MP queries minimum wage changes

Member of Parliament (MP) for Dowa East Richard Chimwendo Banda (Malawi Congress Party-MCP) has queried the disparity in the minimum wage announced by two ministries.

Chimwendo Banda said Minister of Finance, Economic Planning and Development Goodall Gondwe announced in Parliament Goodall Gondwe announced that the minimum wage had been increased from K680 per day to K1 250 per day translating to K25 000 a month calculated on 26 working days.

However, the Ministry of Labour Youth, Sports and Manpower Development announced later that the minimum wage would be K980 per day.

In his explanation, the responsible minister Francis Kasaila confirmed that indeed K 1 250 was the minimum wage agreed upon by the Employers Consultative Association of Malawi (Ecam) representing employers, Malawi Congress of Trade Unions (MCTU) representing workers and the government.

“When the budget was adopted, minimum wage moved from K19 000 to K25 000 and the minister announced an increase in the tax free bracket to K30 000 to ensure those who earn minimum wage be below the threshold. But the K1 250 per day would then translate to K32 500 which would be above the announced threshold. This (K1 250) was a target,” Kasaila said. n