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Payroll and Benefits Guide Tanzania

Last updated: Jul 12, 2021

Currency
Tanzanian Shilling
Employer Taxes
Up to 24%
Payroll Frequency
Daily, weekly, bi-monthly, or monthly
Employee Costs
10%
Capital
Dodoma
Date Format
mm/dd/yyyy
Fiscal Year
July 1-June 30
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Contribution

Employer Employer Payroll Contributions
  Up to 20% National Social Security Fund (NSSF) – applied to the Private Sector only. The employer can choose to cover this contribution or split it with the worker (making a combined rate of 20% NSSF total).
  15.00% Public Service Social Security (PSSF) – applied to the Public Sector only.
3.5% Skills Development Levy (applicable only to employers with a minimum of 10 employees)
0.5% Workers Compensation Fund
Up to 24% Total Employment Cost
Employee Employee Payroll Contributions
Up to 10.00% National Social Security Fund (NSSF) – applied to the Private Sector only. Employers can choose to apply this contribution to workers or to cover part or all of this 10% (to reach the combined 20% total NSSF contribution).
5% Public Service Social Security (PSSF) – applied to the Public Sector only.
Up to 10.00% Total Employee Cost
Employee Income Tax
15% Flat rate for non-resident individuals
Mainland:
0.00% 0.00 TZS-270,000 TZS
8.00% 270,001.00 TZS- 520,000.00 TZS
20.00% on the excess of 520,001 TZS + 22,500.00 TZS 520,001.00 TZS-760,000.00 TZS
25.00% on the excess of 760,001 + 70,500.00 TZS 760,001.00 TZS- 1,000,000.00 TZS
30.00% on the excess of 1,000,001.00 TZS + 130,500.00 TZS 1,00,001.00 TZS and over
Zanzibar:
0.00% 0.00 TZS- 180,000.00 TZS
9.00% 180,001 TZS– 360,000 TZS
20.00% on the excess of 180,001 TZS + 16,200 TZS 360,001 TZS- 540,000 TZS
25.00% on the excess of 360,001 TZS + 52,200 TZS 540,001 TZS + 720,000 TZS
30.00% on the excess of 720,001 TZS + 97,200 TZS 720,000 TZS and Above

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The monthly minimum wage varies by industry, from 40,000 TZS for domestic workers, TZS to 400,000 TZS for industries such as financial services, telecommunication, and international companies.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

In Tanzania, employees can be paid daily, weekly, bi-monthly, or monthly. the payroll frequency depends on company policy.

Employees who are paid on a monthly basis receive their salary no later than the end of the month.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

A full work week is 45 hours or up to 9 hours per day. In Tanzania, employees may be required to work 6 days a week.

Overtime

Any hours worked beyond the 45 hour weekly limit are considered as overtime. Overtime must be agreed upon between the employee and employer, however, the total number of hours worked in a day cannot exceed 12 hours.

In addition, overtime is limited to 50 hours in a 4-week period and is paid at the rate of at least 150% of the regular pay rate.

For work on public holidays, the pay rate is 200% of the regular pay.

Leave

Annual Leave (Vacation)

Employees who have been employed for at least 6 months are entitled to 28 days of consecutive leave per year.

Unused leave shall be commuted for cash by 30th December of each year unless written approval to carry forward has been granted by the company.

Public Holidays

When a public holiday falls on a weekend, the following working day is given as a day off in lieu.

Date  Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
12 Jan 2024 Friday Zanzibar Revolution Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
7 Apr 2024 Sunday Karume Day
10 Apr 2024 Wednesday Eid el Fitri Tentative
11 Apr 2024 Thursday Eid el Fitri Holiday Tentative
26 Apr 2024 Friday Union Day
1 May 2024 Wednesday Worker’s Day
17 Jun 2024 Monday Eid al-Adha Tentative
7 Jul 2024 Sunday Saba Saba
8 Aug 2024 Thursday Farmers’ Day
16 Sep 2024 Monday Maulid Tentative
14 Oct 2024 Monday Mwalimu Nyerere Day
9 Dec 2024 Monday Independence Day
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day

Sick Days

Employees are entitled to 126 days of paid sick leave within a 36-month cycle. The first 63 days of sick leave are paid at 100% of the regular salary and thereafter, 50% of the regular salary.

In order to be entitled to sick leave and pay, the employee must provide a medical certificate.

Maternity Leave

Mothers are entitled to 84 days of paid maternity leave. For the birth of more than one child, the entitlement is 100 days of paid maternity leave.

The mother must inform her employer at least 3 months from the expected due date.

Paternity Leave

Fathers are entitled to 3 days of paid paternity leave within the first 7 days of the birth of the child.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

In Tanzania written notice must be provided upon termination that includes the reason and termination date.

Notice Period

  • During the first month of employment- 7 days’ notice
  • For an employee who is employed on a daily or weekly basis– 4 days
  • For an employee who is employed on a monthly basis- 28 days

It is also possible to pay the employee in lieu of notice.

Severance Pay

The employee must have worked for at least 12 months in order to be eligible for severance pay. Severance pay is equal to 7 days’ basic pay for every completed year of employment and is capped at 10 years.

Probation Period

The probation period in Tanzania is set at 6 months. It is possible to extend it further if additional time is needed to assess the workers competency, up to a maximum period of 12 months.

VISA

VISA

In order to work in Tanzania as a third-party national, a work permit and residence permit must be obtained.

  • Class A: For third-party national employees who want to invest in the industry, mining, forest, social services, and business.
  • Class B: Foreigners employed by a company or institution who have a desired profession.
  • Class C: For missionaries, students, volunteers

Residence permits must be applied for through the Directory of Immigration Services.

To apply to work in Tanzania, the application is submitted by the employer. A filled-out application form, passport copy, passport photos, bank information proof, signed employment contract, curriculum vitae copy, academic records.

Once everything has been submitted and an application fee has been paid, the process to obtain the visa usually takes up to 2 months.

VAT

General

18% standard rate.

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Payroll and Benefits Guide in Tanzania

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Payroll and Benefits Guide
in Tanzania

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Tanzania
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ICS
Date  Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
12 Jan 2024 Friday Zanzibar Revolution Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
7 Apr 2024 Sunday Karume Day
10 Apr 2024 Wednesday Eid el Fitri Tentative
11 Apr 2024 Thursday Eid el Fitri Holiday Tentative
26 Apr 2024 Friday Union Day
1 May 2024 Wednesday Worker’s Day
17 Jun 2024 Monday Eid al-Adha Tentative
7 Jul 2024 Sunday Saba Saba
8 Aug 2024 Thursday Farmers’ Day
16 Sep 2024 Monday Maulid Tentative
14 Oct 2024 Monday Mwalimu Nyerere Day
9 Dec 2024 Monday Independence Day
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day