Payroll and Benefits Guide Tanzania
Last updated: Jul 12, 2021
Employer Payroll Contributions
|15.00%||Total Employment Cost|
|4.00%||Skills Development Levy|
|1.00%||Workers Compensation Fund|
|10.00%||Workers Compensation Fund|
Employee Payroll Contributions
|10.00%||Total Employee Cost|
|10.00%||National Social Security Fund|
|When applicable||Higher Education Student Loan Board|
Employee Income Tax
|0.00%||0.00 TZS-270,000 TZS|
|9.00%||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|
|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 over|
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)
In Tanzania, employees can be paid daily, weekly, bi-monthly, or monthly.
Employees who are paid on a monthly basis receive their salary no later than the end of the month.
There are no provisions in the law regarding 13th salaries.
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 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.
Paid Time Off
Employees who have been employed for at least 6 months are entitled to 28 days of consecutive leave per year.
There are 15 public holidays in Tanzania.
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.
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.
PAID MATERNITY LEAVE (DAYS)
Fathers are entitled to 3 days of paid paternity leave within the first 7 days of the birth of the child.
In Tanzania written notice must be provided upon termination that includes the reason and termination date.
- 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.
In order to be eligible for severance pay, the employee must have worked for at least 12 months. Severance pay is equal to 7 days’ pay for every year of employment and is capped at 10 years.
The probation period in Tanzania is not outlined in the law, however, the law states that an employee cannot claim unfair dismissal if terminated within the first 6 months of employment.
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.
18% standard rate.
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Public Holidays Calendar
|Saturday||Jan-1||New Year's Day|
|Thursday||Dec-1||Zanzibar Revolutionary Day|
|Monday||Jul-4||The Sheikh Abeid Amani Karume Day|
|Saturday||Feb-5||Festival of Breaking the Fast|
|Wednesday||Sep-7||Feast of the Sacrifice|
|Monday||Aug-8||Nane Nane Day|
|Sunday||Jul-10||Birth of the Prophet|