Regulatory Alerts2025-01-01
Pension (Pensionable Emoluments) Directive 2025
Issued by Dr. MacDonald Mafuta Mwale, Registrar of Financial Institutions under the Pension Act 2023, this directive establishes the definitive framework for calculating pension contributions by specifying eligible and excluded emoluments. Pensionable emoluments now encompass guaranteed wages, regular commissions, and cash allowances per employment contracts, with housing allowances included only when exceeding forty percent of guaranteed wages. The directive explicitly excludes various payments such as overtime, travel, benefits in kind, discretionary bonuses, and allowances for tools or housing provision, thereby revoking the 2014 directive to standardize contribution calculations across Malawian financial institutions.
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