Malawi, the “Warm Heart of Africa,” captivates visitors with its natural wonders and cultural richness. From the pristine waters of Lake Malawi to the stunning views from Mount Mulanje, this landlocked nation in southeastern Africa boasts a diverse landscape that has long attracted travelers worldwide.
But Malawi’s allure extends far beyond its scenic beauty. As a country with a large working-age population, Malawi offers a dynamic and skilled talent pool actively seeking remote job opportunities in various industries, including IT and healthcare.
Advantages of Hiring in Malawi
Some of the benefits of hiring remote talent in Malawi include its growing focus on education, diverse skill sets, and the fact that English is the country’s official language.
The President of Malawi is committed to pursuing the African Union’s (AU) Committee of Ten Heads of State and Government (C-10) Agenda 2063, emphasizing the importance of education, science, and technology.
Established by the African Union in 2016, the C10 is crucial in promoting these elements as critical components in achieving the vision of “the Africa We Want.”
With the support of the C10 and its focus on innovation, Malawi is well-positioned to become a hub for top talent and remote employees and a valuable partner for companies seeking to expand their global reach.
Key stats to know about Malawi include:
- Languages: English (official) and Chichewa
- Currency: Malawian Kwacha (MWK)
- Capital City: Lilongwe
- Population: 21.5 million
- Cost of Living Rank: 195th
Unexplored Potential in Malawi’s Workforce
The shift to remote work accelerated significantly due to the COVID-19 pandemic, particularly in the IT sector, opening up new opportunities for emerging markets such as Malawi. The government actively promotes job creation and entrepreneurship, with significant investments in IT, communications, banking, and financial services.
The Digital Malawi Project, commonly known as DIGMAP, is a comprehensive effort to develop digital skills and support innovation in Malawi.
This program significantly enhances the employability of young people in a job market that increasingly values digital expertise, such as creating online platforms and selling digital products and services.
Common job sectors for international companies hiring remote talent in Malawi include:
- Financial services
- Operations and logistics
- Administrative support
- Customer service
- Software development
- Information technology
- Human resources
Hiring Compliantly in Malawi
Employment Contracts
In Malawi, written employment contracts are mandatory and must comply with the Employment Act and other relevant labor laws. Contracts can be fixed-term, indefinite-term, or job-completion-based.
Key details include:
- Identification of parties
- Type of agreement and start date
- Job title and responsibilities
- Compensation and benefits
- Working hours and schedule
- Probationary period
- Termination notice
- Confidentiality clause
Working Hours & Pay
The standard work week in Malawi is 48 hours. Overtime is paid at 150% to 200% of the average hourly rate. As of February 2024, the minimum wage for urban and rural areas is MWK 90,000 per month.
Probation Periods
Probation periods may not exceed 12 months. During this time, either party can terminate the contract without prior notice.
Employer Taxes
Employers in Malawi must comply with several tax obligations:
- National Pension Scheme (NPS): Employers must contribute 10% of their employees’ pensionable earnings to the NPS.
- Fringe Benefits Tax (FBT): Employers providing non-cash benefits, such as housing, vehicles, or other perks, are subject to a tax of 30% on the taxable value of these benefits.
- Additional taxes: Depending on the specific business and location, employers may be required to contribute to the Skills Development Levy, Medical Levy, and local taxes like property rates and business licenses.
Termination Process & Severance Pay
Employment termination in Malawi must be conducted fairly and for valid reasons, such as operational needs, incapacity, poor performance, or misconduct. Misconduct includes insubordination, dishonesty, and negligence.
The required notice period for terminating an employment contract depends on its duration. It’s important to note that the notice period is subject to agreement between the employer and the employee.
According to the Malawi Employment Act, employees are entitled to severance pay after completing at least one year of service if terminated for economic reasons or unfair dismissal.
The amount of severance pay is directly proportional to the employee’s years of service:
- 1-5 years: 2 weeks’ pay
- 6-10 years: 3 weeks’ pay
- 11 or more years: 4 weeks’ pay
Paid Leave Laws in Malawi
Vacation and Holiday
Upon completing one year of continuous service, employees receive at least 15 days of paid vacation annually if they work a five-day week and 18 days if they work a six-day work week. Additionally, employees receive paid time off for 12 public holidays.
Sick Leave
After completing one year with an employer, employees are entitled to a minimum of four weeks of sick leave at full pay and, if necessary, an additional eight weeks at half pay.
Maternity Leave
Female employees are entitled to eight weeks of paid maternity leave once every three years. This leave can be extended for medical reasons, ensuring the health and well-being of both mother and child. Malawi does not currently have any statutory paternity leave provisions.
Why Digital Nomads Love Malawi
Malawi’s e-Visa makes it convenient for digital nomads and freelancers to live and work in Malawi. One popular visa is the Tourist Visa, which allows foreigners to enter Malawi for visits, residence, or business.
The country’s low living expenses allow nomads to enjoy a high-quality work-life balance without breaking the bank.
Coworking spaces are emerging in major cities like Lilongwe and Blantyre, providing digital nomads with dedicated work environments to settle into with their laptops. Notable workspaces include Blantyre’s Innovation Hub, which offers excellent facilities and networking opportunities.
Hire in Malawi with Remofirst
Hiring remote workers can be challenging as it requires managing taxes, compliance, and payroll across different countries. However, partnering with an Employer of Record (EOR) like Remofirst can simplify hiring global talent.
Remofirst’s comprehensive remote hiring services handle the back-end logistics of hiring across 180 countries (including Malawi), empowering businesses to expand their remote workforce worldwide seamlessly.
Book a demo today to learn more.
