Study to inform the selection of an appropriate wage rate for public works programmes in Malawi

The Malawi Government, with assistance from the Department for International Development (DfID) of the Government of the United Kingdom, is implementing an Inception Phase for the National Safety Nets Programme (NSNP). The NSNP constitutes Pillar III of the Malawi Poverty Reduction Strategy (MPRS). The overall goal of the Malawi National Safety Nets Programme is to improve the livelihoods of the most vulnerable and marginalised groups in society by enhancing their productivity thereby increasing their self reliance through such programmes like the Public Works Programme (PWP) and the Targeted Inputs Programme. According to 1998 consumption data, 65 per cent of the population is poor, and 28 per cent are living in ‘dire’ poverty, characterised by persistent food insecurity and declining livelihood sustainability. MASAF was established in 1995 in order to contribute to the Government of Malawi’s objectives of alleviating poverty. Its programme evolved in conjunction with the development of the Government’s Decentralisation Policy of 1998, the National Safety Net Strategy (NSNS) adopted in 2001, and the Poverty Reduction Strategy in April 2002. The current design of the MASAF programme (MASAF III) is based on the principles of Community Driven Development which include empowering communities and local governments.

The study came about in response to concerns raised by PWP workers, implementing agencies and donors that the wage rate paid by public works programmes in Malawi might not be consistent with the policy objective of improving livelihoods.

The specific objectives of this study were to:

• develop a replicable and robust process with clear criteria for determining an appropriate wage rate
• provide recommendations for a revised wage level
• review the objectives of PWPs in relation to the need to address longer term livelihood promotion.

The authors recommend/conclude that wage levels are found to be highly variable across the sector, with the lowest being the MASAF wage, which was set in 2001 and has lost 30 per cent of its value since this time. If it were to keep pace with the minimum wage inflated to 2004 values, it would need to be raised to MK54.