details. More detailed information about tax rates and regulations may be found through the Direction Générale des Impôts (DGI) in Madagascar. They are responsible for tax administration in the country.
Written by
Lucas Botzen
Lucas Botzen is the Founder of Rivermate, a global employment platform that helps companies hire, employ, and manage talent internationally. Since founding Rivermate in December 2020, he has focused on building practical solutions that simplify international payroll, benefits, taxes, contracts, and employment compliance for remote teams. Before Rivermate, Lucas co-founded and co-directed Boloo, an e-learning and software company that helped entrepreneurs start and grow e-commerce businesses. He scaled Boloo to more than €2 million in annual revenue before successfully exiting the business in 2020. Lucas holds a Bachelor’s degree in Business Innovation from Avans University of Applied Sciences. His background in entrepreneurship, technology, automation, and remote work continues to shape his approach to making global employment simpler and more human.
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