Pension arrears bother regulator

By Wezzie Gausi: The rising level of pension arrears has pushed the Registrar of Financial Institutions to issue a fresh warning on employers, who, it says would face disciplinary action of varying degrees. Registrar of Financial Institutions, who is also Reserve Bank of Malawi (RBM) Governor, George Partridge said in a statement that employers are required to remit pension contributions to a pension fund within 14 days after the end of the month in which the liability to make the contributions arises. As at end of December 2025, pension contribution arrears reached K144.5 billion, according to RBM figures. Under provisions of the Pension Act, employees contribute a minimum of 5 percent of pensionable emoluments while employers are required to contribute a minimum of 10 percent. Partridge said employers that fail to remit their contributions within the stipulated period attract a monetary penalty calculated at the RBM policy rate plus 10 percent per annum for each month the contribution remains unremitted. "The registrar is warning all non-compliant employers that enforcement action will be undertaken," Partridge said. He said enforcement measures included monetary penalties of up to K100 million or an amount equivalent to the financial gain generated or loss suffered as a result of the contravention, whichever is greater. The Employers' Consultative Association of Malawi (Ecam) has since expressed concern over continued failure by some employers to remit pension contributions. Ecam Executive Director George Khaki said prevailing economic challenges had made it difficult for some businesses to meet their financial obligations. He said high inflation and persistent foreign exchange shortages had affected companies through reduced demand for goods and services and low productivity, particularly for businesses that depend on imported goods and raw materials. "We also note that there are other employers out there that are not facing challenges but have chosen not to comply with pension provisions," Khaki said. He said Ecam was working with RBM and employers to improve compliance levels for pension laws. According to RBM's December 2025 Financial Stability Report, total pension assets more than doubled from K3.5 trillion in December 2024 to K8.4 trillion in December 2025. Pension contributions increased by 35.4 percent from K260.3 billion in 2024 to K352.4 billion in 2025, while pension membership rose from 645,191 to 750,253 over the same period. Much of the increase in pension assets was driven by gains in listed equities, which were valued at K6.4 trillion at the end of 2025. Listed equities accounted for 76.9 percent of pension sector investments, showing that a large proportion of retirement savings is invested in the Malawi Stock Exchange.

WIRE — By Wezzie Gausi: The rising level of pension arrears has pushed the Registrar of Financial Institutions to issue a fresh warning on employers, who, it says would face disciplinary action of varying degrees. Registrar of Financial Institutions, who is also Reserve Bank of Malawi (RBM) Governor, George Partridge said in a statement that employers are required to remit pension contributions to a pension fund within 14 days after the end of the month in which the liability to make the contributions arises. As at end of December 2025, pension contribution arrears reached K144.5 billion, according to RBM figures. Under provisions of the Pension Act, employees contribute a minimum of 5 percent of pensionable emoluments while employers are required to contribute a minimum of 10 percent. Partridge said employers that fail to remit their contributions within the stipulated period attract a monetary penalty calculated at the RBM policy rate plus 10 percent per annum for each month the contribution remains unremitted. "The registrar is warning all non-compliant employers that enforcement action will be undertaken," Partridge said. He said enforcement measures included monetary penalties of up to K100 million or an amount equivalent to the financial gain generated or loss suffered as a result of the contravention, whichever is greater. The Employers' Consultative Association of Malawi (Ecam) has since expressed concern over continued failure by some employers to remit pension contributions. Ecam Executive Director George Khaki said prevailing economic challenges had made it difficult for some businesses to meet their financial obligations. He said high inflation and persistent foreign exchange shortages had affected companies through reduced demand for goods and services and low productivity, particularly for businesses that depend on imported goods and raw materials. "We also note that there are other employers out there that are not facing challenges but have chosen not to comply with pension provisions," Khaki said. He said Ecam was working with RBM and employers to improve compliance levels for pension laws. According to RBM's December 2025 Financial Stability Report, total pension assets more than doubled from K3.5 trillion in December 2024 to K8.4 trillion in December 2025. Pension contributions increased by 35.4 percent from K260.3 billion in 2024 to K352.4 billion in 2025, while pension membership rose from 645,191 to 750,253 over the same period. Much of the increase in pension assets was driven by gains in listed equities, which were valued at K6.4 trillion at the end of 2025. Listed equities accounted for 76.9 percent of pension sector investments, showing that a large proportion of retirement savings is invested in the Malawi Stock Exchange.

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