The Malawi Congress of Trade Unions (MCTU) has warned that all employers who have been hoarding pension funds of their workers that they will be taken to court this year. The warning follows an accumulating total of non-remitted pension funds, estimated at over K7 billion.

Failure to pay pension funds is a violation of the The Pension Act 2010, which states that funds remittances are mandatory and employers are mandated to enroll their employees on a pension scheme.

Reserve Bank of Malawi (RBM) spokesperson Mbane Ngwira said the central bank has given employers up June this year to remit the funds. “We started negotiations way back and we have given them up to June to clear these arrears. They are giving varied excuses for not remitting the funds but to the larger extent some claim to have not remitted the funds due to harsh economic conditions. However this may not be acceptable since all companies are working under the same conditions and the economy is on a recovery path.” he said.