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Employers can easily find top skills in industries such as manufacturing, logistics, tourism, financial and professional services, real estate, and mining.
The government is actively promoting fast-growing job creation in the formal sector, with policy reforms aimed at establishing decent employment opportunities.
Malawi's economy is predominantly dependent on agriculture, but other significant contributors include manufacturing, logistics, tourism, financial and professional services, real estate, and mining.
The Malawi government has launched new policies to restructure the public sector, aiming to boost the economy and create jobs through entrepreneurship development.
Malawi's employment regulations are governed by various acts and legislation, with the Labor Relations Act of 1996 being the main one. For formal employment, a written employment contract is mandatory, encompassing essential details such as:
The involved parties have the flexibility to mutually determine the length of the probationary period, with the condition that this period does not extend beyond 12 months under any circumstances.
The working hours for all employees are outlined in their respective contracts. In accordance with the standard regulations in Malawi, a full-time working week should be at most 48 hours.
The overtime rates are classified into three categories:
According to the Employment Act, employees are guaranteed a minimum wage of 50,000 MWK per month or 2,380 MWK per day, applicable to both urban and rural areas.
The law does not include any provisions regarding 13th salaries.
Individual income tax in Malawi is determined through progressive rates, ranging from 0% to 40%. The tax rate increases in proportion to the individual's income as follows:
Employers in Malawi contribute 10% to the public pension. To qualify for the old age pension, one must be at least 50 or meet specific conditions like permanent emigration or having 20 years of contributions.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Malawi tailored to your needs.
In Malawi, employers can end a fixed-term contract for business, personal, or workers misconduct reasons. In cases of misconduct, a warning must precede the termination, providing the employee with an opportunity to explain their actions. Other reasons include:
The notice period in employment contracts or collective agreements may vary based on the payment frequency and the duration of the employee's service as follows:
Employees qualify for severance pay if they have completed a minimum of one year of service and their contract is terminated by the employer for economic reasons (such as lay-offs) or if the termination is deemed unfair. The severance pay is determined based on the number of years of service:
There are a total of 12 public holidays in Malawi. If a public holiday falls on a weekend, it is observed on a weekday as a day off in lieu.
Employer and employee contributions to the National Pension Scheme (NPS) in Malawi entitle all workers to public pension benefits.
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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