Madagascar officially has 4 million unemployed citizens, mostly young people. The situation is very alarming, because each year the number of youngsters joining the jobseekers ranks increases significantly. 

According to official statistical data (Instat), between 400 000 and 500 000 young graduates add each year to the labour market, but due to the current political and economic challenges, employment rates remain low.. As a result, the labour market is young (half of the population is under 24), abundant and cheap. 

 According to the law, the following points are mandatory: 

-       the employee must have a contract of employment 

-       the employee must have a pay slip with each payment 

-       the employee must pay the IRSA (Impôt sur les revenus salariaux et assimilés) . {If salary less than 250,000Ar, IRSA = 2,000Ar (monthly)  and if the salary is more than 250,000Ar, IRSA = 20% gross wage (monthly)} 

-       the employer needs to declare the employee to CNAPS (Caisse Nationale de Prévoyance Sociale) 

. 1% for the employee (monthly) 

. 13% for the employer (monthly) 

-       the employer needs to declare the employee to OSTIE (Organisation Sanitaire Tananarivienne Inter Entreprise) or to contract another health insurance. 

. 1% for the employee (monthly) 

. 5% for the employer (monthly) 

Labour Rate(s) Overview