If you are an employer in Madagascar, handling a final pay slip in Madagascar properly is a legal obligation. It is necessary when an employment contract ends. Whether the departure is due to resignation, dismissal, mutual agreement, end of contract, or retirement, you must issue a detailed Final Pay Slip (STC) to the departing employee. This document confirms the termination and ensures compliance with Malagasy labor law.
The final pay slip in Madagascar must clearly detail all amounts owed to the employee, including salary up to the last working day, severance pay, compensatory leave, and bonuses. If your company has internal regulations, they must outline the procedures for preparing the STC accurately.
What must be included in the final pay slip in Madagascar?
You are required to include all salary components and benefits in the final calculation:
- Salary: Paid until the contract’s last working day, calculated according to the actual days and hours worked.
- Compensatory Paid Leave: You must compensate for unused leave days. The allowance must not fall below the average gross salary over the past twelve months.
- Severance Pay: In case of redundancy or company closure, severance pay is due, equivalent to 10 days of salary per full year of service, capped at six months’ salary.
- Bonuses and Other Allowances: Any contractual bonuses must be part of the final pay slip in Madagascar.
Notice Period Obligations in Madagascar
In the case of resignation or dismissal, you must respect the legal notice period, determined by the employee’s category and seniority. Decree No. 2007-009 of January 9, 2007, governs these periods. If the employee commits gross misconduct, no notice is required.
Payroll Deductions When Issuing the STC
When finalizing the solde de tout compte Madagascar, you must apply the social obligations, including:
- Social contributions (CNaPS, OSIE)
- Income tax (IRSA)
You must remit these amounts to the relevant authorities on behalf of the employee.
Final Obligations for Employers in Madagascar
Along with the final pay slip, you must provide a work certificate listing the roles and professional categories held by the employee. Don’t forget to update the employee’s registration status with the Malagasy social security bodies accordingly.
Managing the final pay slip, accurately protects both your company and your former employee from legal complications.
If you wish to simplify your HR processes, consider outsourcing your HR management in Madagascar. Feel free to request a free quote by contacting us.