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How To Hire New Remote Employees | Malawi

Hire employees in

Malawi

, hassle-free

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Malawi

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Hire employees in
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, hassle-free

With Workpay, your business can easily hire employees in

Malawi

.
No more worrying about local laws, complex tax systems or
managing international payroll. Workpay takes care of everything
in 150+ countries.

Book a discovery call
capital city
Malawi
currency
Malawian Kwacha (MK)
language spoken
English
payroll frequency
Weekly
employer taxes
10%
vat - standard rate
16.5%
cost of living index
Average ($667)
gdp - real growth rate
Per Capita: $ 625.29
termination process
Difficult
employee protections
Moderate
capital city
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language spoken
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payroll frequency
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cost of living index
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Overview

Malawi has a population of 19.13 million, and most of this population engages in subsistence agriculture and cash crop farming. Additionally, Malawi is ranked number 34 in Africa with a nominal GDP of $12.15 billion.

An employment contract in Malawi must be written in the local language, and every party should get a copy within the first month of work.

Public Holidays

1 January- New Year's Day

15 January- John Chilembwe Day

3 March- Martyr's Day

15 April- Good Friday

18 April- Easter Monday

1 May- Labour Day

2 May- Eid al-Fitr

14 May- President Kamuzu Banda's Birthday

6 Jul- Independence Day

15 October- Mother's Day

25 December- Christmas Day

26 December- Boxing Day

Minimum wage

The minimum wage in Malawi is 50,000 MWK per month or 2,380 MWK per day in both rural and urban areas.

Payroll cycle

Employers must pay hourly, daily, or weekly employees or those whose ages are estimated on this basis at least once a week or twice a week. Employees whose wages are determined monthly or annually must be paid at least once every month.

Taxation

In Malawi, employers contribute 10% of salaries national pension scheme while the employees contribute 5%. On the other hand, employees pay income tax according to their salary band as follows;

0-1,200,000 MWK-0%

1,200,001- 36,000,000 MWK-30%

Above 36,000,000 MWK-35%

Leaves

All-female employees in Malawi are entitled to eight weeks of fully paid maternity leave every three years on service in an organization. There is, however, no statutory allowance for paternity leave.

Termination process

In Malawi, employers can terminate a fixed-term contract due to matters concerning misconduct, business, or personal. However, the termination must have a notice period and a written explanation of the reasons for the termination. In case of misconduct, an employer must first offer a warning to the employee and offer the employee a chance to explain his action.

Notice Period

Employment contracts are expected to provide the notice of the period expected during termination. The period of notice varies depending on the employee's contract, such that;

If the worker is paid on a monthly basis, they require a 30 days’ notice

If the worker is paid bi-weekly, they require a 15 days' notice if they have been employed for less than five years and 30 days' notice if they have been employed for more than five years.

If the worker has been employed for less than two years and is paid monthly, they are required a one-week notice, two weeks' notice if employed between two to five years, and a month's notice if employed for more than five years.

If the worker is paid on a daily or hourly basis, they are required a one-day notice if they have been working for less than six months, one week notice if employed between six months and two years, and 15 days' notice if employed for more than two years, and one month if employed for more than five years.

Probation Period

The Malawian law allows for up to 12 months probation, depending on the contract. However, the most common term is usually a three-to-six-month probation period.

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