Malawi

• New Year's Day
• New Year Holiday
• John Chilembwe Day
• John Chilembwe Day Holiday
• Martyr’s Day
• Good Friday
• Easter Monday
• Eid al-Fitr
• Labour Day
• Kamuzu Day
• Kamuzu Day Holiday
• Republic Day
• International Women’s Day
• International Women’s Day Holiday
• Christmas Day
• Boxing Day

Working Hours

Employees can work up to 12 hours a day in a five-day work week, or eight hours in a six-day work week.

Minimum Wage

The current minimum wage is set as K 90,000 per month for employees in both urban and rural areas.

For employees of micro-sized or small-sized enterprises, their minimum monthly wage is set at K 75,000.

Employee Tax

Annual income	Tax rate
Up to MWK 100,000	0%
MWK 100,001 - 450,000	25%
MWK 450,001 - 2,500,000	30%
More than MWK 2,500,000	35%
Social security contribution	5%

Bonuses

There are no statutory bonus schemes in Malawi.

Employment contracts in Malawi must be written. They should include:

• Employer and employee details
• Job title and responsibilities
• Working hours
• Salary
• Start date
• Termination requirements
• Applicable disciplinary rules

Fixed-term contracts are permitted in Malawi. There are no restrictions on their length or the permissible number of renewals.

Annual Leave

Minimum of 18 days’ paid holiday for employees who work six days a week, or 15 days’ paid holiday for those who work five days a week.

Sick Leave

After one year of service, employees are entitled to at least four weeks’ sick leave on full pay and eight weeks’ sick leave on half pay per year.

Parental Leave

• Maternity leave: at least eight weeks' fully paid leave every three years.
• Paternity leave: none.

Termination Process

Both employers and employees in Malawi can terminate a contract, provided they give at least one month's notice.

There are also four types of offence which can lead to immediate dismissal:

• Misconduct
• Serious misconduct
• Incapability
• Poor sickness record

Severance Pay

Eligible employees are entitled to two weeks' wages for each year of service between one and ten years. This rises to four week’s wages per year of service after ten years.

Under a Mauve Group Employer of Record (EOR) solution, clients and their international workers benefit from access to Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance framework that connects all Mauve entities with two trusted providers. As part of our comprehensive global Employer of Record services, this insurance offering supports companies employing staff overseas by ensuring full compliance with local legal requirements while safeguarding their workforce.

The programme provides international insurance coverage through a combination of the master policy and jurisdiction-specific local policies, where required by law. This structure ensures seamless alignment with local employment laws—an essential element of maintaining global regulatory compliance within any international EOR payroll arrangement.

Coverage includes:

• Employer’s Liability and Public Liability – £10,000,000 combined limit
• Professional Indemnity – £5,000,000 limit
• Worker’s Compensation – Limit varies based on the employee’s country of work

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