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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 in the 2022 list. 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 |
1 Jan | New Year | Public Holiday |
15 Jan | John Chilembwe Day | Public Holiday |
3 Mar | Martyrs’ Day | Public Holiday |
4 Mar | Day off for Martyrs’ Day | Public Holiday |
29 Mar | Good Friday | Public Holiday |
30 Mar | Easter Saturday | Public Holiday |
1 Apr | Easter Monday | Public Holiday |
10 Apr | Eid al-Fitr (Tentative Date) | Public Holiday |
1 May | May Day | Public Holiday |
14 May | Kamuzu Day | Public Holiday |
6 Jul | Independence Day | Public Holiday |
8 Jul | Day off for Independence Day | Public Holiday |
15 Oct | Mother’s Day | Public Holiday |
25 Dec | Christmas Day | Public Holiday |
26 Dec | Boxing Day | Public Holiday |
Type Of Leave | Number of Days | Mandatory |
Annual Leaves | 8 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
Payroll cycle
In Malawi, the payroll frequency is Weekly or Monthly.
Minimum wage
The minimum wage in Malawi ranges from MWK1,461.54 to MWK1,923.08.
Overtime pay
In Malawi, overtime pay is 200% of the regular salary for the work done on a rest day. However, the overtime pay increases to 400% of the regular salary if the work is done on holiday. The overtime is mainly compensated with a rest day rather than pay.
Type of Contribution | Contribution |
National Pension Scheme (NPS) | 10% |
Type of Contribution | Contribution |
National Pension Scheme (NPS) | 5% |
Annual Taxable Income | Tax Rate |
From 0 to 1,200,000 MWK | 0 |
From 1,200,001 to 12,00,000 MWK | 25% |
From 12,00,001 to 36,000,000 MWK | 30% |
From 36,000,000 to 72,000,000 MWK | 35% |
Above 72,000,001 MWK | 40% |
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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