Malawi
Employ in Malawi without an entity.
A contract under Malawi's Employment Act, pay in kwacha, and pension and income tax handled every month. One contact and one invoice.
The facts of employing in Malawi.
Paid in kwacha, every month.
The Employment Act requires wages in legal tender, at least monthly for monthly-paid staff.
Up to 48 hours a week.
With 24 hours of rest after at most six working days.
Pension of at least 15% of pay.
10% from the employer and 5% from the employee.
Income tax up to 40%.
Withheld each month.
What employing in Malawi involves, in plain words.
Each is handled for everyone you employ through Global Kinect EOR.
- Contracts
Written particulars within a month of starting, from an employer of five or more. A contract is open-ended, fixed-term or for a specific task.
- A trial period applies to skilled workers only, for up to 12 months.
- Pension
Under the Pension Act 2023, paid within 14 days of the month's end.
- At least 10% from the employer and 5% from the employee.
- Life cover equal to a year's pensionable earnings, from the employer.
- PAYEIncome tax
Withheld by the employer each month.
- Nothing up to MWK 170,000 a month, rising through 30% and 35% to 40% above MWK 10,000,000.
- TEVETTraining levy
1% of the previous year's basic emoluments, paid by the employer and never deducted from pay.
- Workers' compensation
Assessments paid by the employer to the Workers' Compensation Fund.
- Leave
18 working days of paid annual leave for a six-day week, or 15 for a five-day week.
- Sick leave, after twelve months' service: four weeks on full pay, then eight on half pay, each year.
- Maternity leave: eight weeks on full pay, once in every three years.
- Paternity leave: two weeks on full pay, once in every three years.
- Ending employment
A month's written notice for monthly-paid staff on an open-ended contract.
- A dismissal needs a valid reason, and a chance to answer first where it concerns capacity or conduct.
- Severance on a redundancy, or where a dismissal is found unfair: two weeks' wages for each of the first five years of service, rising for longer service.
- Work permits
A Temporary Employment Permit from the Department of Immigration and Citizenship Services, applied for by the employer before the employee arrives, for six months to two years.
- The post is advertised in Malawi first.
- The application names a Malawian understudy for the role.
Hiring in Malawi, step by step.
You choose the person
And agree the role and the salary in kwacha.
The contract is put in place
Under Malawi's Employment Act, with a work permit where one is needed.
They are paid monthly
In kwacha, with pension and income tax handled.
You get one invoice
With every other country you hire in.
Questions about employing in Malawi
What does an employer pay into pension in Malawi?
Under Malawi's Pension Act 2023, an employer pays at least 10% of an employee's pensionable earnings, and the employee pays at least 5%. Contributions are due within 14 days of the end of each month. The employer also keeps life insurance for each employee, with cover equal to a year's pensionable earnings.
Can we employ a foreign national?
How is income tax worked out?
Employing in Malawi, worked through in full.
The guide goes further than this page.
- Hiring in Malawi: the work permit, the contract and what comes off pay, step by step
How you hire in Malawi without an entity of your own: the work permit step by step, moving someone already in Malawi, the contract, the employee test, what comes off pay each month, leave, and what is reviewed next.
8 min read