The Malawi Government has announced a set of proposed tax reforms aimed at increasing revenue and stabilizing the country’s finances. These measures were presented by Minister of Finance, Joseph Mathyola Mwanamvekha, on Friday, 21 November 2025, during the Mid-Year Budget Review for the 2025/2026 financial year in Parliament.

Key Proposed Changes to PAYE (Pay As You Earn):

(Pending parliamentary approval)

• Zero-rate (tax-free) band: Increase from K150,000 to K170,000 per month.
• Removal of the 25% tax bracket.
• 30% rate: Applies to monthly incomes between K170,000 and K1.57 million.
• 35% rate: Applies to incomes from K1.57 million up to K10 million.
• New top rate of 40%: Applies to monthly incomes above K10 million.

Note: These changes are proposals only and will take effect once approved by Parliament. Any changes affecting your payroll will be communicated here on the Community Hub.