Malawi Severance Allowance & Redundancy Calculator
Calculate your statutory redundancy severance pay under Section 35 of the Malawi Employment Act: 2 weeks per year (1 to 5 years), 3 weeks per year (6 to 10 years), and 4 weeks per year (11+ years).
⚡ Tenure Presets
Severance Parameters
Severance Schedule Matrix
| Tenure Tier | Statutory Formula | Amount (MWK) |
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Engr. Muhammad Shahzad
Verified Systems Specialist & EngineerPrincipal systems architect and statutory compliance engineer. Specialist in Malawi Revenue Authority (MRA) tax schedules, Employment Act labor regulations, and commodity statutory levies.
Frequently Asked Questions (Statutory FAQs)
Who is entitled to severance allowance in Malawi?
Under Section 35 of the Employment Act 2000, severance allowance is payable upon termination by the employer (including redundancy, economic retrenchment, or unfair dismissal) after at least one (1) full year of continuous service.
What is the statutory severance pay formula in Malawi?
The First Schedule prescribes: Years 1 to 5: Two (2) weeks basic wages per year of service; Years 6 to 10: Three (3) weeks basic wages per year; Years 11 and above: Four (4) weeks basic wages per year of completed service.
How is a week wage calculated for severance purposes in Malawi?
A week wage is calculated as: Monthly Basic Salary multiplied by 12 divided by 52 weeks (or monthly basic pay divided by 4.333).
Is severance allowance payable in cases of gross misconduct summary dismissal?
No. Section 35(4) explicitly provides that an employee dismissed summarily for justifiable gross misconduct under Section 59 is not entitled to severance allowance.
Is severance pay taxable in Malawi under MRA rules?
Under the Taxation Act, statutory terminal severance payments enjoy a statutory tax-exempt threshold, with the excess taxed at special concessional terminal tax rates.