Malawi Payroll Outsourcing

• 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 (1^st January)
• John Chilembwe Day (15^th January)
• Martyr’s Day (3^rd March)
• Good Friday (10^th April)
• Holy Saturday (11^th April)
• Easter Monday (13^th April)
• Labor Day (1^st May)
• Kamuzu Day (14^th May)
• Eid al-Fitr
• Independence Day (6^th July)
• Mother’s Day (15^th October)
• Christmas Day (25^th December)
• Boxing Day (28^th December)