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Tanzania payroll, hiring, talent management, and compliance requirements for your employees and independent contractors.
Workforce Africa simplifies hiring, payroll, talent management as well as your compliance needs for employees and independent contractors in Tanzania. No need for a subsidiary or entity setup. From contracts and onboarding to taxes, payroll, and admin tasks, partnering with us — the Employer of Record in Tanzania, will help you focus on growth for greater levels of success.
Dodoma, Dar es Salaam, Mwanza
The law allows for a six-month probation period as employees with less than six months of employment are unable to make claims of unjust termination against their employer.
Yes
(TZS) Tanzanian shilling
It ranges from 40,000 TZS for domestic workers to 400,000 TZS in different business sectors.
Swahili, English
Workforce Africa makes it hassle free to hire and manage your remote staff in Tanzania without having to first set up a subsidiary or entity in the country. We handle staff contract management and onboarding, payroll, compliance, taxes, and other administrative matters. With Workforce Africa, you can now focus more on strategic activities and growing your business. These items include >>
Tanzanian labour law mandates that all new hires receive a formal employment contract at the start of their job, except for those who work fewer than six days per month for an employer. This contract may be for a set task, a fixed amount of time, or both.
Payroll Cycle: Workers in Tanzania may receive their pay on a daily, weekly, bi-monthly, or monthly basis. When an employee is paid every Month, their money is disbursed by the end of the Month.
Overtime: The employee and employer must agree on overtime, although a workday cannot exceed 12 hours of total work.
13th-Month Salary: The law makes no mention of the thirteenth salary.
Probation Period: The probationary period for an employment contract is generally limited to twelve (12) months. However, the Employment and Labour Relations (Code of Good Practice) G.N No. 42 allows for an extension of the probation period if the employer still needs to properly assess whether the employee is competent for the job or suitable for employment. This extension should only be granted after consultation with the employee for a reasonable period.
Vacation: Workers are entitled to 28 days of continuous leave each year if they have been with their current employer for at least six months.
Forty-five hours, or up to nine hours daily, comprise a whole work week. Workers in Tanzania could be required to put in six days a week at work.
Tanzania has Sixteen public holidays, seven of which are religious, three are national holidays, two commemorate the death anniversaries of the inaugural leaders of its constituent states, and the remaining four are of other national importance.
New Year’s Day: January 1st
Zanzibar Revolutionary Day: Date varies
Good Friday: Date varies
Easter Monday: Date varies
Eid al-Fitr (End of Ramadan): Date varies
Union Day: April 26th
International Workers’ Day: May 1st
Eid al-Adha (Feast of Sacrifice): Date varies
Saba Saba Day (International trade fair): July 7th
Nane Nane (Farmers’ Day): August 8th
Milad un Nabi (Birth of the Prophet Muhammad): Date varies
Nyerere Day: October 14th
Independence and Republic Day: December 9th
Christmas Day: December 25th
Boxing Day: December 26th
Third-party nationals must obtain both a work permit and a residency permit to work in Tanzania. The type of visa you receive will depend on several things, such as your place of origin and the reason for your visit to Tanzania. It will also dictate how long you can remain in the nation. A permit to work will be granted or denied depending on several factors, including the type of work you plan to do while residing in Tanzania. A Tanzania EoR offers this service to help businesses manage expatriates work and stay in the country.
Maternity leave: Mothers are entitled to compensated maternity leave for eighty-four days. Some are entitled to one hundred days of paid maternity leave in the event of more than one birth. At least three months before the anticipated due date, the woman must notify her employer. Within six weeks of the birth of their kid, female employees are not permitted to work unless a medical professional certifies that they are fit to do so. If the child passes away within a year of birth, the employee is entitled to an additional eighty-four days of paid maternity leave within the leave cycle.
Paternity leave: Within the first seven days following the child’s birth, fathers are entitled to three days of paid paternity leave or parental leave.
Bereavement leave: When a child becomes ill or dies or when a spouse, parent, grandparent, grandchild, or sibling passes away, employees are entitled to at least four days of paid leave.
Both employees and employers contribute to the Social Security scheme:
Employee: 10% of their gross monthly salary
Employer: 10–20% of their gross month payroll
1,620,000
1,620,001 – 4,320,000
4,320,001 – 6,480,000
6,480,001 – 8,640,000
Employers must also pay:
30% tax on taxable profits within Tanzania
3.5% SDL of monthly gross payments of employees. It is only applicable to employers who have a minimum of 10 employees.
Workers’ compensation fund: 1% of each employee’s wages for private sector employers and 0.5% for public sector employers.
Health insurance fosters social security contribution in Tanzania. The employees contribute 3% of their basic pay towards health insurance. Even employers contribute the same amount towards the health insurance of all their employees. Hence, a 6% contribution is made towards health insurance. These benefits include medicines for patients admitted to hospitals, charges for bedding, and outpatient care. There is also public medical insurance, but it is recommended that employers also provide private medical insurance. A Tanzania employer of record can help employers provide medical benefits for employees.
In Tanzania, workers who put in more than 12 hours a day or 50 hours in four weeks must receive 150% of their regular salary from the employer. Furthermore, if an employee is requested to work on a specified holiday, they must be paid 200% of their usual wage rate. Other possible benefits include:
Transportation allowances
Company cell phones
Data and Internet allowances
Meal vouchers
Housing allowance
Year-end bonus
Termination Process: In Tanzania, it is required to give written notice of termination along with the date and reason. One of these reasons can be used to terminate an employee contract: Misconduct, incapacity, incompatibility and employer’s operational needs and layoffs.
These employee groups in Tanzania are shielded from termination:
Employers risk legal action if they fire specific employee categories without following the correct procedures or providing a good reason.
Notice Period: For executives – Seven days’ notice is required throughout the first month of employment. For a worker who is employed on a weekly or daily basis, a four-day notice is required. For a worker paid every month, it is twenty-eight days. Paying the employee in lieu of notice is another option.
Severance Pay: Employees must have worked for the company for a minimum of 12 months to be eligible for severance pay. Severance pay is limited to ten years and is equivalent to seven days’ salary for each year of employment. It is not applicable if an employee is terminated due to misconduct, incapacity, incompatibility with business requirements or if they refuse alternative employment with the same or any other employer. Severance pay does not affect an employee’s entitlement to other termination benefits.
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