In Malawi, almost every terminal entitlement is calculated from your wage. That makes your pay records more important than they might seem.
What your wage determines
Severance allowance — two, three or four weeks' wages per year of service
Gratuity — 5% of monthly salary per completed month, where it applies
Notice pay — where notice is paid rather than worked
Leave payments at termination
If your recorded wage is lower than what you actually receive, every one of those is reduced proportionally.
The definition of wage for severance
Worth knowing: for the purposes of calculating severance allowance, the Act sets out a specific definition of "wage" that may differ from the general definition used elsewhere in the Act.
If a severance calculation looks low, the base used is worth questioning.
What to check monthly
Gross pay matches what you agreed
PAYE is being deducted and remitted
Pension contributions appear, if a scheme applies
No unauthorised deductions
Overtime, where worked, is paid
Why pension status is on this list
Because whether you are on a pension scheme decides whether severance or gratuity applies at termination. It is the single most consequential fact about your employment arrangement in Malawi.
If you do not know your pension status, find out.
Keep everything
Payslips, your contract, any letter varying your terms, and correspondence about leave.
The seven-day payment deadline in section 53 is short. Having your records in order means you can check the figures quickly rather than reconstructing them afterwards.
If your payslip is wrong
Raise it in writing with your employer first. If it is not corrected, the District Labour Officer handles complaints under the Act.
Frequently asked questions
Why does my recorded wage matter so much?
Because severance, gratuity, notice pay and leave payments are all calculated from it. A wage recorded below what you actually receive reduces every one of them.
Is the wage used for severance the same as my normal wage?
Not necessarily. The Act sets out a specific definition of wage for calculating severance allowance, so if a figure looks low the base is worth questioning.
What should I check on my payslip?
That gross pay matches your agreement, that PAYE is deducted, that pension contributions appear if a scheme applies, that there are no unauthorised deductions and that overtime is paid.
Why do I need to know my pension status?
Because it decides whether severance or gratuity applies at termination. It is the single most consequential fact about your employment arrangement in Malawi.
What if my payslip is wrong?
Raise it in writing with your employer first. If it is not corrected, the District Labour Officer handles complaints under the Act.