Malawi PAYE
Calculator 2025/26

Malawi's Pay As You Earn (PAYE) income tax is administered by the Malawi Revenue Authority (MRA) and calculated on a monthly basis. The four progressive MRA bands effective 30 December 2025 cover incomes from 0% on the first MWK 170,000/month to a maximum 40% above MWK 10,000,000/month. This calculator applies PAYE after the standard employee pension deduction used for covered employment.

Malawi's Pension Act provides a statutory pension framework for covered employment. The standard minimum rates are 10% by the employer and 5% by the employee on pensionable emoluments, and the employee portion is deducted before PAYE in this calculator. Employer pension is shown separately in total employer cost.

Malawi's four monthly MRA PAYE bands (effective January 2026): 0% on the first MWK 170,000/month; 30% on MWK 170,001–1,570,000; 35% on MWK 1,570,001–10,000,000; and 40% above MWK 10,000,000/month. In this calculator, an employee's standard 5% pension contribution is deducted before those bands are applied. Employers remit PAYE to MRA by the 14th of the following month.

Malawi uses the MWK (Malawi Kwacha). The economy is largely agricultural, and the MRA has been expanding digital filing capability. Employers must file monthly PAYE returns even for nil-tax months. Witholding tax on dividends, rental income, and interest is also collected by MRA. Verify current bands and any recent budget adjustments at mra.mw.