Home > Countries We Serve > Malawi
Expand your Global Workforce to 
Malawi
- Manage employees in Malawi without setting up a local entity
- Handle salary payments and tax compliance efficiently
- Support foreign employees in obtaining work permits
- Source top talent and align workforce with your business goals
- Provide smooth transitions for employees affected by redundancy
- Ensure compliance with Malawi’s laws and regulations
POPULATION
21,660,000
LANGUAGES
English
COUNTRY CAPITAL
Lilongwe
CURRENCY
MWK
An Overview of Malawi
Malawi is a landlocked country in Southeastern Africa. The economy is agricultural-based and heavily relies on tobacco exports. The GDP is $11.01 billion, and the growth rate of 1.8% as of 2024. Malawi has a population of 21.66 million people, with English serving as the official language and Chichewa and Chitumbuka as the common languages used in the public, media, and education.
12
Holidays Per Year
48 hrs per week
Working hours
Compensation & Benefits in Malawi
MWK 150,000
Average wage per month
3-4 weeks
Annual vacation leave (min)
Working with an Employer of Record is the most effective way to establish a business venture in Malawi. At Talent Grid Africa, we offer a seamless approach to hiring and managing your workforce in Malawi, eliminating the need for a local establishment. Let us help you enter new markets.
Payroll Tax Obligations in Malawi
The Malawian Income Tax (PAYE) rate ranges from 0% to 35% depending on the salary. The tax rate applies to income ranging from MK 150,000 to MK 2,550,000 per month. These brackets ensure progressive taxation. Employers must contribute 10% towards the National Pension Scheme, while employees pay 5%. For expat employees, the income tax is set at a flat rate of 15%.
The Employment Act 1999 regulates every aspect of the employment relationship, including working hours, leave, minimum wage, and dismissal. Here are the primary provisions of the law.
- Working Hours and Overtime. The standard working hours in Malawi are 48 hours, spread over six days with 8 hours per day. Any work done beyond these hours is considered overtime, which is compensated at 1.5 times the regular wage.
- Leave Entitlement. All employees are entitled to a minimum of 18 working days of paid leave after 12 months of service.
- Minimum Wage. The minimum wage for employees in micro and small-sized businesses is MWK 2,884.62 (Malawian Kwacha) per day. However, wages are paid as per the terms of the employment contract.
- Work Permits. Foreigners must apply for a Temporary Employment Permit (TEP) before starting employment. The employer must apply for this permit on behalf of the employee. The TEP is valid for a period of two years and is subject to renewal.
- Termination. The minimum notice period for fixed-term contracts is 14 calendar days. However, either party can terminate employment after a written notice is provided, if you signed the indefinite-term contract.
- As your employer of record in Malawi, we enable you to hire top local and global talent without establishing a local entity.
- Our EOR services allow you to start investing in Malawi quickly and compliantly.
- We process monthly payrolls on your behalf, ensuring timely and accurate payments. We also ensure payments adhere to Malawi’s tax and labor regulations.
- Our experts manage work permits and visas, enabling you to hire local and foreign employees.
- With our expertise, we protect your company from compliance issues.
Frequently Asked Questions
An Employer of Record (EOR) allows you to hire and manage employees in Malawi without establishing a local entity. Talent Grid Africa handles employment contracts, compliance, payroll, and other HR services, making market entry seamless.
Malawi’s Employment Act 1999 governs working hours (48 hours per week), overtime, leave entitlements (minimum 18 working days per year), minimum wage, work permits, and termination procedures.
Income tax ranges from 0% to 35% depending on the salary, with a flat 15% tax for expatriates. Employers contribute 10% to the National Pension Scheme, while employees contribute 5%. Talent Grid Africa manages payroll to ensure full compliance.
Yes. Foreign employees must obtain a Temporary Employment Permit (TEP) before starting work. Talent Grid Africa assists with applying for TEPs, which are valid for two years and renewable.
Services include outplacement support for redundant employees, work permits and visa assistance, payroll outsourcing, and recruitment services including headhunting for top talent.