Foreign nationals need both a Temporary Employment Permit (TEP) and a work visa to legally work in Malawi. TEPs are issued for up to two years and renewable twice. Required documentation includes passport, employment contract, qualifications, employer registration, police clearance, and proof the role was advertised locally. Employers initiate and sponsor the entire process, which typically takes several weeks.

Employers in Malawi process payroll weekly, bi-weekly, or monthly, based on pay structure. Key components include:

• PAYE (Pay-As-You-Earn): Progressive tax withholding up to 40%
• Pension Contributions: Employer 10%, Employee 5%
• Minimum Wage: MWK 50,000/month or MWK 2,380/day
• Overtime: Paid as time off during weekdays; 200% for rest days; 400% for public holidays
• No standard 13th-month pay applies.

Contracts must be written, detailing terms, probation, notice periods, and termination conditions.

• Probation Period: Up to 12 months
• Notice Periods: Range from 1 day to 1 month depending on tenure and pay cycle
• Severance: Tied to years of service; ranges from 2–4 weeks’ pay per year, depending on tenure and reason for termination.

• Annual Leave: 15–18 working days per year, depending on the workweek duration
• Sick Leave: At least 4 weeks with full pay, followed by 8 weeks at half pay after 12 months’ service
• Maternity Leave: 8 weeks fully paid, once every three years
• Paternity Leave: Not mandated by law
• Strike Pay: Employees receive pay for the first 3 days of a strike

• Tax Year: July 1 – June 30 (fiscal year)
• Residency: Residents taxed on global income; non-residents taxed on Malawi-source income
• Withholding Tax: Applies to non-employee payments like contractors and dividends
• VAT: Standard rate 16.5%, with some exemptions and zero ratings