After months of negotiations, government has revised the minimum wage upwards, with the new rates taking effect on June 1 2026.
Minister of Labour, Skills and Innovation Joel Chigona confirmed the change yesterday, but the move has already stoked fears of retrenchments and business closures amid a fragile economic climate.
Domestic workers will now earn a minimum of K83 720 per month up from K72 800, while commercial workers’ minimum has been raised to K157 500 from K126 000. Workers in micro and small enterprises will see their minimum rise to K131 250 from K105 000, and shop workers’ minimum has been set at K187 500 monthly.
Employers with an annual turnover of K500 million or more must pay a minimum of K200 000 per month, up from K150 000. Truck drivers on international routes driving vehicles of 30 tonnes and above will now earn K410 375 per month (previously K328 300), while local drivers will receive K293 125 (up from K234 500). Drivers of vehicles under 30 tonnes will get K175 875 up from K140 700.
The Employment Act defines the minimum wage as the lowest salary or wage that may lawfully be paid to a worker. Employers who pay below the prescribed minimum are contravening the law and may face prosecution, yet many fail to comply for a variety of reasons.
In an interview, Employers Consultative Association of Malawi executive director George Khaki welcomed the adjustment, noting the relentless rise in the cost of living.
He warned, however, that some employers may be unable to meet the new rates, a situation likely to trigger retrenchments and business closures.
“We must, however, point out there are some employers that may not be able to pay these wages due to challenges and this is likely to lead to retrenchments and business closures,” Khaki said.
The upward revision comes as the Centre for Social Concern’s Basic Needs Basket for an average urban family of six tops K1.1 million per month , which is far above what many households earn.
In October 2025 the Malawi Congress of Trade Unions (MCTU) had pushed for a 100 percent increase in the minimum wage and when contacted yesterday, MCTU secretary‑general Charles Kumchenga said he was in a meeting and would respond later.
Consumers Association of Malawi executive director John Kapito voiced fears that the new rates will cost jobs.
“The majority of people who are supposed to pay these wages are getting almost the same wages. Then the question is: why would anyone receiving a salary of K200 000 employ a worker and pay this amount? I am sure those creating these wages are knowledgeable enough to understand that this will just create unemployment. Unfortunately, no policymaker in Malawi ever listens,” he said, adding that enforcement will be difficult given the financial strain on many employers.
The wage rise follows a six‑percentage‑point increase in Value Added Tax from 16.5% to 17.5% in the fiscal year, which pushed up prices of basic goods and services and further squeezed consumers.
The Malawi Revenue Authority’s decision to begin collecting tax on rental income from residential property has also compounded the situation.
