Workforce Africa simplifies hiring, payroll, talent management as well as your compliance needs for employees and independent contractors in Malawi. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — the Employer of Record in Malawi, will help you focus on growth for greater levels of success.

How Employer of Record (EoR) in Malawi Works

Workforce Africa makes it hassle free to hire and manage your remote staff in Malawi without having to first set up a subsidiary or entity in the country. We handle staff contract management and onboarding, payroll, compliance, taxes, and other administrative matters. With Workforce Africa, you can now focus more on strategic activities and growing your business. These items include:

Employment Contracts in Malawi

A formal agreement is necessary between employers and employees.

An employee can be placed on probation for up to six months, including renewals. If the worker is a manager, the period might be increased to eight months.

Regular hours and overtime pay rates are also written in the employment contracts or collective conventions of each sector.

Working Hours in Malawi

The standard working hours mandated by law are 48 hours per week.

Observed National Holidays and Vacation

There are 12 national public holidays in Malawi, four of which are holidays that do not have fixed dates. The holidays are:

• • New Year’s Day – January 1
  • John Chilembwe Day – January 15

• Martyr’s Day – March 3
• Good Friday – Friday before Easter
• Easter Monday – Monday after Easter
• Labor Day – May 1
• Eid al-Fitr – The date varies
• Kamuzu Day – May 12
• Independence Day – July 6
• Mother’s Day – October 15
• Christmas Day – December 25
• Boxing Day – December 26

Expats, Visas & Work Permits

The requirements for a work visa and work permit in Malawi vary depending on foreigner’s nationality and the work he will do. However, some general requirements include:

• A Temporary Employment Permit (TEP) sponsored by a prospective employer is valid for 6 months and can only be renewed a maximum of 2 times.
• In contrast, the Employment Permit in Malawi is valid for a duration of 2 years and can be continuously renewed without any limitations.

A Malawi EoR offers this service to help businesses manage their clients.

Paid Leave

Annual Leave: In many industries in Malawi, the standard practice for annual leave entitlement for middle management and below typically stands at 18 days. However, it is important to note that the allocation of leave days may vary based on an employee’s length of service and is subject to management’s discretion.

Sick Leave: In compliance with employment regulations, after completing twelve months of continuous service, employees are entitled to at least four weeks of sick leave on full pay and an additional eight weeks on half pay annually.

Maternity Leave: While the minimum maternity leave entitlement as stipulated in the Employment Act is 8 weeks, it is common practice among many companies in Malawi to provide a more generous benefit of 3 months on full pay for employees on maternity leave.

Paternal Leave: In Malawi, there is a mandated paternity leave policy that entitles employees to 10 working days of paid leave every 3 years.

Study Leave: In Malawi, the standard practice regarding paid study leave stipulates that employees with a minimum of one year of continuous service are eligible for 10 days of paid study leave. However, it is important to note that the extension of this leave beyond the initial 10 days is subject to management’s discretion or company policy.

Bereavement Leave: In Malawi, the provision of bereavement or compassionate leave is primarily determined by individual company policies. However, the standard practice within the country typically grants employees 10 days of paid leave per year if a close family member dies, such as a spouse, parent, child, or sibling.

While the 10-day allowance serves as a baseline, companies may exercise discretion in extending the duration of bereavement leave based on the specific circumstances. Should the allocated bereavement leave be exhausted, employees may then utilise their accrued annual leave entitlement to accommodate their need for additional time off to grieve and attend to personal matters.

Statutory Deductions

National Pension Scheme (NPS)

This is the social security/pension contribution:

• The employee contributes a minimum of 5% of their pensionable emoluments
• The employer contributes a minimum of 10%.
• Additional charges like insurance (2.24%), administration (0.8%), and VAT (16.5%) are also included in the employer’s contribution.
• Technical Entrepreneurial and Vocational Education and Training is the levy paid by the employer on behalf of their employees levied at a rate of 1% on the employee’s gross salary and paid to the revenue authority.

PAYE Tax

Health Insurance

It is mandatory for employers to provide health insurance to employees in Malawi. A Malawi employer of record can help employers make provision of health insurance policy for employees and their dependents.

Additional Compensation and Benefits

• For each hour of ordinary overtime work, an employee shall be paid at a rate of not less than one and a half times their regular hourly wage.
• For each hour of overtime work performed on a day off, an employee shall be paid at a rate of not less than twice their regular hourly wage.
• For each hour of overtime work performed on a public holiday, an employee shall be paid at a rate of not less than twice their normal hourly rate.

Termination/ Severance in Malawi

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

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

Notice Period: The frequency of employee payment determines the notice period.

• For bi-weekly payments: 30 days for employees with over five years of service and 15 days for those under five years.
• For monthly payments: One month for employees of five or more years, two weeks for two to five years, and one week for less than two years.
• For daily or hourly payments: One month for five or more years, one week for six months to two years, 15 days for two to five years, and one day for less than six months.

Severance Pay:

• Less than one year of service: No severance pay.
• 1 to 5 years: Two weeks’ pay per year.
• 6 to 10 years: Three weeks’ pay per year.
• 11 years onwards: Four weeks’ pay per year.