Malawi Payroll Outsourcing

Pay Your Talents in Malawi Compliantly

Seeking A Reliable Payroll Partner in Malawi ?

With our Malawi Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with Malawi’s Labor 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.

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.  

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: English, Chichewa

Employer Contribution

  • 10.00% 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

There is no statutory paternity leave in Malawi.

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)

Malawi Payroll Done The Easy Way. The Right Way.

12 Years of Experience

Over more than a decade, Africa HR Solutions has become a leading payroll service provider across Africa with a proven track record of success with over 400 clients across many industries.

Bulletproof Compliance

Ensuring your operations are carried out compliantly is a must. From country-specific regulations to government laws, we make sure your company is up to code with Africa's legislation at all times.

+44 Countries in Africa

Operating in more than 44 countries in Africa, our team of experts gathered the required knowledge and local expertise to handle your needs and demands - wherever, whenever.

Single Point of Contact

Avoid unnecessary headaches and mistakes thanks to our centralized services and manage everything from a single database. A single point of contact for all of your needs across the continent.

Maximize your ROI

It is cheaper to let a third-party organization handle your payroll than to do it yourself. By saving on the overall cost of payroll, you can reallocate your budget elsewhere to promote company growth.

Swift Payroll Implementation

With Africa HR Solutions you are one call away from implementing an accurate and timely payroll operation to ensure your talents are paid on time no matter where they are in Africa.

We Can Help. Just Tell Us How!

Related Services

Malawi EOR

Onboard and pay your talents in Malawi without having to set up a legal entity with our extensive Employer of Record solutions.

Malawi PEO

Outsource your payroll and benefits administration to us and get access to best in class advantages for your employees.

Malawi HR Outsourcing

We take care of your HR functions to help you save up on the overall cost and ensure your operations are carried out compliantly.

Countries We Cover

In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.