Hire Contractors & Employees in Malawi | Countries

Hiring in

Malawi

isn't so simple. Borderless can help.

To hire new employees in

Malawi

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

Malawi

while staying fully compliant with local laws and compliance.

Primary Language

English

Currency

Malawian kwacha (MK, MWK)

Payroll Frequency

Monthly

Public Holidays

12 days

Employer Taxes

10%

Cost of Living Index

N/A

Statutory Leave

15 days

Sick Leave

4 weeks

Maternity Leave

8 weeks

Important: Risks of misclassification

In many countries like

Malawi

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

MWK 1,346 per day.

Overtime Pay

A standard work week in Malawi is 48 hours. Overtime pay is 1.5 times the employee's regular wage and 2 times when it is on a weekend or public holiday.

Additional Pay

Work-related injury leave: Employees are entitled to a portion of their regular compensation for short-term disability. Employees who are permanently disabled are entitled to receive a lump sum payment for 54 months. The employer must also cover all medical expenses related to the injury.

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

10%: National pension scheme

Employee Costs & Taxes

0%: Under 1,200,000 MWK
25%: 1,200,000 MWK
30%: 1,200,001 - 36,000.000 MWK
35%: 36,000,001 - 72,000,000 MWK
40%: Over 72,000,000 MWK

Employment Information

Termination Process

The employer must provide a written notice for termination and the employee must have an opportunity to present their counterargument.

Notice period

The notice period is determined by the frequency the employee is paid and the length of employment.

For employees who get paid monthly: 1 week for employees who worked for less than 2 years; 2 weeks for employees who have worked for 2 -5 year; 1 month for employees who worked for more than 5 years
For employees who get paid bi-weekly: 15 days for employees who worked for less than 5 years; 1 month for employees who worked for more than 5 years
For employees who get paid hourly: 1 day for employees who worked for less than 6 months; 1 week for employees who worked for 6 months - 2 years; 15 days for employees who worked for 2 - 5 years; 1 month for employees who worked for more than 5 years

Probation Period

The maximum probation period is 12 months.

Severance Details

Severance pay is only mandatory for employees who are let go because of economic reasons or if the employer terminated them without cause.

Employees who worked for 1 - 5 years: 2 weeks' pay for each year of employment
Employees who worked for 6 - 10 years: 3 weeks' pay for each year of employment
Employees who worked for more than 11 years: 4 weeks' pay for each year of employment