Mandatory employee benefits in Madagascar include pension, medical, disability, and death insurance. Supplementary benefits from employers fall into the same categories. Perks are not common in the country.
Mandatory Employee Benefits in Madagascar
The state offers a defined benefit plan called the Malagasy Social Security Scheme (le régime malgache de sécurité sociale) for private sector employees. Employers contribute 13% of the gross wage (eight times the legal minimum wage), of which 9.5% goes into old age, disability, and survivor’s pension, and employees contribute 1% of their gross wages (eight times the legal minimum wage) towards the benefits offered by the scheme.
The State funds the National Solidarity Fund for Health (CNSS) for most of the underprivileged population. Employers must contribute 5% of the gross wage (eight times the legal minimum wage), while the employees must contribute 1% of their payroll toward the CNSS.
The public healthcare system of Madagascar offers emergency, general surgery, maternity, specialized services, primary medical services, and prenatal care. However, participation in the private healthcare system is being encouraged, as the system offers the best services in the country with increased funding, modern equipment, and staff availability, which the public healthcare system fails to provide.
Disability benefits come in the form of workers’ compensation, and temporary and permanent disability benefits and are paid based on a percentage or multiple of an employee’s daily or monthly earnings.
Madagascar provides employees’ spouses and other dependent family members with a funeral grant to cover burial expenses and survivor’s benefits are paid as a lump sum or a monthly pension.
Supplementary Employee Benefits in Madagascar
A few large employers provide supplementary retirement benefits through a defined benefit group pension plan. The employee is entitled to a life annuity, a lump sum, or revalued annuities at the contract’s maturity (60 years). It also covers the benefits in the case of death or permanent total disability or, dismissal or resignation.
Companies offer employer-sponsored voluntary medical benefits through health insurance plans to their employees. Expats are suggested to obtain coverage of international medical insurance plans that provide emergency medical evacuation and repatriation coverage for serious illnesses.
Employer-sponsored standalone short-term disability benefits plans are not prevalent in the country.
In Madagascar, employers provide death and AD&D benefits to employees through a group risk plan comprising pension insurance, death insurance, permanent total disability, death or permanent partial disability due to an accident, and total temporary incapacity resulting from an accident.
ASCOMA provided this information about employee benefits in Madagascar. Should you need support with your benefits in the country, contact Asinta, and we will put you in touch with the experts at ASCOMA.