Payroll and Benefits Guide Tanzania

Employer

Employer Payroll Contributions

Employee

Employee Payroll Contributions

Employee Income Tax

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.

Payroll Cycle

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.

13th Salary

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

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

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.

Working Week

Monday–Friday

Paid Time Off

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

Public Holidays

There are 15 public holidays in Tanzania.

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.

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

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.

Probation Period

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.

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.

General

18% standard rate.