Malawi is a landlocked country in southeast Africa, bordered by Zambia, Tanzania, and Mozambique. Its economy is based heavily on agriculture, with a largely rural and rapidly growing population. The country has a diverse population with many native languages spoken.
Employees in Malawi are entitled to a minimum wage of MWK 50,000 per month, and the average workweek is no more than 48 hours per week. Overtime is paid at a rate of between 200%-400% of the regular rate.
Pregnant employees in Malawi are entitled to 8 weeks of paid maternity leave every 3 years, and there is no statutory paternity leave.
After finishing 1 year at their company, employees are entitled to at least 4 weeks of fully paid sick leave and 8 weeks of half paid sick leave each year.
There are 12 public holidays in Malawi, and employees are entitled to at least 15 days for employees with 5-day weeks and 18 days for employees with 6-day weeks.
Employers can terminate employment contracts for reasons relating to business, personal, or misconduct. Terminations require a written notice and explanation. If the reason for termination is misconduct, there needs to be a warning given so the employee gets a chance to explain their actions.
The amount of notice usually depends on how often the employee is paid, and ranges between 1-30 days.
Employees only have to pay severance if the employee has worked at the company for at least 1 year and the employer is terminating the contract for economic reasons (like layoffs), or if the termination is unfair. The amount of the payment depends on how long the employee has worked at the company:
★ 10% - National Pension Scheme
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.