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Labour costs in Malawi are generally lower than in many Western countries, making it an economically attractive option for businesses seeking to reduce labor expenses.
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Malawi’s workforce is diverse and possesses a range of skills, from agriculture and manufacturing to services and technology. You can find talent in various fields. English is the official language in Malawi, which can simplify communication for international businesses. Many Malawians are fluent in English, which is an advantage for global operations.
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The minimum wage of 50,000 MWK per month or MK1,923.08 per day for both urban and rural areas.
Standard Working Hours
The standard work week is no more than 48 hours, Monday – Friday. Employees who work their normal working hours on a public holiday are paid at twice the regular salary rate.
Overtime worked on days off is compensated at double the regular hourly rate, and on public holidays, it’s compensated at four times the regular rate. Meanwhile, overtime on regular workdays is rewarded with equivalent time off rather than extra pay.
At least once a week, or bi-weekly for employees with hourly, daily, weekly, or project-based wages, and at least once a month for employees with monthly or annual salary arrangements.
Paid time off
Employees are guaranteed a minimum of 15 days off for those working a 5-day week, and 18 days off for those on a 6-day workweek.
Once employees have completed 1 year of service, they are eligible for a minimum of 4 weeks of fully paid sick leave and 8 weeks of sick leave at half pay annually.
Pregnant employees are entitled to 8 weeks of maternity leave on full pay. This can be claimed every 3 years.
The father is entitled to receive 100.00% of the regular salary and compulsory paternity leave of 10 days within five months of the child’s birth.
Termination of Employment
In Malawi, both the employer and employee can terminate an employment contract by providing notice. The notice period should be as agreed upon in the employment contract or in accordance with labour laws. Employees who believe they have been unfairly dismissed can seek legal remedies, including reinstatement or compensation.
The notice period should be as agreed upon in the employment contract or in accordance with labour laws. Typically, notice periods range from one to three months, depending on the length of service and the terms of the contract.
Depending on the contract, the probation period in Malawi can last up to 12 months, but common practice is 3 to 6 months.
Foreign individuals who have received a job offer in Malawi must obtain a Temporary Employment Permit (TEP). The responsibility for applying for this permit lies with the employer. The application procedure is detailed in the Policy Statement on the Employment of Expatriates. To initiate the process, the employer must submit the necessary TEP application form and necessary documentation, along with the processing fees, either at the Immigration Headquarters or at Regional Immigration Offices.
Following this submission, the application is forwarded to the TEP Approval Committee for evaluation, after which it is presented to the Minister for a final decision.
The Standard rate of VAT in Malawi is 16.50%.