Government Set to Roll Out Worker’s Compensation Fund Administration

The government says it is now set to roll out the operationalization of the workers’ compensation fund later this year.

Principal Secretary in the ministry of labour, Wezzie Kayira, disclosed this in an interview during a sensitization workshop on the establishment of workers compensation fund organised by the employers’ consultative association of Malawi ( ECAM) in Blantyre.

Kayira said the government has currently pumped in a seed money of MK100 million in the 2022/2023 national financial year for the fund to take off the ground this year.

However, Kayira said the seed money is against the in estimated total budget of MK1.5 billion for the fund to adequately operate.

“We are now set to roll out the fund administration. Currently, we are engaging with various stakeholders to consult them on the fund which will be operated similar to that of pension fund scheme,” said Kayira

Among others, Kayira said the national consultative meetings target the insurance companies, lawyers, medical officers and employers who will sit in the board of the fund administration.

The principal Secretary said the fund will be an autonomous body to harmonise the compensation Act.

“The fund will be distributed after the employers have settled the claims. This will go towards addressing the alarming cases of workers complaints on compensation after the injury at the workplace ” said Kayira

According to Kayira, Malawi is one of the SADC member states which has been without the workers’ compensation fund for the past twenty years.

In a separate interview, the President for the employers association of Malawi (ECAM), Anne Chavula, said the fund would help to address some of the challenges such as the fraudulent claims.

“Fraudulent claims has become common amongst the employers who connive with the lawyers, insurance agencies and the medical officers. Therefore, this fund will help to address such cases,” she said.

Chavula said the fund will also enhance the social protection system amongst the employees.

” Decent work is about promoting jobs and protecting people. This is enshrined in the Malawi decent work country program number 2 which emphasises on social protection, ” said Chavula.

The employers consultative association of Malawi( ECAM), was established to promote, protect and give guide the interests of employers in the country under labour relations Act of 1996.

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