Malawi Congress of Trade Unions (MCTU) has proposed a 95 percent increase in the minimum wage to cushion workers against the rising cost of living.
MCTU president Charles Kumchenga said in an interview yesterday that the union presented its proposal at a tripartite meeting held at Lilongwe Technical College on Monday in response to recent economic developments, including increases in value-added tax (VAT) and fuel prices.
The minimum wage was last revised in June 2025 and now stands at K126 000 per month for formal sector employees and K72 800 for domestic workers. This means that a 95 percent increase would push the minimum wage to about K245 000 per month.
Kumchenga said the economic environment has eroded workers’ purchasing power, necessitating a substantial adjustment to the wage floor.
He said MCTU initially demanded a 100 percent increment due to rising costs of most commodities.
“However, the government asked the parties to find a compromise, so we settled for 95 percent considering the prevailing economic situation. The cost of living is unbearable for a worker, with fuel, transport and other basic needs becoming more expensive,” said Kumchenga.
Employers Consultative Association of Malawi (Ecam) executive director George Khaki confirmed the meeting and said employers proposed a 25 percent for most categories, five percent for the agriculture and commercial sector and 10 percent for micro and small enterprises.
While acknowledging the challenges facing workers, he said any wage revision must remain economically sustainable.
“We did not find common ground with the employees’ side. The economic fundamentals require a wage review, but it must be at a level that is viable for both parties. It is now up to the government to consider the submissions made,” said Khaki.
Minister of Labour, Skills and Innovation Joel Chigona assured workers that the minimum wage will be reviewed, although consensus on the figure has yet to be reached.
He said the government will assess the proposals before a final determination is made.
Meanwhile, Centre for Social Concern (CfSC) economic governance officer Agnes Nyirongo has supported a wage adjustment but warned against pushing it too high, saying it could trigger job losses.
“There is a big gap between the current minimum wage and the cost of living, and workers are struggling to survive. However, the two parties must find a middle ground. I would propose about 50 percent so that both workers and employers get a fair share,” she said.
CfSC data show that the national average cost of living for a household of four rose to about K945 000 between December 2025 and January 2026, up from K871 175 in November, largely driven by rising food prices and higher VAT.
In its analysis of the 2025/26 Mid-Year Budget Review, the Economics Association of Malawi warned that although proposed tax and non-tax reforms are expected to boost revenue, they could also trigger unintended economic pressures, requiring careful trade-offs during implementation.
