Are you looking to ensure compliance with the social obligations for companies in Madagascar ? To successfully grow your business and enhance your human capital, it is essential to be aware of these obligations. MDG Services guides you in ensuring your company’s compliance.
Minimum Monthly Wage (MMW)
When recruiting, you must comply with the applicable minimum hiring wage (SME). According to Decree No. 2022-626 of May 4, 2022, the SME in Madagascar is set at 262,680 Ar for category MI-A1 in the non-agricultural sector. The amount is 266,500 Ar in the agricultural sector.
It should be noted that this amount varies depending on your employee’s professional category (M1, M2, OS1, OS2, OP1, OP2…).
In practice, if you want to attract the best talent, consider offering a base salary well above the current minimum hiring wage.
The working conditions
In Madagascar, relations between employers and employees, as well as provisions relating to the performance of work such as working hours, overtime, extra pay, compensation… are governed by the Labor Code.
For non-agricultural employees, the legal working time is 173.33 hours per month. . (paragraphe). The employer must provide for a supplement of between 30% and 50% for hours worked in excess of these statutory hours.
However, for certain activities such as security guarding, catering, cooking, etc., the law provides for a monthly working time in excess of 173.33 hours.
Social protection
Malagasy legislation requires all employees to be affiliated to a social protection body such as the CNaPS or National Social Security Fund.
Employees pay social security contributions amounting to 1% of their gross salary, while employers pay 13% of their employees’ gross salary.
Fees are paid quarterly according to the model provided by the organization.
The following are covered by the plan:
- Work-related accidents and illnesses;
- Old age, disability and death insurance
- Family benefits.
CNaPS does not cover illnesses other than occupational diseases.
CNaPS also pays family allowances to eligible beneficiaries with dependent children.
Inter-company sanitary organizations
These organizations specifically provide health coverage. Among them are OSTIE, ESIA, FUNHECE, etc.
Although these organizations have some differences, they generally share common features.
The services provided by these organizations include:
- General Medicine: Mainly consisting of general consultations, dentistry, pharmacy services, etc.
- Occupational Medicine: This involves conducting pre-employment, periodic, and systematic medical check-ups.
These organizations may also offer specialized consultations in cardiology, ophthalmology, and more. Therefore, it is crucial for you to carefully choose the organization that best meets the needs of your staff.
The payment of dues is made quarterly, amounting to 1% of the gross salary for the employee and 5% of the gross salary for the employer.
It is therefore very important to gather information on the services offered by the different intercompany health organizations.
The Malagasy Vocational Training Fund
The FMFP aims to facilitate access to employment for young people, through a pre-employment training program. Its role is also to support employers in the development of human capital and in building employee skills through ongoing training.
The fund is financed by employers, up to a maximum of 1% of gross salary, and is paid quarterly.
Contributing companies can submit training requests either individually or in collaboration with other contributing companies.
The fund also offers more general training courses in line with the needs of the job market. An annual call for projects is issued to vocational training companies and institutions.
Now that you understand the social obligations for companies in Madagascar, you can confidently grow your business while ensuring your company’s compliance. MDG Services remains at your disposal to support you in your human resource management processes.