Overview

Capital
Lilongwe
Currency
Malawian Kwacha (MWK)
Date Format
mm/dd/yyyy

Taxes

Employer
7.50-10.00% - Social Security
Employee
5.00% - Social Security

Minimum Wage

General

The minimum wage in Malawi is 1, 346 MWK per day.

Payment

Payroll Frequency

Salaries are paid on a weekly basis.  If an employee works on an hourly basis, then the salary is paid every 2 weeks. It is also possible to pay employees on a monthly basis, so long as it is agreed upon by both the employee and employer. 

Termination

Termination Process

Termination needs to be submitted in writing to the other party.

The employee must be given the opportunity to present their counterargument.  

The employer is obligated to provide a termination certificate to the employee stating the reason for termination. 

Advance Notice

Notice period depends on the frequency the employee is paid:

  • If the employee is paid monthly: 30 days’ notice
  • If the employee is paid every 2 weeks: 15 days if they have been employed for less than 5 years and 30 days if they have been employed for more than 5 years
  • If the employee is paid monthly: One week if the employee has been employed for less than 2 years; 2 weeks if the employee has been employed between 2-5 years; one month if the employee has been employed for more than 5 years.
  • If the employee is paid on an hourly or daily basis: 1 day for less than 6 months of employment, 1 week for 6 months-2 years of employment; 15 days for 2-5 years of employment, 1 month for 5+ years of employment
Severance Pay

An employee is only eligible for severance pay if they are let go due to economic reasons (i.e. redundancy ore retrenchment) or if they are terminated unfairly.  In addition, the employee must have completed one year of employment. 

  • 1-5 years of service: 2 weeks’ pay for every year of employment
  • 6-10 years: 3 weeks’ pay for every year of employment

11+ years: 4 weeks’ pay for every year of service

Payroll

Pay Date

The pay date varies based on the pay cycle. 

Working Hours

A full work week in Malawi is 48 hours. 

Overtime Payment

Overtime hours during the regular workday are paid at a rate of 150% of the normal pay.  In addition, the employee is entitled to receive the hours of overtime back in compensatory rest for at least the equivalent amount overtime worked. 

For work over a weekend or public holiday, the overtime payment rate is 200%