MALAWI
Payroll Outsourcing
Pay Your Talents in Malawi Compliantly
How Can We Help You?
Pay Your Team in Malawi. On Time. Everytime.
Ensure your team in Malawi is paid accurately and on time with our Payroll Outsourcing services. Gain expert support to keep your operations fully compliant with Malawi's Labour Code and tax regulations.
- Pay anyone in Malawi - no matter the currency.
- Manage employee benefits easily. Get the support you need to navigate employee contributions in Malawi.
Flexible Payroll Solutions in Malawi.
Payroll solutions that adapt to your needs whether you are established or growing in Malawi.
Malawi Payroll expertise at your fingertips
Over more than a decade, Africa HR Solutions has become a leading payroll service provider in Malawi and across Africa with a proven track record of success with over 400 clients across many industries.
A single point of contact
Avoid unnecessary headaches and mistakes – manage everything from a single point of contact. Your dedicated account manager is always available to assist with any queries you may have.
Self service portal for your talents in Malawi
Give your team the tools they need to easily manage their payslips, leave allowances, and other claims. Powered by SAGE, the employee self-service portal will make their lives easier.
100% Compliant payroll operations
Ensuring your operations are carried out compliantly is a must. From country-specific employee contribution to tax policies, we make sure your company is up to code with Malawi’s legislation at all times.
Malawi Country Overview
Geographic location: Malawi is found in East Africa and is bordered by bordered by Zambia, the United Republic of Tanzania and Mozambique.
Population: Malawi has large, young workforce, as 44% of its population aged 15-44. This young and skilled workforce can bring great competitive advantage to your team. Â
Economy: Despite being a landlocked low-income country, with much reliance on foreign aid, Malawi boasts a rich and diverse environmental capital. Its economy is mostly based on agriculture and farming. Despite making significant improvements to its economic and political stability in recent years, Malawi is still one of the poorest countries in the world.
Payroll in Malawi - What You Should Know
- Population: 19,657,681
- Gross Domestic Product (GDP): $12.63 B
- GDP Growth (April 2021): 2.8%
- Inflation, consumer prices: 8.6%
- Foreign Direct Investment (% of GDP): 0.4%
- Unemployment Rate: 7.0%
- Capital: Lilongwe
- Currency: Malawian Kwacha
- Languages:Â English, Chichewa
Employer Contribution
- 13.24% of the employee’s pensionable emoluments must be contributed to the pension fund by the employer.
Employee Contribution
- 5.00% of the employee’s pensionable emoluments must be contributed to the pension fund.
Value-added tax (VAT)
The standard VAT rate is 16.5% in Malawi. Goods such as books, fertilizers, and salt are zero-rated in Malawi.
Paid Time-Off
Workers in Malawi are entitled to 18 days of paid leave if they work six days a week.
If they work five days a week, employees in Malawi are entitled to 15 days of paid annual leave.
Sick Leave
In Malawi, workers are entitled to a minimum of 4 weeks of sick leave on full pay and an additional 8 weeks on half pay over the span of a year.
Maternity Leave
In Malawi, women are entitled to at least 8 weeks’ maternity leave on full pay every three years, or 90 consecutive days of maternity leave assuming they served in the civil service or private sector for a continuous period of not less than 12 months.
Paternity Leave
10 working days of paternity leave on full pay once every three years.
In Malawi, an employment contract may be terminated by either party after providing a written notice.
The notice period varies proportionally with the wage period:
- For workers paid monthly: 1 month
- For workers paid fortnightly: 15 days for workers < 5 years of service or 30 days for workers > 5 years of service
- For workers paid weekly: notice period ranges from 1 week to 1 month in proportion to the time served within the same company
If the employee decides to terminate their contract without prior notice where it was required, the employee may be required to pay the employer in lieu of notice a sum equal to the remuneration that would otherwise have been given to the employee.
The employer is required to provide a termination certificate that contains the reasons for dismissal.
Any reasons other than these are deemed ‘abusive’ will lead to legal repercussions towards the employer.
Employees are given the right to defend themselves against any allegations held against them.
In Malawi, employees are entitled to compensation if they are dismissed because of redundancy or any other economic difficulties that force the company to reduce its workforce. In that case, compensation is regulated as follows:
- < 1 year of service: no compensation
- 1-5 years of service: 2 weeks’ wage for each completed year of service
- 6-10 years of service: 3 weeks’ wage for each completed year of service
- > 11 years of service: 4 week’s wage for each completed year of service
- New Year’s Day (1st January)
- John Chilembwe Day (15th January)
- Martyr’s Day (3rd March)
- Good Friday (10th April)
- Holy Saturday (11th April)
- Easter Monday (13th April)
- Labor Day (1st May)
- Kamuzu Day (14th May)
- Eid al-Fitr
- Independence Day (6th July)
- Mother’s Day (15th October)
- Christmas Day (25th December)
- Boxing Day (28th December)
While the content presented on this webpage is accurate as of the time of publication, it is imperative to recognise that the content is provided solely for informational purposes and does not constitute legal and/or tax advice. To obtain the most current and precise guidance, it is essential to verify specific details related to employment or compliance with our experts or consult your own legal and/or tax advisor(s). Africa HR Solutions Ltd. explicitly does not offer legal or tax advice. The information provided is general in nature, not tailored to a specific company or workforce, and does not reflect the service delivery of Africa HR Solutions in any given jurisdiction. Africa HR Solutions makes no representations or warranties regarding the accuracy, completeness, or timeliness of this information and disclaims any liability arising out of or in connection with it, including any loss resulting from the use of or reliance on the information.
Seeking a Reliable Payroll Partner in Malawi?
Pay your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company the guidance you need to ensure that your operations comply with Malawi’s labour Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.
Trusted by Inspiring Changemakers.
Simplify and manage your team's payroll in Malawi
Simplify payroll in Malawi with precise PAYE deductions, compliant filings, and dependable salary processing.
Frequently Asked Questions
What is payroll outsourcing?
Payroll outsourcing is when a specialist partner manages salary calculations, tax deductions, and statutory filings on your behalf. This ensures employees are paid correctly and on time while keeping your business compliant with local laws.
How does tax outsourcing work?
Tax outsourcing covers the preparation, filing, and payment of employee and employer-related taxes. It reduces the risk of errors, missed deadlines, or penalties by ensuring all contributions are handled according to local regulations.
Why should I outsource payroll and tax in Africa?
Africa’s employment laws and tax frameworks differ from country to country. Outsourcing ensures compliance, saves administrative time, and avoids costly mistakes while giving you access to local expertise in multiple jurisdictions.
Can you manage payroll for both local and expatriate employees?
Yes. We manage payroll for both local hires and expatriates, including handling multi-currency payments, cross-border compliance, and special tax considerations.
How do you ensure compliance with local laws?
Our experts stay updated with labour codes, tax rates, and social contribution requirements in each country. We file directly with authorities, ensuring your business remains compliant at all times.
