How to hire remote employees in


Malawi’s a great place to hire remote talent. But labor laws are complicated and it’s easy to get confused. By the end of this page, you’ll know exactly how you can hire remote talent in Malawi—without spending thousands in fees.

Country snapshot

Malawian Kwacha (MWK)

What to know before you hire in 


Laws about hiring are complicated. Especially when they’re in countries you’re not used to hiring in. But we’re here to make things simple. Below, you’ll learn the two options you have for hiring in Malawi—and the advantages and disadvantages of each.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Malawi than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Malawi.

Taxes in 


Employer tax

National Pension Scheme

Individual tax


Paid Time Off (PTO)

PTO is calculated by the:

  • Minimum annual leave is 15 days for an employee who works a 5- day work week and 18 days for an employee who works a 6-day workweek.

Public Holidays

There are 12 public holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • If the employee has completed for 12 months of employment, they are entitled to 4 weeks of sick leave at 100% pay and an additional 8 weeks at 50% pay.     

Maternity Leave

Women are entitled to 8 weeks of maternity leave every 3 years and receive their full salary. 

Paternity Leave

There is no statutory paternity leave in Malawi.

Parental Leave

There is no statutory parental leave.

Other Leave

Work-related injury leave: For temporary disability, the employee is entitled to a percentage of their regular salary.

For employees who are deemed to be permanently disabled, a lump sum of 54 months is paid out to the employee.

For employees who are partially disabled, a percentage of the 54 months will be paid out to the employee, depending on the degree to which they are assessed to be disabled.

In addition to this, it is the responsibility of the employer to pay for all medical expenses associated with the injury.

If the injury results in death, a sum totaling 42 months excluding any disability benefit paid before the passing of the employee is paid out to the family.

Marriage Leave


Bereavement Leave



Termination Process

Termination needs to be submitted in writing to the other party. 

The employee must be given the opportunity to present their counterargument.    

The employer is obligated to provide a termination certificate to the employee stating the reason for termination.  

Notice Period

The notice period depends on the frequency the employee is paid:

If the employee is paid monthly: 30 days’ notice

If the employee is paid every 2 weeks: 15 days if they have been employed for less than 5 years and 30 days if they have been employed for more than 5 years

If the employee is paid monthly: One week if the employee has been employed for less than 2 years; 2 weeks if the employee has been employed between 2-5 years; one month if the employee has been employed for more than 5 years.

If the employee is paid on an hourly or daily basis: 1 day for less than 6 months of employment, 1 week for 6 months-2 years of employment; 15 days for 2-5 years of employment, 1 month for 5+ years of employment.

Severance Pay

An employee is only eligible for severance pay if they are let go due to economic reasons (i.e. redundancy ore retrenchment) or if they are terminated unfairly.  In addition, the employee must have completed one year of employment.

  • 1-5 years of service: 2 weeks’ pay for every year of employment
  • 6-10 years: 3 weeks’ pay for every year of employment
  • 11+ years: 4 weeks’ pay for every year of service.

Probation Period

Depending on the contract, the probation period can last up to 12 months.

Employee requirements in 


Working Hours

A full workweek in Malawi is 48 hours.


Overtime hours during the regular workday are paid at a rate of 150% of the normal pay.  In addition, the employee is entitled to receive the hours of overtime back in compensatory rest for at least the equivalent amount overtime worked.

For work over a weekend or public holiday, the overtime pay rate is 200%.

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