Employers Consultative Association of Malawi (Ecam) has proposed a 25 percent increase in the general minimum wage to partially restore workers’ purchasing power eroded by inflation while ensuring employers are not squeezed.
In a position paper dated January 23 2026 submitted to the Ministry of Labour, Skills and Innovation, Ecam proposed raising the general minimum wage from K126 000 to K157 500.
The association also proposed an increase from K328 300 to K410 375 for international truck drivers, shop workers from K150 000 to K187 500 and workers in micro and small enterprises by 10 percent from K105 000 to K115 500.
“[The increase] is moderate enough to avoid excessive burdens on enterprises. It prevents closures and job losses by allowing firms to absorb costs gradually,” reads the proposal in part.
In the manufacturing sector, Ecam has recommended a minimum wage of K157 500 per month while commercial agriculture workers would earn K132 300 representing five percent above the general minimum wage.
Ecam said increases in fuel prices and electricity tariffs have raised production expenses in the commercial agriculture sector while revenues have remained largely unchanged.
Ecam executive director George Khaki confirmed the submission of the position paper to the ministry.
But Malawi Congress of Trade Unions (MCTU) has indicated that it will push for an increase beyond 25 percent.
MCTU secretary general Charles Kumchenga said the union was yet to submit its position, but believes the proposed rate is low.
“Last year, we proposed 100 percent, but the government hiked the minimum wage by 40 percent so we cannot be talking about 25 percent this year,” he said.
Truck Drivers Union of Malawi vice-president Francis Mkandawire also called for a higher rate, saying they have proposed a minimum wage of K600 000 to cover the increase in cost of living.
Last week, Transporters Association of Malawi spokesperson Frank Banda said government should first address their concerns about minimum transport rate, arguing that dry cargo transporters are already struggling to make profits.
Centre for Social Concern data show that the national average cost of living increased to K938 841 in December from K871 175 in November due to rising food taxes and increased value added tax.
University of Malawi economics lecturer Edward Leman said recent price increases have significantly eroded employees’ purchasing power, particularly for low-income earners.
He further cautioned that excessive wage increase could raise employers’ operating costs, which may be passed on to consumers through higher prices thereby fuelling inflation and creating a vicious cycle of economic challenges.
On his part, Consumers Association of Malawi executive director John Kapito said there is a need to look at what has gone up, including taxes and prices, and come up with quality wages.
Last year, the general minimum wage was increased by 40 percent from K90 000 to K126 000.
