Malawi pension reforms 2010 to date: making out a case for the possibility of pension for the informal sector

• Main Author: Chimpeni, Ethel Sithabile Kansawa
• Format: Others
• Language: en
• Published: 2019
• Online Access: https://hdl.handle.net/10539/26681

Submitted in partial fulfillment of the requirements for the degree of Master of Laws by Coursework and Research Report at the University of Witwatersrand, Johannesburg 2018 === Malawi has a large proportion of its labour force engaged in the informal sector. However, the current pension legislation is designed to meet the needs of the formal sector, thus excluding the majority of the workforce from the protective coverage of the pension legislation. This paper draws lessons on how Malawi could extend pension coverage to informal employees based on case studies from Ghana and Kenya which have successfully extended retirement benefits coverage to informal sector employees. The findings of this research paper reveal that pension schemes primarily designed for the formal sector do not work well for the informal sector. However, minor legislative amendments to the Pension Act and deliberate policy changes create a conducive environment for the establishment of pension funds tailored to meet the unique needs of informal employees. To effectively extend pension overage to the informal employees, products ought to be tailored taking into consideration the unique needs of the target market; in terms of affordability, ease of access, flexibility in remittance and withdrawal periods and practicality of participation by informal employees. === XL2019