Employer Payroll Tax
Employee Payroll Taxes
The minimum wage in Malawi is 1, 346 MWK per day.
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.
A full work week in Malawi is 48 hours.
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%
Women are entitled to 8 weeks maternity leave every 3 years and receive their full salary.
There is no statutory paternity leave in Malawi
There is no statutory parental leave
Work related injury leave: For temporary disability, the employee is entitled to a percentage of their regular salary.
For employees who are deemed to be permanently disabled, a lump sum of 54 months is paid out to the employee.
For employees who are partially disabled, a percentage of the the 54 months will be paid out to the employee, depending on the degree to which they are assessed to be disabled.
In addition to this, it is the responsibility for the employer to pay for all medical expenses associated with the injury.
If the injury results in death, a sum totalling 42 months excluding any disability benefit paid before the passing of the employee is paid out to the family.
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.
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
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