PAYE knocks out Malawians: Workers wailing everywhere


The new Pay As You Earn (PAYE) system introduced by the Tonse Alliance Government has hit Malawians who are already struggling due to rise in cost of living, with some Malawians having their salaries reduced by over K40,000.

Malawians have taken to social media to complain over the new PAYE introduced in the 2022/23 budget.

Under the new system, PAYE is 0 percent for monthly salaries from 0 to K100, 000 but is 25 percent for salaries between K100, 000 and K330,000.

Salaries ranging from K330,000 to K3 million are being charged 30 percent while those from K3 million to K6 million are being subjected to 35 percent PAYE. Forty percent PAYE is being charged on salaries above K6 million.

Minister of Finance Sosten Gwengwe said in Parliament that the new measure will ensure that “Government continues to raise realistic revenues from PAYE”.

Since the budget was passed late last month, salaries for April are the first ones being subjected to the new PAYE regime.

Malawians, who are already required to dig deeper into their pockets due to sharp rise in cost of living, have complained over the new measures.

“This is the first time I have experienced a net salary decrement thanks to the new tax measures,” said one social media user.

Another said the decrement in salaries is “unprecedented” saying the tax measures has even hit hard those already receiving low salaries.

Some Malawians have since suggested that they will challenge the tax measure because they were not consulted.


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