Employer of Record in Tanzania

Businesses can only operate smoothly in Tanzania if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Tanzania below, to avoid any compliance issues.

Employment Contract Requirements

The labour laws in Tanzania mandate that all employees, excluding those with less than 6 days of employment, must be provided with a written employment contract, whether it is of a definite or indefinite nature. This contract is required to encompass the following necessary details:

• Identification of the employee
• Place of recruitment
• Job description
• Starting date
• Form and length of contract
• Workplace and working hours
• Compensation and method of calculation
• Benefits and bonuses

Onboarding Process

We can help you get a new employee started in Tanzania quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Tanzania

In Tanzania, a standard work week comprises 45 hours, with a maximum of 9 hours per day. Additionally, employees may be obligated to work for 6 days a week under the applicable labour regulations.

Overtime in Tanzania

In Tanzania, overtime requires mutual agreement between the employee and employer, with a maximum limit of 12 hours worked in a day. The cumulative overtime hours are limited to 50 hours within a 4-week period, compensated at a rate of 150% of the regular pay. On public holidays, the compensation for hours worked is set at 200% of the regular pay rate.

Probation Period in Tanzania

In Tanzania, there is no specific legal requirement for probation periods. However, it is specified that employees cannot assert a claim of unfair dismissal if termination occurs within the initial 6 months of service.

Fiscal Year in Tanzania

1 July - 30 June is the 12-month accounting period that businesses in Tanzania use for financial and tax reporting purposes.

Payroll Cycle in Tanzania

The payroll cycle in Tanzania is usually daily / weekly / bi-weekly / monthly, with employees being paid by the end of the month.

Minimum Wage in Tanzania

The minimum wage for employees in Tanzania is typically 222.22 TZS per hour, amounting to ~40,000 TZS per month for a typical 45 hour work week.

Bonus Payments in Tanzania

There are no legal provisions in Tanzania concerning 13th-month salaries.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 15% on top of the employee salary in Tanzania.

Employee Payroll Tax Contributions

In Tanzania , the typical estimation for employee payroll contributions cost is around 10%.

Individual Income Tax Contributions

Individuals who are residents in Tanzania, excluding short-term residents, are obligated to pay income tax on their global income. The following are employee income taxes in Mainland Tanzania.

Pension in Tanzania

In Tanzania, employees aged 60 or above qualify for old-age pension with a minimum contribution of 180 months (NSSF, LAPF, and PSPF) or 120 months (PPF). Pension can also be received at any age due to permanent emigration, provided covered employment ceases.

Mandatory Leave Entitlement in Tanzania

The annual leave entitlement in Tanzania is 28 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Tanzania

Tanzania observes a total of 15 public holidays in a year:

Paid Time Off in Tanzania

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

Maternity Leave In Tanzania

In Tanzania, pregnant employees are entitled to 84 days of paid maternity leave. If the employee gives birth to two or more children, the leave is extended to 100 days. It is a requirement for the employee to inform her employer at least 3 months before the expected due date.

Paternity Leave In Tanzania

Fathers in Tanzania are entitled to three days of paid paternity leave, to be taken within the first seven days following the birth of the child.

Sick Leave In Tanzania

Employees employed within a 36-month cycle in Tanzania, and who provide a medical certificate, are entitled to 126 days of paid sick leave. The initial 63 days will be compensated at 100% of their regular pay rate, while the following days will be paid at a rate of 50%.

Parental Leave In Tanzania

Tanzania's labor laws provide distinct leave entitlements for mothers and fathers but do not include a shared parental leave policy.

Termination Process in Tanzania

Termination in Tanzania requires the provision of a written notice, which indicates the reason for termination and the specified termination date.

Notice Period in Tanzania

Notice periods in Tanzania, although permissible to be compensated instead, depend on the type of employee service:

• First month of service: 7 days' notice
• Employees on a daily or weekly basis: 4 days' notice
• Employees on a monthly basis: 28 days' notice

Severance in Tanzania

In Tanzania, employees are eligible for severance pay after completing 12 months of service. The severance pay is calculated at 7 days' pay for each year of service, with a maximum cap set at 10 years.