Government has raised the statutory minimum wage for all workers from K787.70 to K962.00 per day effective July 1, 2017.
In a press statement released Tuesday, acting principal secretary in the Ministry of Labour, Youth, Sports and Manpower Development Joseph Mwandidya said the ministry came up with the decision after consulting the Employers Consultative Association of Malawi (ECAM) and the Malawi Congress of Trade Union (MCTU).
Reads the statement in part: “Pursuant to section 54 of the Employment Act Cap 55:01 and in his capacity as minister, honourable Henry Mussa signed a minimum wage order that shall come into operation on July 1, 2017.
The minimum wage serves the purpose of protecting the lowest paid workers from exploitation for the services they render. It sets the bottom line rate of wages below which it is unlawful for an employer to pay employees.”
The ministry has further encouraged workers and their employers to negotiate for higher rates where possible warning those who will be paying their employees below minimum wage that they shall be liable to prosecution as provided for in section 55 of the employment Act.
Parliament on June 22 passed the 2017/18 national budget worth MK1.3 trillion, with a proposed minimum wage increase from K19,000 to K25,000 per month.