Global HR Compliance in Malawi

Tracking tax and labour law changes in Malawi requires close attention from qualified professionals. Businesses must either allocate scarce internal resources to these complex administrative tasks or risk financial and legal penalties through non-compliance. For companies entering or scaling in Malawi, this complexity can undermine international growth plans.

At Acumen International, we’ve built effective global employment infrastructure through years of collaboration with multinational enterprises.

As a Global Employer of Record, our core strength lies in managing personnel administration and payroll across a wide range of industries, so our clients can focus on growth, not bureaucracy.

Whether you’re planning to engage international talent or already employ a cross-border team in Malawi, this guide outlines what you need to stay fully compliant.

Employment Contracts in Malawi

Under Malawi’s Employment Act, employment contracts fall into three categories:

• Indefinite contracts (unspecified period)
• Fixed-term contracts (specified period)
• Task-based contracts (specific assignment)

All forms are legally recognised. While contracts may be verbal, written agreements are strongly recommended to clarify expectations and protect both parties. Skilled workers can be subject to a probationary period of up to 12 months.

Statutory Employment Regulations in Malawi

Working Hours

Normal working hours must not exceed:

• 48 hours per week for most employees (excluding overtime)
• Guards or specific exempt categories may have different terms

A minimum rest period of 24 consecutive hours per week must be provided.

Probation Period

• Skilled workers: Up to 12 months, by agreement
• During this time, termination may occur without notice by either party

Annual Leave

Entitlements depend on the workweek:

• 18 working days for six-day weeks
• 15 working days for five-day weeks Leave must be taken within six months of becoming due. Accrual and deferral are allowed by mutual agreement.

Maternity and Parental Leave

• At least 8 weeks paid maternity leave every three years
• Employment rights remain intact during leave, including benefits and seniority
• Additional leave may be granted for medically certified pregnancy-related illness
• No statutory paternity leave.

Sick Leave

Employees who have completed 12 months’ service are entitled to:

• 4 weeks at full pay
• 8 weeks at half pay Medical certification is required for entitlement.

Overtime

Three categories apply:

• Ordinary overtime (weekdays): 1.5x hourly wage
• Day-off overtime: 2x hourly wage
• Holiday overtime: 2x hourly wage

Minimum Wage in Malawi

As of 2025, Malawi’s minimum wage is MWK 1,346.15 per day.

Employers must comply or face penalties.

Employment Termination in Malawi

Notice Periods

For indefinite contracts, termination requires written notice:

• Up to 1 year of service: 1 week
• 1 to 5 years: 2 weeks
• 5 to 10 years: 1 month
• 10+ years: 3 months

Notice periods apply unless:

• Termination is during probation
• Fixed-term or task-based contract ends as agreed
• Termination is for serious misconduct (subject to disciplinary procedure)

Unjustified termination may result in severance obligations or legal proceedings.

How Acumen International Can Help You Hire in Malawi

Direct Employment Without a Local Entity

You can hire full-time staff in Malawi without opening a legal entity. Acumen International serves as the legal employer, assuming responsibility for contracts, payroll, tax deductions, and benefits administration on your behalf.

Local Compliance, Centrally Managed

Our legal and HR experts ensure that your employment practices align with Malawi’s labour code, social security rules, and payroll regulations. You stay protected from compliance gaps and avoid unnecessary local disputes.

Custom Support for Complex Hiring

Whether you’re hiring sales representatives with performance-based pay or supporting a non-standard job structure, we align your employment model with regulatory expectations—so nothing gets lost in translation between your global strategy and Malawi’s legal requirements.

Global Mobility Support

Bringing foreign specialists into Malawi? We help you understand the legal pathway for securing work permit and support compliant employment structures that meet immigration standards—without making false claims about processing.

Global Payroll Planning with the Global Payroll Calculator

Our Global Payroll Calculator provides a transparent cost breakdown of hiring in Malawi. It includes net salary, mandatory employer contributions, and other applicable charges, so you can plan your workforce budget accurately before making commitments.

One Partner Across 190+ Countries

By centralising your hiring under one roof, you eliminate the cost and complexity of managing dozens of vendors. With Acumen International, you gain a scalable, legally compliant infrastructure to support rapid international expansion.