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$249/month
$49/month
2% of gross salary / month
Though historically it has been among Africa’s poorest nations, Malawi is one of the most politically stable on the continent, with over 60 years of peace and multi-party elections every five years since 1993. In 2021, the government launched the Malawi 2063 Vision, a set of proposals designed to transform the country into a wealthy and self-reliant state. In 2024, the economy is expected to grow by two percent. From a population of approximately 20 million, Malawi has a potential labor force of over eight million with an average monthly wage of between $200 and $400 per month, depending on the industry.
Hire in Malawi, and pay employees through our platform or app.
Our Malawi EOR solution is the most affordable on the market.
Fast Malawi onboarding, hire in as little as 24 hours.
We draft compliant Malawi labor contracts.
We manage all Malawi mandatory benefits.
It doesn’t stop with Malawi — we hire employees globally.
An Employer of Record (EOR) is a service that connects workers from one country with an employer from another. In Malawi, this means assisting global companies with establishing a labor force in the African nation while simultaneously helping local people seize opportunities for roles outside Malawi’s domestic industries, which are heavily dominated by agriculture. To achieve its aims, an EOR assumes the role of an employer and human resources manager for Malawi workers. It then assigns these workers to roles within its foreign client’s business. In most circumstances, an EOR represents the most efficient way for any global business to begin hiring in Malawi.
A professional employer organization (PEO) is often discussed interchangeably with an EOR. This is a similar recruitment and management service that sources talent inside Malawi on behalf of foreign clients. However, there is a key difference. An EOR serves as a legal local entity within Malawi for its clients. A PEO does not. Any business working with a PEO will need to undergo the complex and costly process of independently establishing an entity for itself in Malawi.
By sidestepping the need to create a local entity, or to establish an in-depth understanding of the local labor market, working with an EOR allows foreign businesses to begin hiring Malawian workers quickly, efficiently, and with minimum cost or risk. Some of the primary benefits of contracting a Malawi EOR include:
Horizons stands out as a Malawi EOR through:
An EOR in Malawi works by acting as an employer for local workers, whom it then assigns to positions with clients running businesses based outside the country. This allows foreign businesses to bypass many of the requirements of establishing themselves within Malawi while also outsourcing their human resources needs to an experienced local expert. Similarly, local workers are able to secure opportunities from a wider job market while knowing their employment will be handled by an agency that understands the local working regulations and culture.
Among the services provided by a Malawi EOR are:
Ensuring compliance with local labor laws and employment regulations is one of the prime services offered by a Malawi EOR. This means maintaining a thorough knowledge of the expectations and rules across every aspect of employment.
The Malawian Employment Act is the primary document establishing a framework for employer responsibilities and employee rights, whether the work is for local companies or global businesses. It states that any agreement of employment must be laid out in a signed contract that details, among other things, the parties involved, the work to be undertaken, the conditions, and the compensation. Employment contracts in Malawi should also address any confidentiality, termination, and grievance procedures.
No probationary period.
At completion of the project.
Not applicable
Typically up to 3 months
7 to 30 days
Not applicable
Typically up to 3 months
7 to 30 days
1 to 10 years is 2 weeks' salary per year of service
More than 10 years is 3 weeks' salary per year of servicem
According to The Employment Act (2000), the maximum standard working week in Malawi should be 48 hours. For a five-day working week, no employee should be asked to work more than 12 hours in a single day. For a six-day week, this is reduced to eight hours each day. Every worker should be offered at least 24 continuous hours of rest in each seven-day period. The act also outlines requirements for overtime pay which is set at a minimum of 150% during a standard week, 200% when the employee is giving up a rest day, and 400% for hours worked on public holidays.
150% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
Every worker in Malawi is entitled to paid time off for public holidays. In 2025, this totals 15 days, including secular holidays, national celebrations, and significant dates in both the Christian and Islamic calendars.
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 15 Jan 2025 | John Chilembwe Day |
| 3 Mar 2025 | Martyrs’ Day |
| 31 Mar 2025 | Eid al-Fitr (Tentative Date) |
| 18 Apr 2025 | Good Friday |
| 19 Apr 2025 | Easter Saturday |
| 21 Apr 2025 | Easter Monday |
| 1 May 2025 | Labour Day |
| 14 May 2025 | Kamuzu Day |
| 6 Jul 2025 | Independence Day |
| 15 Oct 2025 | Mother’s Day |
| 25 Dec 2025 | Christmas Day |
| 26 Dec 2025 | Boxing Day |
The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:
no leave entitlement
18 days of paid leave annually
18 days of paid leave annually
18 days of paid leave annually
For every 12 months of continuous service, Malawi employees are entitled to four weeks’ sick leave with full pay and a further eight weeks at half pay. Employers may request a medical certificate before authorizing payment.
(percentage of regular wages owed to the employee)
no leave entitlement
28 days of paid leave annually
28 days of paid leave annually
28 days of paid leave annually
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Aside from public holidays, annual leave, and sick leave, the only other paid time off legally guaranteed to Malawi workers is for maternity. This is for female workers only and is set at a minimum of eight weeks every three years. Any additional paid leave, either for maternity or other reasons, must be negotiated directly with the employer.
Vacation entitlement in Malawi is dependent on working patterns. Any employee working a regular six-day week should be given at least 18 days plus public holidays each year. Employees working five days should be given 15 days plus public holidays. Unless mutually agreed, these should be taken within six months of the entitlement period.
The Malawi Employment Act states that any worker on an indefinite-term contract should be given written notice for no-fault termination. This amounts to four weeks for any worker paid monthly. For those paid fortnightly, the period is two weeks during the first five years of service and one month after that time. Severance pay for redundancies and other no-fault termination is set at a minimum of two weeks’ wages for less than five years of continuous service, three weeks for five to ten years, and four weeks for ten years or more.
Social security contributions are primarily governed by the National Pension Scheme under the Pensions Act. The scheme mandates contributions from both employers and employees to ensure financial security for workers upon retirement, disability, or in other specified circumstances.
The combined contribution from both employer and employee is a minimum of 15% of the employee’s basic salary.
Foreign employees working in Malawi are generally subject to the same social security contribution requirements unless there are specific exemptions provided by bilateral agreements or the terms of their employment contracts.
The income tax system is progressive, meaning that tax rates increase with higher income levels. The Malawi Revenue Authority (MRA) administers these taxes.
Taxable income includes salaries, wages, bonuses, allowances, and other benefits in kind.
Health insurance coverage is not universally mandated or provided by the government. However, various options for health insurance are available through private insurance companies and employer-provided schemes.
Private health insurance policies typically cover hospitalization, outpatient services, maternity care, emergency services, and sometimes dental and optical care.
Articles 54 and 55 of the Malawi Employment Act, 2002 state that a national minimum wage should be adhered to. The exact figure varies depending on the sector, but anyone who is not a domestic worker or truck driver should expect to earn at least MWK 3,461.54 each day or MWK 90,004 each month. This converts to roughly $2 per day or $55 per month.
Malawi labor law does not mandate any bonuses or allowances for local workers; this includes 13th-month salary payments. Any benefits in addition to the standard compensation package must be agreed directly at the time of hire.
All workers in Malawi are expected to contribute social security payments to a National Pension Scheme. Employees should pay 5% of their pensionable income, while employers should add an additional 15%.
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As the entity that will assume liability for compliance with labor laws in Malawi, an EOR will ensure it is fully aware of all up-to-date regulations and how these should be applied in any aspect of employment. Should it fail in this respect, the EOR is legally responsible for finding a resolution or facing the consequences.
Using an EOR in Malawi allows any global business to begin hiring without delay while applying minimal resources and accepting reduced risk. An EOR is a complete solution for recruiting and managing a labor force in Malawi.
Holiday Schedule in Malawi [2025]
