* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Malawian Kwacha (MK)


CET (GMT +2)

Employment Cost


Annual Leave

15 days

In-demand Specialties*
It, Technical Support, Sales

The Ultimate Guide to Hiring Employees in Malawi

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Malawi

Employing in Malawi requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Malawi with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Malawi quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Employers can easily find top skills in industries such as manufacturing, logistics, tourism, financial and professional services, real estate, and mining.

The government is actively promoting fast-growing job creation in the formal sector, with policy reforms aimed at establishing decent employment opportunities.

Malawi's economy is predominantly dependent on agriculture, but other significant contributors include manufacturing, logistics, tourism, financial and professional services, real estate, and mining.

The Malawi government has launched new policies to restructure the public sector, aiming to boost the economy and create jobs through entrepreneurship development.


Fundamental Aspects of Employment in Malawi

Malawi's employment regulations are governed by various acts and legislation, with the Labor Relations Act of 1996 being the main one. For formal employment, a written employment contract is mandatory, encompassing essential details such as:

  • Identification of both the employer and employee.
  • Commencement date of employment.
  • Clearly defined job title and description of duties.
  • Terms of payment

Probationary Period in Malawi

The involved parties have the flexibility to mutually determine the length of the probationary period, with the condition that this period does not extend beyond 12 months under any circumstances.

Working hours in Malawi

The working hours for all employees are outlined in their respective contracts. In accordance with the standard regulations in Malawi, a full-time working week should be at most 48 hours.

Overtime in Malawi

The overtime rates are classified into three categories:

  • Ordinary overtime, which entails an hourly rate of not less than one and a half times the regular hourly wag
  • Day off overtime, with a rate of not less than double the regular hourly wage
  • Holiday overtime, compensated at a rate of not less than double the normal hourly wage.

Navigating Key Aspects of Payroll in Malawi

Malawi has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 July - 30 June

Fiscal Year in Malawi

1 July - 30 June is the 12-month accounting period that businesses in Malawi use for financial and tax reporting purposes.
weekly, bi-weekly or monthly

Payroll Cycle in Malawi

The payroll cycle in Malawi is usually weekly, bi-weekly or monthly, with employees being paid once a week or every two weeks or at least once a month.
260.45 MWK p/h

Minimum Wage in Malawi

The minimum wage for employees in Malawi is typically 260.45 MWK per hour, amounting to ~50,000 MWK per month for a typical 48 hour work week.

Minimum wages and salaries in Malawi

According to the Employment Act, employees are guaranteed a minimum wage of 50,000 MWK per month or 2,380 MWK per day, applicable to both urban and rural areas.

Bonus Payments in Malawi

The law does not include any provisions regarding 13th salaries.

Comprehensive Overview of Employment Taxes in Malawi

Understanding the tax obligations for both employers and employees is crucial when operating in Malawi's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Malawi.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 10% on top of the employee salary in Malawi.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Malawi, the typical estimation for employee payroll contributions cost is around 5%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Individual income tax in Malawi is determined through progressive rates, ranging from 0% to 40%. The tax rate increases in proportion to the individual's income as follows:

Tax Rate Income Bracket

Pension in Malawi

Employers in Malawi contribute 10% to the public pension. To qualify for the old age pension, one must be at least 50 or meet specific conditions like permanent emigration or having 20 years of contributions.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Malawi tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Malawi

When it comes to terminating employment in Malawi, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Malawi, employers can end a fixed-term contract for business, personal, or workers misconduct reasons. In cases of misconduct, a warning must precede the termination, providing the employee with an opportunity to explain their actions. Other reasons include:

  • Disciplinary issues
  • Breach of contract
  • Poor work performance
  • Incompetence

Notice Period

The notice period in employment contracts or collective agreements may vary based on the payment frequency and the duration of the employee's service as follows:

  • Monthly Payment: 30 days' notice is required.
  • Bi-Weekly Payment: Less than five years' service: 15 days' notice. More than five years' service: 30 days' notice.
  • Employment Less than 2 Years (Paid Monthly): Less than 1 year of service: 1 week's notice. 1 to 5 years of service: 2 weeks' notice. More than 5 years of service: 1 month's notice.
  • Hourly or Daily Payment: Less than 6 months of service: 1 day's notice. 6 months to 2 years of service: 1 week's notice. More than 2 years to 5 years of service: 15 days' notice. More than 5 years of service: 1 month's notice.

Severance Pay

Employees qualify for severance pay if they have completed a minimum of one year of service and their contract is terminated by the employer for economic reasons (such as lay-offs) or if the termination is deemed unfair. The severance pay is determined based on the number of years of service:

  • 1-5 years of service: 2 weeks' pay for each year of employment.
  • 6-10 years of service: 3 weeks' pay for each year of employment.
  • 11 or more years of service: 4 weeks' pay for each year of service.

Annual Leave Entitlements and Company Policies in Malawi

The annual leave entitlement in Malawi is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Malawi

There are a total of 12 public holidays in Malawi. If a public holiday falls on a weekend, it is observed on a weekday as a day off in lieu.

Holiday Date

Paid Time Off in Malawi

Maternity Leave in Malawi

Paternity Leave in Malawi

Sick Leave in Malawi

Strike Leave

Parental Leave In Malawi

Malawi's Benefits Built Into Playroll

Competitive benefits package in Malawi

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Malawi's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Malawi

Make your benefits package in Malawi a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Malawi

Employer and employee contributions to the National Pension Scheme (NPS) in Malawi entitle all workers to public pension benefits.

Playroll allows you to provide localized benefits for employees in Malawi within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Malawi create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Malawi

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Malawi.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

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