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.

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

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.

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%

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.

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.