Country Payroll Guide Tanzania

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Key Facts

Capital
Dodoma
Date format
mm/dd/yyyy
Currency
Tanzanian Shilling (TZS)
VAT
the standard rate is 18%

Contributions

Employers

Skills Development Levy
Skills Development Levy - 4%
Workers Compensation Fund
Workers Compensation Fund - 0.5% for public sector and 0.6 for private sector.
Total Employment Cost
Total Employment Cost - 4.5% to 4.6%

Employees

National Social Security Fund
National Social Security Fund - 10%
Total Employee Cost
Total Employee Cost - 10%

Minimum Wage

The minimum wage in Tanzania is 40000 to 400000 TZS per month depending on sector.

Payroll

Payroll Cycle
Monthly
13th Salary

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

Income Tax

Employee Income Tax (1)
0 - 270,000 TZS - 0%
Employee Income Tax (2)
270,001 - 520,000 TZS - 9%
Employee Income Tax (3)
520,001 - 760,000 TZS - 20%
Employee Income Tax (4)
760,001 - 1,000,000 TZS - 25%
Employee Income Tax (5)
1,000,001 TZS and above - 30%

Working Hours

General Working Hours

45 hours per 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.

Leave

Paid Time Off

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

Public Holidays

15 days.

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 three months from the expected due date.

Paternity Leave

Fathers are entitled to three days of paid paternity leave within the first seven days of the birth of the child.

Termination

Termination Process

Written notice must be provided and include the reason and termination date.

Notice Period

During the first month of employment, seven days’ notice must be given. For an employee who is employed on a daily or weekly basis, four days’ notice must be given. For an employee who is employed on a monthly basis, 28 days must be given. 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 seven 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 six months of employment.

Visa

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 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 two months.