Key Business Points
- Non-compliance with pension contributions is a significant challenge in Malawi, with a large number of registered employers failing to remit contributions, threatening the sustainability of the country’s pension schemes.
- Employers in the formal sector have a legal obligation to remit pension contributions in line with the Pension Act 2023, and failure to do so can have serious consequences.
- Alternative social protection mechanisms are available for individuals in the informal sector to secure their future, and exploring these options can help ensure a more stable financial future, as emphasized by the phrase "Kusunga mfundo" (planning for the future) in Chichewa.
Old Mutual Pension Services has expressed concern over the growing trend of employers withholding employees’ pension contributions, describing the level of non-compliance as unacceptable. Speaking at the inaugural 2025 Old Mutual Pension Trustees Conference in Mangochi, general manager Tawonga Manda highlighted the importance of addressing this issue to ensure the sustainability of Malawi’s pension schemes. Mandalo abwanasha (pension funds) are a critical component of an individual’s financial security, and employers’ failure to remit contributions can have severe consequences for employees’ future financial well-being.
The conference, held under the theme ‘Shaping the future of pensions: Resilience, sustainability and innovation‘, brought together approximately 200 trustees, regulators, and financial experts to discuss strategies for strengthening the country’s pension system. Reserve Bank of Malawi director of pension and insurance supervision Kaluso Chihana reminded employers of their legal obligation to remit pension contributions, emphasizing the need for compliance with the Pension Act 2023. He also encouraged individuals in the informal sector to explore malamulo ya ulondezgi (social protection schemes) to secure their future, highlighting the importance of planning for retirement and ensuring a stable financial future.
The issue of non-compliance with pension contributions is a significant concern for Malawi’s business community, as it can impact the financial stability of employees and the overall sustainability of the pension system. Kuwongola kwa mandalo (pension scheme management) requires careful planning and management, and employers must prioritize their legal obligations to ensure the long-term viability of these schemes. By addressing the challenges facing Malawi’s pension system and promoting compliance with relevant regulations, the country can work towards creating a more secure financial future for its citizens, as encapsulated in the Chichewa phrase "KusafRPatsa" (to protect and plan for the future).
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