Free Payslip Generator (Malawi)

Section 51(1) of the Employment Act, 2000 requires every employer in a public or private agricultural, industrial or commercial undertaking to give each employee, with each payment of wages, an accurate itemised statement in writing. It must show the gross wages due at the end of the pay period, the amount of every deduction made in the period and the purpose of each deduction, and the net wages payable at the end of the period.

Section 50(1) fixes how often wages are paid: at least weekly or fortnightly for employees paid by the hour, day, week or piece, and at least monthly for those on a monthly or yearly wage. The statement therefore goes out at least that often.

Under section 51(2) the employer must also keep a written record of wages and remuneration paid to each employee over the previous three years, and of the gross amount payable and the deductions made with reasons. An employee whose employer fails to provide an accurate statement or keep these records may complain to the District Labour Officer (section 51(3)).

Under the Pension Act (Cap. 55:02), section 12, the minimum contribution to a pension scheme is 10% of pensionable emoluments from the employer and 5% from the employee. Pensionable emoluments are guaranteed wages and other earnings, not personal investment income, capital gains or housing or vehicles provided by the employer. The parties may agree higher rates, and an employer may bear the whole cost, provided the employer's share is not below the combined 15%.

Contributions are paid to the trustee of the pension fund, not to MRA. The employer must pay both the employer contribution and the amounts deducted from pay no later than fourteen days after the end of the month (section 61). Late payment attracts interest for each month outstanding and an administrative penalty under the Financial Services Act. The Reserve Bank of Malawi supervises pension funds through the Registrar.

Separately, every employer owes the TEVET payroll levy under section 20 of the Technical, Entrepreneurial and Vocational Education and Training Act. It is charged on basic payroll, payable within thirty days of notification or by monthly instalments of up to twelve months, deductible for income tax, and a 20% penalty applies to unpaid amounts.