Payroll and Benefits Guide - Tanzania

Tanzania
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Currency

Tanzanian Shilling (TZS)
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Capital

Dodoma
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Employer Taxes

15.00%

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Date Format

mm/dd/yyyy
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Fiscal Year

1 July – 30 June

Fun Facts

The capital city of Tanzania is Dodoma, but the largest city and main economic hub is Dar es Salaam.

Lake Victoria, the largest lake in Africa, partially lies within the borders of Tanzania.

Serengeti National Park, located in Tanzania, is renowned for the annual migration of millions of wildebeest, zebras, and other animals.

Blue Gradient Background Tanzania is home to Mount Kilimanjaro, the highest peak in Africa.

Swahili is the official language of Tanzania, and English is widely spoken.

Tanzania is home to the world-famous Ngorongoro Crater, a UNESCO World Heritage site.

Tanzania

Contributions

Employee Payroll Tax

Contribution TypeRate
National Social Security Fund10.00%
Higher Education Student Loan BoardWhen applicable

Employer Payroll Tax

Contribution TypeRate
Skills Development Levy4.00%
Workers Compensation Fund1.00%
Workers Compensation Fund10.00%

Payroll

Payroll Cycle

In Tanzania, employees have the flexibility to receive their payment on a daily, weekly, bi-monthly, or monthly basis.

13th Salary

There are no legal provisions regarding 13th salaries.

Work Hours and Week

A complete workweek consists of 45 hours or a maximum of 9 hours per day. Employees in Tanzania may be obligated to work six days 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.

Tanzania

Leave

Paid Time Off

Employees who have completed a minimum of six months of employment are eligible for 28 consecutive days of annual 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

Paternity leave is not mandated by law in Malta.

Parental Leave

Fathers are entitled to 3 days of paid paternity leave within the first 7 days of the birth of the child.

Termination

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

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.

Immigration

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.

VAT

18% standard rate.