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.
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.
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.
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.
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.
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.
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:
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:
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.