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Overview
Tanzanian Shilling (TZS)
CURRENCY
Dodoma
CAPITAL
PAYROLL FRECUENCY
15
PUBLIC HOLIDAYS
0 to 15
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Tanzania
Employer
Company Payroll Contributions
0% - 4%
Skills Development Levy
0% - 1%
Workers Compensation Fund
0% - 10%
Workers Compensation Fund
0% - 0%
0% - 15%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 10%
National Social Security Fund
0% - 10%
Total Employee Cost
Employee Income Tax in Tanzania
Mainland:
- Up to 270,000 TZS: 0.00%
- 70,001.00 TZS - 520,000.00 TZS: 9.00%
- 520,001.00 TZS - 760,000.00 TZS: 20.00% + 22.500 TZS
- 760,001.00 TZS - 1,000,000.00 TZS: 25.00% + 70.500 TZS
- Over 1,00,001.00 TZS: 30.00% + 130.500 TZS
Zanzibar:
- Up to 180,000.00 TZS: 0.00%
- 180,001 TZS - 360,000 TZS: 9.00%
- 360,001 TZS - 540,000 TZS: 20.00% + 16.200 TZS
- 540,001 TZS + 720,000 TZS: 25.00% + 52.200 TZS
- Over 720,000 TZS: 30.00% + 97.200 TZS
Minimum Wage in Tanzania
General
Minimum pay varies by industry and can be as low as 40,000 TZS for local helpers to as high as 400,000 TZS for businesses engaged in communications, finance, and trade. Companies in Tanzania can use payroll outsourcing services to pay the right minimum wage by using an Employer of Record.
$17 Minimum Wage per month
Payroll Contributions in Tanzania
Payroll Cycle
Employees in Tanzania may receive daily, weekly, bimonthly, or monthly pay according to the employment laws. No later than the last day of the month, workers who obtain a monthly wage get their paycheck. With PEO services businesses can forget about their payroll duties and delegate them to professionals.
13th Salary
The statute makes no mention of thirteenth salary for employees in Tanzania.
Employee Benefit in Tanzania
Companies usually provide health insurance benefits with the support of an Employer of Record in Tanzania.
Visa and work permit in Tanzania
A work permit and a residency permit must be obtained in order to be able to operate in Tanzania as a 3rd party national.
- A: For foreign national employees who wish to make investments in the company, mining, forestry, and social services.
- B: Foreigners with a desired profession who are hired by an organization or institution.
- C: For volunteers, students, and missionaries.
Application for residence permits must be made via the Directory of Immigration Authorities.
The employer submits the application for employment in Tanzania. a completed application form, a copy of a passport, passport images, evidence of bank account information, a signed job contract, a copy of a curriculum vitae, and academic transcripts.
The process to receive the visa often takes up to two months after everything has been completed and the application cost has been paid.
VAT in Tanzania
The standard VAT in Tanzania is 18%. With an Employer of Record in Tanzania, employers can abide by the laws.
Working Hours in Tanzania
General
45 hours, or up to 9 hours every day, make up a full work week. Employees in Tanzania might be expected to put in six days a week.
Overtime
While the total hours performed in a day cannot exceed 12, overtime must be negotiated upon both the employee and employer.
Moreover, overtime is paid at a rate that is at least 150% of the usual pay rate and is restricted to 50 hours each 4-week period.
The pay rate is double the standard rate of pay for work done on holidays. With an EOR or a Professional Employment Organization, employers can provide the overtime payments.
Working Week
Monday to Friday.
Employee Termination in Tanzania
Termination Process
Tanzania requires that written notice of termination include the reason for it as well as the date of termination.
Notice Period
- 7 days' notice is required throughout the first month of employment.
- 4 days for a worker who is paid on a daily or weekly schedule.
- 28 days for a worker who gets paid on a monthly basis.
Another option is to compensate the worker in place of notice.
Severance Pay
Employees who have been with the company for a year are eligible for severance pay. For each year of employment up to a maximum of 10 years, severance pay is equivalent to 7 days of pay.
Probation Period
Tanzanian law does not specify a probationary period; however, it does stipulate that an employee who is let go within the first six months of employment cannot claim unfair dismissal.
Employee Leaves in Tanzania
Paid Time Offs
Workers who have been with the organization for at least six months are eligible for 28 days of paid leave per year.
Public Holidays
There are 15 national holidays throughout the year.
Vacation Holidays
There are 28 vacation holidays throughout the year.
Sick Days
Within a 36-month cycle, workers are eligible for 126 days of sick time with pay. Sick leave is compensated for the first 63 days at 100% of the usual wage and for the remaining 63 days at 50% of the normal paycheck.
Employee must have a medical certificate in order to be eligible for sick time off with pay.
Paternity Leave
For the first seven days of the child's birth, fathers are subject to 3 days of paternity leave.
Paternal Leave
There is no parental leave according to the local laws.
Other Leave
There is no other leave according to the local laws.
Maternity Leave in Tanzania
For 84 days, mothers are eligible to compensated maternity leave. The right to 100 days of maternity leave applies to births of multiple children.
At least three months before the anticipated due date, the mother must notify her employer.
There are 84 leave throughout the year.