Hire in Malawi
Here’s your primer on initiating human resources best practices and recruitment processes in Malawi.
Currency of Malawi
The Capital of Malawi
Time Zone in Malawi
Important Facts About the Country of Malawi
Introduction to Malawi
Malawi, formally referred to as the Republic of Malawi, is a landlocked nation situated in southeastern Africa. It boasts a diverse natural landscape and a vibrant cultural legacy. Home to approximately 19 million inhabitants, most of whom live in rural regions, agriculture serves as the backbone of the economy. The capital city, Lilongwe, is the largest urban center in the country. Malawi has earned the moniker “The Warm Heart of Africa” owing to the welcoming and gracious demeanor of its populace.
What to Know about Malawi’s Geography
Malawi is bordered by Zambia to the west, Tanzania to the north and northeast, and Mozambique to the east, south, and west. Encompassing around 118,000 square kilometers, the country is marked by Lake Malawi, also known as Lake Nyasa, which spans over one-fifth of its territory. This vast lake is renowned for its diverse array of native fish species.
Climate in Malawi
In Malawi, the lowlands of the south are characterized by a hot climate, while the northern highlands enjoy a more temperate climate. Generally, temperatures remain warm year-round. Equatorial rains and thunderstorms typically occur from November to April, with rainfall decreasing notably from March onward. Between May and September, damp mists from the highlands drift into the plateaus, resulting in minimal rainfall during these months.
The Culture of Malawi
Dance holds significant cultural importance in Malawi, featuring prominently in various ceremonies and celebrations such as initiation rites, weddings, and traditional festivals. Malawi’s diverse ethnic groups boast a rich heritage of traditional music and dance, often accompanied by intricate basketry and mask carving. These traditional artifacts remain integral to local customs and festivities. Additionally, urban areas showcase a vibrant artistic scene with wood carving and oil painting being notable expressions of creativity.
Religions Observed in Malawi
Christianity is the predominant religion in Malawi, embraced by approximately 87% of the population, while Islam represents a significant minority with around 11.6% of followers. Among Christian denominations, the Roman Catholic Church holds the largest sway, with about 19% of Malawians identifying as adherents.
Languages Spoken in Malawi
English serves as the official language of Malawi. Additionally, Chichewa, considered the unofficial national language, is imparted to all primary school pupils. Approximately over 40% of Malawi’s populace is proficient in Chichewa.
Malawian Human Resources at a Glance
Employment Law Protections in Malawi
The principal legal foundation governing employment dynamics in Malawi is the Employment Act. Complementary legal frameworks encompass:
- Malawi’s Constitution
- Occupational Safety, Health, and Welfare Act
- Workers’ Compensation Act
- Pension Act
- Labor Relations Act
Employment Contracts in Malawi
An employment agreement can take one of the following formats:
- Indefinite duration
- Fixed duration
- Task-specific
Employers must furnish written confirmation of employment terms to their employees within one month of their start date. This document should encompass the following details:
- Names of both parties involved
- Commencement date of the employment contract
- Remuneration rate and its calculation method
- Job description and duties
- Standard working hours
- Termination clauses
- Applicable disciplinary regulations
Fixed Term Contacts for Malawian Employees
A fixed-term contract can either be for a specified duration or for the completion of a particular task. Unless explicitly or implicitly renewed or extended, contracts with a fixed time frame automatically terminate on the agreed-upon end date, without the need for a termination notice. Similarly, contracts for specific tasks expire upon the completion of the assigned work, with no requirement for notice from either party.
There are no legal stipulations regarding the maximum duration or allowable renewals of fixed-term contracts; these details are left to the mutual agreement of the parties involved.
If a contract with a fixed duration or for a specific task is used to fulfill a role associated with regular and permanent duties, it is considered an employment contract of indefinite duration.
Pre-Employment Checks
Employers have the freedom to conduct pre-employment screenings, provided they adhere to non-discriminatory practices. These checks can be carried out without limitations, as long as they are conducted fairly and do not discriminate against any specific group of individuals.
Malawi's Guidelines Regarding Probation Period/Trial Period
In Malawi, skilled workers may undergo a probationary period as outlined in their employment agreement. The duration of this probationary period is mutually agreed upon by both parties but must not surpass 12 months. Throughout this period, either party retains the right to terminate the employment without prior notice.
Regulations and Rules Regarding Working Hours in Malawi
In Malawi, the maximum weekly working hours stand at 48 hours, excluding overtime. The maximum daily working hours hinge on the employee’s work schedule:
- For schedules spanning no more than five days per week, the limit is set at 12 hours.
- For those working six days per week, the daily maximum is eight hours.
Employers are prohibited from compelling employees to work for more than six consecutive days without granting a 24-hour rest period. This rest period should be observed on a customary day or on a day agreed upon by both the employer and the employee.
Malawian Laws Regarding Overtime
In Malawi, the minimum overtime pay rates are structured as follows:
- For ordinary overtime worked on a regular working day beyond the standard hours: 150% of the hourly wage.
- For overtime worked on a scheduled day off: 200% of the hourly wage.
- For overtime worked on a public holiday: 200% of the hourly wage.
Malawian Timesheets & Record Keeping
Employers in Malawi are required to maintain precise written records containing the following details:
- Salaries and remuneration disbursed to each employee over the preceding three years.
- The total gross amount owed to each employee, along with any deductions made and the rationale behind these deductions.
Termination
Fixed-term contracts and task-based contracts automatically end upon the completion of the specific task or the expiration of the agreed-upon term. On the other hand, an indefinite-term contract can be terminated by either party, but written notice must be provided.
According to the law, employers can only dismiss an employee for valid reasons, such as misconduct, incapacity, or retrenchment. In the case of retrenchment, employers must adhere to a prescribed process, including:
1. Consulting with employee representatives.
2. Notifying the Secretary responsible for labor in writing.
3. Submitting a report within 14 days of retrenchment.
Retrenched employees should be given priority for reemployment when suitable positions become available within the company.
Employers must settle any outstanding salary or other payments owed to the employee within seven days of termination. Employees have the right to request a termination certificate from the employer, which should state the reason for termination without providing an evaluation of the employee’s performance unless requested by the employee.
Lastly, terminating an employee’s employment due to pregnancy is considered an offense. The burden of proof lies with the employer to demonstrate that the termination was not related to pregnancy.
Malawi's Requirements Regarding Notice Periods
In Malawi, the minimum notice period for terminating fixed-term contracts is 14 calendar days. However, for indefinite contracts, the minimum notice period varies based on the employee’s remuneration cycle and length of service.
| Remuneration Cycle | Notice Period |
|---|---|
| Monthly | One month’s notice |
| Biweekly | Two weeks’ notice if employed less than five years; One month’s notice if employed at least five years; |
| Weekly | One week’s notice if employed less than two years; Two weeks’ notice if employed at least two years but less than five years; One month’s notice if employed at least five years; |
| Daily or Hourly | One day’s notice if employed less than six months; One week’s notice if employed at least six months but less than two years; Two weeks’ notice if employed at least two years but less than five years; One month’s notice if employed at least five years; |
According to Malawian employment law, employers have the choice to compensate an employee with a payment instead of giving notice of termination. Known as “payment in lieu of notice,” this includes the employee’s wages and any additional benefits they would have received if they had worked through the notice period. In essence, the employee is remunerated for the duration they would have worked had notice been provided.
Redundancy/Severance Pay in Malawi
When an employment contract ends due to reasons such as redundancy, retrenchment, economic challenges, technical needs, structural alterations, operational demands, or unjust termination of the employee, the employee is eligible to receive severance pay. The amount of severance pay is determined by the length of the employee’s service with the employer:
- – Less than one year: No severance pay
- – One to five years: Two weeks’ salary for each full year of service
- – Six to 10 years: Three weeks’ salary for each full year of service
- – More than 11 years: Four weeks’ salary for each full year of service
As per the Employment Act, if an employee is not entitled to receive a pension, their employer is obligated to provide them with a gratuity upon retirement, termination of employment, or death. This gratuity must be equivalent to 5% of the employee’s monthly income for each completed month of service.
Post-Termination Restraints/Restrictive Covenants
Malawian legislation permits the inclusion of non-competition clauses within employment contracts, provided that these restrictions are reasonable both in their nature and extent to be enforceable under the law.
Data Protection
Currently, Malawi lacks dedicated legislation addressing data protection. Nonetheless, certain provisions within the Electronic Transactions and Cyber Security Act 33 of 2016 pertain to data protection and can be applicable in this regard.
Tax and Social Security Information for Employers in Malawi
Personal Income Tax in Malawi
Income earned through employment in Malawi is subject to personal income taxes, which are imposed at progressive rates as outlined below.
| Monthly Taxable Income (MWK) | Tax Rate (%) |
|---|---|
| First 100,000 | 0 |
| Next 350,000 | 25 |
| Next 2,050,000 | 30 |
| Excess of 2,500,000 | 35 |
Social Security in Malawi
Malawi’s National Pension Scheme (NPS) mandates contributions from both employers and employees as follows:
- Employee: A minimum of 5% of the monthly gross salary.
- Employer: A minimum of 12% of the monthly gross salary, which includes a 2% administrative cost.
Additionally, employers are required to pay the TEVET (Technical, Entrepreneurial, and Vocational Education and Training) Payroll Levy, set at 1% of the employee’s basic pay.
Please note that these rates serve as general guidelines, and actual rates may vary.
Important Information for Malawian Employees
Salary Payment
Salary payments must adhere to the terms outlined in the employment agreement. For employees compensated hourly, daily, weekly, or through piecework or task-based methods, salaries must be disbursed at least bi-weekly. Conversely, for those with fixed monthly or yearly salaries, payment intervals should not exceed one month. In contracts tied to specific tasks, compensation may be issued upon task completion.
In Malawi, wages should be:
- Paid directly to the employee or an authorized representative as specified in writing by the employee.
- Transacted in the local currency.
- Distributed via cheque for the total payable amount, with the consent of the employee.
Payslip
In Malawi, employers are obligated to furnish a detailed pay slip containing the following particulars:
- The gross wages owed to the employee at the conclusion of the pay period.
- A breakdown of each deduction made, along with its purpose.
- The net wages due to the employee at the close of the pay period.
Annual Leave
The length of annual leave is contingent on the employee’s weekly work schedule. Annual leave entitlement is calculated from the start of employment as follows:
- – 18 working days for employees working six days per week.
- – 15 working days for employees working five days per week.
Employees are required to utilize their annual leave within six months of becoming eligible unless an agreement is reached between both parties to defer it.
Upon termination of employment, the employer is obligated to compensate the employee for any accrued but unused annual leave that was due but not taken prior to the termination date.
Sick Leave
After completing 12 consecutive months of service, employees are entitled to a minimum of four weeks of sick leave at full pay and eight weeks at half pay per year. Throughout the sick leave period, employees are entitled to receive their regular wages.
However, employers are not required to provide sick leave unless the employee submits a medical certificate documenting their inability to work.
Maternity & Paternity Leave
Women employees are eligible for eight weeks of paid maternity leave once every three years. However, if either the employee or her child experiences a pregnancy-related illness, the employer must extend the maternity leave for the duration deemed necessary. A medical certificate is required in such cases.
Public Holidays
Malawi typically recognizes 11 public holidays annually. While some holidays occur on fixed dates, others are determined by religious or seasonal events.
Benefits to the Employee in Malawi
Malawian Statutory Benefits
In Malawi, employees have statutory rights to receive national pensions, annual leave, maternity leave, and sick leave.
Other Benefits
Beyond the basic entitlements, employers in Malawi often provide additional benefits such as:
Year-end bonuses
Private health and life insurance coverage
Allowances for housing, transportation, utilities, education, domestic assistance, and more
Extended or extra leave days
Rules Regarding Visas and Foreign Workers in Malawi
General Information
Visas
Travelers visiting Malawi must acquire a visa unless they are citizens of the 33 countries exempt from visa requirements or eligible for visas upon arrival. Visa-exempt nationals can stay for up to 90 days for tourism and leisure, while those eligible for visas on arrival can obtain them at entry ports for a fee.
Alternatively, travelers can opt for an e-Visa, available online for approximately 220 nationalities, allowing entry for tourism, leisure, business, or transit purposes. The e-Visa remains valid for 90 days from the date of issue and permits a single entry.
Malawi provides various visa types tailored to the purpose of entry, including tourist, official, transit, diplomatic, courtesy, work, and study visas.
Work Permits
Foreign individuals seeking employment in Malawi must secure a Temporary Employment Permit (TEP), irrespective of their nationality. However, the necessity of a work visa varies depending on their citizenship.
TEPs are issued to foreign nationals who have received a job offer from a Malawian organization. Initially, these permits are valid for a minimum of six months and can extend up to two years. Renewal of TEPs is permissible twice, subject to submission of requisite documents and renewal applications to the Regional Immigration Office at least three months before expiration. Engaging in work activities without a valid TEP constitutes a criminal offense in Malawi. Applicants awaiting approval for a new TEP must remain outside the country until their application is processed and sanctioned.
Gratuity
As outlined in the Employment Act, if an employee is not enrolled in a pension scheme due to exemptions, the employer is obligated to provide a gratuity payment upon retirement, termination of employment, or death. This gratuity amounts to 5% of the employee’s monthly salary for each month of completed service.
| Occasion | Date | |
|---|---|---|
| 1 | New Year’s Day | January 1 |
| 2 | John Chilembwe Day | January 15 |
| 3 | Martyrs’ Day | March 3 |
| 4 | Martyrs’ Day Holiday | March 4 |
| 5 | Good Friday | March 29 |
| 6 | Easter Monday | April 1 |
| 7 | Eid al-Fitr | April 10 |
| 8 | Labor Day | May 1 |
| 9 | President Kamuzu Banda’s Birthday | May 14 |
| 10 | Independence Day | July 6 |
| 11 | Independence Day Holiday | July 8 |
| 12 | Mother’s Day | October 15 |
| 13 | Christmas Day | December 25 |
| 14 | Boxing Day | December 26 |
Hire New Talent in Malawi
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