Malawi salary calculator
Enter a gross monthly salary in Malawian kwachas (MWK) to see take-home pay, income tax, employee contributions and the total cost to the employer. Uses the same tax bands and contribution rates Payroll Africa uses to run payroll in Malawi.
Take-home pay
MWK 383,500.00
PAYE
MWK 91,500.00
18.3% of gross
Cost to employer
MWK 555,000.00
| Item | Employee | Employer |
|---|---|---|
| Gross salary | MWK 500,000.00 | — |
| Mandatory pension (Pensions Act 2023)(deducted before tax) | − MWK 25,000.00 | MWK 50,000.00 |
| TEVET skills development levy | — | MWK 5,000.00 |
| PAYE | − MWK 91,500.00 | — |
| Net pay | MWK 383,500.00 | MWK 555,000.00 |
Monthly estimate for a resident employee with no other reliefs, benefits or deductions, using the 2026/2027 tax year configured in Payroll Africa. Confirm with the Malawi Revenue Authority (MRA) for your situation.
Malawi income tax bands (2026/2027)
| Monthly taxable income (MWK) | Rate |
|---|---|
| MWK 0.00 – MWK 170,000.00 | 0% |
| MWK 170,000.00 – MWK 1,570,000.00 | 30% |
| MWK 1,570,000.00 – MWK 10,000,000.00 | 35% |
| Above MWK 10,000,000.00 | 40% |
Each rate applies only to the part of income inside its band.
Contributions in Malawi
| Contribution | Employee | Employer | Based on |
|---|---|---|---|
| Mandatory pension (Pensions Act 2023) | 5% | 10% | Gross salary; deducted before tax |
| TEVET skills development levy | — | 1% | Gross salary |
Frequently asked questions
How is PAYE calculated in Malawi?
Payroll Africa takes the gross monthly salary, subtracts Mandatory pension (Pensions Act 2023), applies the 2026/2027 tax bands shown on this page.
Which deductions come off a salary in Malawi?
Besides income tax, the employee pays Mandatory pension (Pensions Act 2023) (5%). Employer-only costs are Mandatory pension (Pensions Act 2023) (10%), TEVET skills development levy (1%).
Is this calculator accurate for every employee?
It is an estimate for a resident employee paid monthly with no other reliefs, benefits or voluntary deductions. MRA PAYE bands per Taxation (Amendment) Act No. 36 of 2025 Confirm your situation with the Malawi Revenue Authority (MRA).
Run payroll in Malawi without spreadsheets
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