Minimum Wage Review

 By Sam Banda Junior

The Minimum Wage in Malawi is due to be reviewed. 

According to Employment Act 2000 in Malawi, a review of the Minimum Wage is based on the following conditions: 

• The needs of workers and their families

• The general level of wages

• Cost of living and the relative living standards of other social groups.

• Economic factors including the requirements of economic development, levels of productivity and any effect the wage might have on employment

• If at least three years elapse without a review.

The last review of Minimum Wages in Malawi was done towards the end of 2007 and the approved Minimum Wages were effective on 1st January 2008.

Minimum Wage suggestions for 2010

With Malawi currently featuring a Minimum Wage of almost one US dollar per day, which is K140 per day, a recent document sourced by Mywage Malawi suggests that there will soon be a revision.

• Here is the government’s proposal on the Minimum Wage revision per day:

K161.87 and K16.19 as house allowance totalling K178.05.
 

• Here is the table for the current Minimum Wage followed by the suggested revision.

Based on urban and rural inflation rates, the Minimum Wages would be K144.81 and K111.43 per day respectively, as indicated in Table 1 below. 

Table 1: Wage Review Based on Rural, Urban and National Inflation Rates

• However considering the implementation of the wage policy in the civil service, the government’s Minimum Wages in 2010 will be MK161.87 and MK131.72 for urban and rural areas respectively as shown below.

Table 2: Wage Review Based on Government’s Annual Increments

 Mywage will keep on giving updates on the revised Minimum Wage.