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Employer cost calculator Malawi

Enter the basic pay and other guaranteed earnings to see the full monthly cost of an employee.

The calculator adds the two payroll costs every employer carries: the pension contribution and the TEVET levy.

How it's calculated

Employer pension contribution: at least 10% of pensionable pay, which is guaranteed wages and other earnings.
TEVET levy: 1% of the basic payroll, collected by the MRA for TEVETA.
PAYE and the employee's own pension come out of gross pay, so they do not add to the cost.

An example

For basic pay of MK 500,000 the employer pays MK 50,000 into the pension and MK 5,000 of TEVET levy. The employee costs MK 555,000 a month.

Frequently asked questions

Is the TEVET levy deductible for income tax?

Yes. The MRA says any levy paid under the TEVET Act is deductible under the Taxation Act.

What happens if an employer does not pay the TEVET levy?

A penalty of 20% of the unpaid levy becomes due on top of the levy, and TEVETA can recover it as a civil debt.

Does fringe benefit tax add to the cost?

Yes, if you give staff benefits such as a car, housing or school fees. Fringe benefit tax is paid by the employer and is not included here.

Key terms

TEVET levy: A payroll levy that funds technical, entrepreneurial and vocational education and training.
Basic payroll: The total basic pay of all employees, without allowances.

Up-to-date official data

Data checked against the official source on 27 October 2026.

We check the official sources automatically, every day.

See all sources

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