Malawi Highlights:
- An EoR (Employer of Record) package is the most efficient and effective way to deploy local and foreign employees in Malawi.
- 1WB acts as an EoR ensuring full compliance with country’s regulations.
- The whole deployment process for foreigners takes about 5 weeks whereas for locals within 1 week.
- Handling payroll processing, immigration and taxes compliantly, swiftly and cost efficient.
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Personal income tax - A flat rate of 15% applies to non-residents on all income.
The following tax rates apply to income for individuals in Malawi:
| Taxable Income (Malawi Kwacha) | Tax Rate % |
|---|---|
| 0 - 540,000 MWK | 0% |
| 540,000 - 600,000 MWK | 15% |
| 600,000 - 36,000,000 MWK | 30% |
| 36,000,000 MWK and above | 35% |
- The tax rate for locally incorporated companies is 30% and for branches of companies not incorporated in Malawi is 35%.
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Social security contributions -
The employee contributes a minimum of 5% of the pensionable emoluments while the employer contributes at least 10% of the employee’s pensionable emoluments.
Contributions by the employer are tax deductible up to a maximum of 15% of the employee’s pensionable emoluments while those made by the employee are not. - Work permit -1WB can sponsor work permits for foreign employees and the processing time is about 4 weeks.