The Malawi government, through the Ministry of Labour, has increased the general minimum wage from K90,000 to K126,000 per month, failing to meet the 100 per cent increase as per MCTU demands.
Minister of Labour Peter Dimba announced the immediate effect of the 40 per cent minimum wage increase on Tuesday during a press briefing held in Lilongwe.
Dimba said they had to strike a balance between the basic needs of workers and their families, which have been affected, and the struggle of employers to keep their businesses afloat.
According to the minister, the minimum wage for domestic workers has moved from R52,000 to R72,800 per month for micro enterprises. Minimum wage from K75,000 to K15,000 per month.
He also explained that the minimum wage for shop employment is K150,000 for shop businesses whose annual turnover is K500 million kwacha.
The government has also revised the minimum wage for truck drivers with k234,500 to k328,000 per month for international truck drivers, 30 tons and above. The wage has been boosted from k167,500 to k234,500 per month, while below 30-ton drivers’ wages have been increased from k100,500 to k140,700 per month.
“I also want to clarify that minimum wage does not mean maximum wage; there is a general tendency of employers to set wages around the set minimum wage,” said Dimba
Malawi Congress of Trade Unions MCTU chairperson Charles Kumchenga says they will need to meet and discuss the new increase, which didn’t reach even 90 per cent and will determine whether to welcome the increment or not.
Kumchenga said they proposed a 100 per cent increase because of the increase in the cost of living.
Employers Consultative Association of Malawi ECAM proposed a 30% increase and says sectorisation of minimum wage for shop workers, which has been included on the list, is a good development
ECAM also suggests that in an unstable economy, minimum wages need to be raised every year rather than waiting for three years, which is in the Labour Act and says they will engage the government to look into the issue.
