Malawi low income earners smile as Tonse govt increases tax free band from K45 000 to K100 000
The Tonse Alliance led government has increased the tax free band from 45 000 to K100 000.
This was revealed by Finance Minister Felix Mlusu on Tuesday while presenting the four month provisional budget.
Mlusu says the increased is a deliberate move by government to ensure that Malawians have enough money in their pockets to purchase cheap fertilizer at K4 495 per 50kg bag.
“Each person will be allowed to buy at least 2 bags,” he said.
So what does the extension of tax free threshold base to K100 000 mean?
1. It means that those whose salary was below K100 000.00 will no longer be paying Pay As You Earn (PAYE) tax. Whatever your salary, you shall only be expected to make pension contribution but payee has been relieved from you.
2. Those whose salaries were above K100 000, from July, 2020, they shall be getting excess of K17 500 which was PAYE for the first K100 000 of their salary.
3. Besides, everyone who was receiving salary of K35 000 will be taking home K50 000 as minimum wage has been raised to K50 000
Follow and Subscribe Nyasa TV :
Malawi walkup, lets forget the past administration and wlcm the new one
Normally I would support minimum wage increase always but we are in a pandemic and an economic crisis, businesses are struggling to survive, so increase minimum wage in such a time when most of these business have been cutting down on expenses and even working hours, is a bad decision. The finance ministry should be coming up with ways to help businesses survive not execerbating the situation. If you want to help people and businesses during a crisis tax cuts and investment credits are things to go. Increasing tax band was good not increasing minimum wage.
Have we read the title before commenting?Increase tax free band.So why commenting about minimum wage? For working class people this is an increase by K17,500 per month! Minimum wage was K35,000 plus K17,500 it’s K52,500 so where is you argument people?
Some of us read the whole article; not just the title! At the bottom of the article you will find the details regarding the minimum wage
The minimum wage was raised just this past January. To raise it again so soon is counter productive, as many people who had two servants will lay off one and keep only one. I have laid off my gardener and will instead have someone coming in two or three times a week for less than the current minimum wage of MWK35,000. I can’t do without the maid (since I don’t know how to cook!), so I’m going to keep her even at the proposed MWK50,000
The Tonse Alliance needs a quick refresher course in Development Economics: In an extremely poor country like Malawi it is better to have many people receiving on low wages, than to have fewer people earning higher wages. The priority for now should be to create those one million jobs; not to dictate a higher minimum wage which employers will easily sidestep by reducing their workforces…this is what happens throughout the world if governments are not reasonable when it comes to setting minimum wages…
This is sounds more of boasting than presenting the real fact of the affair. Kindly fire everyone and cook yourself! the minimum wage is MK50,000 per month. Please take note.
Actually let them raise the minimum wage and see what happens to the price of fertilizer. Interesting times
You’re still a student. Everything is done for you. Not too long from now you’re going to be welcomed into the real world. There are so many bills to pay; not just wages: Rent, water, electricity, fuel, motor vehicle repairs, school fees, insurance, “black tax”, etc. You’re going to eat your words that time
Don’t employ people if you can not pay a descent wage. They are also human and have defendants to care for.
Just say you are still poor my friend
to primise is easy koma kuti adzapezeke kwa aliyense monga mwa lonjezo we shall see
The whole world is in recession. Companies are failing. That is when our world class minister of finance decides to raise wages
50,000 My foot. Wages should also be based on people’s ability to pay not just the food basket. Zikakhala zimenezi simuchedwapo.
This thing will haunt you. People will lose their jobs left right and centre. People can’t afford to pay domestics that. Prices will escalate as the Labour cost will be transferred to the consumer. Mwapala
We have incompetence running the government now. These positions need people who understand how economies work. This is running a countryy is not the same as running a church
chokapa mbuzi cadet iwe
Every houseboy who was recieving mwk 50,000 has just lost his job. Where on earth do you expect us to get this money.
Exactly! Tiyamba ma demo a salary increase very soon unless they revise our salaries upwards considerably.
If you’ve maid and guard ndekuti 100k yapita.
Now those hypocrite from Dpp can lean a lesson. It they’ll lean the had way no more lhomwelisation as many of them will be booted out malawi okomela aliyense ❤️❤️❤️❤️
VIVA NEW MALAWI THIRD REPUBLIC GOD BLESS MALAWI.
more money in our pockets
No money in your pockets we will be firing people. Clearly you don’t employ anyone
if you really have anyone working for you then a feel 💯 sorry for them,50 000 is not even a minimum wage that someone can survive on at current cost of living.
The issue is to improve the buying.power and not necessarily increase the wage rate. Simple principles of economics
hehehe unya cadet. Fire the people and lets see how your business will survive.
You dont hire people out of charity. You hire them to help you. u need them as much as they need you
Who said it will have to survive. Basi yatha. Most people can’t pay such. Those who survive will just transfer the cost to the consumer
Excellent!..”An employee is a resource not an expense”
CADETS must consider this, By accounting rules, the cost of workers is treated as an expense on the income statement. In fact, personnel expense is one of the highest costs a company incurs. many managers see this sizable cost every month and conclude that people are expensive. They see people as a problem. By seeing people as a costly expense, these managers think that a quick way to more profits is by reducing people or salaries. They look at employees as an expense or a problem that must be reduced or eliminated.
Great leaders like Chakwera & Chilima see things differently. They consider employees as an asset. In accounting terms, assets are company resources which have future economic value. Instead of seeing employees as a problem, these leaders see them as a valuable resource. They know that people have the capability to grow sales, satisfy customers, improve processes, innovate products, and do countless other things that add money to both the top and bottom line.
Clearly you are just an employee. Join the business world first then start talking. Imagine a simple restuarant in Blantyre like kips. They have probably 10 workers or more. At 50,000 they already have 500,000 to pay. They won’t take that hit. It will just become a part of your food bill