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Your guide to the employment landscape, working customs and local labor laws in Malawi
Capital
Lilongwe
Currency
Malawian Kwacha (MWK)
Languages
English & Chewa
GDP per Capita
$554.20
Employer Tax
10%
Payroll Frequency
Weekly or Monthly
Malawi is a country located in the Southern part of Africa. The country has an economic freedom score of 53 making the economy of Malawi rank 134th freest country. Malawi is a growing country, and its GDP has improved since 2022. The country ranks 26th out of 47 countries in the Sub-Saharan Africa region.
Major economic hubs:
Lilongwe, Blantyre, Mzuzu
Skills in demand:
JobsearchMalawi, Jobisland, LinkedIn
215,700
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
The average monthly salary of some jobs available in Malawi are as follows:
Job Title | Average Monthly Salary (MWK) | Average Monthly Salary (USD) |
Financial Manager | 314,000 MWK | 307 USD |
General Manager | 280,000 MWK | 274 USD |
Business Development Manager | 255,000 MWK | 249 USD |
Financial Analyst | 218,000 MWK | 213 USD |
Business Analyst | 218,000 MWK | 213 USD |
Project Manager | 188,000 MWK | 184 USD |
Employers must know the Labour rules and regulations along with allowances, contributions, and bonuses to hire talent from Malawi. Here the employer can know important information regarding hiring in Malawi.
According to Malawian Law, the employment contract must be in English or Chewa.
The probation period in Malawi ranges from 0 to 12 months.
Date | Name | Type |
January 1 | New Year | National Holiday |
January 15 | John Chilembwe Day | National Holiday |
March 3 | Martyrs’ Day | National Holiday |
March 31 | Eid al-Fitr | National Holiday |
April 18 | Good Friday | National Holiday |
April 19 | Easter Saturday | National Holiday |
April 21 | Easter Monday | National Holiday |
May 1 | May Day | National Holiday |
May 14 | Kamuzu Day | National Holiday |
July 6 | Independence Day | National Holiday |
July 7 | Day off for Independence Day | National Holiday |
October 15 | Mother’s Day | National Holiday |
December 25 | Christmas Day | National Holiday |
December 26 | Boxing Day | National Holiday |
Type Of Leave | Number of Days | Mandatory |
Annual Leaves | 18 working days if the employee works 6 days a week
15 working days if the employee works 5 days a week. |
Yes |
Sick Leaves | 4 weeks (full pay) to 8 weeks (half pay) | Yes |
Maternity Leaves | 8 weeks | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll cycle
In Malawi, the payroll frequency is Weekly or Monthly.
Minimum wage
The minimum wage in Malawi is MWK 2,884.62 (Malawian kwachas) per day or MWK 75,000 per month.
Overtime pay
In Malawi, employees who work overtime will receive additional compensation based on the type of overtime worked:
Read more
Type of Contribution | Contribution |
National Pension Scheme (NPS) | 10% |
Type of Contribution | Contribution |
National Pension Scheme (NPS) | 5% |
The following tax rates apply to income other than remuneration (business income):
Annual Taxable income (MWK, Malawian Kwacha) | Tax Rate (%) | |
Over | Not over | |
0 | 1,800,000 | 0 |
1,800,000 | — | 30 |
The following tax rates apply to employment income earned in Malawi:
Monthly Taxable Income (MWK) | Tax Rate (%) |
0 to 150,000 | 0 |
100,000.01 to 350,000 | 25 |
350,000.01 to 2,500,000 | 30 |
2,500,000.01 and above | 35 |
In Malawi, the standard rate of VAT is 16.5%.
There is no statutory law for 13th-month pay in Malawi.
The employers can terminate the contract only if there is any reason for redundancy or misconduct from the employee. Initially, a warning will be provided to the employee if there is any misconduct.
In Malawi, the notice period varies based on the type of employment and years of service;
Details | Notice period |
Employees paid monthly | 30 days |
Employees paid monthly with up to 2 years of service | 7 days |
Employees paid monthly with 2 to 5 years of service | 14 days |
Employees paid monthly with more than 5 years of service | 30 days |
Employees paid weekly with up to 2 years of service | 15 days |
Employees paid weekly with up to 5 years of service | 30 days |
Employees paid daily/hourly with up to 6 months of service | 1 day |
Employees paid daily/hourly with 6 months to 2 years of service | 7 days |
Employees paid daily/hourly with 2 years to 5 years of service | 15 days |
Employees paid daily/hourly with more than 5 years of service | 30 days |
The severance pay in Malawi is as follows;
An individual is required to have a Temporary Employment Permit (TEP). The employer must submit all the documents needed on behalf of the individual. All necessary documents and applications will be presented to the TEP Approval Committee. Once done, it has to be sent to the Minister of Decision for final approval.
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Overtime Pay
Minimum Wage
Overtime Pay
Regular Overtime: Employees shall be paid no less than 1.5 times their standard hourly wage for each extra hour worked beyond their regular schedule.
Day-Off Overtime: When working on a scheduled day off, employees shall receive at least twice their usual hourly pay for each hour worked.
Holiday Overtime: Employees required to work on a public holiday shall be compensated at a minimum of 200% of their regular hourly wage.
Visa and Immigration
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