Employer of Record in Malawi

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Malawi . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Malawi.

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1. Grow your team in Malawi with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Malawi , particularly if you don't have established local relationships. You can hire employees in Malawi effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Malawi is a landlocked nation in Southeastern Africa that was originally known as Nyasaland. It is bounded on the west by Zambia, on the north and northeast by Tanzania, and on the east, south, and southwest by Mozambique. Malawi has a land area of 118,484 km2 (45,747 sq mi) and a population of 19,431,566 people (as of January 2021). Lilongwe is Malawi's capital (and biggest city). Its second-largest city is Blantyre, third-largest is Mzuzu, and fourth-largest is Zomba, its previous capital. Malawi derives its name from the Maravi, an ancient term for the Chewa people that live in the region. Because of its people's kindness, the nation is known as "The Warm Heart of Africa."

Migrating Bantu tribes inhabited the area that is now known as Malawi about the 10th century. Centuries later, in 1891, the British colonized the territory and established Nyasaland as a protectorate of the United Kingdom. It was proclaimed a protectorate under the semi-independent Federation of Rhodesia and Nyasaland in 1953. In 1963, the Federation was disbanded. The protectorate ended in 1964 when Nyasaland became an independent nation under Queen Elizabeth II and was called Malawi. It became a republic two years later. It obtained complete independence from the United Kingdom and, by 1970, had become a dictatorial one-party state under Hastings Banda's president, which he held until 1994. Malawi is now a democratic, multi-party country led by an elected president. Lazarus Chakwera of the Malawi Congress Party-led the Tonse Alliance coalition of nine political parties to victory in the court-mandated Presidential Election rerun conducted on June 23, 2020, after the annulment of the May 2019 Presidential Election due to severe voting irregularities. Malawi's military, the Malawian Defence Force, consists of an army, a navy, and an air wing. Malawi has a pro-Western foreign policy. It has good diplomatic relations with the majority of countries and is a member of several international organizations, including the United Nations, the Commonwealth of Nations, the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA), and the African Union (AU).

Malawi is one of the world's poorest nations. The economy is strongly reliant on agriculture, and the population is mostly rural and fast-rising. Malawi's government is significantly reliant on foreign funding to satisfy its development requirements, albeit the quantity required (and the aid supplied) has dropped since 2000. Despite massive unemployment, the Malawian government confronts hurdles in its attempts to grow and expand the economy, enhance education, healthcare, and environmental protection, and achieve financial independence. Malawi has implemented many initiatives to address these concerns since 2005, and the country's outlook looks to be improving: In 2007 and 2008, key measures of economic, educational, and healthcare improvement were observed.

Malawi has a low birth rate and a high infant death rate. HIV/AIDS is widespread, reducing labor force participation and necessitating higher government spending. The country's population is diversified, including aboriginal peoples, Asians, and Europeans. There are many languages spoken, as well as a variety of religious beliefs. Although there had previously been a recurrent regional war caused in part by ethnic differences, by 2008, this internal struggle had significantly lessened, and the concept of identifying with one's Malawian nationality reemerged.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Malawi is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Those who work a 5-day workweek must take 15 days of annual leave, whereas employees who work a 6-day workweek must take 18 days.

Public holidays

Malawi recognizes twelve public holidays.

Sick days

If the employee has worked for a total of 12 months, they are entitled to 4 weeks of paid sick leave and an extra 8 weeks of paid sick leave.

Maternity leave

Every three years, women are entitled to an 8-week maternity leave during which they are paid in full.

Paternity leave

Malawi does not have a paternity leave law.

Parental leave

Malawi does not have a parental leave law.

Other leave

Work-related injury leave: An employee is entitled to a part of their usual wage for a temporary disability.

Employees who are determined to be permanently incapacitated get a lump sum payment of 54 months.

Employees who are partially disabled will get a proportion of the 54 months owed to them, according on the degree to which they are considered handicapped.

Furthermore, it is the employer's obligation to cover any medical expenditures incurred as a result of the injury.

If the employee dies as a consequence of the injury, the family receives a payment for 42 months, less any disability benefits received before to the person's death.

5. Employment termination

There is no information about employment information for this country.

Termination process

Termination must be communicated to the other party in writing. The employee must be given an opportunity to respond. Additionally, the employer is required to give the employee with a termination certificate detailing the cause for termination.

Notice period

The notice period is determined by the employee's pay frequency. If the employee is paid monthly, a 30-day notice period is required. If the employee is paid every two weeks, there must be a 15-day notice period if they have worked for less than five years and a 30-day notice period if they have worked for more than five years. If the employee is paid monthly, the notice period is one week if the employee has worked for the company for less than two years; two weeks if the employee has worked for the company for between two and five years; and one month if the employee has worked for the company for more than five years. If the employee is paid on an hourly or daily basis, the notice period is one day for less than six months, one week for six months to two years, fifteen days for two to five years, and one month for more than five years.

Probation period

Depending on the contract, the probation period can last up to 12 months.

Severance pay

Severance pay is only available to employees who are laid off for economic reasons (i.e. redundancy or retrenchment) or who are terminated unfairly. Additionally, the employee must have worked for at least one year. For employees with between one and five years of service, severance pay is equal to two weeks' pay for each year of employment. Severance pay for employees with six to ten years of service is three weeks' pay for each year of employment. Severance pay for employees with more than 11 years of service is equal to four weeks' pay for each year of service.

6. Working hours

There is no information about the working hours for this country.

General working schedule

The standard workweek is 48 hours spread over five or six days, with an average of eight hours per day. Weekly rest is limited to a minimum of 24 hours.


Overtime hours worked during the regular workday are compensated at 150 percent of the regular rate. Additionally, the employee is entitled to receive compensatory rest for the hours worked in excess of the equivalent amount of overtime. Overtime pay is 200 percent for work performed on a weekend or public holiday.

7. Minimum wage

There is no information about the minimum wage for this country.

Malawi's minimum wage is 35,000 MWK per month or roughly 1,346 MWK per day.

8. Employee benefits

There is no information about the employee benefits for this country.

The state offers people with universal healthcare in three forms: local healthcare facilities, regional hospitals, and district hospitals. Employers are obliged to provide private healthcare insurance and life insurance policies that provide health benefits to all of their workers.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Malawi imposes a corporate income tax rate of 30 percent for locally incorporated companies, 35 percent for branches of companies not incorporated in Malawi, and 30 percent for companies in export processing zones.

Companies in priority industries also have differing rates based on various factors. Companies who have not operated for more than 10 years are not subject to a corporate income tax. For all other cases for companies incorporated in Malawi, the tax rate is 15 percent. For all other cases for Malawi branches of external companies, the tax rate is 20 percent.

Individual income tax

A flat rate of 15% applies to non-residents on all income.

VAT, GST and sales tax

VAT is levied on all taxable products and services. VAT applies to three types of goods: taxable supplies (at a rate of 16.5 percent), zero-rated supplies, and exempt supplies.

Input VAT may be claimed by a taxable person on inputs used in the production of taxable supply. A taxable person must complete VAT returns and submit VAT payments, if applicable, within 25 days after the end of the month.

Regardless of whether the appointee is qualified for VAT registration, the Commissioner General may appoint a VAT agent. The agent is in charge of collecting VAT, issuing a VAT withholding certificate, and remitting the money to the tax authorities.

Exercise books, fertilizers, motor vehicles for transporting products, and salt are examples of zero-rated items. Machinery and financial services are free from taxation. Furthermore, VAT on imported products for water supply, photovoltaic equipment and commodities, and liquified petroleum gas is excluded.

10. VISA and work permits

There is no information about VISA and work permits for this country.

If you are a foreigner with a job offer in Malawi, you must get a Temporary Employment Permit. The employer is responsible for applying for the permission on the employee's behalf.

The application procedure is defined in the Policy Statement on Expatriate Employment. After paying the processing costs, the relevant TEP application form and accompanying papers are sent to Immigration Headquarters or Regional Immigration Offices for processing.

The application will next be considered by the TEP Approval Committee before being sent to the Minister for determination.

When a decision is reached, the applicant will be officially informed of acceptance or rejection. If accepted, the relevant costs will be due within 30 days of the date of confirmation.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

The names of the employee and the employer

The date of commencement of the contract

Salary and method of calculating remuneration

The intervals at which remuneration is paid

The nature of the work to be performed

Regular hours of work

Any provision for the termination of the contract other than those provided by this act

Any disciplinary rule that is applicable to the employee

Employers generally perform pre-employment criminal and education qualification checks.

With Rivermate being your Employer of Record (EoR) in Malawi, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

A job contract must be prepared in the local language, and each party must get a copy within one month of commencing work. In Malawi, there are three sorts of contracts: fixed-term contracts, indefinite-term contracts, and job-completion contracts. The probation time should be agreed upon in the contract, and it should not be more than 12 months.

Payment currency

Malawian Kwacha

13.Opening a subsidiary in Malawi

There is no information about the working hours for this country.

How to set up a subsidiary

If you are expanding on your own, the first step is to discover how to establish up a Malawi subsidiary. Your organization will need to evaluate a number of issues that will have an influence on the Malawi subsidiary creation procedure. Various areas or towns in Malawi, for example, may have their own Malawi subsidiary laws on incorporation, much as states in the United States have different requirements. Choose a site that meets your company's aims and allows for simple growth.

When you want to operate in Malawi, you will discover that there are several sorts of subsidiaries. The choice you choose should be based on how you want to operate in the nation, since each structure has its own set of rules and degrees of freedom. If you want to provide a diverse variety of goods and services, we suggest forming a limited liability company (LLC). This is one of the most common structures, and it allows international corporations to function in the same way that domestic companies do.

There will be numerous processes involved in establishing your Malawi subsidiary. You must do the following:

1. Register online or in person.

2. Set aside a distinct corporate name.

3. Request a certificate of incorporation.

4. Enroll in income, Pay As You Earn (PAYE), and fringe benefit taxes.

5. Obtain a business seal.

6. Obtain a permit from the city assembly.

7. Register your workplace with the Occupational Safety, Health, and Welfare Department. After authorities check your business, get a certificate.

Subsidiary laws

Malawi's subsidiary laws fluctuate depending on where you live and the sort of organization you form. An LLC requires a minimum of two persons to be joined for any legitimate purpose. You'll also need to write the following:

1. Names and contact information for the company's owners and everyone else engaged with the LLC

2. The owner's nationality (s)

3. Employees' number

4. LLC's physical address

5. Capitalization of shares

We suggest maintaining all of these vital papers at the office of your LLC. Keep in mind that Malawi's subsidiary laws may entail many fees. For example, you'll need to hire a private lawyer to draft your Memorandum of Association and Articles of Association, which will cost between 300,000 and 500,000 MK. You must also pay registration costs to the government, which might vary between 50,000 and 100,000 MK.

13. Why choose Rivermate as your Employer of Record / PEO in Malawi

Establishing an entity in Malawi to hire a team takes time, money, and effort. The labor law in Malawi has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Malawi simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Malawi give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Malawi via our Employer of Record (EOR) / PEO solution.

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